Shell LNG sales rise but profits plunge by a third

Shell’s LNG division was one of the few bright spots in its latest Q2 results with sales rising from 16.5 megatonnes (MT) in the first quarter to 17.8MT in the second. Liquefaction volumes rose slightly from 6.6MT to 6.7MT.

But Shell’s adjusted earnings of $4.5bn for the second quarter were down from , with half-yearly earnings totalling $9.8bn, and were down 32% year-on-year. CEO Wael Sawan said geopolitical and economic uncertainty continue to have a knock-on effect on commodity prices and margins.

The recent launch of cargoes from ’s 14 mtpa facility provides 10-day shipping routes into key Asian markets.

Sawan said, “Its strategic location on the west coast brings feedstock advantages and greater marketing flexibility, including transit routes to Asia which are more than 50% shorter than from the US Gulf Coast. We said that we will grow LNG sales between 4 to 5% and LNG Canada is expected to play a big part in that.”