Lloyds List: Shell aims to stay at top by doubling sales in LNG sector: “Anglo-Dutch oil major Shell has vowed to protect its leadership in the liquefied natural gas market by doubling sales during the next six years.”: “'We are determined to retain our leadership in the expanding LNG business,' Mr van der Veer told the European Leadership Forum in Paris. 'Our LNG sales will double between now and the end of the decade.' (ShellNews.net) 8 Dec 04

It is pursuing the potential for coal to liquids, writes Tony Gray

Dec 08, 2004

Anglo-Dutch oil major Shell has vowed to protect its leadership in the liquefied natural gas market by doubling sales during the next six years.

This pledge by Shell chief executive Jeroen van der Veer suggests the group will be selling 20m tonnes by the end of the decade as its equity LNG capacity now stands at about 10m tonnes.

'We are determined to retain our leadership in the expanding LNG business,' Mr van der Veer told the European Leadership Forum in Paris. 'Our LNG sales will double between now and the end of the decade.'

He said Shell was investing in new supply projects, such as Sakhalin on Russia's Pacific coast, and linking them to markets by developing import terminals and securing sales.

Shell is the world's leading private provider in the LNG business with its projects meeting about 40% of global demand.

The oil major is also one of the largest LNG vessel operators in the world with participation in the management, manning or construction supervision of more than 15% of the world's LNG fleet.

Mr van der Veer said gas was the fastest growing fossil fuel, mainly for power generation.

By 2030, three times as much gas as now might have to be delivered across borders, through dedicated delivery chains. Half would be transported as LNG, Mr van der Veer said.

By 2030 gas would probably account for a third of the European Union's energy, four times the 8% recorded in 1971.

And 65% of this would have to be imported, he said.

Shell has also been a pioneer in gas to liquids, which produces high quality fuel, and is spending $6bn on a major plant in Qatar. 'By 2015 GTL fuel could meet more than 3% of world diesel needs,' Mr van der Veer said, 'making an important contribution to cutting polluting emissions.'

The same technology could be used to produce cleaner fuels from coal and biomass, he explained.

'We are already pursuing the potential for coal to liquids, in conjunction with coal gasification, in China.'

Turning to oil prices, Mr van der Veer said they were driven up this year by rapid demand growth when stocks were low, exacerbated by geopolitical uncertainty.

Stocks were now being rebuilt and prices have fallen back. They could fall further, Mr van der Veer warned.

'What is clear is that the system is no longer shock proof. There is insufficient spare capacity to compensate for interruptions in supply.

'Timely investment to renew and expand capacity is now essential to maintain secure supplies and moderate prices.' China's rapidly increasing oil consumption had helped raise oil prices this year, Mr van der Veer noted.

'Yet China only relies on imports for about a third of its oil. By 2030 this could be three quarters, with China importing as much oil as the US today.'