LNG supply projects and regasification plants
Shell has LNG supply projects – either in operation or under construction – in 10 countries. Once at its destination, LNG is turned back into a gas by warming so that it can be piped to customers. Shell has major interests in two regasification plants (Dragon and Hazira) and long-term access to capacity in several others in Europe, the Middle East, North America and Asia.
The Brunei LNG (BLNG) plant, in Brunei Darussalam, started operations in 1972. It was the first LNG plant in the West Pacific, helping to pioneer large-scale liquefaction and transportation of natural gas and establish LNG as a global energy source. Brunei LNG is one of the world's leading suppliers of LNG with over 40 years of experience in the industry. It serves the growing demand in the Asia-Pacific region, with long term customers in Japan and Korea.
Nigeria Liquefied Natural Gas Company Ltd (NLNG)
Nigeria LNG (NLNG) is a joint venture incorporated in 1989 to produce LNG and natural gas liquids for export. It was Nigeria’s first LNG project. Shell holds a 25.6% share, together with the government-owned Nigerian National Petroleum Corporation - NNPC (49%), Total (15%) and ENI (10.4%). The NLNG plant at Bonny Island has six processing units (trains) with total processing capacity of 22 million tonnes a year of LNG and up to 5 million tonnes of natural gas liquids (LPG and condensate). NLNG accounted for approximately 7% of the world’s total LNG supply in 2017.
There are now plans to build a seventh train (train 7) that would increase the total production capacity to 30 million tonnes a year of LNG.
NLNG is serviced by a fleet of 23 LNG vessels including six new vessels constructed in South Korea. LNG cargos are shipped to Atlantic Basin countries such as Spain, France, Italy, Turkey, Mexico and the US, as well as markets in Asia.
North West Shelf Venture, Australia
Shell is a foundation participant in the North West Shelf venture, along with five other joint venture participants, BHP Billiton Petroleum, BP Developments Australia, Chevron Australia, MIMI and Woodside (operator).
The North West Shelf project accounts for more than a third of Australia’s oil and gas production and is currently Western Australia’s largest producer of domestic gas.
The NWS project supplies oil and gas from huge offshore gas and condensate fields in the Carnavon Basin, off the north-west coast of Australia, to international markets including Australia and across the Asia Pacific region.
Oman Liquefied Natural Gas LLC (Oman LNG) is a joint venture established by a Royal Decree in 1994 operating under the laws of the Sultanate of Oman. The company produces and sells liquefied natural gas (LNG), and its by-product, natural gas liquids (NGLs). It liquefies, stores, transports and markets Oman’s natural gas and delivers LNG to customers.
The company operates three liquefaction trains – two owned by Oman LNG LLC and one by Qalhat LNG SAOC – with a nameplate capacity of 10.4 million tonnes per annum (mtpa) at its plant in Qalhat, South Sharqiyah Governorate.
Oman LNG Development Foundation is a subsidiary of Oman LNG.
Qatargas 4, Qatar
Qatargas 4 is Shell’s first entry into Qatar’s liquefied natural gas (LNG) sector. The single LNG mega train has a capacity of 7.8 mega tonnes per year and also produces 70,000 boe/d of natural gas liquids.
Qatargas 4 is a fully integrated liquefied natural gas (LNG) asset with joint ownership by Qatar Petroleum (70%) and Shell (30%). It comprises offshore production platforms and pipelines; onshore gas processing, treatment and liquefaction facilities and a fleet of LNG carriers. The offshore and onshore facilities have been developed jointly with Qatargas 3 (Train 6), a joint venture between subsidiaries of Qatar Petroleum and ConocoPhillips.
Both sets of facilities are operated on a fully-integrated basis, with an equal share of LNG, liquefied petroleum gas (LPG), condensates and sulphur production. This results in increased operational reliability and cost savings for the two ventures.
Queensland Curtis LNG (QCLNG), Australia
QGC is a Shell-owned business and the world’s first producer of LNG from natural gas sourced from coal seams. QGC has its headquarters in Brisbane, Queensland. QGC is one of Australia’s leading natural gas explorers and producers, focused on developing Queensland’s world-class gas reserves for supply to the domestic market and international customers. QGC operates Queensland Curtis LNG (QCLNG), which has two LNG trains on Curtis Island, near Gladstone. The project loaded its 350th cargo in June 2018.
Sakhalin-2 is one of the world’s largest integrated, export-oriented oil and gas projects. Sakhalin Energy Investment Company Ltd., the project operator, is owned by Gazprom, Shell, Mitsui and Mitsubishi. The project infrastructure includes three offshore platforms, an onshore processing facility, 300 kilometres of offshore pipelines and 1,600 kilometres of onshore pipelines, an oil export facility and a liquefied natural gas (LNG) plant.
Russia’s first LNG liquefaction plant is well positioned to supply the LNG market in both the Asia-Pacific region and North America.
Atlantic LNG, Trinidad & Tobago
Commissioned in 1999, Atlantic LNG is based in Trinidad and Tobago in the Southern Caribbean, and is one of the largest LNG facilities in the world.
The four-train 14.8 mtpa facility, is owned by three joint ventures on behalf of the members of the four owners of the joint ventures. Shell holds 46% equity in Train 1, 57.5% each in Trains 2 and 3, and 51.1% in Train 4.
Peru LNG is the first natural gas liquefaction plant in South America and began operations in 2010 with a 4.45 mtpa capacity. It receives dry gas through a 408km pipeline that stretches from the highlands in the Peruvian Andes to the coast. Shell acquired 20% equity in the plant and 100% offtake in 2014.
The other shareholders are Hunt Oil Company (50% and operator), SK Innovation (20%) and Marubeni Corporation (10%). The 521-hectare complex is located 170 km south of Lima and includes one LNG train, a marine terminal, two storage tanks and a supply pipeline. In May 2018, Peru LNG reached its 461st cargo.
The Egyptian LNG facilities, located at Idku, comprise two LNG production trains and include common facilities such as storage tanks, loading jetty and utilities. Egyptian LNG Company owns both the Egyptian LNG site and common facilities.
Its sister company, The Egyptian Operating Company for Natural Gas Liquefaction Projects (Shell 35.5%) undertakes the operation of all trains and common facilities. El Beheira Natural Gas Liquefaction Company (Shell 35.5%) owns Train 1 and Idku Natural Gas Liquefaction Company (Shell 38%) owns Train 2. Together, these trains have a production capacity of 7.2 mtpa of LNG.
Both trains remain in full operational readiness, with one running at low production rates and the other on “short notice stand-by”. In 2017, ELNG fully repaid all its financing loans.
The Dragon terminal is an LNG receiving, storing and regasification facility in Waterston, near Milford Haven in Wales, which has two shareholders, Shell (50%) and Petronas (50%). Being one of three such terminals in the UK, Dragon forms a significant part of the nation’s energy infrastructure. Providing a link between the UK and overseas gas suppliers for a vital source of clean and reliable energy, Dragon can supply up to 10% of the UK’s energy needs.
Dragon received its first LNG cargo on July 14, 2009. Its terminal comprises a jetty, storage tanks and regasification facilities, combined with gas export capabilities for continuous year-round operation.
The Hazira regasification plant started operations in 2005. It procures LNG in the international market to meet the commercial needs of customers in west and north India.
Hazira LNG & Port Companies is a Shell venture.