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2. INTEGRATEDGAS

Our Integrated Gas business manages LNG activitiesand the conversion of natural gas into GTL fuels andother products, as well as our New Energies portfolio.It includes natural gas and liquids exploration andextraction, and the operation of upstream andmidstream infrastructure that delivers gas and liquidsto market. It markets and trades natural gas, LNG,electricity and carbon-emission rights, and marketsand sells LNG as a fuel for heavy-duty vehicles andmarine vessels.

26 Integrated Gas overview28 LNG31 GTL32 New Energies34 In Focus: Nature-based solutions35 Business and property

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25 Shell 2019 Investors' Handbook 2015-2019

INTEGRATED GAS OVERVIEW

Cash flow from operations

$15.3 billion

Production

922 kboe/d

LNG liquefaction volumes

35.6 million tonnes

LNG liquefaction plants

13in operation

LNG cargoes

3sold every day

Power managed [A]

10,000 MWtraded in 20+ countries

[A] Power generation capacity managed by Shell Energy North America

KEY MILESTONESPORTFOLIO AND BUSINESS DEVELOPMENT▪ In December 2018, we formed two joint ventures: with EDF

Renewables to build wind farms off the New Jersey coast; and withEDP Renewables (EDPR) to build wind farms off Massachusetts, inthe USA. Leases were granted by the authorities for JV with EDF inDecember 2018 and with EDPR in February 2019. In November,Massachusetts state authorities selected our JV with EDPR (Shellinterest 50%) to develop and supply 804 MW of clean, renewableenergy from offshore wind to the electricity customers in the state;

▪ In February, we acquired sonnen, a provider of smart energy storagesystems; and

▪ In November, we acquired ERM Power, one of Australia’s leadingcommercial and industrial electricity retailers.

MAJOR MILESTONES▪ In June, the first shipment of LNG sailed from our Prelude FLNG

facility (Shell interest 67.5%);▪ In September, the first of 10 Moveable Modular Liquefaction System

(MMLS) units started up at Elba Island in Savannah, Georgia, USA;and

▪ In November, FID was taken for the Barracuda Project (Shell interest100%), a subsea tie-back of two gas wells to an existing platform onthe East Coast of Trinidad.

DIVESTMENTS▪ In Timor-Leste (East Timor), we sold our 26.6% interest in the

undeveloped Sunrise gas field to the Timor-Leste government; and▪ In India, we sold our 10% interest in Mahanagar Gas Limited.

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Integrated Gas key statistics2019 2018 2017 2016 2015

Earnings ($ million) 8,628 11,444 5,078 2,529 3,170Earnings excluding identified items ($ million) 8,955 9,399 5,268 3,700 5,057Cash flow from operating activities ($ million) 15,311 14,617 6,467 9,132 7,728Liquids production (thousand b/d) [A] 156 214 203 223 204Natural gas production (million scf/d) [A] 4,442 4,311 3,969 3,832 2,469Total production (thousand boe/d) [A][B] 922 957 887 884 631LNG liquefaction volumes (million tonnes) 35.6 34.3 33.2 30.9 22.6LNG sales volumes (million tonnes) 74.5 71.2 66.0 57.1 39.2Cash capital expenditure ($ million) 4,299 3,819 3,616 4,105 4,777Capital employed ($ million) 90,824 86,850 87,462 86,631 62,481Employees (thousands) 10[C] 9[C][D] 8[C][D] 9[C] 13[A] Available for sale.[B] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.[C] Excludes employees seconded to joint ventures and associates.[D] As revised.

Integrated Gas earnings and cash flow [A]$ billion

Earnings

Cash flow from operating activities

2015 2016 2017 2018 20190

5

10

15

[A] Earnings excluding identified items

Integrated Gas productionmboe/d mtpa

Gas

Liquids

40

20

60

0

80

LNG sales volumes (RHS)

LNG liquefaction volumes (RHS)

2015 2016 2017 2018 2019

a

a

b

b

0

0.5

1.0

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INTEGRATED GAS OVERVIEW continued

LNG

Shell is involved in every stage of the LNG value chain. We find gasfields, extract and liquefy gas, trade and ship LNG, and turn it backinto gas before distributing it to customers.

