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Released March 27, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The head of Shell plc (NYSE:SHEL) (London, England) said this week that he wants the company to become a liquefied natural gas (LNG) powerhouse, aiming for steady expansion through the end of the decade.
"We want to become the world's leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production," Wael Sawan, the chief executive officer at Shell, told investors at its Capital Markets Day on Tuesday.
In February, Shell released its annual forecast on the global sector for LNG, showing global demand could increase 60% from current levels by 2040, with much of the appetite coming from the growing economies of Asia.
Tariff threats from U.S. President Donald Trump, meanwhile, sparked something of an LNG arms race in North America. Canada, which depends heavily on U.S. trade, is expected to deliver debut cargoes from an LNG facility in British Columbia soon, while Trump is pressing for LNG in Alaska. Both are trying to tap Asian demand, although China recently halted imports of LNG from the U.S. amid tariff concerns.
On Tuesday, Shell said it was aiming to expand its LNG sales volume by as much as 5% per year through 2030. Volumes so far have been fluid for the company, but have stayed largely above 3.9 billion cubic feet per day since 2022.
Last year, the company made a final investment decision on the Manatee gas complex offshore Trinidad and Tobago. Production is set to begin in 2027 and yield about 600 million cubic feet per day of natural gas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for the Manatee Field Development and click here for the plant profile.
Shell told investors that Manatee will play a key role in supporting the Atlantic LNG Production Plant in Trinidad and Tobago. Shell, BP plc (NYSE:BP) (London, England) and the National Gas Company of Trinidad and Tobago are working to clean, repair and replace obsolete equipment, with completion expected by March 2027. Subscribers can learn more by viewing the project report and plant profile.
The LNG market, however, may be bloated. Weaker natural gas prices last year ate into the margins for LNG trade due to lackluster demand. The U.S. benchmark Henry Hub natural gas price averaged $2.21 per million British thermal units last year, the lowest average price when adjusted for inflation ever recorded by the U.S. Department of Energy.
Shell reported adjusted earnings for fourth-quarter 2024 of $3.7 billion, compared with $6 billion during the same period in 2023. Sale volumes for LNG, meanwhile, declined 8% from third quarter levels.
For its integrated gas business, the company lowered its upstream production guidance from about 1.8 million barrels of oil equivalent per day (BOE/d) to 1.79 million BOE/d on the low end.
Shell said Tuesday it was aiming to cut costs by about $3 billion by the end of this year, and that amount could reach $7 billion by the end of 2028. It's spending targets were lowered as well.
Subscribers can click here for the project reports mentioned in this article and click here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"We want to become the world's leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production," Wael Sawan, the chief executive officer at Shell, told investors at its Capital Markets Day on Tuesday.
In February, Shell released its annual forecast on the global sector for LNG, showing global demand could increase 60% from current levels by 2040, with much of the appetite coming from the growing economies of Asia.
Tariff threats from U.S. President Donald Trump, meanwhile, sparked something of an LNG arms race in North America. Canada, which depends heavily on U.S. trade, is expected to deliver debut cargoes from an LNG facility in British Columbia soon, while Trump is pressing for LNG in Alaska. Both are trying to tap Asian demand, although China recently halted imports of LNG from the U.S. amid tariff concerns.
On Tuesday, Shell said it was aiming to expand its LNG sales volume by as much as 5% per year through 2030. Volumes so far have been fluid for the company, but have stayed largely above 3.9 billion cubic feet per day since 2022.
Last year, the company made a final investment decision on the Manatee gas complex offshore Trinidad and Tobago. Production is set to begin in 2027 and yield about 600 million cubic feet per day of natural gas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for the Manatee Field Development and click here for the plant profile.
Shell told investors that Manatee will play a key role in supporting the Atlantic LNG Production Plant in Trinidad and Tobago. Shell, BP plc (NYSE:BP) (London, England) and the National Gas Company of Trinidad and Tobago are working to clean, repair and replace obsolete equipment, with completion expected by March 2027. Subscribers can learn more by viewing the project report and plant profile.
The LNG market, however, may be bloated. Weaker natural gas prices last year ate into the margins for LNG trade due to lackluster demand. The U.S. benchmark Henry Hub natural gas price averaged $2.21 per million British thermal units last year, the lowest average price when adjusted for inflation ever recorded by the U.S. Department of Energy.
Shell reported adjusted earnings for fourth-quarter 2024 of $3.7 billion, compared with $6 billion during the same period in 2023. Sale volumes for LNG, meanwhile, declined 8% from third quarter levels.
For its integrated gas business, the company lowered its upstream production guidance from about 1.8 million barrels of oil equivalent per day (BOE/d) to 1.79 million BOE/d on the low end.
Shell said Tuesday it was aiming to cut costs by about $3 billion by the end of this year, and that amount could reach $7 billion by the end of 2028. It's spending targets were lowered as well.
Subscribers can click here for the project reports mentioned in this article and click here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
