Shell’s LNG sales drop, reports huge quarterly loss

The Hague-based energy giant Shell logged a 7 percent decline in its LNG sales during the second quarter of this year as it reported a huge quarterly loss.

Shell announced on Thursday a loss of $18.1 billion for the second quarter due to the effects related to the Covid-19 pandemic.

The loss included an impairment charge of $16.8 billion post-tax or $22.3 billion pre-tax.

The energy firm said in late June it would take a substantial impairment hit also revising its outlook for commodity prices as the Covid-19 pandemic continues to destroy demand all over the globe.

Shell sold 16.65 million tonnes of LNG in the April-June period, compared to 17.95 million tonnes in the same period last year.

Liquefaction volumes also decreased 3 percent year-on-year to 8.36 million tonnes “mainly as a result of cargo timing”, Shell said.

In the January-June period, LNG sales increased 1 percent to 35.65 million tonnes while liquefaction volumes dropped 1 percent to 17.23 million tonnes.

Shell said it expects liquefaction volumes to be in the 7.6-8.2 million
tonnes range in the third quarter but also sees a bigger impact on prices.

“Due to price lag in oil-linked LNG term contracts, the impact of
low oil prices is expected to become more significant in the third quarter,” it said.

Shell’s Integrated Gas segment recorded a loss of $7.95 billion hit by impairments and lower realised LNG, oil and gas prices.

This included a post-tax impairment charge of $8.15 billion mainly related to the Queensland Curtis LNG and Prelude FLNG operations in Australia, Shell said.

Most Popular

Venture Global, Petronas seal 20-year LNG SPA

US LNG exporter Venture Global LNG has signed a 20-year LNG supply contract with Malaysian energy giant Petronas for volumes from the CP2 project in Louisiana.

Golden Pass LNG seeks re-export approval

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is seeking approval from the US DOE to export previously imported LNG from October, as it nears the launch of the first liquefaction train.

TPDC, Energetech Tantel to develop Tanzanian small-scale LNG plant

State-run Tanzania Petroleum Development Corporation has signed a memorandum of understanding with Energetech Tantel to develop what they say is Tanzania's first small-scale LNG plant.

More News Like This

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

Peru LNG shipped five cargoes in June

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in June, the same as in the previous month.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.