02 December 2017, News wires – The Hague-based LNG giant Shell sees a bright future for the global liquefied natural gas industry, however, the company will think twice prior to taking a final investment decision for a new liquefaction project due to the market conditions.
There has been only a small number of final investment decisions for new LNG export projects around the globe in the last couple of years due to the oil and gas price downturn and the much discussed “oversupplied” market.
However, new supply projects will be needed to cover the growing demand for the chilled fuel.
To remind, Shell became the world’s largest independent producer, marketer and trader of LNG following its $30 billion takeover of the UK-based BG Group in February 2016.
The company is involved in every stage of the LNG value chain – from finding the gas, liquefying and shipping it, to regasification and distribution to customers.
“We’re very bullish on the LNG market,” Shell’s finance chief Jessica Uhl said during a briefing discussing the company’s new strategy in London on Tuesday.
Shell expects global LNG markets and demand to double by 2030 as compared to 2015 assuming there is enough investment in additional LNG supply projects.
“There is a lot of (LNG) supply that has come on stream during the last year, which the market has absorbed, and there is more coming on stream. So it is really about when does the world need more LNG going into the 2020s,” Uhl said answering a question from the audience on when Shell is planning to take a final decision for its next LNG export project.
“I would expect in the next couple of years, we would be seriously looking at an FID in that space,” Uhl said.
- LNG World News