LNG

Feb 16 (LNGJ) - Shell said in a liquefied natural gas sector outlook that Europe’s increased need for LNG looks set to intensify competition with Asia for limited new supplies over the next two years. Total global trade in LNG reached 397 million tonnes in 2022. Shell added that European countries, including the UK, imported 121MT of LNG in 2022, an increase of 60 percent compared with 2021, which enabled them to withstand a slump in Russian pipeline gas imports following the invasion of Ukraine.

   “With reduced Russian pipeline gas, LNG is becoming an increasingly important pillar of European energy security, supported by the rapid development of new regasification terminals in northwest Europe. In contrast, China is evolving from being a rapidly growing import market to playing a more flexible role with an increased ability to balance the global LNG market,” stated the Shell report.

Jan 11 (LNGJ) - Petronas, the Malaysian energy company, has seen one of its subsidiaries, Petronas Carigali Sdn Bhd (PCSB), take over the operatorship of the E11 natural gas hub, located 130 kilometres offshore Bintulu in Sarawak, the Malaysian state on the island of Borneo. Petronas noted that the E11 hub, which has been producing since 1982 under the Malaysia LNG production sharing contract, had been operated by Royal Dutch Shell unit Sarawak Shell Bhd (SSB) for the past 38 years.

   The Petronas Vice President of Malaysian Assets, Bacho Pilong, said the change marked a significant landmark for PCSB as the operator of the E11 hub to ensure reliable, stable and cleaner energy supply to the market while continuing to develop Sarawak as a regional gas hub. “I am pleased to note that SSB and Petronas had implemented all the necessary activities to ensure a smooth handover of the E11 hub,” added Pilong.

Royal Dutch Shell reported 6 percent lower liquefied natural gas volume sales in the first quarter, though profits jumped 17 percent in the Integrated Gas Division because of higher prices and earnings from trading.

Royal Dutch Shell said its annual LNG sales volumes rose by 8 percent to more than 71 million tonnes, including 17.39 million tonnes in the fourth quarter as higher prices boosted earnings and the Anglo-Dutch company progressed with commissioning of the Prelude floating LNG plant offshore northwest Australia.

Royal Dutch Shell said the global LNG market has continued to defy expectations with demand growing by 29 million tonnes to 293MT last year, though there was potential for shortages because of a lack of new investment.

Royal Dutch Shell, the energy major with access to LNG volumes on every continent and major basin, said liquefied natural gas sales rose more than 11 percent in the third quarter and 17 percent so far in 2017, helped by additional volumes from the Gorgon LNG plant in Western Australia.

Royal Dutch Shell said global demand for liquefied natural gas in 2016 reached 265 million tonnes as market growth kept pace with supply in Asia and the Middle East, absorbing the increase in supply from Australia.