Integrated Gas overview

In 2015, our Integrated Gas business

  • Earnings, excluding identified items for the full year 2015, were $5.1 billion.
  • In Malaysia, the LNG Dua Joint Venture Agreement (JVA) expired and we transferred our 15% shareholding to PETRONAS, in accordance with the original JVA terms. With the expiry of the LNG Dua production-sharing contract (PSC), we handed over the operatorship.
  • In the USA, we sold our 49% interest in Elba Liquefaction Company, LLC, the owner of the Elba Liquefaction Project to Kinder Morgan, Inc., resulting in Kinder Morgan owning 100% of the Elba Liquefaction Company, LLC. We retain the rights to 100% of the liquefaction capacity through a tolling arrangement, once construction is complete. Elba Island also has an existing regasification terminal where Shell has contracted firm capacity. Shell’s current contracted capacity is 11.6 million tonnes per annum (mtpa).

So far in 2016

  • In Australia, production of LNG and condensate started at the Gorgon LNG project on Barrow Island, off the northwest coast, in March 2016.
  • In Australia, the Browse Joint Venture participants (Shell interest 27%) decided not to progress with the development concept being studied for the resource as it did not meet commercial requirements for a positive FID, considering the current economic and market environment.
  • INPEX as operator of the Abadi field in Indonesia (Shell interest 35%) received a notification from the regulator SKK Migas requesting INPEX to resubmit a revised plan of development based on onshore LNG rather than floating LNG.
  • Sabine Pass LNG, the first LNG export terminal in the US, started up in February. As one of the first to off-take from this terminal, Shell is well-positioned to take advantage of the new wave of LNG supply expected from the US.
  • In New Zealand, we sold our 83.75% interest in the Maui natural gas pipeline to First State Investments for a consideration of around $0.2 billion. The transaction was completed in June 2016.

Integrated gas key statistics [A]

 

2015

2014

2013

2012

2011

[A]

The acquisition of was completed on February 15, 2016.

[B]

Available for sale.

[C]

Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel.

Earnings ($ million)

3,170

10,610

8,998

10,990

7,280

Earnings excluding identified items ($ million)

5,057

10,332

8,999

9,414

6,419

Cash flow from operations ($ million)

7,728

12,689

12,273

10,930

7,666

Liquids production (thousand ) [B]

204

221

224

138

110

Natural gas production (million ) [B]

2,469

2,666

2,557

1,961

1,398

Total production (thousand ) [B][C]

631

682

665

476

351

liquefaction volumes (million tonnes)

22.6

24.0

19.6

20.2

18.8

LNG sales volumes (million tonnes)

39.2

39.5

30.5

30.6

27.7

Capital investment ($ million)

5,178

9,124

11,822

6,077

4,783

Capital employed ($ million)

62,481

62,127

60,657

47,561

43,813

Employees (thousands)

13

11

10

N/A

N/A

Integrated Gas earnings [A]

$ billion

Integrated gas earnings (in $ billion) excluding identified items – development from 2011 to 2015 (bar chart)Integrated gas earnings (in $ billion) excluding identified items – development from 2011 to 2015 (bar chart)

[A] Excluding identified items.

Production

million boe/d

mtpa

Production for Liquids, Gas (in million boe/d) and LNG liquefaction volumes (in mtpa) – development from 2011 to 2015 (line and bar chart)Production for Liquids, Gas (in million boe/d) and LNG liquefaction volumes (in mtpa) – development from 2011 to 2015 (line and bar chart)
BG
BG Group plc
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b(/d)
barrels (per day)
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scf(/d)
standard cubic feet (per day)
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boe(/d)
barrels of oil equivalent (per day); natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel
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LNG
liquefied natural gas
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