DELIVERY & GROWTH FIVE-YEAR FACT BOOK - Shell

UPSTREAM
LNG MARKET
Shell expects LNG demand to continue to grow in the mid- to
long-term with growth in all major markets. By some estimates
it will almost triple, from 170 mtpa in 2007 to around 460 mtpa
in 2020 meeting a fifth of global gas needs.
We helped pioneer the LNG sector, providing the technology for
the world’s first commercial liquefaction plant at Arzew, Algeria,
in 1964. Our expertise in LNG is based on 45 years of
technological innovations and experience gained as technical
advisor to operations supplying nearly 40% of global LNG.
Shell LNG plants – all joint ventures with partners – have average
CO2 emissions per tonne of LNG that are lower than the industry
average. Some of our LNG projects have the lowest CO2 emissions
in the industry. Qalhat LNG and Oman LNG have the best
performance in tropical conditions and Sakhalin II has been
designed to have good performance in cold climates.
With partners Shell is involved in LNG production in Australia,
Brunei, Malaysia, Nigeria, Oman and from March 2009 in
Russia, with total design capacity of 18.5 mtpa.
LNG – operation
LNG – construction
Regas – operation
Regas – construction
Elba Island
34 Shell Financial and Operational Information 2004–2008
We deliver LNG on long-term contracts to markets in Asia-Pacific,
Europe and North America. The United Arab Emirates will be
added when Qatargas 4 is on-stream around the end of the
decade. Globally, 17 countries imported LNG in 2007, and there
could be as many as 30 by 2012, which represents an almost 75%
increase over five years.
Two new LNG trains under construction – Qatargas 4 (Shell
interest 30%) and Pluto (Woodside) in Australia (Shell indirect
interest 31%) will bring the Shell-share capacity to 22.2 mtpa early
next decade. More future capacity could come from projects under
evaluation and development in Australia, Nigeria and Libya. From
2004 to 2010, our equity LNG capacity is expected to have doubled.
Shell has equity interest in two regasification terminals in India
and Mexico, and has capacity rights in six more in North America
and Spain (combined Shell capacity rights 15 mtpa). The Elba
Island terminal expansion in the USA will add 4.2 mtpa capacity.
Shell is the most experienced and has the largest LNG portfolio
of any of the international oil companies, with 2008 equity sales
of 13.1 million tonnes, 18.5 mtpa in operation and 3.7 mtpa
Shell share under construction. With our current portfolio
and future choices we are well positioned to capture demand
growth opportunities.
QG-4
Pluto (Woodside)