Shell published its fourth LNG Outlook in February 2020. Drawing ona broad range of independent industry data and internal analysis, theOutlook highlights key trends in 2019 and focuses on future globaldemand and supply.

Recognition of the advantages of natural gas has led to an increasingtrend of coal-to-gas switching. According to Shell’s LNG Outlook, over thelast nine years, global cumulative CO2 savings generated by switchingenergy sources from coal to gas stand at around 600 million tonnes,equivalent to 57% of the annual CO2 emissions of South America. In2019, the number of coal generation phase-out announcements more thantrebled compared with 2018, a major acceleration.

Coal-to-gas switching CO2 savingsCO2 MT, 2010=0

China

Europe

United States India

Rest of world

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

a

b

c

d

e

Global [A]f

cde

f

a

b−300

−400

−500

−600

−700

-200

-100

0

Source: Shell LNG Outlook 2020, Shell interpretation of Wood Mackenzie, IEA WorldEnergy Outlook, IEA Carbon Report 2019 data[A] Power sector coal-to-gas switching in advanced economies only

Shell’s LNG Outlook notes that global demand for LNG grew by12.5% to 359 million tonnes in 2019. An industry record of 40 milliontonnes of additional supply became available and was consumed bythe market as the bulk of new liquefaction projects from the investmentwave in 2014 and 2015 came online.

Europe absorbed the majority of 2019 supply growth, with importsincreasing by 74%, as competitively priced LNG encouraged furthercoal-to-gas switching in the power sector, replacing declining domesticgas production and pipeline imports.

There was a modest rise in imports to Asia in 2019, compared with theprevious two years, because of mild weather and rising electricitygeneration from nuclear power in Japan and South Korea, two of thethree largest global importers.

China was once again among the top three LNG-importing countries,with demand increasing by 14% in 2019, as efforts continued toimprove urban air quality. In South and South-East Asia importsincreased by 21% compared with 2018, due to growing demand forgas amid declining domestic gas production.

Abundant supply led to a softening of global gas prices. Nearly 1,600spot cargoes were delivered in 2019 and new spot-trading mechanismsand a wider variety of indices were used for long-term contracts. Amore liquid and transparent global LNG market indicates that LNG isbecoming an increasingly flexible commodity.

In the short term, supply growth is expected to slow down with the lastof the new LNG liquefaction projects under construction due to becompleted by 2021. Equilibrium is expected to be restored as newsupply comes to a halt until the mid-2020s.

Emerging LNG supply-demand gapmtpa (des)

2000 2010 2020 2030 2040

LNG supply under construction

Demand forecast central range

LNG supply in operation

a

a

b

c

Potential Qatar expansiond

b

c

400

200

0

800

600

d

Source: Shell LNG Outlook 2020, Shell interpretation of IHS Markit, Wood Mackenzie,FGE and Poten & Partners Q4 2019 data

In this context, Shell is working on growing its supply of LNG. In 2018,we took FID on LNG Canada – located in Kitimat, British Columbia.Construction has started and we expect start-up before the middle ofthis decade. LNG Canada is expected to deliver significant, long-lifeand resilient cash flows. The project has been designed to achieve thelowest carbon intensity of any LNG project operating today, aided bythe partial use of hydropower.

In 2019, our Prelude FLNG facility reached a significant milestone,shipping its first LNG cargo to customers in Asia. Prelude is an offshoredevelopment that produces natural gas from a remote field in WesternAustralia. Prelude forms an integral part of our global portfolio andplays an important role in meeting the growing demand for more andcleaner energy from our customers around the world.

In 2019, Shell completed the full acquisition of the Hazira LNG andPort venture, which was subsequently renamed Shell Energy India (SEI).

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https://www.shell.com/energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook-2020.html#vanity-aHR0cHM6Ly93d3cuc2hlbGwuY29tL2xuZ291dGxvb2s=true&iframe=L3dlYmFwcHMvTE5HX291dGxvb2sv

LNG Canada site, Kitimat, British Columbia

This creates a fully owned and integrated Shell value chain, with supplyfrom the global LNG portfolio, regasification at the SEI facility, anddownstream customer sales.

