Shell having second thoughts on Australian LNG investments
Shell hinted that cost overruns threaten a A$20 billion project. So far, they say it`s a delay but that`s how it always starts.
Shell is also warning that a $43 billion LNG project in Western Australia is behind schedule and could cost A$20 billion more than forecast.
These projects will ultimately be completed but enormous cost overruns and uncertain global demand will snuff out the investment pipeline. In order to remain at these lofty levels, AUD needs an unending flow of investment but there are overwhelming signs that the pipeline will begin to run dry next year.