SHELL LNG OUTLOOK 2018

DEFINITIONS & CAUTIONARY NOTE

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with
the Society of Petroleum Engineers (SPE) 2P + 2C definitions.
Operating costs are defined as underlying operating expenses, which are operating expenses less identified items. Organic free cash flow is defined as free cash flow excluding inorganic capital investment and divestment proceeds. Clean CCS ROACE (Return on Average Capital
Employed) is defined as defined as the sum of CCS earnings attributable to shareholders excluding identified items for the current and previous three quarters, as a percentage of the average capital employed for the same period. Capital employed consists of total equity, current
debt and non-current debt. Capital investment comprises capital expenditure, exploration expense excluding well write-offs, new investments in joint ventures and associates, new finance leases and investments in Integrated Gas, Upstream and Downstream securities, all of which on
an accruals basis. In 2016, the capital investment was impacted by the acquisition of BG Group plc. which are included in “Change in non-controlling interest” within “Cash flow from financing (CFFF) activities”. Divestments comprises proceeds from sale of property, plant and
equipment and businesses, joint ventures and associates, and other Integrated Gas, Upstream and Downstream investments, reported in “Cash flow from investing activities (CFFI)”, adjusted onto an accruals basis and for any share consideration received or contingent consideration
recognised upon divestment, as well as proceeds from the sale of interests in entities while retaining control (for example, proceeds from sale of interest in Shell Midstream Partners, L.P.), This presentation contains the following forward-looking Non-GAAP measures: Organic Free
Cash Flow, Free Cash Flow, Capital Investment, CCS Earnings, CCS Earnings less identified items, Gearing, Underlying Operating Expenses, ROACE, Capital Employed and Divestments. We are unable to provide a reconciliation of the above forward-looking Non-GAAP measures
to the most comparable GAAP financial measures because certain information needed to reconcile the above Non-GAAP measure to the most comparable GAAP financial measure is dependent on future events some which are outside the control of the company, such as oil and
gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures consistent with the company accounting policies and the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without
unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Royal Dutch Shell plc’s financial statements. The
financial measures provided by strategic themes represent a notional allocation of ROACE, capital employed, capital investment, free cash flow, organic free cash flow and underlying operating expenses of Shell’s strategic themes. Shell’s segment reporting under IFRS 8 remains
Integrated Gas, Upstream, Downstream and Corporate.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its
subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’,
“Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures”
and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a
venture, partnership or company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied
in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These
forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’,
‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h)
risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and
regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental
entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking
statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are
contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader.
Each forward-looking statement speaks only as of the date of this presentation, February 26, 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future
events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. This presentation may contain references to Shell’s website. These references are for the readers’
convenience only. Shell is not incorporating by reference any information posted on www.shell.com. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our
filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

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SHELL LNG OUTLOOK 2018
CONTENTS
01 EXTERNAL ENVIRONMENT CREATING
MORE OPPORTUNITIES FOR GAS AND LNG
The energy challenge
Growing economies need more and cleaner energy
Policy actions for clean energy support gas and LNG
Gas plays growing role to meet energy challenge
Gas supports renewables
OECD leading the move to gas and renewables for power
generation
Strong China gas demand driven by growth outside power
LNG is the fastest growing gas supply source
LNG provides new form of energy security
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02 STRONG LNG FUNDAMENTALS 03 SUPPLY INVESTMENT REQUIRED TO
EXCEEDED EXPECTATIONS IN 2017 MEET LONG-TERM DEMAND GROWTH
Unprecedented LNG capacity expansion 45% complete Lack of supply investment risks future global LNG market
growth
Global LNG market continues to defy expectations
LNG buyers and their needs are changing
Queensland Curtis LNG Facility, Australia
29 mt increase in LNG imports in 2017
LNG buyers signing shorter and smaller contracts
LNG accommodates China growth and seasonal demand
Liquefaction investment needed to meet demand growth
Spot prices continue to reflect strong demand for LNG
Physical and financial liquidity increases as market
evolves
Fast, flexible FSRUs continue to increase LNG imports
Demand for LNG in transport grows globally
3
SHELL LNG OUTLOOK 2018

