Liquefied natural gas (LNG) is set to be Shell’s biggest contribution to the energy industry over the next decade in terms of value. The popular oil company plans to cut emissions from fossil fuel production in the near future.
Speaking at an Economic Club of New York event, Shell CEO Wael Sawan revealed that the focus on natural gas will improve the company’s financial performance against its peers in Europe and the U.S.
According to him, since he took over as CEO in January 2023, there has been an intentional pivoting away from renewables in the form of backing out of a number of wind, solar and other low-carbon ventures.
He maintained that LNG is one of the most effective fuels when it comes to reducing global emissions since it can easily replace coal in nations like India and China.
Sawan noted that he expects demand for the superchilled fuel to increase by 60% between now and 2040, with LNG making up about 20% of global natural gas sales by then, up from around 13% as of today.
“We are absolutely committed to this sector,” he said, stating that the company has a list of LNG projects planned in Abu Dhabi, Nigeria and elsewhere.
The CEO, who paid Vancouver a visit last week to launch Shell’s LNG Canada facility, disclosed that the company is currently considering a few factors before making a final investment decision on a 2nd phase of the project.
He appreciated the Canadian government for its unwavering support at both the provincial and national levels.
Sawan concluded by saying that he is looking forward to the project yielding great results in the coming years.
“I don’t think I’ve ever seen the stars as well aligned as I see now in Canada. Everyone is really keen on that project materializing.
The number of final investment decisions being taken surprises me, if I’m honest, because it’s at the higher end of the cost curve. So it’s not economically fully rational.
Therefore, we need to be able to then judge when is the right time to bring more capacity,” he added.
