Shell positions LNG as key focus for the next decade

Liquefied natural gas (LNG) will be Shell’s most significant contribution to the global energy sector over the next decade, both in terms of value and emissions reduction, according to CEO Wael Sawan. Speaking at an event hosted by the Economic Club of New York, Sawan highlighted LNG’s crucial role in the energy transition and the company’s long-term strategy.

Sawan described LNG as one of the most effective tools for lowering global emissions, particularly by replacing coal in major markets such as India, China, and other Asian countries. He expects global LNG demand to grow by 60% by 2040, increasing its share of total natural gas sales from 13% today to around 20%, as reported by Reuters. 

“We are absolutely committed to this sector,” he said, pointing to planned projects in Abu Dhabi, Nigeria, and other locations.

Since taking the helm in January 2023, Sawan has shifted Shell’s focus toward natural gas to improve financial performance and strengthen its competitive position against European and U.S. rivals. The pivot has included scaling back on several wind, solar, and other low-carbon projects.

Shell is also considering a second phase of its LNG Canada project in British Columbia, the country’s first major LNG export terminal and the first on North America’s west coast. Sawan praised the strong political support for the project and described current conditions in Canada as uniquely favorable. However, he cautioned that the final investment decision will depend on market analysis, especially as a surge of new LNG capacity is expected globally.