01
EXTERNAL
ENVIRONMENT
CREATING MORE
OPPORTUNITIES FOR
GAS AND LNG

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SHELL LNG OUTLOOK 2018
THE ENERGY CHALLENGE
Growing Rising
Population Demand
According to the World Over a billion people continue
Bank, global population is to live without electricity while
expected to increase from another billion struggle with
around 7 billion today to unreliable supplies of electricity.
over 9 billion by 2050, According to the International
with 66% living in cities. Energy Agency (IEA) New
Policies Scenario, global
energy demand is expected to
grow by 30% between 2015
and 2040.
Royal Dutch Shell plc
EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG
Ongoing
Supply
As per IEA, it is expected
that renewable energy could
increase significantly by
2040. However, we will still
need large amounts of oil
and gas to provide the full
range of energy products
that the world needs.
Mitigating
Climate Change
The world currently emits
32 billion tonnes of
energy-related CO2 each
year. To limit the rise in
global temperature to 2°C,
the IEA has calculated that
energy related CO2
emissions need to fall to
around 18 billion tonnes a
year by 2040.
Improving Air
Quality
The World Health
Organization (WHO) has
found that outdoor air
pollution in both cities and
rural areas is estimated to
cause some 3 million
premature deaths a year
worldwide.
5
SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

GROWING ECONOMIES NEED MORE AND CLEANER ENERGY

Air quality index 2017 Energy demand growth vs coal share

Change in energy demand (2017-2035), KTOE
800,000

India
600,000

China
400,000
Asia air quality index
Extreme
High
200,000 Medium
Population size
Pakistan Vietnam
Bangladesh South Korea
Thailand
0 Myanmar
0% 25% 50% 75% 100%
Coal share in electricity mix (2017)
Source: Shell interpretation of Wood Mackenzie and Verisk Maplecroft Q4 2017 data

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SHELL LNG OUTLOOK 2018
POLICY ACTIONS FOR CLEAN ENERGY SUPPORT GAS AND LNG
GLOBAL
Increasing recognition of
environmental benefits
G20 endorses the role of
natural gas in energy
transition
IEA credits levelling of global
CO2 emissions to coal
displacement
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EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG
REGIONAL NATIONAL LOCAL
EU policies supporting Policies favour gas and Policymakers targeting
coal phase out renewables air quality
More than 10 countries China reforms gas market to Berlin closes local coal-fired
announce coal phase-out increase competitiveness of power plants to improve air
ambitions - 25% of coal delivered gas quality
power capacity in EU
South Korea’s 8th Basic Plan for Beijing meets ambitious
EU confirms reforms to Energy prioritises renewables 2017 air quality targets,
strengthen EU Emissions and gas, while not sanctioning supported by coal to gas
Trading Scheme new nuclear and coal switching
7
SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

GAS PLAYS GROWING ROLE TO MEET ENERGY CHALLENGE

Global energy demand growth by fuel Global gas demand growth by sector Global gas demand growth by region
BCM BCM BCM
20,000 5,000 5,000 13%
20% 7% 2%
10% 7% 6% 14%
27% 33%
18% 14%
46% 45% 38%
16,000 4,000 4,000

12,000 3,000 3,000

Energy demand: Gas demand: Asia gas demand:

8,000 2,000 2,000
1% CAGR 2% CAGR 3% CAGR
4,000 1,000 1,000

0 0 0

Source: Shell interpretation of Wood Mackenzie Q4 2017 data CAGR - Compound Annual Growth Rate

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SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

GAS SUPPORTS RENEWABLES

Flexible gas generation complements solar to provide Flexible LNG supply balances hydro generation to provide
reliable power generation in California reliable power in Brazil
Net load, MWh Reservoir level BCM/Month
30,000 100% 1.00

25,000 75% 0.75

20,000 50% 0.50

15,000 25% 0.25

10,000 0% 0.00
0 4 8 12 16 20 24

Hour of the day

Mar-13 Mar-17 North & South hydro reservoir levels (LHS) LNG imports (RHS)
Net load equals total generation minus solar and wind output; 7 day sample

