Shell predicts that the demand for liquefied natural gas will continue to increase in emerging markets in Asia, leading to a larger share of the global supply being consumed in this region.

Australia’s LNG supplies from Shell are expected to help meet the demand in emerging markets in south and southeast Asia as global supply picks up towards the end of the decade. With Asian spot LNG prices on the rise due to increased demand fueled by hot weather in the region, Shell is optimistic about the region’s LNG market growth.

Cecile Wake, the Country Chair at Shell Australia, identified countries like the Philippines, Thailand, Vietnam, and Bangladesh as key markets for LNG demand growth in south and southeast Asia. She noted that the global LNG markets are finely balanced, and Shell’s internal assessment of demand prospects in Asia solidifies its commitment to the Australian market.

Shell’s flagship floating LNG facility, Prelude, recently emerged from a statutory shutdown in Australia. Wake expressed satisfaction with Prelude’s performance post-shutdown, mentioning that its reliability has improved. With no major shutdowns planned for this year or the next, the facility is expected to see higher volumes as it continues to strengthen its position in the Asian markets.

Overall, Shell remains confident in its competitiveness in the Asian markets and is focused on maintaining its supply position while ensuring high utilization and reliability of its LNG assets in Australia. With a strategic outlook on the LNG industry, Shell is well-positioned to capitalize on the growing demand in the region.