Integrated Gas overview

Key milestones

Portfolio events

• In April, we signed an agreement with Nord Stream 2 AG to provide a long-term funding facility of €285 million and funds of up to €665 million to cover a combination of short- and long-term funding and guarantees for a pipeline project to run from Russia to Germany.
• In May, we acquired Centrica’s interest in the North Coast Marine Area (NCMA) block offshore Trinidad and Tobago, increasing our interest from 45.88% to 63.19%. In August, we acquired Chevron’s interests in Trinidad and Tobago, which included increasing our interest in the Shell-operated East Coast Marine Area (ECMA) block from 50% to 100%.
• In July, Shell Energy Australia began selling gas in the Australian domestic market.
• In September, we acquired MP2 Energy LLC (MP2), which provides market-based solutions to commercial and industrial customers for managing energy supply, load, and generation throughout the eastern USA.
• In October, we acquired NewMotion, one of Europe’s largest electric vehicle (EV) charging providers.
• In December, we signed an agreement to buy First Utility, a leading independent UK household energy and broadband provider. The transaction was completed in February 2018.
• In December, we signed a gas sales agreement between Arrow Energy Holdings Pty Limited (Arrow) and Queensland Curtis LNG (QCLNG), both joint ventures in Australia in which we participate. Under the agreement, uncontracted gas from Arrow’s Surat Basin fields would flow to the QCLNG venture, which would then both sell gas to local customers and export it through its gas plant on Curtis Island.

In January 2018, we announced an agreement to acquire a 43.83% interest in Silicon Ranch Corporation, a leading US developer, owner and operator of solar assets. The transaction was completed in March 2018.

Operational milestones

• In March, Gorgon train 3 started up in Australia.
• In June, our Prelude FLNG facility left the Samsung Heavy Industries shipyard in South Korea, marking a significant milestone for the project. Prelude FLNG arrived in Australian waters in July.

The Pearl GTL plant (Shell interest 100%) resumed full production in July after completion of repairs to the gasifier units following a controlled shutdown in February 2017.

Divestments

• In New Zealand, we sold our 50% interest in the Kapuni gas field. In March 2018, we reached an agreement to sell our shares in Shell entities in New Zealand.
• In September, Shell and KUFPEC agreed to cancel the January sale and purchase agreement for the sale of our 22.2% interest in the Bongkot field and adjoining acreage offshore Thailand. Subsequently, in January 2018, we agreed to sell our interest to PTT Exploration & Production Public Company Limited (PTTEP). The transaction is pending regulatory and other approvals, and expected to close in the second quarter of 2018.
• In Brazil, we executed an existing put option agreement to sell our 16.8% interest in Companhia de Gas de São Paulo (Comgás) to Cosan S.A. Indústria e Comércio (Cosan). We exchanged our common shares in Comgás for Cosan shares plus cash.
• In Australia, we sold our 13.3% interest in Woodside.

In January 2018, Partners Group signed an agreement to join the Borssele III and IV offshore wind project in the Netherlands, diluting our interest in the consortium from 40% to 20%.

Integrated Gas earnings and cash flow [A]

$ billion

[A] excluding identified items

Production

mboe/d

mtpa

Integrated Gas & New Energies

Read a textual description of the above chart.