However, due to the challenges related to the transportation and storage of gas, the demand for liquefied natural gas (LNG) has grown faster than the demand for natural gas over the last decade. Royal Dutch Shell (NYSE:RDS.A) is one such integrated energy company that has been increasing its presence in the gas markets. In this note, we discuss how Shell’s integrated gas business will drive value for the company over in the long term. Shell currently categorizes its integrated gas division as a “cash engine” that funds its dividend and capital spending needs. If the dynamics of the LNG markets pan out as expected, Shell’s integrated gas division will be a key driver of its long-term value.

Source: Forbes December 07, 2017 21:22 UTC