Shell announced this in a statement ahead of its Capital Markets Day, which will be held in New York on Tuesday.
The company also released a presentation after the announcement, showing more details regarding the LNG sales growth.
Shell sold 65.82 million tonnes of LNG in 2024, a 2 percent decrease from 67.09 million tonnes of LNG in 2023.
The company’s liquefaction volumes increased by 3 percent to 29.09 million tonnes in 2024.
Shell’s newest LNG outlook showed that global demand for LNG is forecast to rise by around 60 percent by 2040, largely driven by economic growth in Asia, emissions reductions in heavy industry and transport as well as the impact of artificial intelligence.
Industry forecasts now expect LNG demand to reach 630-718 million tonnes a year by 2040, a higher forecast than last year.
Besides LNG sales, Shell also said it aims to grow top line production across its combined upstream and integrated gas business by 1 percent per year to 2030, sustaining its 1.4 million barrels per day of liquids production to 2030 with “increasingly lower carbon intensity.”
“Raising the bar”
‘’We have made significant progress against all of the targets we set out at our Capital Markets Day in 2023. Thanks to the outstanding efforts of our people, we are transforming Shell to become simpler, more resilient and more competitive,’’ said CEO Wael Sawan.
‘‘We want to become the world’s leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production. Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders,” he said.
Shell said that it will increase shareholder distributions from 30-40 percent to 40-50 pecent of cash flow from operations (CFFO) through the cycle, continuing to prioritize share buybacks, while maintaining a 4 percent per annum progressive dividend policy.
Moreover, the firm will increase the structural cost reduction target from $2-3 billion by the end of 2025 to a cumulative $5-7 billion by the end of 2028, compared to 2022.
Shell will invest for growth while maintaining capital discipline, with spending lowered to $20-22 billion per year for 2025-2028.
The company plans to grow free cash flow per share by more than 10 percent per year through to 2030, and to maintain the climate targets and ambition set out in its Energy Transition Strategy 2024.
