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
Exclusive: TPL Eyes Midland Growth to Replicate Delaware Basin Success
2024-10-29 - Texas Pacific Land CFO Chris Steddum discusses the company's approach to acquisitions in both the Delaware and Midland basins, and TPL's selective strategy when evaluating deals, in this Hart Energy Exclusive interview.
Utica Oil Riches’ Biggest Challenge: Moving the Crude
2024-10-28 - Leslie Armentrout, the president and co-founder of Silver Cross Energy Partners discusses the opportunities of the Central Basin Platform and Utica—and the challenges.
Rising Phoenix: The Anti-Permian Minerals Firm Buying … Permian
2024-09-13 - Rising Phoenix Minerals CEO Jace Graham said his boutique firm isn’t getting any bigger: The company doesn’t need a squad of infantry when “we’ve got a team of snipers.”
Non-op Rising: NOG’s O’Grady, Dirlam See Momentum in Co-purchase M&A
2024-09-05 - Non-operated specialist Northern Oil & Gas is going after larger acquisitions by teaming up with adept operating partners like SM Energy and Vital Energy. It’s helping bridge a capital gap in the upstream sector, say NOG executives Nick O’Grady and Adam Dirlam.
Building a Better Non-op? Control the Purse Strings, Executives Say
2024-08-27 - As they trail E&Ps in the public markets, some non-operated oil and gas companies are taking firmer control of drilling decisions as executives look to reinvent their business model.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.