By Ejekwu Chidiebere
Still Reuters reporting that the world’s largest trader of liquefied natural gas – Shell, has said that it would put additional 12 million metric tons to its existing capacity from its projects under construction between now and the end of the decade, a top executive of the Company was reported to have 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, Shell’s President of integrated gas was quoted to have said at Woodmac’s Gas, LNG and the Future of Energy Conference in London.
“That is not an ambition. Those are all projects that are currently in construction,” he said.
The projects as Energy Window International (Media) learnt will include one in Canada, two in Qatar, and others in Nigeria and the United Arab Emirate (UAE).
Analysts were also reported to have estimated Shell as maintaining a current buyer portfolio of around 70 million metric tons per annum of contractual LNG. A that the Company’s LNG Marketing and Trading delivered, only last year, nearly 65 million tonnes of LNG to more than 30 countries across the globe.
Cremers was also reported to have said that Shell was building up its capacity to supply customers through acquisitions such as the Pavilion Energy deal in Singapore, which it completed by the end of the first quarter, and via contracts with third-party suppliers.
He added that by 2030, 60% of the new supply would come from the US and Qatar, with demand stemming mainly from Asia and from sectors that are hard to electrify.
The global LNG demand according to Shell is estimated to rise by around 60% by 2040, to be largely driven by economic growth in Asia, the impact of artificial intelligence, and efforts to cut emissions in heavy industries and transportation.