LNG

Norway’s state energy company Equinor is considering reviving the long-stalled Tanzania LNG project with Shell, as disruption to shipments through the Strait of Hormuz could continue into the fourth quarter of this year, or possibly extend to 2027.

A record wave of LNG capacity coming online by 2030 is shifting the market’s binding constraint from supply to demand, with small-scale LNG (SSLNG) increasingly viewed not just as a niche segment but as a demand-creation tool.

Shell has reported adjusted earnings of $10.8 billion for Q2-2026, more than double the $3.6 billion posted a year earlier, as surging LNG and oil trading profits offset a sharp production decline caused by conflict-related disruptions in Qatar.

Egypt is close to sealing a multi-year LNG supply deal that could lock in 15 to 18 cargoes a month for at least three years. Reuters calculations put the deal value at $8-11 billion a year, depending on pricing and volume, with final terms still under negotiation.

Shell has reached financial close on a small-scale LNG regasification terminal in the Bahamas. The project will be built in phases, with the regasified LNG – mostly sourced from Shell’s US LNG offtake – set to support baseload generation at Clifton Pier in excess of 170 MW.

Shell has raised its second-quarter guidance for integrated gas production and LNG liquefaction volumes, while flagging stronger trading performance, as heightened market volatility linked to Middle East tensions supports earnings.

The global fleet of LNG-fuelled could almost double from its current base of 850 ships if scheduled deliveries and orders proceed as expected, Shell told investors, projecting LNG bunkering demand to jump from 3-4 mtpa to about 26 mtpa by 2035.

Global LNG demand could reach nearly 700 million tonnes a year by 2050, a 65% increase from 2025-levels, Shell forecasts, assuming shipping through the Strait of Hormuz returns to normal this summer, before growth resumes in 2027.

Shell has temporarily suspended its $3 billion share buyback programme, citing legal constraints linked to its pending acquisition of ARC Resources. The $16.4 billion deal would expand Shell’s position in the Montney Shale – a key source of feedgas supply for LNG Canada.

Japanese utility Inpex has signed preliminary deals with BP and Shell Eastern Trading, as well as the Indonesian companies PLN Energi and Perusahaan Gas Negara, to offtake LNG from the 9.5 mtpa Abadi liquefaction project. The accords take the project closer to a final investment decision (FID) in 2027.