Shell CEO addresses LNG sector growth
Record wave of new liquefied natural gas projects raises questions over costs and long‑term market balance.
Shell Chief Executive Officer\by the volume of new liquefied natural gas (LNG) projects moving forward globally, n\\\\\\\\\\oting that many are advancing despite high development costs. Speaking at an event hosted by the Economic Club of New York, Sawan said the scale of investment underscores LNG’s entrenched role in the energy transition.
The representative addressed “a significant amount of capacity” currently in development worldwide, “including here in the US.” Global LNG capacity is projected to grow by around 50% by 2030, the largest expansion in the industry’s history, potentially pushing the market into oversupply.
Developers, however, continue to approve new projects. So far this year, 55 million tons of annual LNG capacity in the United States has reached a final investment decision, equivalent to roughly half of the country’s existing export capacity.
Sawan said Shell expects its expanding LNG business to play a central role in the company’s contribution to the global energy system over the next decade, particularly as developing economies shift from coal to gas to reduce emissions. He highlighted recent progress at the LNG Canada project, which began shipping earlier this year, noting that its planned second phase enjoys strong support from federal and provincial authorities.
