A Review of the Nigerian Energy Industry

Shell looks to lower LNG supply costs to $5/mmBtu


04 December 2017, Sweetcrude, Lagos – The Royal Dutch Shell is desirous of lowering liquefied natural gas, LNG, supply unit costs of its new projects towards $5/mmBtu, Shell’s head of integrated gas unit, Maarten Wetselaar, has said.

He spoke during a briefing discussing the company’s new strategy in London, during which he noted that the key to new LNG export projects coming to fruition is the factor of lowering costs.

According to him, while LNG demand continues to grow, the flow of final investment decisions for new projects has almost stopped .

He said: “A more complex competitive environment has developed, in which the strongest projects, sponsored by the strongest players are more likely to be developed,” adding: “Our aspiration is to lower the all-in LNG supply unit costs of our new projects towards $5/mmBtu.

“Some of these opportunities, like LNG Canada and Lake Charles, are post-FEED, and near-term investable if we choose to go ahead.

“Others, such as Abadi or Browse in Asia Pacific, or Tanzania in Eastern Africa, are pre-FEED and therefore medium-term investment options”.

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