Source: Shell interpretation of Wood Mackenzie Q4 2017, IHS Markit and CAISO data

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SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

OECD LEADING THE MOVE TO GAS AND RENEWABLES FOR POWER

GENERATION

OECD electricity output by source Non-OECD electricity output by source

Share Share
60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%
1975 1980 1985 1990 1995 2000 2005 2010 2015 1975 1980 1985 1990 1995 2000 2005 2010 2015
Natural Gas Coal Nuclear Natural gas Coal Nuclear
Hydro Other renewables Biofuels and waste Hydro Other renewables Biofuels and waste
Oil Oil

Source: Shell interpretation of International Energy Agency (IEA) data

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SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

STRONG CHINA GAS DEMAND DRIVEN BY GROWTH OUTSIDE POWER

China gas demand China demand growth by sector, 2017

BCMA BCM BCM
250 50 250

200 40 240

150 30 230

100 20 220

50 10 210

0 0 200
2001 2003 2005 2007 2009 2011 2013 2015 2017 2016 Electricity Industrial Res, comm Transport 2017
& heat
Gas demand (LHS) Change YoY (RHS)

Source: Shell interpretation of IHS Markit, China National Bureau of Statistics and Chinese customs data; latest estimates for 2017

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SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

LNG IS THE FASTEST GROWING GAS SUPPLY SOURCE

Global gas supply by source LNG imports by region

BCM BCM
5,000 31% 1,000
62% 7%
13%
4,000 800 15%
16%
55%
3,000 600

LNG demand:
2,000 400
4% CAGR
1,000 200

0 0
2017 Domestic Pipeline LNG imports 2035 2017 Asia Europe Americas Middle East 2035
production imports & Africa

Source: Shell interpretation of Wood Mackenzie Q4 2017 data CAGR - Compound Annual Growth Rate

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SHELL LNG OUTLOOK 2018 EXTERNAL ENVIRONMENT CREATING MORE OPPORTUNITIES FOR GAS AND LNG

LNG PROVIDES NEW FORM OF ENERGY SECURITY

Queensland Curtis LNG Facility, Australia

LNG SOLVES GAS MARKET UNCERTAINTIES: LNG RESILIENT TO ITS OWN UNCERTAINTIES:

▪ Declining domestic production ▪ Geopolitics

▪ Pipeline disruptions ▪ Timing of new supply
▪ Falling nuclear utilisation and reliability ▪ Existing plant output
▪ Hydroelectric seasonality, renewable intermittency ▪ Changing trade patterns
▪ Weather disruptions ▪ Gas supply and demand uncertainty

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SHELL LNG OUTLOOK 2018

02
STRONG LNG
FUNDAMENTALS
EXCEEDED
EXPECTATIONS
IN 2017

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

UNPRECEDENTED LNG CAPACITY EXPANSION 45% COMPLETE

LNG liquefaction capacity additions LNG trade

MTPA (FOB) MTPA (DES)
50 100% 400

40 293
75% 300

30
50% 200
20

25% 100
10

0 0% 0
2015 2016 2017 2018 2019 2020 2005 2007 2009 2011 2013 2015 2017 2019
Nameplate capacity additions Share online (nameplate capacity)

Source: Shell interpretation of IHS Markit Q4 2017 data

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

GLOBAL LNG MARKET CONTINUES TO DEFY EXPECTATIONS

Net exports: 2017 YoY Net imports: 2017 YoY

Million tonnes (DES) Million tonnes (DES)
30 30

20 20

10 10

0 0

-10 -10
Total exports Australia US Africa Rest of world Total imports North Asia South Europe Rest of world North West
Europe
Previous consensus forecast (as of late 2016) Actuals Previous consensus forecast (as of late 2016) Actuals

Source: Shell interpretation of IHS Markit, Wood Mackenzie and Poten & Partners 2016 and Q4 2017 data

