Anglo-Dutch Shell said in its third quarter results on Thursday, 2 November that LNG production and sales have increased, with LNG market fundamentals remaining strong.
Volumes sold by the company rose by 11% in the third quarter year on year.
In the previous quarter the rise was 13%, while over the first three months of this year, growth reached almost 30%.
LNG production increased by 10% in the past quarter compared to the same time in 2016, which was a stronger rise than in the previous quarter, but lower than over the first quarter.
The rise in production was mainly driven by larger output from the Gorgon project in Australia, which has now three trains in operation.
Shell said that it expects its LNG production to continue growing in the fourth quarter mainly due to Gorgon production and portfolio activity.
Jessica Uhl, Shell’s chief financial officer, said in an audio webcast on Thursday that production from Phase 2 of the Gbaran-Ubie oil and gas development in Nigeria, that started during the third quarter, will contribute to a growth of LNG exports via Nigeria LNG.
She added that Shell believes LNG market fundamentals will remain strong in the coming years.
“We recognise that new [production] capacity needs to be absorbed, but there should be some tightness in the 2020s,” she said. “We achieved good spot [LNG] prices this quarter and previous quarters.”
The company showed a significant rise in its earnings which is a result of a stronger energy market, with the oil price reaching its highest mark in two years last month.
Shell’s overall earnings jumped by 47% year on year in the three months to 30 September, with integrated gas earning increasing by 38%.
Global natural gas realised prices rose by 21% in the third quarter compared to 2016, but dropped by 2% compared to the second quarter.
The company also announced on 1 November that it had completed the sale of its onshore assets in Gabon and the North Sea in the UK. firstname.lastname@example.org