LNG FOR TRANSPORTShell has invested in infrastructure to enable more use of LNG as amarine transport fuel. We have a global presence across a network ofeight key bunkering ports. We are expanding our LNG bunkeringnetwork and investing in LNG bunker barges to meet demand from ourcustomers. We already have four LNG bunker vessels in operation andexpect delivery of three more soon.

In 2019 we announced a partnership with Qatar Petroleum’s WaveLNG Solutions to invest in LNG marine fuelling, bunkering vessels andother infrastructure in key locations. These locations will leverageexisting Qatar Petroleum and Shell supply positions and complementcurrent Shell marine LNG bunkering locations in Europe, Asia andNorth America.

In 2019 we fuelled the world’s first LNG-powered cruise ship, followingthe world’s first LNG-powered crude oil tanker bunkering. As of 2019,we have safely completed more than 100 ship-to-ship bunkerings, 500tank-to-ship bunkerings and 150 truck-to-ship bunkerings.

Shell also develops LNG stations for road transport. We currently have13 LNG stations in Europe and two in China. We are expecting togrow our retail presence in Europe to more than 100 sites over the nextthree to five years.

Queensland Curtis LNG, Australia

SHELL’S APPROACHShell is a worldwide leader in LNG and GTL with a differentiated andresilient global portfolio. We intend to grow this market-facing businessand deliver substantial cash and returns, with natural gas – thecleanest-burning hydrocarbon – helping Shell thrive in the transition toa cleaner energy system.

To ensure our Integrated Gas business is resilient, we are executing astrategy focused on three key pillars: leading the market, running theengine and growing the engine.

We plan to continue leading the market by developing new pockets ofdemand in parts of the world that do not have access to natural gas.We are creating new markets to keep people and goods moving withLNG on water and on the road. And we are building more synergybetween our Integrated Gas and Power businesses to createadditional value.

We are focused on maximising value from our current assets andsupply chains to deliver superior cash flows, enabled by operationalexcellence. These improvements include increasing our LNGliquefaction capacity utilisation to above 90%, and reaching topquartile unit cost in our operations. We intend to invest between $4 to$5 billion per year over 2021 to 2025 in our existing assets andreplacement of declining assets. We will also selectively invest ingrowing our natural gas business.

This strategy is expected to deliver organic free cash flow forIntegrated Gas of between $9 and $10 billion per year by 2025 at$60 per barrel (real terms 2016).

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LNG continued

Integrated Gas assets: LNG liquefaction plants, regasification terminals and GTL plants

On-stream

Under construction

Liquefaction

LNG Canada

Atlantic LNG

Peru LNG

Nigeria LNG

Oman LNG and Qalhat LNG

Prelude FLNG

Brunei LNG

SMDS (Bintulu)

Gorgon

Sakhalin LNG

QCLNG

Gasnor

Qatargas 4

Pearl GTL

Egyptian LNGElba Island

Altamira

Lake Charles

Cove Point BarcelonaGibraltar

Dragon LNG Gas Access to Europe (GATE)

Shell Energy India Pvt Ltd

Singapore

North West Shelf

Costa Azul

GTLRegasification

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LNG continued

GTL

GTL products are colourless, odourless liquid hydrocarbons of veryhigh quality that have very low levels of impurities such as sulphur,aromatics and nitrogen. They are very similar to oil-derived productsbut, when burned, produce fewer pollutants and less particulatematter. As urbanisation around the world increases, we believe GTLprovides governments with a viable solution to improve localair quality.

A GTL investment can also be a catalyst for building a differentiatedeconomy that promotes innovation and stimulates further industrial andeconomic development.

Our GTL technology turns natural gas into valuable, high-qualitytransport fuels, motor oils and ingredients for everyday necessities suchas plastics, detergents and cosmetics. It is the result of more than 45years of research, development and commercial experience. It enablesnatural gas resource holders to access the global oil products market,which helps those who want to diversify risk, while stimulating in-country development.