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

29 MT INCREASE IN LNG IMPORTS IN 2017

Net imports: 2017 YoY

Million tonnes (DES)
16
Previous consensus forecast (as of late 2016) Actuals

12

0
Egypt

Belgium

Jamaica

Poland

India

Korea
US

Chile

Malta
UK

Argentina

Lithuania

Japan

Malaysia

Greece
UAE

Colombia
Sweden

Kuwait

Thailand

Italy

Pakistan

Turkey

China
Indonesia

Norway

Finland

Portugal

Taiwan
Dom Rep
Puerto Rico

Canada

Singapore
Brazil

Mexico

France
Israel

Spain
Jordan

Netherlands
-4
Source: Shell interpretation of IHS Markit, Wood Mackenzie and Poten & Partners data 2016 and Q4 2017

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

LNG ACCOMMODATES CHINA GROWTH AND SEASONAL DEMAND

China LNG imports Demand seasonality

Million tonnes Share of cargoes
40 100%

80%
30

60%
20
40%

10
20%

0 0%
2010 2011 2012 2013 2014 2015 2016 2017 Jan-16 Jul-16 Jan-17 Jul-17
China Japan, Korea, Taiwan Rest of World
LNG imports Contracted LNG supply Other Europe North West Europe

Source: Shell interpretation of IHS Markit Q4 2017, S&P Global Platts, ICE data and Wood Mackenzie Q4 2017 data

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

SPOT PRICES CONTINUE TO REFLECT STRONG DEMAND FOR LNG

Global energy prices Asian spot price

$/MMBTU JKM as % Brent
25 25%

20 20%

15 15%

10 10%

5 5%

0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Energy price range Henry Hub Brent
NBP JKM (Platts) Japan LNG Import
Range 2010-2015 2016 2017
Coal (ARA)
Source: Japanese customs data (Japan LNG import), S&P Global Platts (JKM), ICE (NBP, Brent, ARA coal), NYMEX (Henry Hub)

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

PHYSICAL AND FINANCIAL LIQUIDITY INCREASE AS MARKET EVOLVES

Spot LNG supply Spot LNG deliveries ICE JKM LNG (Platts) futures
Cargoes Share spot Cargoes Share spot Cargoes Lots (10,000 MMBTU)
1200 30% 1200 30% 180 54,000

1000 25% 1000 25% 150 45,000

800 20% 800 20% 120 36,000

600 15% 600 15% 90 27,000

400 10% 400 10% 60 18,000

200 5% 200 5% 30 9,000

0 0% 0 0% 0 0

2016
2010
2011
2012
2013
2014
2015

2017
2010
2011
2012
2013
2014
2015
2016
2017

2010
2011
2012
2013
2014
2015
2016
2017
Australia US Qatar JKT China South Asia
Middle East Europe Americas
Other Re-exports % spot (RHS) % spot (RHS)

Source: Shell interpretation of IHS Markit Q4 2017, S&P Global Platts and the ICE data

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

FAST, FLEXIBLE FSRUs CONTINUE TO INCREASE LNG IMPORTS

Deliveries to FSRUs
MTPA FSRU share FSRU picture to be added
35 14%

30 12%

25 10%

20 8%

15 6%

10 4% FSRU moored off the port of Aqaba in Jordan

5 2%
FSRU importing markets
0 0%
Existing Under Construction & Development Proposed
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

 Argentina  Egypt  Jamaica  Malta  Bahrain  Russia  Croatia  Ivory Coast

 Brazil  Indonesia  Jordan  Pakistan  Bangladesh  Panama  Cyprus  South Africa
Americas Europe ME & Africa Chile
 China  Israel  Kuwait  Turkey   El Salvador  Sri Lanka
Asia FSRU share  Colombia  Italy  Lithuania  UAE  Ghana  Hong Kong

Source: Shell interpretation of IHS Markit Q4 2017 data

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SHELL LNG OUTLOOK 2018 STRONG LNG FUNDAMENTALS EXCEEDED EXPECTATIONS IN 2017

