Shell to expand LNG capacity by 12 million tonnes by 2030
The world's largest liquefied natural gas trader Shell will boost its production capacity by up to 12 million metric tonnes between now and 2030, the company has announced.
Cederic Cremers, Shell's president of integrated gas, emphasised that the expansion represents concrete projects already under construction rather than mere aspirations. "That is not an ambition. Those are all projects that are currently in construction," Cremers stated.
The expansion encompasses developments across multiple continents, including one project in Canada, two in Qatar, and additional facilities in Nigeria and the United Arab Emirates. This significant capacity increase will strengthen Shell's already dominant position in the global LNG market.
Currently, analysts estimate Shell purchases approximately 70 million metric tonnes of contractual LNG annually. The company's LNG Marketing and Trading division delivered nearly 65 million tonnes to more than 30 countries globally last year, according to Shell's website, demonstrating its extensive global reach and distribution network.
Cremers explained that Shell is building capacity through strategic acquisitions, including the recent completion of the Pavilion Energy deal in Singapore at the end of the first quarter, alongside contracts with third-party suppliers. This multi-pronged approach allows Shell to diversify its supply sources whilst maintaining operational flexibility.
Looking ahead to 2030, he noted that 60% of new supply will originate from the United States and Qatar, with demand primarily driven by Asia and sectors that are difficult to electrify, such as shipping and heavy manufacturing.
Shell projects global LNG demand will surge by around 60% by 2040, fuelled by Asian economic growth, artificial intelligence's impact on energy consumption, and decarbonisation efforts in heavy industries and transportation sectors.
The announcement comes as governments worldwide seek cleaner alternatives to coal and oil, positioning LNG as a crucial transitional fuel in the global energy mix.
