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Shell (RDS.A) Receives Europe’s First Carbon-Neutral LNG Delivery

Shell (RDS.A) Receives Europe’s First Carbon-Neutral LNG Delivery

Zacks Equity Research

Royal Dutch Shell Plc RDS.A, through its subsidiary Shell Global LNG, accepted the delivery of the first carbon-neutral liquefied natural gas (“LNG”) in Europe from Gazprom.

Notably, Gazprom is a global energy company and is recognized as one of the largest producers and exporters of LNG in Russia.

The carbon-neutral gas had been delivered at the Dragon terminal in Wales, which is a LNG regasification terminal in the U.K., owned by Shell. Importantly, this will allow Shell to further supply it to the domestic energy markets in the U.K.

The Russian LNG was formed carbon-free by neutralizing the emissions arising from its production and transportation. Generally, carbon-neutral LNG includes businesses, which support nature-based projects that attempt to lower emissions to balance out those arising from the exploration and production of natural gas.

Shell and Russian energy giant Gazprom are offsetting the environmental impacts of the delivery through the Verified Carbon Standard and the Climate, Community and Biodiversity carbon credit standards.

Notably, Shell has already delivered seven carbon-neutral cargoes in Asia and this shipment acknowledges the fact that natural gas helps to combat climate change and its impacts as it emits 45-55% less greenhouse gas emissions and lower than one-tenth of the air pollutants than coal if used to produce electricity.

Company Profile & Price Performance

Shell is one of the primary oil majors — a group of U.S. and Europe-based energy giants with global operations. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.

The company’s shares have outperformed the industry in the past six months. Its stock has gained 53.9% compared with the industry’s 45.4% growth.

Zacks Rank & Other Stocks to Consider

Shell currently flaunts a Zack Rank #1 (Strong Buy).

Some other top-ranked players in the energy space are Exxon Mobil Corporation XOM and CNOOC Limited CEO, each presently sporting a Zacks Rank #1, and Pioneer Natural Resources Company PXD, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Exxon’s earnings for 2021 are expected to surge 35.1% year over year.

CNOOC’s earnings for 2021 are expected to increase 19% year over year.

Pioneer’s earnings for 2021 are expected to surge 26.9% year over year.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

SOURCE

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