Liquefied natural gas (LNG)
Shell has a world-leading liquefied natural gas (LNG) business with a sizeable portfolio, a diverse network of customers around the world, extensive shipping and storage assets, and access to regasification plants.
What is LNG?
LNG is natural gas that has been cooled to a liquid state at about -162掳C (-260掳F). This process reduces its volume by around 600 times, making it easier and safer to store and transport.
Many of the world鈥檚 cities and industries that depend on natural gas for energy are located far from gas fields, making pipelines too impractical or costly to build. By cooling the gas to a liquid form, it can be transported more efficiently on ships as LNG.
LNG is colourless, odourless, non-toxic and non-corrosive, making it a versatile and lower-carbon alternative to other fossil fuels. In its liquid state, LNG will not ignite.
When LNG reaches its destination, it is turned back into natural gas at regasification plants.
What is LNG used for?
Natural gas met around 23% of the world鈥檚 energy consumption in 2023, according to the Energy Institute's Statistical Review of World Energy.
LNG has a wide range of applications including:
Power generation
LNG is used to generate electricity in power plants, providing a lower-carbon alternative to coal. It provides grid stability and flexibility, helping to address the intermittency of renewable power sources in electricity generation.
Industry
LNG is used as a principal raw material in the manufacture of fertilisers, plastics and fabrics. It can also power manufacturing processes. There are many opportunities for industries to cut carbon emissions by switching from coal to natural gas and LNG.
Transport
LNG is increasingly being used as a fuel for heavy-duty vehicles and ships, helping to reduce emissions in the transportation sector.
Residential use
LNG
is used for heating water and buildings, as well as for cooking in homes.
Shell believes natural gas and LNG play a foundational role in the energy transition, displacing coal and supporting the deployment of renewables. This will be the biggest contribution we will make through the next decade of the energy transition, as we help to build the energy system of the future.
LNG process explained: from extraction to delivery
Shell's LNG business
How are we growing our LNG business?
Shell has been a pioneer in the LNG industry for over 60 years. In 1964, we helped launch the world鈥檚 first commercial LNG plant in Algeria and delivered the first LNG cargo to the United Kingdom, kickstarting the global LNG trade.
Today, Shell is one of the world鈥檚 largest LNG suppliers, with around 40 million tonnes of equity capacity. We are involved at every stage of the LNG journey 鈥� from discovering and extracting gas, to liquefying, trading, shipping, regasifying, and delivering it to customers.
To meet growing global energy demand, we combine our own production with LNG purchased from third parties, giving us the scale and flexibility to serve customers worldwide.
Read more about our trading and supply business
We have LNG supply projects 鈥� either in operation or under construction 鈥� in 10 countries, including Qatar, Nigeria and Australia. We also have major interests in regasification plants in India, the 麻豆传媒 and Gibraltar, as well as long-term access to capacity in several other plants across Europe, the Middle East, and North America.
Read more about our LNG supply projects and regasification plants
Shell is also one of the world鈥檚 largest LNG shipping operators. We have 67 carriers on long-term time charters and we manage and operate 14 carriers, which together make up around 11% of the global LNG shipping fleet.
Shell LNG Outlook 2025
Global demand for liquefied natural gas (LNG) is forecast to rise by around 60% by 2040, largely driven by economic growth in Asia, emissions reductions in heavy industry and transport as well as the impact of artificial intelligence.
How is Shell tackling the environmental impacts of LNG?
Natural gas is the lowest-carbon fossil fuel - producing around 50% less carbon emissions than coal when used to generate electricity. It also emits far less sulphur dioxide, nitrogen oxide and other compounds that contribute to local air pollution.
Shell recognises the need to reduce greenhouse gas emissions associated with the production, processing, transport and distribution of LNG.
- We are securing LNG with a lower carbon intensity. This includes LNG that has been produced using renewable power and carbon abatement technology such as carbon capture and storage. And in the decades ahead, we aim to de-fossilise our gas business through liquid synthetic gas, hydrogen, and direct air capture.
- We are at the forefront of efforts by the sector to reduce methane emissions. Shell has targets to maintain the methane emissions intensity of our operated assets below 0.2% and achieve near-zero methane emissions by 20301. We have also eliminated routine flaring from our upstream-operated assets.
1On an intensity basis
