Why Shell Is interested in Nigeria’s LNG Projects

Global oil prospecting company, Shell, has given reasons why it is interested in Nigeria’s Liquefied Natural Gas, LNG Projects.

The Chief Executive Officer (CEO) of the company Wael Sawan gave the reasons on Monday, at an Economic Club of New York event.

Noting that the company has a number of LNG projects planned also in Abu Dhabi, he said the company’s interest in Nigeria’s LNG Projects is also informed by the following:

1. LNG is becoming the Company’s biggest contribution to the energy industry over the next decade.
2. he has increased Shell’s focus on natural gas to improve the company’s financial performance against its peers in Europe and the U.S. since taking over as CEO in January 2023,
3. he is also pivoting away from renewables by pulling out of a number of wind, solar and other low-carbon ventures.
4. Shell he said intends to add more value especially as it seeks to cut emissions from fossil fuel production.

Sawan said he believes LNG is one of the most effective fuels to lower global emissions as it can replace coal in places like India, China and other Asian countries.

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He expects demand for the super-chilled fuel to grow 60 per cent between now and 2040, with LNG making up about 20 per cent of global natural gas sales by then, up from around 13 per cent.

Speaking on his recent visit to Vancouver to celebrate the company’s LNG project in Canada, he said the company is still weighing a few factors before making a final investment decision on a second phase of the project.

“I don’t think I’ve ever seen the stars as well aligned as I see now in Canada

“Everyone is really keen on that project materialising.”

“The number of final investment decisions being taken surprises me, if I’m honest, because it’s at the higher end of the cost curve,” he said. “So it’s not economically fully rational.”

“Therefore, we need to be able to then judge when is the right time to bring more capacity,” he added.