Shell’s LNG division was one of the few bright spots in its latest Q2 results with sales rising from 16.5 megatonnes (MT) in the first quarter to 17.8MT in the second. Liquefaction volumes rose slightly from 6.6MT to 6.7MT.
But Shell’s adjusted earnings of $4.5bn for the second quarter were down from $5.6bn in the first quarter of 2025, with half-yearly earnings totalling $9.8bn, and were down 32% year-on-year. CEO Wael Sawan said geopolitical and economic uncertainty continue to have a knock-on effect on commodity prices and margins.
The recent launch of cargoes from LNG Canada’s 14 mtpa facility provides 10-day shipping routes into key Asian markets.
Sawan said, “Its strategic location on the west coast brings feedstock advantages and greater marketing flexibility, including transit routes to Asia which are more than 50% shorter than from the US Gulf Coast. We said that we will grow LNG sales between 4 to 5% and LNG Canada is expected to play a big part in that.”
The facility’s Train 1 has experienced technical issues with a gas turbine and refrigerant production unit, according to a Reuters report, citing industry sources.
Shell took FID on projects in Egypt and Trinidad and Tobago which will increase feed gas to LNG portfolio.
QatarEnergy LNG North Field East, in which Shell holds a 25% stake, is expected to start up in 2025/26, with peak production of 8 mtpa.
In the first half of 2025, Sawan said it achieved $800m in cost reductions, and is on track for reaching $5.7bn in savings by 2028.