Shell is stepping up its game in this field. For example, we’re working to create an Integrated Engineering Environment. This is called Project Vantage. We expect key savings in design and engineering to come from the single-source availability of up-to-date design information … semi-automated data validation … and consistency checking across disciplines, locations and contractors.
Another example is Shell’s floating LNG project Prelude. Prelude is the world’s largest floating offshore facility. It will be used to help open up new natural gas fields at sea that in the past would have been considered too costly or difficult to develop. We are well into the construction phase of this pioneering project. We’ve taken the learnings from this and applied them to potential projects for the future. We now have a standardised design. And we can add different pre-designed topside modules and offloading systems, depending on the composition and location of the gas reservoir.
Working with our strategic suppliers on topics like replication, standardisation and scope rationalisation, the Prelude project led to spin-offs like FLNG Lean. In locations where liquid production … resulting in condensate and LPG… is expected to be low, FLNG Lean facilities are designed to process additional gas and produce more LNG instead. We expect it to be very cost-competitive for larger, lean gas fields.
These examples show that Shell is playing its part in lowering costs. But there’s a long way to go – both for Shell and the industry. The key point, in my view, is the need to drive down cost inflation in design, construction and engineering.
Judging from Shell’s energy scenarios and the IEA’s most recent outlook, the demand for gas will continue to grow at rates above 2 per cent a year. And LNG will continue to increase its share of the gas business. But we cannot sit back and relax. At least three things are crucial for meeting the world’s energy needs while safeguarding the environment.
Fewer emissions. Better policies. Lower costs. Let’s work towards these goals collectively. Working together offers us the best chance of firmly establishing gas as a core pillar of a sustainable energy future. Let’s grow gas together.
