- CEO Wael Sawan said Shell will prioritise LNG projects worldwide, forecasting a 60% rise in global demand by 2040.
- The company shifted focus from renewables to natural gas to strengthen financial performance and cut emissions by displacing coal.
Shell CEO Wael Sawan declared that liquefied natural gas (LNG) will deliver the company’s most valuable contribution to the energy sector over the next decade. He emphasised that Shell will pursue natural gas to strengthen performance against European and U.S. peers while scaling back from wind, solar, and other low-carbon ventures.
Sawan argued that LNG lowers global emissions by replacing coal in markets such as India, China, and other Asian countries. He projected that demand for LNG will surge 60% by 2040, lifting its share of global natural gas sales from 13% today to about 20%.
“We remain absolutely committed to this sector,” Sawan told the Economic Club of New York, adding that Shell plans multiple LNG projects in Abu Dhabi, Nigeria, and additional markets.
Sawan visited Vancouver last week to celebrate progress at LNG Canada, the country’s first major LNG export facility and the first on North America’s west coast. He noted that Shell has not yet approved investment for a second phase but praised political and market support alignment. Canadian Prime Minister Mark Carney listed the expansion as one of five nation-building projects to fast-track.
“I have never seen the stars align as strongly as they align in Canada now,” Sawan said, highlighting strong federal and provincial support.
Despite optimism, Sawan stressed that Shell will carefully time capacity expansions. He pointed to a surge of new LNG projects in the U.S. and other countries and questioned their economic logic.
“The number of final investment decisions shocks me,” he said. “Companies are building at the high end of the cost curve, which makes little economic sense. We will judge carefully when to add capacity.”