Royal Dutch Shell Plc, Europe’s largest oil company, is making a major strategy shift and increasing its focus on natural gas.  Ann Pickard, Chairman of Shell Australia, expects over 50% of Shell’s total production to come from natural gas by 2012.

As the company transitions, Shell is planning significant new investment in Australian liquefied natural gas (LNG) projects, on the scale of $50 billion.  Investment in LNG projects is being catalyzed by increased demand for cleaner-burning fuels, especially in Asia, as well as advancements in technology.

PetroChina, which joined with Shell to acquire Arrow Energy Ltd. and its reserves in Queensland, expects continued “long term” demand for LNG from Australia.  “Its a booming economy and more and more dirty energy is being replaced by clean energy.  There is a need,” remarked PetroChina project manager Ge Aiji.

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Australia’s new Prime Minister Julia Gillard has demonstrated strong support for her domestic renewable energy industry.

Sworn in last month to replace previous leader Kevin Rudd, Gillard said she is “committed to Australia’s largest ever investments in solar and other renewables.”

Gillard has not made specific mention of the controversial carbon cap-and-trade system which former PM Rudd had championed.

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