Shell expects to add 12 million tons of LNG capacity volumes by the end of the decade from projects currently under construction, a top executive at the world’s largest LNG trader said on Wednesday.
“(There is) up to 12 million tons of additional (LNG) capacity that we’re adding between now and the end of the decade,” Cederic Cremers, President Integrated Gas at Shell, said at Wood Mackenzie’s conference Gas, LNG & The Future of Energy 2025, as carried by Reuters.
The additional capacity will come from projects in Canada, Qatar, Nigeria, and the United Arab Emirates (UAE), Shell’s Cremers said at the industry event in London.
The UK-based supermajor, which is the world’s biggest LNG trader with 65 million tons of LNG delivered to over 30 countries last year, is adding further capacity via third-party deals, acquisitions, and participation in LNG projects.
Shell is a partner of Qatar’s state firm QatarEnergy in some trains of the mega expansion of the North Field, the world’s biggest natural gas field shared by Qatar and Iran.
Shell also owns 40% and is the operator of the LNG Canada project. LNG Canada at Kitimat, British Columbia, has received its first import cargo of liquefied gas that it will use for equipment testing as the facility nears completion, scheduled for later this year. LNG Canada is the country’s first project for the export of superchilled fuel, with a focus on Asian markets as the biggest demand driver.
Shell has also recently bought Singapore-based LNG trading firm Pavilion Energy to boost its gas trading business.
The world’s top LNG trader said in its annual LNG report earlier this year that global LNG demand is set to surge by 60% through 2040, pushed up by Asia’s economic growth. The other key drivers of LNG consumption growth will be the push for emissions reductions in heavy industry and transport, as well as the impact of artificial intelligence (AI) on power demand, according to the UK-based supermajor.
By Tsvetana Paraskova for Oilprice.com
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