Gas & Power

Shell holds a leading position in LNG shipping

LNG is a clear, colourless, non-toxic liquid that forms when natural gas is cooled to around –160ºC. Cooling shrinks the gas 600 times, allowing us to ship it to far-off towns and cities where it is needed most. Once LNG reaches its destination, the cooling is stopped and the LNG returns to its gaseous state. It can then be distributed through natural gas pipelines to residential, commercial and industrial customers.

We hold the largest equity share of LNG capacity among international oil companies, with a leading position in LNG shipping and the marketing and trading of natural gas and power in Europe, the North America and Asia Pacific.

The GTL process converts natural gas into a range of high-quality colourless, odourless and biodegradable products normally made from crude oil, such as transport fuel, naphtha and oils for lubricants. Shell has gained operating and marketing experience in GTL through the world’s first commercial low temperature GTL plant in Bintulu, Malaysia, which started-up in 1993. We are using this technology and experience in developing the world-scale Pearl GTL project in Qatar. The GTL process can help gas-rich countries make the most of their resources, alongside LNG and pipelines.

The world’s coal resources are far more abundant than other conventional fossil fuels. Coal gasification technology converts coal into synthesis gas that can be used as chemical feedstock, power generation fuel or converted into high-quality liquid fuels. Interest in coal gasification is growing because it addresses the world’s increasing need for secure, clean and economical sources of energy. We have been developing and using coal gasification technology for more than 30 years. We have sold a number of licences to use our technology, mainly to produce chemical feedstock and fertilizer.

As an investor in wind, Shell is generating emission-free electricity that saves around 1 million tonnes of CO₂ a year, when compared to a coal-fired plant. We are involved in wind projects in Europe and North America. Our focus is on North America, where eight of the 11 wind operations we are involved in are located.

With Shell’s innovative technologies and proven designs, some of our LNG joint ventures are able to operate with lower CO₂ emissions than industry averages. Qalhat LNG and Oman LNG have the best performance in tropical conditions. Sakhalin II has been designed to have the best performance in cold climates. Since Shell’s joint ventures make up a significant portion of the LNG industry, this is an admirable achievement and contribution to solving the energy challenge.