Natural Gas Sales for Shell Increase, Yet Profits Plummet by One-Third
In the second quarter of 2025, Shell's LNG division experienced a slight increase in liquefaction volumes, with sales rising from 6.6 megatonnes (MT) to 6.7MT. This development comes amidst a broader context of a 32% year-on-year decrease in half-yearly earnings for the company, totaling $9.8 billion.
The adjustments in earnings saw a further decline from $5.6 billion in Q1 2025 to $4.5 billion in Q2. However, Shell remains optimistic about the future, aiming to grow LNG sales by 4 to 5%.
One of the key factors contributing to this anticipated growth is the LNG Canada facility. Strategically located on the west coast, the facility offers transit routes to Asia that are significantly shorter than from the US Gulf Coast, reducing shipping times by more than 50%. This advantageous positioning also provides feedstock advantages and greater marketing flexibility.
The launch of cargoes from LNG Canada's 14 mtpa facility has been instrumental in this strategic shift, providing 10-day shipping routes into key Asian markets. While the specifics of the facility are not extensively detailed, it is clear that it plays a major role in Shell's plans for LNG sales growth.
Despite the decline in earnings, Shell's LNG division has shown resilience, with sales increasing from 16.5 MT in Q1 to 17.8MT in Q2. As the company moves forward, it continues to focus on optimising its LNG operations to meet its growth targets.
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