Since assuming leadership in January 2023, Sawan has sharpened Shell’s focus on natural gas, arguing it offers stronger returns compared to wind and solar investments. Under his direction, the company has pulled out of several low-carbon ventures, preferring instead to channel resources into LNG projects across multiple continents.
Speaking at an Economic Club of New York event, Sawan described LNG as “one of the most effective fuels” for reducing emissions, particularly in emerging economies. “It can replace coal in places like India, China and other Asian countries,” he said. Global demand for LNG, he predicted, will climb by 60% between now and 2040, raising its share of natural gas trade from 13% today to about 20%.
Shell is pursuing LNG developments in Abu Dhabi, Nigeria, and other strategic hubs. The company also recently marked the operational success of LNG Canada, its flagship export project in British Columbia. Sawan, who attended the project’s celebrations in Vancouver last week, said Shell is carefully evaluating the economics of a second expansion phase.
Canada’s government has thrown its weight behind the facility, with Prime Minister Mark Carney identifying the expansion as one of five priority “nation-building projects.” The plant is significant not only as Canada’s first major LNG export terminal but also as the first located on the west coast of North America, offering a competitive shipping route to Asian buyers.
“I don’t think I’ve ever seen the stars as well aligned as I see now in Canada,” Sawan remarked, citing strong political backing at both provincial and federal levels.
However, he acknowledged that market timing remains a challenge. A global surge in LNG supply is expected as new projects in the United States and elsewhere come online, raising questions about pricing and profitability. “The number of final investment decisions being taken surprises me, if I’m honest, because it’s at the higher end of the cost curve,” Sawan said. “So it’s not economically fully rational.”
That uncertainty means Shell is in no rush to lock in its next big bet. “We need to be able to judge when is the right time to bring more capacity,” Sawan concluded.
The comments highlight Shell’s evolving energy strategy: leaning on LNG as a bridge fuel for decarbonization while maintaining financial discipline in an increasingly competitive market.