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Shell (SHEL) to Take Part in Qatar's LNG Expansion Project

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Shell plc (SHEL - Free Report) recently joined the Qatari state-owned energy company – QatarEnergy’s $29-billion North Field East expansion project to expand output at the world's biggest natural gas field, becoming the latest international partner in this ambitious megaproject.

This development, which is considered to be the single-largest project in the history of the liquefied natural gas industry, is quite significant, considering the soaring energy demand and the supply crisis following Moscow’s military action in Ukraine.

The London-headquartered oil supermajor will hold a 6.25% interest in the expansion project, with TotalEnergies and ExxonMobil also owning a 6.25% stake each.

Per Shell, the company’s investment in this project will support the delivery of the much-needed supplies of natural gas to markets worldwide and will also be integrated with carbon capture and sequestration to cut down emissions.

SHEL’s Chief Executive Officer, Ben van Beurden, said “This agreement deepens our strategic partnership with QatarEnergy, which includes multiple international partnerships,” and he further mentioned that Shell is committed to maximizing the value of the LNG expansion for the State of Qatar and becoming a trusted, dependable and long-term partner in Qatar’s continued progress.

The gulf state discovered one of the world’s largest gas reserves in the North Field in 1971. The development, however, is anticipated to augment Qatar's output from the current 77 million tons a year to 110 million tons by 2027.

Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company. Shell plc was formerly known as Royal Dutch Shell.

Shell currently sports a Zacks Rank #1 (Strong Buy). Investors interested in the energy space might also look at the following companies — BP (BP - Free Report) , Marathon Petroleum (MPC - Free Report) and Ranger Oil — each sporting a similar Zacks Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BP’s 2022 earnings stands at $7.48 per share, which is an increase of about 95.8% from the year-ago earnings of $3.82.

BP beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 19.90%.

Marathon Petroleum beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 65%.

The Zacks Consensus Estimate for MPC’s 2022 earnings is pegged at $14.57 per share, up approximately 494.7% from the year-ago earnings of $2.45.

Ranger Oil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 56.4%.

The Zacks Consensus Estimate for ROCC’s 2022 earnings stands at $14.14 per share, which is an increase of 158% from the year-ago earnings of $5.48.


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