Shell has achieved a leading competitive position in GTL, with uniquelydifferentiated premium products that enable us to capture a strongmargin uplift across Shell’s integrated value chain. We adapt our GTLproduct range to meet the evolving needs of our customers.

Our proprietary Shell GTL technology is at the heart of our GTL plants.We have filed more than 3,500 patents in developing our GTL process.

In 1993, we opened the world’s first commercial GTL plant in Bintulu,Malaysia, with a capacity of 14,700 barrels of oil equivalent per day.

In 2011, we started up Pearl GTL in Qatar, with a capacity of about140 thousand barrels of oil equivalent per day of high-quality liquidhydrocarbon products and 120 thousand barrels of oil equivalent perday of natural gas liquids (NGL) and ethane. In 2019 the plantachieved record safety and production performance levels.

Recognising the market demand for mid-sized GTL facilities betweenthe scales of SMDS (Bintulu) and Pearl GTL, Shell has developed amore flexible technology that can be used for a range of GTLplant sizes.

Pearl GTL plant, Qatar

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NEW ENERGIES

Shell’s New Energies business explores emerging opportunities linkedto the energy transition and invests in those where we see sufficientvalue. We focus on power, from generation to electric-vehicle chargingto integration with our trading business, as well as on new fuels fortransport, including advanced biofuels and hydrogen.

Since the formation of New Energies in 2016, we have invested some$2.3 billion in the business, excluding operating costs, with the majorityof this investment being directed to power.

Between 2021 and 2025, our investments in power could grow tobetween $2 billion and $3 billion per year on average, if certainfinancial conditions are met. We are building on the strength of ourbrand, the ability to provide integrated offerings around the world andover 20 years of experience in power trading.

MEETING CUSTOMERS' EVOLVING NEEDSShell began supplying residential customers in the UK for the first timewhen we acquired First Utility in 2018. First Utility was rebranded toShell Energy Retail in 2019. In November 2019, Shell Energy Retailcompleted the acquisition of Hudson Energy Supply UK Limited. ShellEnergy Retail supplies 100% renewable electricity, as well as naturalgas and smart home technology, to approximately 900 thousandhomes in the UK.

Shell owns a majority interest in GI Energy, a US-based company thatfocuses on the integration of distributed energy resources. We refer todistributed energy when customers begin to generate their own powerthrough solar panels or wind turbines, store it and redistribute it backinto the grid.

In 2019, Shell acquired the German company sonnen, which providesbattery storage systems. More than 45 thousand residential energystorage systems provide electricity, heating and cooling solutions tocommunities in Europe, the USA and Australia via sonnen. In 2019, wealso acquired energy technology firm Limejump, a UK-based companythat provides energy storage to smaller renewable energy generators,allowing them to sell clean power in real time to the National Grid.

Integrated Gas Power Diagram

Electricity storageSurplus energy storage solutions such as grid battery storage

Electricity productionElectricity produced by Shell- operated and non-operated solar parks and wind farms Power offtake

Energy Shell buys from third parties, including from solar, wind, hydro and gas power facilities

Distributed energyResidual energy generated by customers flows back to the grid

DistributionLocal distribution that carries low-voltage electricity to customers

Transmission networksTransport electricity over distances

Grid connection point

Hospital

EV recharging Residential

Factories

Offices

Wind power

Solar power

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In 2019, Shell completed the acquisition of Australian energy companyERM Power. ERM Power will help to build our power trading business inAustralia and it also provides a platform to expand our electricityofferings into the future. Its businesses include rooftop solar andenergy-efficient services, while it also operates two gas-firedpower plants.

Through our NewMotion subsidiary, Shell is developing other flexiblesolutions for electric-vehicle drivers to charge their vehicles at home orat work. NewMotion operates around 50 thousand private electriccharge points for homes and businesses in the Netherlands, Germany,France and the UK.

In 2019, we acquired Greenlots, a California-based company thatprovides electric-vehicle charging posts, charging network softwareand grid services across the USA and has a growing presence inCanada, Thailand, Malaysia and Singapore.