DEMAND FOR LNG IN TRANSPORT GROWS GLOBALLY

 Diverse marine  LNG bunkering network  LNG road fuelling network

segments choosing LNG developing globally developing in China (2000+ stations)
and EU (100+ stations)

Container Ship Cruise Ship Tanker LNG Fuel Station

Barge Car Carrier Ferry LNG Heavy Duty Truck

truck

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SHELL LNG OUTLOOK 2018

03
SUPPLY
INVESTMENT
REQUIRED TO
MEET LONG-TERM
DEMAND
GROWTH

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SHELL LNG OUTLOOK 2018 SUPPLY INVESTMENT REQUIRED TO MEET LONG-TERM DEMAND GROWTH

LACK OF SUPPLY INVESTMENT RISKS FUTURE GLOBAL LNG MARKET

GROWTH

Emerging LNG supply-demand gap Investment in liquefaction capacity

MTPA (DES) MTPA (FOB)
600 40

500
30
400

300 20

200
10
100

0 0
2000 2005 2010 2015 2020 2025 2030 2035 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
LNG supply in operation LNG supply under construction Demand forecasts Year of investment decision

Source: Shell interpretation of IHS Markit, Wood Mackenzie, FGE, BNEF and Poten & Partners Q4 2017 data

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SHELL LNG OUTLOOK 2018 SUPPLY INVESTMENT REQUIRED TO MEET LONG-TERM DEMAND GROWTH

LNG BUYERS AND THEIR NEEDS ARE CHANGING

Drivers of LNG demand LNG buyers’ domestic gas competition

MTPA (DES) Share of LNG deliveries
600 100%

500 80%
400
60%
300
40%
200

100 20%

0 0%
2000 2005 2010 2015 2020 2025 2030 2035 2010 2017

Other market drivers Declining domestic gas production Traditional markets Liquid or liberalising markets

Source: Shell interpretation of Wood Mackenzie Q4 2017 data

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SHELL LNG OUTLOOK 2018 SUPPLY INVESTMENT REQUIRED TO MEET LONG-TERM DEMAND GROWTH

LNG BUYERS SIGNING SHORTER AND SMALLER CONTRACTS

Average contract length Average contract volume New long-term contract credit rating
Years MTPA Share of contract volume
20 2.5 100%

16 2.0 80%

12 1.5 60%

8 1.0 40%

4 0.5 20%

0 0.0 2009 0%
2008

2010
2011
2012
2013
2014
2015
2016
2017

2010
2008
2009

2011
2012
2013
2014
2015
2016
2017
2012
2008
2009
2010
2011

2013
2014
2015
2016
2017

A-rated B-rated Non-investment grade

Investment grade
Source: Shell interpretation of IHS Markit Q4 2017, Moody’s and Fitch data

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SHELL LNG OUTLOOK 2018 SUPPLY INVESTMENT REQUIRED TO MEET LONG-TERM DEMAND GROWTH

LIQUEFACTION INVESTMENT NEEDED TO MEET DEMAND GROWTH

Term sales to importers by supplier type

Share of total contract volume
STALEMATE CONSTRAINING GROWTH OF LNG SUPPLY
100%

80%

60%
MISMATCH
FINANCIERS LNG PRODUCERS LNG BUYERS END-USERS
BETWEEN
40% Look to ensure Seek long-term Seek smaller, Look to avoid
BUYER
revenue LNG sales to more flexible long-term
AND
20% certainty secure financing purchases to contracts that
SELLER
remain are not in line
NEEDS
competitive in with their
0% downstream competitive
2008-2010 2015-2017 market position
Supply project Portfolio Trader
Intermediaries

Source: Shell interpretation of IHS Markit Q4 2017 data

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SHELL LNG OUTLOOK 2018

SUMMARY External environment creating more opportunities for gas and LNG

▪ Multiple levels of policy support gas and LNG demand

▪ Gas supports renewable power generation and provides cleaner
non-power energy supply

Strong LNG fundamentals exceeded expectations in 2017

▪ 11 % increase in LNG imports

▪ Physical and financial liquidity increases as market evolves

Supply investment required to meet long-term demand growth

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