Shell expects higher liquefaction volumes in Q1

LNG giant Shell is expecting higher liquefaction volumes in the first quarter of this year due to higher uptime at the Prelude FLNG facility and its QGC business.

Shell said in an update on Thursday that it expects first-quarter liquefaction volumes of 7 to 7.4 million tonnes, up from 6.8 million tonnes in the previous quarter.

The firm said in its full-year and fourth-quarter report in February that liquefaction volumes would be about 6.6 to 7.2 million tonnes in the first quarter.

Shell’s liquefaction volumes dropped by 4 percent year-on-year to 29.68 million tonnes in 2022 due to the “derecognition of Sakhalin-related volumes and longer-than-expected maintenance at Prelude and operational issues at QGC in Australia.”

Shell’s QQC operates the 8.5 mtpa QCLNG plant on Curtis Island.

In January this year, Shell shipped the first LNG cargo from its 3.6 mtpa Prelude floating LNG producer offshore Western Australia following a fire in December 2022.

Besides higher liquefaction volumes, Shell expects trading and optimization results for its integrated business to be at “a similar level” compared to the fourth quarter.

Integrated gas production in the first quarter would range between 930,000 and 970,000 barrels of oil equivalent per day, a rise from 917,000 kboe/d in the previous quarter.

Also, Shell expects a pretax depreciation for integrated gas of between $1.2 billion and $1.6 billion in the first quarter.

Shell plans to publish its quarterly results on May 4, 2023.

Most Popular

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

Canada approves Ksi Lisims LNG project

According to a statement on Monday, Julie Dabrusin, Minister of Environment and Climate Change, issued her decision under the...

NFE seals Puerto Rico LNG supply deal

NFE said in a statement that the contract is currently under review for approval by the Financial Oversight and...

More News Like This

Shell’s LNG Canada expansion project to get boost from government

Canadian Prime Minister Mark Carney named the planned second phase of Shell's LNG Canada export project as one of the major projects the federal government would help fast-track.

Shell seals Hungarian gas supply deal

UK-based LNG giant Shell has signed a deal with Hungarian gas trader MVM CEEnergy to supply the latter with natural gas for 10 years.

Shell, Hapag-Lloyd seal bio-LNG bunkering deal

A unit of UK-based LNG giant Shell has signed a deal with Germany's Hapag-Lloyd to supply the latter's dual-fuel container vessels with bio-LNG.

Peru LNG sent four cargoes in August

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped four liquefied natural gas cargoes in August, one less than in the previous month.