Shell Eyes 12 Million Metric Tons of LNG Capacity Expansion by 2030

Shell plc SHEL, the world’s top liquefied natural gas (“LNG”) trader, recently announced at an energy conference in London that it intends to increase LNG capacity by up to 12 million metric tons through 2030. This capacity increase is not a part of future goals, but will be based on its projects that are already under construction globally. Shell’s president of integrated gas declares that the additional volume will be generated from its various ventures in Canada, Qatar, Nigeria and the UAE.

For investors, the additional 12 million tons will be of utmost importance as this will directly boost Shell’s revenues, earnings and cash flows and reinforce its role as a reliable LNG supplier globally. As the LNG demand from Asian countries is expected to rise by 2030, 60% of the new supply is anticipated to come from the United States and Qatar, which can bolster its financial outlook, creating a positive trajectory for the company and the stakeholders.

About SHEL’s LNG Business

Shell LNG Marketing & Trading (“SLMT”) is the face to customers for its global liquefied natural gas business. In 2024 alone, SLMT delivered nearly 65 million tons of LNG to more than 30 countries worldwide.

Shell plays a role in every part of the LNG value chain, from exploration and gas extraction to liquefaction, shipping, regasification and final delivery to customers. The company is also one of the largest LNG shipping operators, managing nearly 10% of the global LNG fleet.

Strategic Growth Through Construction and Acquisitions

Shell’s ramp-up is not solely based on construction. The company’s acquisition of Pavilion Energy in Singapore, finalized in the first quarter of 2025, also strengthens its LNG trading and delivery capabilities. Combined with third-party supplier contracts, these moves position Shell to meet growing global energy demand efficiently.

SHEL’s Contracts With Canada, Qatar, Nigeria and UAE

Shell has a partnership with QatarEnergy, the country's state-owned company, in several trains of the massive North Field expansion, the world’s largest natural gas field, jointly owned by Qatar and Iran.

The company also holds a 40% stake and serves as the operator of the LNG Canada project in Kitimat, British Columbia. The facility recently received the first import cargo of liquefied natural gas, intended for equipment testing as it approaches completion later this year. LNG Canada is the country's first export project for supercooled fuel, targeting Asia’s markets where demand is the strongest.

Shell also has a venture in Nigeria, the country that designates natural gas as the primary transition fuel and declared 2020-2030 as the “Decade of Gas” to unlock the value of its 208 trillion cubic feet of reserves. Currently, Nigeria produces approximately 3,009,650 million cubic feet of gas, occupying the 12th place among the world’s top gas-producing nations.

Future LNG Demand

In its 2025 LNG outlook, Shell projected a 60% increase in global LNG demand by 2040, driven largely by Asia’s economic expansion. Additional growth factors include the drive to cut emissions in heavy industry and transportation, along with rising power consumption fueled by the growing influence of artificial intelligence.

SHEL’s Zacks Rank & Key Picks

London-based Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #4 (Sell).

Investors interested in the energy sector might look at some better-ranked stocks like Flotek Industries, Inc. FTK, Global Partners LP GLP and RPC, Inc. RES. While Flotek Industries and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 55.88% year-over-year growth.

Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. GLP owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for Global Partners’ 2025 earnings indicates 17.84% year-over-year growth.

Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES’ next quarter earnings indicates 33.33% growth.

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This article originally published on Zacks Investment Research (zacks.com).

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