NEW FUELS FOR TRANSPORTShell is one of the largest blenders and distributors of biofuelsworldwide. Shell’s Raízen joint venture in Brazil produces one of thelowest-carbon biofuels available today. In 2019, Raízen produced2.5 billion litres of ethanol and 3.8 million tonnes of sugar from sugarcane. In Bangalore, India, we have built a demonstration plant that isdesigned to turn forestry, agricultural, and mixed urban waste intopetrol or diesel that can power cars. In Oregon, USA, we aredeveloping a facility to produce renewable natural gas (RNG) fromorganic waste through a process called anaerobic digestion. For moreinformation on biofuels please see the Downstream section.

We are part of joint ventures and alliances that have built hydrogenfilling stations for passenger cars in the USA (California), Canada,

Germany and the UK and that have announced plans to build severalstations in the Netherlands. In California, Shell is also developing fillingstations for hydrogen trucks, in co-operation with Toyota, Kenworth andthe Port of Los Angeles.

RENEWABLE GENERATIONIn the Netherlands we are part of the Blauwwind consortium (Shellinterest 20%) which is developing the Borssele III and IV offshore windfarms that are designed to have a total installed capacity of 731.5MW, enough to power about 825 thousand Dutch homes. We have a50% interest in the NoordzeeWind joint venture, an offshore windpower project in the Netherlands with total installed capacity of108 MW.

In the USA, we have developed and become co-owners of four onshorewind projects, from California to Texas. In December 2018, we formedtwo 50:50 joint ventures: with EDF Renewables to build wind farms offthe New Jersey coast, and with EDPR to build wind farms offMassachusetts. In November 2019, Massachusetts state authoritiesselected our JV with EDPR to develop and supply 804 MW of clean,renewable energy from offshore wind to electricity customers inthe state.

In 2019, Shell completed the acquisition of EOLFI, a French renewableenergy developer specialising in floating wind projects.

Shell owns a 43.1% interest in Silicon Ranch Corporation, a developer,owner and operator of solar energy assets in the USA.

In 2019, we acquired a 49% interest in Cleantech Solar, whichprovides solar power to commercial and industrial customers acrossSouth-East Asia and India.

In 2019, we also acquired a 49% interest in ESCO Pacific, a utility-scale solar developer and long-term asset management company inAustralia.

INVESTING IN NATUREDespite the rapid growth of lower-carbon energy, there are stillCO2 emissions that are hard to avoid. There are two options toaddress such emissions: removing CO2 from the source of the emissionsand storing it away safely or removing CO2 from the atmosphere.Nature plays a crucial role in the latter. We invest directly inafforestation and reforestation projects, and also buy and sell carboncredits to help address the atmosphere's CO2 concentration. Read the"In Focus: Nature-based solutions” section for more information.

Silicon Ranch Solar Farm, Tennessee, USA

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NEW ENERGIES continued

The world needs a range of measures to limit CO2 emissions whilemeeting rising energy demand. One important step is to look at whereand how emissions can be avoided in the first place. Another is toreduce emissions through operational efficiencies. Investments in low-carbon and renewable energy products, including wind and solar,biofuels, batteries and hydrogen, are critical. Transforming the energysystem will take time, so emissions that cannot be avoided need to bestored away through carbon capture and storage, and mitigatedthrough nature-based solutions, like reforestation andpreventing deforestation.

Nature-based solutions that protect and restore natural ecosystemscan lead to the marketing, trading and sale of carbon credits, witheach credit representing the avoidance or removal of one tonne ofCO2. Shell is one of the most established traders of carbon credits inthe world and buys these voluntary credits from a global portfolio ofnature-based projects.

Each credit is registered in independently managed registries and canonly be used once. The projects we work with are certified by theVerified Carbon Standard, currently the most-used voluntary standardfor nature-based projects globally, and the Climate, Community andBiodiversity Standard, which verifies that projects not only addressclimate change, but also support local communities andconserve biodiversity.

CARBON-NEUTRAL DRIVING ANDTRANSPORTShell offers drivers a range of ways to help them address their carbonfootprint: from providing charging for electric vehicles to guidance onefficient driving. In 2019, we started offering customers nature-basedcarbon credits to offset the CO2 emissions generated by theextraction, refining, distribution and use of the Shell fuel they buy. Welaunched the programme in 2019 at more than 400 service stations inthe Netherlands in April and at more than 1,000 UK service stationsin October.

