Shell, the world’s largest liquefied natural gas (LNG) trader, has announced plans to expand its global LNG production capacity by up to 12 million metric tons per annum (mtpa) by the end of this decade. The expansion will be delivered through ongoing construction projects in several countries, including Nigeria, Canada, Qatar, and the United Arab Emirates.
According to Shell’s latest business outlook, the additional output is part of a broader strategy to meet rising global demand for LNG, particularly in Asia and sectors that are difficult to electrify.
The company reported delivering 65 million tons of LNG to over 30 countries in 2023 and anticipates a 60% surge in global LNG demand by 2040.
A key element of this expansion includes Shell’s investment in Nigeria’s gas infrastructure. The company is one of the major stakeholders in Nigeria LNG (NLNG), holding a 25.6% equity stake.
Shell is actively involved in the ongoing Train 7 project at the Bonny Island LNG terminal, which will add approximately 4 mtpa to Nigeria’s existing capacity. When completed, the new train will bring NLNG’s total output to around 30 mtpa, further cementing Nigeria’s position as a leading LNG exporter globally.
Nigeria currently operates six trains with a combined capacity of 22 mtpa, contributing around 7% to global LNG supply. The Train 7 expansion, now under construction, is expected to not only increase production but also generate significant employment opportunities and boost local economic development.
Shell’s Executive Vice President for Integrated Gas and Upstream, Cederic Cremers, emphasized that the projects underpinning the 12 mtpa addition are already in progress and not speculative. “These are real projects under construction that will come online and expand our position,” Cremers noted in a recent statement.
The expansion reinforces Shell’s strategy to remain a dominant player in the LNG market amid intensifying global competition and evolving energy demands. It also aligns with the company’s focus on supporting energy transition goals by supplying cleaner-burning fuel alternatives for power generation and industry.
As Shell accelerates its global LNG capacity growth, Nigeria remains a pivotal part of the plan, offering strategic value in both resource availability and export potential.
