Shell Reaffirms Commitment to LNG Expansion in Nigeria, Eyes Global Growth
By NaijaEnquirer Staff
Global energy giant Shell has announced plans to execute more Liquefied Natural Gas (LNG) projects in Nigeria, describing LNG as its most valuable contribution to the global energy industry over the next decade. The company also views LNG as a critical fuel in reducing global emissions from fossil energy sources.
CEO Outlines LNG Strategy
Speaking at the Economic Club of New York, Shell’s Chief Executive Officer, Wael Sawan, emphasized the company’s strengthened focus on natural gas since he assumed office in January 2023. He noted that LNG would play a central role in Shell’s financial and environmental strategy, even as the company pulls back from several renewable ventures in wind, solar, and low-carbon initiatives.
“We are absolutely committed to this sector,” Sawan stated, highlighting upcoming LNG projects in Abu Dhabi, Nigeria, and other markets.
LNG and Global Emission Reductions
Sawan stressed that LNG could replace coal in fast-growing economies like India, China, and other Asian markets, making it one of the most effective fuels for emission reduction. He projected a 60% growth in LNG demand by 2040, with the commodity expected to account for 20% of global natural gas sales, up from the current 13%.
Global Expansion and Canadian Project
The Shell CEO recently visited Vancouver to mark progress at the company’s LNG Canada facility, the first major LNG export project in Canada and the first on North America’s west coast. He praised strong government backing at both provincial and federal levels, describing the project’s prospects as “the most aligned” he had seen in years.
Canada’s Prime Minister, Mark Carney, has already identified the LNG Canada expansion as one of five major nation-building projects to be fast-tracked.
Market Realities and Timing
Despite optimism, Sawan noted that Shell’s final investment decisions would be guided by careful market analysis. He cautioned that the surge of LNG capacity being added globally, particularly in the United States, could influence timing.
“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. “Therefore, we need to be able to judge when is the right time to bring more capacity.”
