Shell continues to strongly believe in LNG, the company’s CEO Wael Sawan said March 18 in Houston during CERAWeek by S&P Global.
Sawan said the fuel source would be used as a backfill for coal, particularly in Asia, for energy security, adding that LNG currently makes up around 13% of gas sales but was expected to grow to around 20% in the coming 15 to 20 years.
The bulk of that growth is related to coal-to-gas switching in certain Asian countries such as Vietnam and Bangladesh where the current infrastructure is gas-based because of domestic production in the past, Sawan said. As reserves decline, LNG can allow those countries to fully utilize their infrastructure, he said.
“The key point will be on the prices of LNG,” Sawan said as “LNG is expected to grow 50% from today to around 650 million [tonnes per annum] to 760 million tonnes per annum by [2040].”
“You have supply coming out of the U.S. and Qatar, the two big giants in that space for now depending on where the [U.S.] administration goes with the long-term LNG pause.”
Shell expects to see good LNG supply in the second half of this decade.
“We see a huge amount of latent demand for LNG at the right price point. So, what will happen is there will be a huge amount of uptake in places like India, in places like southeast Asia and China of course,” Sawan said.
Recommended Reading
Marketed: Bendel Ventures 73 Well Package in Texas
2024-03-05 - Bendel Ventures LP has retained EnergyNet for the sale of a 73 well package in Iron and Reagan counties, Texas.
Marketed: EnCore Permian Holdings 17 Asset Packages
2024-03-05 - EnCore Permian Holdings LP has retained EnergyNet for the sale of 17 asset packages available on EnergyNet's platform.
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.
Oilfield Service Companies Dril-Quip, Innovex to Merge
2024-03-18 - Dril-Quip Inc. and Innovex Downhole Solutions Inc. will emerge as a new company, Innovex International, with expanded reach in global markets.
Talos Energy Sells CCS Business to TotalEnergies
2024-03-18 - TotalEnergies’ acquisition targets Talos Energy’s Bayou Bend project, and the French company plans to sell off the remainder of Talos’ carbon capture and sequestration portfolio in Texas and Louisiana.