Shell Anticipates Asian Markets Driving LNG Demand Growth

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Shell is eyeing emerging markets in south and southeast Asia as key drivers of liquefied natural gas (LNG) demand growth, with its Australian supplies poised to meet this rising need. Cecile Wake, Shell Australia’s Country Chair, highlighted the company’s expectation that countries like the Philippines, Thailand, Vietnam, and Bangladesh will play pivotal roles in driving LNG demand in the region.

Factors such as decarbonization efforts and declining domestic production are expected to contribute to the growth in LNG demand. Wake emphasized that Asian spot LNG prices recently reached their highest levels since January, driven by increased demand due to hot weather across the region.

Despite challenges such as a “finely balanced” global LNG market, Shell remains deeply committed to the Australian market, citing its competitive positioning in Asian markets. Wake emphasized the importance of maintaining a strong supply position and ensuring high utilization and reliability of LNG assets.

One of Shell’s flagship LNG facilities, Prelude, recently emerged from a statutory shutdown in Australia. Despite facing previous challenges, including outages and a significant fire incident in December 2021, Shell expressed satisfaction with Prelude’s performance post-shutdown. Prelude, with a deck longer than four soccer fields, represents a significant investment in floating LNG technology, indicating Shell’s long-term commitment to the LNG market.