We also delivered the world’s first carbon-neutral LNG cargoes toTokyo Gas and GS Energy. We used nature-based carbon credits tocompensate the CO2 emissions generated – from exploration andproduction to use by the consumer. The cargoes provided enoughcarbon-neutral energy to power nearly 300 thousand homes fora year.

OUR INVESTMENTS IN THE NATURE-BASED SOLUTIONS PROJECTSWORLDWIDEAs part of our strategy to act on global climate change, Shell plans toinvest at scale in natural ecosystems.

One example is a project led by the Netherlands National ForestryDepartment to plant five million trees over the next 12 years. We arealso working to reforest 300 hectares in the Castilla y León region ofSpain and have already planted around 300 thousand trees betweenApril 2019 and January 2020. In the UK, we are working with Forestryand Land Scotland to generate carbon credits by helping to plant orregenerate around one million trees over the next five years, while inQueensland, Australia, we are restoring 800 hectares ofendangered woodland.

Tree planting, Land Life Company, Spain

IN FOCUS: NATURE-BASED SOLUTIONS

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BUSINESS AND PROPERTY

LNG AND GTLAUSTRALIAWe have interests in offshore production, LNG liquefaction andexploration licences in the North West Shelf (NWS) and GreaterGorgon areas of the Carnarvon Basin and in the Browse Basin.Woodside is the operator on behalf of the NWS joint venture (Shellinterest 16.7%), which produced more than 480 thousand boe/d ofgas and condensates in 2019.

We have a 25% interest in the Gorgon LNG joint venture, which isoperated by Chevron. The venture started operating in 2016,producing from the offshore Gorgon and Jansz-Io fields via a three-train LNG plant on Barrow Island.

We are also a partner in the Browse joint arrangement (Shell interest27%) covering the Brecknock, Calliance and Torosa gas fields, which isoperated by Woodside.

We are the operator of Prelude FLNG (67.5% Shell interest). During2019, the facility progressed through the start-up and ramp-up phase,with the first condensate offtake in March 2019, followed by the first

The Prelude FLNG facility produces natural gas off the coast of Australia

LNG offtake in June 2019 and the first NGL offtake in July 2019. Ourother interests in the basin include a joint arrangement, with Shell asthe operator, for the Crux gas and condensate field (Shell interest82%) and other backfill and contingent resources. A significantdiscovery was made at the Bratwurst prospect in the Browse Basin,Australia, near the Prelude FLNG facility which presents an opportunityfor a future tie-back to Prelude, currently under evaluation, to maximisethe FLNG value.

The sale of Shell’s interest in the undeveloped Sunrise gas field in theTimor Sea (Shell interest 26.6%) to the government of Timor-Leste wascompleted in 2019.

We are a partner in both Shell-operated and other exploration jointarrangements in multiple basins, including Browse, Exmouth Plateau,and Greater Gorgon.

We have a 50% interest in Arrow, a Queensland-based joint venturewith CNPC. Arrow owns coal-bed methane assets and a domesticpower business.

We have a 50% interest in train one and a 97.5% interest in train twoof the Shell-operated Queensland Curtis LNG (QCLNG) venture. Thetwo-train liquefaction plant has an installed capacity of 8.5 mtpa. Wealso operate the venture’s natural gas operations, which include wells,compression stations and processing plants, in Queensland’s SuratBasin. We have interests ranging from 44% to 74% in 24 fieldcompression stations and six central processing plants. Our productionof natural gas from the onshore Surat Basin supplies the liquefactionplant and the domestic gas market.

A gas sales agreement between Arrow and QCLNG has been signed,under which gas from Arrow’s Surat Basin fields would flow to theQCLNG venture, which would then sell gas to local customers andexport it through its gas plant on Curtis Island.

BRUNEIWe have a 25% interest in Brunei LNG Sendirian Berhad.

CANADAIn 2018, we took FID on LNG Canada, a LNG project in Kitimat, BritishColumbia, in which we hold a 40% interest. Construction started inOctober 2018 and first LNG is expected before the middle ofthis decade.

