Shell had 18.5 mpta (million tonnes per annum) of world-wide LNG capacity at end-2009, with interests in seven LNG plants, including 0.93 mtpa held through its indirect stake in Woodside. Shell’s world-wide LNG capacity, excluding Woodside, is forecast to reach some 22 mtpa in 2015, an increase of around 20% from today’s levels, underpinned by growth at Qatargas 4 in Qatar and Gorgon in Australia.
Shell’s most recent LNG start-up was at Sakhalin II in Russia, and this 9.6 mtpa project, where Shell has a 27.5% stake, ramped up to full capacity ahead of schedule in early 2010. The Sakhalin project, combined with performance from other LNG facilities world-wide, underpinned over 30% higher LNG sales volumes for Shell in the first three quarters of 2010 compared to the same period in 2009.
Looking into 2011, Shell’s LNG capacity is expected to increase again, with the start-up of the Qatargas 4 LNG project, which has 7.8 mtpa of capacity (Shell 30%). Qatargas 4 will be Shell’s eighth LNG plant, and further adds to Shell’s industry-leading portfolio.
Australia is set to underpin Shell’s next tranche of LNG growth, aimed at growth markets in Asia Pacific. In September 2009, Shell and its partners took the final investment decision (FID) on the 15 mtpa Gorgon LNG project, where Shell has a 25% interest. Successful start-up of Gorgon will take Shell’s directly owned LNG capacity in Australia from 2.7 mpta today to some 6.5 mtpa.
Looking beyond 2015, Shell has launched front end engineering and design (FEED) for the 100%-owned Prelude and Concerto discoveries, that could support a 3.6 mpta floating LNG project, and we anticipate reaching FID on that project in 2011. Shell’s joint acquisition of Arrow Energy Ltd with PetroChina in 2010 opens up the prospect of a 6-7 mtpa LNG scheme from coal bed methane resources. Shell has further stakes in non-operated projects with LNG potential, including Sunrise (26.5%) and Browse (~9.5%), operated by Woodside. In total, these pre-FID options could add up to a further 10 mtpa of new capacity for Shell in Australia, leading to a total capacity of over 16 mtpa. Shell also continues with an active and successful exploration campaign which is adding further options for future development.
Shell Export terminals
- Arrow Energy Lng, Australia
- Brunei Lng Terminal, Brunei
- Gorgon Lng Terminal, Australia
- Malaysia LNG Terminal, Malaysia
- Nigeria Lng Terminal, Nigeria
- North West Shelf Lng, Australia
- Oman LNG Terminal, Oman
- Pluto LNG Terminal, Australia
- Qalhat LNG Terminal, Oman
- Qatargas 4, Qatar
- Sakhalin LNG Terminal, Russia