Shell gets moving on Australian LNG

Getting engineering awards out for a liquefied natural gas project in Australia is a milestone for project development, Royal Dutch Shell said.Arrow Energy, a joint venture between PetroChina and Royal Dutch Shell, said a front-end engineering design contract was given to an international consortium comprising the Chiyoda Corp., Chicago Bridge and Iron and Saipem."This is an important milestone for the project," Ann Pickard, country chair of Shell in Australia, said in a statement.Both parts planned for Arrow's LNG plant will be able to produce as much as 4 million tons of LNG per year for exports from the Australian market.Liquefied natural gas can be delivered to more diverse markets than conventional gas, which requires pipelines that sometimes pass through politically sensitive or dangerous territory.Shell expects the demand for natural gas to double by 2030. LNG demand could double within 10 years.Shell said it aims to spend $30 billion during the next five years in Australia.