EGYPTWe have interests of 35.5% in train one and 38% in train two of theEgyptian LNG (ELNG) plant. In January 2014, force majeure noticeswere issued under the LNG agreements as a result of domestic gasdiversions severely restricting volumes available to ELNG. These noticesremain in place.

GIBRALTARWe have a 51% interest in the first LNG regasification facilityin Gibraltar.

Small-scale LNG import terminal, Gibraltar

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Shell Hazira LNG, Gujarat, India

INDIAWe hold a 100% interest in Shell Energy India Pvt Ltd, which operatesa regasification terminal, and Hazira Port Pvt Ltd, which manages acargo port at Hazira, both of which are located in the state of Gujaraton the west coast.

INDONESIAWe have a 35% interest in the INPEX Masela Ltd joint venture whichowns and operates the offshore Masela block. In June 2019, the jointventure received the official approval of Plan of Development (POD) forthe Abadi LNG Project from the Indonesian government authorities.The government also granted a 20-year extension to the Masela blockPSC in October 2019.

MALAYSIAWe operate a GTL plant, Shell MDS (Shell interest 72%). Using Shelltechnology, the plant converts gas into high-quality middle distillates,drilling fluids, waxes and specialty products.

NETHERLANDSWe have access to import and storage capacity at the GATE LNGterminal in the Port of Rotterdam, Netherlands (Shell capacity rights1.4 million tonnes per annum). We are also using the terminal to supplyLNG to our growing truck-refuelling network in the Netherlands.

NIGERIAWe have a 25.6% interest in Nigeria LNG Ltd, which operates six LNGtrains located on Bonny Island.

NORWAYGasnor AS (Shell interest 100%) provides LNG fuel for ships andindustrial customers and has a natural gas pipeline network.

OMANWe have a 30% interest in Oman LNG LLC. We also have an 11%indirect interest in Qalhat LNG.

In February 2019, we signed an Interim Upstream agreement thatdetailed a funding and a work programme for 2019 for thedevelopment of gas resources destined for integrated projects to helpmeet the Sultanate of Oman’s growing need for energy. The othersignatories were Petroleum Development Oman (PDO), Oman OilCompany (OOC) and Total. The project covers investments in gasexploration and production. The aim is to integrate the Shell and OOCshare of the upstream project with the development of a GTL plantcurrently under discussion, which would be developed and operatedby Shell in partnership with OOC.

PERUWe have a 20% interest in the Peru LNG liquefaction plant.

QATARWe operate the Pearl GTL plant (Shell interest 100%) in Qatar under adevelopment and PSC with the government. The fully integrated facilityhas capacity for production, processing and transportation of1.6 billion standard cubic feet per day (scf/d) of gas from Qatar’sNorth Field. It has an installed capacity of about 140 thousand boe/d

The GATE LNG terminal, Rotterdam, the Netherlands

of high-quality liquid hydrocarbon products and 120 thousand boe/dof NGL and ethane.

We have a 30% interest in Qatargas 4, which comprises integratedfacilities to produce about 1.4 billion scf/d of gas from Qatar’s NorthField, an onshore gas processing facility and one LNG train with acollective production capacity of 7.8 mtpa of LNG and 70 thousandboe/d of condensate and NGL.

RUSSIAWe have a 27.5% interest in Sakhalin-2, the joint venture withGazprom, an integrated oil and gas project located onSakhalin island.

SINGAPOREWe have a 50% interest in a joint venture with KS Investments (theinvestment arm of Keppel Group) that holds a licence to supply LNGfuel for vessels in the Port of Singapore. We have aggregator licencesto import LNG into Singapore and market the gas to power plants andother customers.

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BUSINESS AND PROPERTY continued

TANZANIAWe have a 60% interest in, and are the operator of, Blocks 1 and 4offshore southern Tanzania. The blocks cover approximately 4,000square kilometres of the Mafia Deep Offshore Basin and the northernpart of the Rovuma Basin. We continue to develop a potential LNGproject with partners in Block 2, in line with the Block 1 and 4 appraisalprogramme agreed with the Tanzanian government. We are engagingwith the government to extend the Block 4 licence. The government hasconfirmed that the Block 4 licence, which had initially been due toexpire on October 31, 2017, remains in full force pending the grant ofthe licence extension.

