Shell Expects Strong Growth in LNG Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SHEL?
Source: seekingalpha
- Demand Growth Outlook: Shell anticipates that liquefied natural gas (LNG) will account for over 50% of global natural gas demand growth by 2040, indicating robust demand, particularly from Asian markets.
- Positive Long-Term Outlook: Despite the volatility in oil and gas trade caused by the Iran conflict, Shell maintains a positive long-term outlook for LNG, projecting a 54%-68% increase in global demand by 2040.
- Investment Supercycle: The LNG industry is entering a new investment supercycle, with major projects in the U.S. and Qatar expected to significantly boost supply starting this year, driving market expansion.
- Sales Growth Plan: Shell plans to increase its LNG sales by 4%-5% annually through 2030, although the market could expand nearly 40% by 2030, the timing remains uncertain due to delays in large-scale projects.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 89.430
Low
41.75
Averages
74.27
High
91.00
Current: 89.430
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Shell Expects Strong Growth in LNG Demand
- Demand Growth Outlook: Shell anticipates that liquefied natural gas (LNG) will account for over 50% of global natural gas demand growth by 2040, indicating robust demand, particularly from Asian markets.
- Positive Long-Term Outlook: Despite the volatility in oil and gas trade caused by the Iran conflict, Shell maintains a positive long-term outlook for LNG, projecting a 54%-68% increase in global demand by 2040.
- Investment Supercycle: The LNG industry is entering a new investment supercycle, with major projects in the U.S. and Qatar expected to significantly boost supply starting this year, driving market expansion.
- Sales Growth Plan: Shell plans to increase its LNG sales by 4%-5% annually through 2030, although the market could expand nearly 40% by 2030, the timing remains uncertain due to delays in large-scale projects.
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- Multi-Currency Options: Shareholders can elect to receive dividends in USD, EUR, or GBP, with a deadline of March 6, 2026, enhancing shareholder satisfaction and potentially attracting more investors due to this flexibility.
- Payment Schedule: The dividend will be payable on March 30, 2026, ensuring that shareholders registered by February 20, 2026, receive timely returns, which underscores the company's commitment to shareholder rights.
- Tax Advisory Note: The announcement advises shareholders to consult tax advisors regarding dividend tax treatment, demonstrating the company's emphasis on compliance and transparency to mitigate potential legal risks.
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Shell Expects Strong Growth in LNG Demand
- Demand Growth Outlook: Shell anticipates that liquefied natural gas (LNG) will account for over 50% of global natural gas demand growth by 2040, indicating robust demand, particularly from Asian markets.
- Positive Long-Term Outlook: Despite the volatility in oil and gas trade caused by the Iran conflict, Shell maintains a positive long-term outlook for LNG, projecting a 54%-68% increase in global demand by 2040.
- Investment Supercycle: The LNG industry is entering a new investment supercycle, with major projects in the U.S. and Qatar expected to significantly boost supply starting this year, driving market expansion.
- Sales Growth Plan: Shell plans to increase its LNG sales by 4%-5% annually through 2030, although the market could expand nearly 40% by 2030, the timing remains uncertain due to delays in large-scale projects.
See More
Shell Announces Fourth Quarter 2025 Dividend Payments
- Dividend Payment Details: Shell has announced a fourth quarter 2025 dividend of $0.372 per share, €0.3227, or 27.87 pence, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Multi-Currency Options: Shareholders can elect to receive dividends in USD, EUR, or GBP, with a deadline of March 6, 2026, enhancing shareholder satisfaction and potentially attracting more investors due to this flexibility.
- Payment Schedule: The dividend will be payable on March 30, 2026, ensuring that shareholders registered by February 20, 2026, receive timely returns, which underscores the company's commitment to shareholder rights.
- Tax Advisory Note: The announcement advises shareholders to consult tax advisors regarding dividend tax treatment, demonstrating the company's emphasis on compliance and transparency to mitigate potential legal risks.
See More
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- Market Impact from Oil Prices: The major averages, including the Dow, fell over 400 points as oil prices surged above $100 earlier in the week, reflecting traders' concerns over volatile energy prices and geopolitical tensions in the Middle East.
- IEA's Strategic Release: The International Energy Agency's decision to release approximately 400 million barrels from strategic reserves aims to stabilize energy markets following supply shocks due to conflicts, which could help mitigate extreme oil price fluctuations.
- Inflation Data Reaction: Recent inflation data showed a 0.3% month-over-month increase in the consumer price index and a 2.4% year-over-year rise, both aligning with consensus expectations, indicating persistent inflationary pressures that may influence future monetary policy decisions.
- Escalating Geopolitical Risks: U.S. forces sunk several Iranian ships near the Strait of Hormuz, heightening the fragility of global energy supply routes and contributing to unstable market sentiment, prompting investors to adopt a cautious stance regarding future market movements.
See More
Raizen Reaches Out-of-Court Debt Restructuring Agreement
- Debt Restructuring Agreement: Raizen has reached an out-of-court debt restructuring agreement with creditors and bondholders covering approximately 65 billion reais ($12.6 billion), marking a crucial step in the company's efforts to improve its capital structure under high debt pressure.
- Creditor Support: Creditors holding 47% of the company's debt agreed to the restructuring, surpassing the one-third legal threshold required to initiate proceedings, thereby suspending debt obligations and granting Raizen 90 days to secure buy-in from remaining creditors for a more comprehensive plan.
- Market Environment Challenges: Once Brazil's leading biofuels producer, Raizen faces multiple challenges including high interest rates, weaker harvests, and heavy investments that have yet to yield returns, resulting in strained cash flow and increased debt burden, necessitating restructuring to restore financial health.
- Future Outlook: The successful completion of this restructuring agreement provides Raizen with breathing room, and if it can secure support from remaining creditors, it will help the company reposition itself in a competitive market and restore profitability.
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QatarEnergy Declares Force Majeure Amid Drone Attack
- Production Disruption: QatarEnergy has shut down its Ras Laffan LNG plant, the largest in the world, due to a drone attack, leading to significant disruptions in global LNG supply chains.
- Force Majeure Declaration: Following the production halt, QatarEnergy declared force majeure to its customers, impacting long-term partners like Shell and TotalEnergies, which may result in supply delays.
- Partner Impact: Shell and TotalEnergies are estimated to offtake 6.8 million tons and 5.2 million tons of Qatari LNG annually, respectively, and the production shutdown will directly affect their supply capabilities and market shares.
- Future Outlook: Despite current challenges, Shell and TotalEnergies remain involved in QatarEnergy's North Field expansion project, which aims to boost capacity by 2027, demonstrating confidence in their long-term partnership.
See More
