By Staff Writer: Jun 15, 2016
Royal Dutch Shell plc (ADR) (NYSE:RDS.A) plans to further strengthen its foothold in the liquefied natural gas (LNG) market, as according to Reuters, the company will sign the Baltic LNG project deal with Russian energy giant, Gazprom in the coming days. The multi-billion dollar deal with London-based BG Group has already increased the company’s exposure to the LNG segment.
According to news sources, Shell CEO, Ben van Beurden, will sign the deal at the International Economic Forum in St. Petersburg. Russian President, Vladimir Putin, is also expected to attend the meeting.
Baltic LNG Project
Shell expects to acquire 25–35% stake in the Baltic LNG project. It is scheduled to come online in 2018 and is expected to serve consumers in the Kaliningrad Region.
The Baltic LNG plant is being built near the Ust-Luga seaport. The plant is expected to have an annual production capacity of around 10 million tons of LNG during the first few years of operations. Gazprom plans to increase the annual production to 20 million tons of LNG by the end of 2021.
When the project was first announced three years back, Gazprom PAO (ADR) (OTCMKTS:OGZPY) said it would seek to attract investors for it. The Russian company plans to maintain around 49% stake in the project. Shell’s investment would help it accumulate finances for the project and speed up the construction process.
Shell: Exposure to The LNG Market
Shell sees huge future potential in the LNG market as it expects the current global LNG demand to increase from 240 million tons per year to 430 million tons per year in 2025. The company believes that although LNG prices are currently trading at their multi-year low, they would bounce back in the long-run.
The Anglo-Dutch energy company believes LNG will occupy a large share in the global energy mix in the long-term. The company expects the LNG segment to grow 5% annually.
Shell considers LNG segment as its cash engine; a stable business that yields strong free cash flow and high return for the oil major. The company expects this segment to help finance its dividends and improve balance sheet position.
The energy giant is currently involved in the early stages of the development of LNG value chain. It is exploring the gas fields, liquefying gas, and transporting it to the customers. The BG merger has already strengthened its foothold in the LNG market, especially in Australia.
Not only Shell, but other energy giants including Chevron Corporation (NYSE:CVX) are also looking to increase exposure to the LNG market. Chevron has invested billions of dollars in Gorgon and Wheatstone LNG projects, while BP is seeking opportunities in the segment.
Editing by Hamza Khalil; Graphics by Hussain Akber
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