TRINIDAD AND TOBAGOWe have interests in three concessions with producing fields – CentralBlock, East Coast Marine Area (ECMA) and North Coast Marine Area(NCMA) blocks. We have a 65% interest in Central Block, 100%interest in ECMA and 80.5% interest in NCMA. We also own a 90%interest in block 22 and 80% in NCMA 4 which include threeundeveloped discoveries. Our interests range from 35% to 100% inexploration activities in blocks 5(c), 5(d), 6(d), and Atlantic Areablocks 3, 5, and 6.

We are the largest shareholder in all four trains at Atlantic LNG.

UKWe have a 50% interest in the Dragon LNG regasification terminal,with long-term arrangements in place governing the use ofcapacity rights.

USAWe have offtake rights via a lease to 100% of the capacity (2.5 mtpa)of the Kinder Morgan-operated Elba Island liquefaction plant, whichconsists of 10 MMLS units. The first three of these units started up in2019. We also lease regasification capacity on Elba Island withcontracted capacity of 11.6 mtpa.

We have 13.1 mtpa of contracted capacity in the Lake Charlesregasification terminal in Louisiana.

TRADING AND SUPPLYThrough our Shell Energy organisation, we market a portion of ourshare of equity production of LNG and trade LNG volumes around theworld through our hubs in the UK, Dubai and Singapore. We also selltrucked LNG in China, Singapore and Europe.

Shell markets and trades crude oil

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OTHER GAS AND POWER ACTIVITIESBOLIVIAWe hold a 37.5% participating interest in the Caipipendi block, wherewe mainly produce from the Margarita and Huacaya gas-condensatefields. We are also exploring further in the Caipipendi block. We alsohave a 25% interest in the Petrobras-operated Tarija XX West blockwhere we produce from the Itaú field. We have the rights to exploreand further develop the onshore Huacareta block (Shell interest 100%during exploration), and we are currently exploring there. In August2019, we acquired a 15% participating interest in the Repsol-operatedIniguazu exploration Block. In May 2019, we relinquished the LaVertiente Block to the government.

CHINAWe jointly develop and produce from the onshore Changbei tight gasfield under a PSC with China National Petroleum Corporation (CNPC).In 2016, we completed the Changbei I development programme underthe PSC and subsequently handed over the production operatorship toCNPC. In December 2017, we took the FID on the Changbei II Phase 1project. We started drilling activity in early 2019, and remain theoperator of Changbei II.

INDIAWe had a 30% interest in the producing oil and gas field Panna/Mukta and a 30% interest in the Mid Tapti and South Tapti fields. Bothlicences expired in December 2019 and operatorship was transferredto Oil & Natural Gas Corporation Limited (ONGC).

In 2019, we divested our 10% interest in Mahanagar Gas Limited, anatural gas distribution company in Mumbai.

TRADING AND SUPPLYTrading and Supply also markets and trades natural gas, power andcarbon-emission rights in multiple markets in North and South America,Europe, Asia and Australia, of which a portion includes equity volumesfrom our upstream operations.

We have set up a power marketing and trading business in Japanwhich began trading in 2019.

In November 2019, we acquired ERM Power, one of Australia’sleading commercial and industrial electricity retailers, which builds onShell Energy Australia’s existing gas marketing and trading capability.

OTHERWe have a 17.9% share in the West African Gas Pipeline CompanyLimited which owns and operates a 678 km pipeline transporting gasfrom Nigeria to Ghana, Benin and Togo.

We have a 40% interest in a gas pipeline connecting Uruguayto Argentina.

We have a 35% interest in Cyprus block 12, holding the Aphroditediscovery which is currently under appraisal, a 60% interest in twodeep-water blocks in Colombia, interests in offshore blocks in Myanmarand one exploration block licence in Namibia.

We also have interests in Gabon and Morocco.

Changbei natural gas processing facility, China

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