Royal Dutch Shell (LON:RDSA) is investing in projects to boost global gas demand, Bloomberg has revealed. The move comes as Europe’s biggest energy company continues with its drive to turn into a natural gas giant.
Shell’s share price has been steady in London in today’s session, having added 0.84 percent to 2,151.50p as of 12:52 BST, slightly outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.46 percent higher at 7,388.20 points. The group’s shares have added more than 13 percent to their value over the past year, but have given up some four percent in the year-to-date.
Maarten Wetselaar, Shell’s director of integrated gas and new energies, told Bloomberg yesterday that the FTSE 100 group was supporting the development of gas use in heavy transport such as shipping and was also helping smaller and less credit worthy customers begin importing LNG. As new LNG customers enter the market, that will open a window for the Anglo-Dutch energy group and others to develop new low-cost export plants.
“I want to create shorts that we can build projects against,” Wetselaar explained, speaking an event at the newswire’s Sydney office. “As we develop the market, we’ll need new supply. We will build new LNG projects to serve that market.”
The move comes with Shell executives looking to remake Europe’s biggest oil company into a natural gas giant amid the global drive to lower carbon emissions. As well as accelerating the transition to gas, Shell’s chief executive Ben van Beurden has also advocated a price on carbon and worked to promote hydrogen as a transport fuel.
The news comes after Shell announced yesterday that it had opened its first service station in Mexico, kicking off its expansion plan which will see the company invest $1 billion in the country over the coming decade.