Shell expects ‘significantly’ higher LNG trading results in Q4

LNG giant Shell is expecting “significantly” higher trading and optimization results for its integrated gas business in the fourth quarter of 2023 compared to the previous quarter.

The UK-based firm revealed this in its fourth-quarter update note on Monday.

According to Shell, trading and optimization results for integrated gas are expected to be “significantly higher than Q3’23 due to seasonality and increased optimization opportunities.”

Shell’s adjusted earnings reached $6.22 billion in the third quarter, a drop of 34.2 percent compared to $9.45 billion in the year before, while the company’s integrated gas segment reported adjusted earnings of about $2.53 billion in the third quarter.

This compares to $2.32 billion in the same period a year ago and $2.5 billion in the prior quarter.

Shell sold 16.01 million tonnes of LNG in the July-September period, while its liquefaction volumes dropped to 6.88 million tonnes in the third quarter compared to 7.24 million tonnes in the same quarter last year.

The firm said in the update it expects liquefaction volumes to reach about 6.9-7.3 million tonnes in the fourth quarter.

Shell previously expected liquefaction volumes to reach about 6.7-7.3 million tonnes in the fourth quarter.

In December, Shell’s huge Prelude FLNG located offshore Western Australia shipped its first LNG cargo since August last year when it started scheduled maintenance.

Moreover, Shell expects integrated gas production to reach 880–920 kboe/d in the fourth quarter, while upstream production is expected to be at 1,830-1,930 kboe/d.

Shell also expects impairment charges of about $2.5 billion to $4.5 billion for the fourth quarter.

“Impairments are primarily driven by macro and external developments as well as portfolio choices, including the Singapore chemicals and products assets,” it said.

Shell plans to publish its results on February 1.

- Advertisements -

Most Popular

Technip Energies CEO: Eni’s Coral Norte FLNG has ‘potential’ for FID in 2024

Eni's second floating LNG production project in Mozambique has "potential" for a final investment decision in 2024, according to...

Commonwealth LNG pushes back FID to H1 2025

Commonwealth LNG has postponed a final investment decision on its 9.3 mtpa LNG facility in Cameron, Louisiana. According to Commonwealth...

NFE expects to launch Altamira LNG production in March

US LNG firm New Fortress Energy expects to start production of liquefied natural gas at its first FLNG project...

More News Like This

CNOOC’s Zhejiang LNG terminal gets 600th cargo

CNOOC's Ningbo LNG import facility in the Chinese province of Zhejiang has received the 600th cargo of liquefied natural...

FueLNG helps in commissioning of Seatrium’s floating lab

Singapore’s FueLNG, a joint venture consisting of Shell and Seatrium, has completed the gassing up and cooling down and...

Venture Global seeks more time to complete Calcasieu Pass LNG terminal

US LNG exporter Venture Global LNG has requested more time from the US FERC to complete the commissioning of...

Shell: global LNG demand to rise more than 50 percent by 2040

Global demand for liquefied natural gas (LNG) is estimated to rise by more than 50 percent by 2040, as...