SHELL LNG INVESTMENT: $30 BLN

SHELL - Shell Canada Energy, an affiliate of Royal Dutch Shell plc ("Shell"), today announced it has taken a final investment decision (FID) on LNG Canada, a major liquified natural gas (LNG) project in Kitimat, British Columbia, Canada, in which Shell has a 40% working interest. With LNG Canada's joint venture participants also having taken FID, construction will start immediately with first LNG expected before the middle of the next decade.

Shell's 40% share of the project's capital cost is within the company's current overall capital investment guidance of US$25-$30 billion per year.

"We believe LNG Canada is the right project, in the right place, at the right time," said Ben van Beurden, Chief Executive Officer, Royal Dutch Shell. "Supplying natural gas over the coming decades will be critical as the world transitions to a lower carbon energy system. Global LNG demand is expected to double by 2035 compared with today, with much of this growth coming from Asia where gas displaces coal. LNG Canada is well positioned to help Shell meet the growing needs of customers at a time when we see an LNG supply shortage in our outlook. With significant integration advantages from the upstream through to trading, LNG Canada is expected to deliver Shell an integrated internal rate of return of some 13%, while the cash flow it generates is expected to be significant, long life and resilient."

"We believe LNG Canada is an attractive investment opportunity in a strong joint venture, with companies that have deep LNG industry experience," said Maarten Wetselaar, Integrated Gas and New Energies Director, Royal Dutch Shell. "In the last two years, LNG Canada has improved its competitiveness, reduced execution uncertainty and gained significant stakeholder support. Together with our joint venture participants and contractors, we look forward to working with the local community, First Nations, government and the LNG Canada team to build and operate this game changing project for Canada's energy industry."

LNG Canada is a long life asset that will initially export LNG from two processing units or "trains" totaling 14 million tonnes per annum (mtpa), with the potential to expand to four trains in the future. It is advantaged by access to abundant, low-cost natural gas from British Columbia's vast resources and the relatively short shipping distance to North Asia, which is about 50% shorter than from the US Gulf of Mexico and avoids the Panama Canal. The LNG export facility will be constructed using proven industry technology on a large, partially developed industrial site with an existing deep-water port, roads, rail and power supplies.

The project was planned and designed by working closely with local communities, First Nations and governments to ensure sustainable development was considered in every aspect of the project. For example, the project has been designed to achieve the lowest carbon intensity of any LNG project in operation today, aided by the partial use of hydropower.

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Earlier:

2018, August, 29, 10:00:00 SHELL - TOTAL - HAZIRA LNG: 26% PLATTS - Royal Dutch Shell has picked up 26% stake in Hazira LNG project in the western Indian state of Gujarat from French energy major Total,

2018, May, 14, 10:35:00 SHELL, TOTAL IN OMAN AOG - Shell Gas & Power Developments has signed a memorandum of understanding (MoU) with Oman’s government to cover proposed energy development projects in Oman. The agreement covers upstream gas exploration and development, gas-to-liquids (GTL), liquefied natural gas (LNG) and renewable energies.

2018, March, 23, 08:30:00 SHELL GROWTH AMBITIONS SHELL - Shell reiterated its expectation of $6-7 billion annual organic free cash flow from Downstream by 2020, at $60 per barrel (real terms 2016) and mid-cycle Downstream conditions, with $9-12 billion expected by 2025. The company plans to invest $7-9 billion a year across Downstream, and to deliver a return on average capital employed (ROACE) above 15%.

2018, March, 18, 11:45:00 GAZPROM - SHELL COOPERATION GAZPROM - The parties discussed the state and prospects of strategic cooperation in the gas sector. Particular attention was paid to joint efforts in the liquefied natural gas (LNG) segment, especially the construction of the third train of the LNG plant within the Sakhalin II project. Русский | English

2018, February, 27, 13:45:00 GLOBAL LNG DEMAND UP TO 293 MT SHELL - The global liquefied natural gas (LNG) market has continued to defy expectations of many market observers, with demand growing by 29 million tonnes to 293 million tonnes in 2017, according to Shell’s annual LNG Outlook. Such strong growth in demand is consistent with Shell’s first LNG Outlook, published in 2017. Based on current demand projections, Shell sees potential for a supply shortage developing in mid-2020s, unless new LNG production project commitments are made soon.

2017, December, 25, 20:10:00 SHELL - KUWAIT LNG BLOOMBERG - Kuwait Petroleum Corp. signed a 15-year liquefied natural gas import deal with Royal Dutch Shell Plc to help the oil exporting nation meet growing domestic energy demand.

2017, November, 29, 09:50:00 SHELL UPDATES STRATEGY SHELL - “Our next steps as we re-shape Shell into a world-class investment aim to ensure that our company can continue to thrive, not just in the short and medium term but for many decades to come,” said van Beurden. “These steps build on the foundations of Shell’s strong operational and financial performance, and my confidence in our strategy and our ability to deliver on the promises we make.”