Shell H1 LNG sales down 4 pct

Oil and gas giant Shell said its equity sales of LNG dropped 4 percent to 11.63 million tonnes in the first half of this year, as compared to the same period in 2014.

This was mainly due to an unplanned shutdown at NWS in Australia, the Woodside divestment, and lower volumes from Malaysia LNG Dua where the joint venture agreement with Petronas expired, Shell said on Thursday.

Shell sold 5.46 million tonnes of LNG in the second quarter, down 9 percent as compared to the same quarter a year ago.

The company’s second quarter earnings were at $3.4 billion compared with $5.1 billion a year ago. Cash flow from operating activities for the second quarter was $6.1 billion, compared with $8.6 billion for the same quarter last year.

“Shell’s integrated business and our performance drive are helping to mitigate the impact of low oil prices on our bottom line,” Shell’s CEO Ben van Beurden said.

“We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery,” Beurden added.

He also said that a good progress is being made with the recommended combination with LNG player BG.

“The combination should enhance our free cash flow, create an IOC leader in LNG and deep water innovation, and be a springboard to change Shell into a simpler and more profitable company. The regulatory filings process and integration planning are both progressing well.”

LNG World News Staff; Image: Shell