Integrated Gas overview

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Integrated Gas
Cash engine

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New energies
Future opportunity

Shell, through its operated and non-operated ventures, is a leading international oil company (IOC) in both liquefied natural gas (LNG) and gas to liquids (GTL). The acquisition of BG underscores our role as the largest IOC marketer and trader of LNG. It also accelerates a growth strategy that would otherwise have run into the next decade. Our Integrated Gas business also manages our New Energies portfolio.

Milestones in 2016

  • In Indonesia, INPEX Masela Ltd (Shell interest 35%), received a notification from the Indonesian government authorities instructing it to re-propose a development plan for the Abadi gas field based on an onshore project.
  • In Australia, the participants in the Browse joint arrangement (Shell interest 27%) decided not to move forward with the selected development concept in the current economic and market environment. We still intend to develop the Browse field.
  • Shell and its partners in the LNG Canada joint venture (Shell interest 50%) decided to postpone a final investment decision (FID) on the proposed export project in British Columbia.
  • We decided to delay the on the Lake Charles LNG project in the USA that was planned for 2016. The proposed project would convert the existing Lake Charles LNG regasification facility owned by Energy Transfer into a liquefaction plant in which we would have capacity rights.
  • We were appointed by the Energy Market Authority of Singapore as one of the importers for the next tranche of LNG supply into Singapore, which is expected to begin in 2017. Shell and another importer will have exclusivity for three years to supply up to 1 million tonnes of LNG per year each.
  • In August 2016, we signed an agreement with the Gibraltar government for the supply of LNG and the construction of a regasification unit to provide gas for power generation in Gibraltar.
  • The Sabine Pass LNG export terminal in the USA started operations in February and we have started loading volumes in line with a long-term offtake agreement assumed on the acquisition of BG.
  • In Australia, production of LNG and condensate from the first train at the Gorgon LNG project (Shell interest 25%) on Barrow Island, off the northwest coast, started in March 2016. The second train started production in October 2016.
  • In September 2016, the first loading of the Shell-chartered Coral Methane vessel was completed at the recently opened third jetty at the Gas Access to Europe (GATE) terminal in Rotterdam, the Netherlands.
  • As announced in December 2016, the Pearl plant (Shell interest 100%) in Qatar operated at a reduced rate of production due to unforeseen maintenance required on the gasifier units, until a controlled shutdown on February 1, 2017. We expect Pearl to be ramping back up during the second quarter of 2017.

Integrated gas key statistics

 

2016

2015

2014

2013

2012

[A]

Available for sale.

[B]

Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.

Earnings ($ million)

2,529

3,170

10,610

8,998

10,990

Earnings excluding identified items ($ million)

3,700

5,057

10,332

8,999

9,414

Cash flow from operating activities ($ million)

9,132

7,728

12,689

12,273

10,930

Liquids production (thousand b/d) [A]

223

204

221

224

138

Natural gas production (million scf/d) [A]

3,832

2,469

2,666

2,557

1,961

Total production (thousand boe/d) [A][B]

884

631

682

665

476

LNG liquefaction volumes (million tonnes)

30.9

22.6

24.0

19.6

20.2

LNG sales volumes (million tonnes)

57.1

39.2

39.5

30.5

30.6

Capital investment ($ million)

26,214

5,178

9,124

11,822

6,077

Capital employed ($ million)

86,631

62,481

62,127

60,657

47,561

Employees (thousands)

13

13

11

10

N/A

Integrated Gas earnings and cash flow [A]

$ billion

Integrated Gas earnings and cash flow from operating activities (in $ billion) – development from 2012 to 2016 (bar chart)Integrated Gas earnings and cash flow from operating activities (in $ billion) – development from 2012 to 2016 (bar chart)

[A] Earnings excluding identified items.

Production available for sale

kboe/d

Production available for sale for Liquids, Gas (in kboe/d) and LNG liquefaction volumes and LNG sales volume (in mtpa) – development from 2012 to 2016 (line and bar chart)Production available for sale for Liquids, Gas (in kboe/d) and LNG liquefaction volumes and LNG sales volume (in mtpa) – development from 2012 to 2016 (line and bar chart)
LNG
liquefied natural gas
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FID
final investment decision
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LNG
liquefied natural gas
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GTL
gas to liquids
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mtpa
million tonnes per annum
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