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Released July 09, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A string of offtake agreements, new developments and U.S. natural gas ascendency in Europe have done little to soothe Shell plc's (London, England) nerves, with the supermajor warning of underperformance during the second quarter.
Shell in an update on second quarter activity revised the outlook lower for its integrated gas business. The company changed its second-quarter outlook guidance for liquefied natural gas (LNG) volumes to 6.4-6.8 million tons from 6.3-6.9 million tons. Using the top range of those guidance numbers, the guidance was lowered by about 1.4%. In comparison, LNG volumes for the first quarter averaged 6.6 million tons.
That's an about-face from first-quarter sentiment. 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.
Wael Sawan, the chief executive officer at Shell, said later at an investor's conference in March that his company aims to become the world leader in natural gas.
Shell said during the first quarter that 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. Its spending targets were lowered as well.
Shell provided no explanation for the revisions to its integrated gas projections, though the market may be getting bloated. The International Energy Agency said last year that a rush of new projects could eat into exporter returns. Supplies, the agency said, are expected to outstrip demand possibly into 2050.
That advisory preceded the return of Donald Trump to the U.S. presidency. Scrapping renewable priorities from his predecessor, the Trump administration has signed off on a handful of LNG export projects in the United States.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.
The United States is the world leader in LNG exports, recently surpassing Russia to take the No. 2 spot behind Norway in terms of market share in the European Union. For Europe, LNG imports during the first quarter were up 11% compared with the same period last year, with the U.S. accounting for 54% of those deliveries, a report from the European Commission found.
Shell, meanwhile, recently heralded the debut delivery from the LNG Canada facility in British Columbia. Shell, the largest of LNG Canada's stakeholders, expects the Asian economies to take up most of the gas from the facility, particularly as they shift away from coal for power generation.
Shell holds a 40% stake in LNG Canada, alongside Malaysia energy company Petronas (Kuala Lumpur) and a handful of Chinese, Japanese and Korean businesses.
Subscribers can click here for the LNG Canada project reports.
The company in the first quarter 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.
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).
Shell in an update on second quarter activity revised the outlook lower for its integrated gas business. The company changed its second-quarter outlook guidance for liquefied natural gas (LNG) volumes to 6.4-6.8 million tons from 6.3-6.9 million tons. Using the top range of those guidance numbers, the guidance was lowered by about 1.4%. In comparison, LNG volumes for the first quarter averaged 6.6 million tons.
That's an about-face from first-quarter sentiment. 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.
Wael Sawan, the chief executive officer at Shell, said later at an investor's conference in March that his company aims to become the world leader in natural gas.
Shell said during the first quarter that 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. Its spending targets were lowered as well.
Shell provided no explanation for the revisions to its integrated gas projections, though the market may be getting bloated. The International Energy Agency said last year that a rush of new projects could eat into exporter returns. Supplies, the agency said, are expected to outstrip demand possibly into 2050.
That advisory preceded the return of Donald Trump to the U.S. presidency. Scrapping renewable priorities from his predecessor, the Trump administration has signed off on a handful of LNG export projects in the United States.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.
The United States is the world leader in LNG exports, recently surpassing Russia to take the No. 2 spot behind Norway in terms of market share in the European Union. For Europe, LNG imports during the first quarter were up 11% compared with the same period last year, with the U.S. accounting for 54% of those deliveries, a report from the European Commission found.
Shell, meanwhile, recently heralded the debut delivery from the LNG Canada facility in British Columbia. Shell, the largest of LNG Canada's stakeholders, expects the Asian economies to take up most of the gas from the facility, particularly as they shift away from coal for power generation.
Shell holds a 40% stake in LNG Canada, alongside Malaysia energy company Petronas (Kuala Lumpur) and a handful of Chinese, Japanese and Korean businesses.
Subscribers can click here for the LNG Canada project reports.
The company in the first quarter 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.
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).
