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Shell (SHEL) Resumes Maintenance at Norway's Nyhamna Gas Plant
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Shell plc (SHEL - Free Report) announced that it has resumed maintenance work at the Nyhamna gas processing plant in Norway. This news came after a brief postponement of the facility’s operations due to a problem with its cooling system. The temporary halt caused a decrease in gas output, impacting energy supplies in Europe and leading to a rise in British and Dutch gas prices.
Background
Nyhamna gas processing plant, situated in Norway, serves as a crucial source of energy for Europe. It plays a vital role in processing and exporting gas from the Ormen Lange and Aasta Hansteen fields in the Norwegian Sea.
With an export capacity of 84 million standard cubic meters, Nyhamna is a key contributor to the region’s natural gas supply. However, the cooling system issue had a significant impact on its gas output.
Given Norway's significant position as Europe's leading gas supplier, the reduced output put additional pressure on energy supplies across the region. This prompted the need for resuming maintenance work at the aforementioned gas processing plant.
During a routine cleaning process, a gas containing hydrogen was discovered in the water-based cooling system. It is important to note that this gas formation was not related to the natural gas typically processed and exported from Nyhamna. In order to ensure the safety of the facility and its workers, Shell decided to stop all non-essential work and drain the cooling system.
Resuming Maintenance Work
After implementing the necessary measures to address the cooling system issue, Shell resumed maintenance work at the Nyhamna gas processing plant. The company has taken steps to guarantee the safe execution of the planned maintenance activities. It is worth mentioning here that the original restart date for the upkeep was Jun 21, but then postponed until Jul 15.
Persisting Challenges
Although the maintenance work has resumed, the situation at Nyhamna still remains complex. Investigations into the cooling system problems are ongoing, with local and international experts joining forces to resolve the issue. Shell is committed to resolving the technical challenges and ensuring the safe operation of the facility.
Conclusion
As a key player in the energy industry, Shell's efforts toward fixing technical flaws and ensuring the stability of gas supplies in the European market are commendable.
Evolution Petroleum: EPM is worth approximately $280.79 million. EPM currently pays a dividend of 48 cents per share, or 5.69% on an annual basis.
The company currently has a forward P/E ratio of 7.64. In comparison, its industry has an average forward P/E of 19.90, which means EPM is trading at a discount to the group.
Archrock: AROC is valued at around $1.58 billion. It delivered an average earnings surprise of 8.34% for the last four quarters and its current dividend yield is 5.96%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
NGL Energy Partners: NGL is valued at around $498.68 million. In the past year, its shares have risen 133.3%.
The company currently has a forward P/E ratio of 4.34. In comparison, its industry has an average forward P/E of 13.80, which means NGL is trading at a discount to the group.
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Shell (SHEL) Resumes Maintenance at Norway's Nyhamna Gas Plant
Shell plc (SHEL - Free Report) announced that it has resumed maintenance work at the Nyhamna gas processing plant in Norway. This news came after a brief postponement of the facility’s operations due to a problem with its cooling system. The temporary halt caused a decrease in gas output, impacting energy supplies in Europe and leading to a rise in British and Dutch gas prices.
Background
Nyhamna gas processing plant, situated in Norway, serves as a crucial source of energy for Europe. It plays a vital role in processing and exporting gas from the Ormen Lange and Aasta Hansteen fields in the Norwegian Sea.
With an export capacity of 84 million standard cubic meters, Nyhamna is a key contributor to the region’s natural gas supply. However, the cooling system issue had a significant impact on its gas output.
Given Norway's significant position as Europe's leading gas supplier, the reduced output put additional pressure on energy supplies across the region. This prompted the need for resuming maintenance work at the aforementioned gas processing plant.
During a routine cleaning process, a gas containing hydrogen was discovered in the water-based cooling system. It is important to note that this gas formation was not related to the natural gas typically processed and exported from Nyhamna. In order to ensure the safety of the facility and its workers, Shell decided to stop all non-essential work and drain the cooling system.
Resuming Maintenance Work
After implementing the necessary measures to address the cooling system issue, Shell resumed maintenance work at the Nyhamna gas processing plant. The company has taken steps to guarantee the safe execution of the planned maintenance activities. It is worth mentioning here that the original restart date for the upkeep was Jun 21, but then postponed until Jul 15.
Persisting Challenges
Although the maintenance work has resumed, the situation at Nyhamna still remains complex. Investigations into the cooling system problems are ongoing, with local and international experts joining forces to resolve the issue. Shell is committed to resolving the technical challenges and ensuring the safe operation of the facility.
Conclusion
As a key player in the energy industry, Shell's efforts toward fixing technical flaws and ensuring the stability of gas supplies in the European market are commendable.
Zacks Rank and Key Picks
Currently, SHEL carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum (EPM - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Archrock (AROC - Free Report) and NGL Energy Partners (NGL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum: EPM is worth approximately $280.79 million. EPM currently pays a dividend of 48 cents per share, or 5.69% on an annual basis.
The company currently has a forward P/E ratio of 7.64. In comparison, its industry has an average forward P/E of 19.90, which means EPM is trading at a discount to the group.
Archrock: AROC is valued at around $1.58 billion. It delivered an average earnings surprise of 8.34% for the last four quarters and its current dividend yield is 5.96%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
NGL Energy Partners: NGL is valued at around $498.68 million. In the past year, its shares have risen 133.3%.
The company currently has a forward P/E ratio of 4.34. In comparison, its industry has an average forward P/E of 13.80, which means NGL is trading at a discount to the group.