Feb 26, 2018
Shell warns of future LNG supply crunch
Tens of billions of dollars of new investment is needed in liquefied natural gas projects to avoid a supply crunch in the 2020s, Royal Dutch Shell has warned. Shell, Chevron and other big LNG producers such as Total and ExxonMobil have put the brake on further investment because of concern that the Australian projects, together with rising US gas exports, would lead to a supply glut. LNG prices have fallen sharply since 2014 in parallel with oil but both markets have staged a partial recovery over the past year and Mr Hill indicated that Shell was beginning to refocus on the case for renewed expansion. Shell has proposed LNG plants awaiting investment decisions in the US and Canada as well as projects at an earlier stage of planning in Indonesia, Tanzania and Australia. Mr Wetselaar acknowledged that the LNG market was becoming more competitive with proliferating sources of supply, including low-cost US shale gas, and technological disruption from renewable power.
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