Shell Expects Australian LNG to Meet Surging Demand in Asia.
Shell anticipates that its liquefied natural gas (LNG) supplies from Australia will play a pivotal role in satisfying the escalating demand from emerging markets in south and southeast Asia, which are projected to absorb a significant portion of the global supply uptick towards the latter part of this decade.
Amidst a surge in Asian spot LNG prices, attributed to hot weather across the region driving up demand for the super-chilled fuel, Cecile Wake, Country Chair at Shell Australia, highlighted the confluence of decarbonization efforts and declining domestic production as drivers for LNG demand growth. She identified the Philippines, Thailand, Vietnam, and Bangladesh as key markets expected to experience substantial demand growth, describing the region as having “latent demand.”
Shell’s deep commitment to the Australian market stems from its strategic positioning to cater to Asian markets competitively. Wake emphasized the importance of maintaining a robust supply position and ensuring high utilization and reliability of LNG assets in Australia to meet burgeoning demand.
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The company expressed satisfaction with the performance of its flagship floating LNG facility, Prelude, following its recent statutory shutdown. Despite facing operational challenges since its inception in June 2019, including a significant fire incident in December 2021, Prelude has emerged from the shutdown with enhanced reliability and performance. Wake noted that the facility’s expected volumes for the current year are anticipated to surpass those of the previous year due to the absence of a statutory turnaround. Moreover, she indicated that there are no major statutory shutdowns planned for this year or the next, with the next significant shutdown slated for 2026.
Shell’s optimism about the role of Australian LNG in meeting the surging demand in Asia underscores the region’s strategic importance in the global energy landscape and highlights the company’s commitment to addressing evolving market dynamics while ensuring reliable and sustainable energy supply.
