Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Shell sees emerging Asian markets taking more of world's growing LNG supply

Published 22/05/2024, 09:46 pm
© Reuters.
USD/JPY
-
USD/SGD
-
USD/THB
-
USD/PHP
-
USD/VND
-
SHEL
-

By Emily Chow

PERTH, Australia (Reuters) - Shell (LON:RDSa) expects its Australian supplies of liquefied natural gas (LNG) to help meet demand from emerging markets in south and southeast Asia, which are tipped to absorb some of the pick up in global supplies towards the end of this decade.

Asian spot LNG prices rose last week to the highest levels since January as hot weather across the region spurred demand for the super-chilled fuel.

"That combination of decarbonisation, and declining domestic production (will drive LNG demand growth)," Cecile Wake, Country Chair at Shell Australia told Reuters on the sidelines of the Australian Energy Producers Conference on Wednesday.

Wake expects Philippines, Thailand, Vietnam and Bangladesh to be key demand growth markets.

"I think, we describe it as latent demand in south and southeast Asia," Wake said, adding that global LNG markets were "finely balanced" this year.

Wake said Shell's internal assessment of demand prospects in Asia was why it was deeply committed to the Australian market.

"We see ourselves competitively positioned to Asian markets. It is about maintaining that supply position, ensuring that we've got high utilization, high reliability of our LNG assets here," she said.

Wake said Shell was pleased with how its flagship floating LNG facility Prelude came out of its statutory shutdown in Australia.

Prelude, whose deck is longer than four soccer fields, was the world's first floating LNG facility estimated to have cost over $12 billion. It has suffered a string of outages since it started production in June 2019, including a fire that led to a full power loss in December 2021.

© Reuters. FILE PHOTO: The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo

"The volumes this year are of course anticipated to be higher than last year because it doesn't have a statutory turnaround. It has come out of that statutory shutdown with both higher reliability and a much tighter band of where we think the performance range is," Wake said.

"There's no major statutory shutdowns this year or next. The next major shutdown will not be until 2026, at this stage," she said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.