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Shell Bolsters LNG Operations

Analyst Team trader
Updated 10 Jul 2024

Shell PLC (LON: SHEL) has announced a significant step in expanding its Liquified Natural Gas (LNG) operations with the final investment decision (FID) for the development of the Manatee project in the Republic of Trinidad and Tobago. This decision is in line with the energy giant's strategic plan, aimed at intensifying its presence in the LNG market.

The Manatee project, a substantial stride in Shell's business strategy, is set to commence production in the year 2027. This undertaking reflects the company’s commitment to meet the increasing global demand for cleaner energy sources and diversify its portfolio further into natural gas.


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In the broader landscape of the energy market, Shell has positioned itself to scale its LNG business by an impressive 20-30% by the end of this decade, compared to its output in 2022. Such expansion would potentially position Shell as a more prominent player in the LNG sector, aligning with the industry's growth trend and escalating global necessity for sustainable energy resources.

At its peak, the Manatee project expects to yield around 104,000 barrels of oil equivalent per day (BOE/D). This production capacity underscores the project’s significance within Shell’s portfolio and supports the company’s long-term objectives in strengthening its market share in the global LNG industry.

shell liquid natural gas station

The investment in the Manatee project aligns with Shell's broader commitment to sustainability and its transition strategy towards more environmentally friendly energy sources. By enhancing its LNG capacity, Shell aims to contribute more significantly to the reduction of carbon emissions, leveraging natural gas as a bridge fuel in the transition to a low-carbon economy.

With this initiative, Shell is not just boosting its LNG business but is also contributing to the development of Trinidad and Tobago's energy sector, indicating the potential for positive economic impacts in the region. The start of production in 2021 will mark a substantial advancement towards Trinidad and Tobago becoming a significant LNG producer and exporter.

Shell's expansion in its LNG production capability through the Manatee project is indicative of the company's strategic realignment towards a more sustainable and profitable energy mix. The project's expected contributions to Shell's overall output by 2027 could substantially influence the company's positioning in the global energy landscape, particularly within the LNG domain.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.