LNG Outlook...Source: Shell interpretation of Wood Mackenzie Q4 2016 data 0 1000 2000 3000 4000 5000 45% 26% 22% Global gas demand growth by sector (bcm) GLOBAL GAS DEMAND GROWTH BY

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LNG Outlook

1

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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.

Discovered and prospective resources: Our use of the term “discovered and prospective resources” are consistent with SPE 2P + 2C + 2U definitions.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.

Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage.

Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “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 release 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 as “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 release 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 release, 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. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release 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, 2015 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, February 20, 2017. 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 release.

With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

We may have used certain terms, such as resources, in this release 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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Copyright of Shell International B.V. Copyright of Royal Dutch Shell plc


0

5000

10000

15000

20000

45% 18% 15% 13% 2% 7%

4

Global energy demand growth by fuel (bcm)

Source: Shell interpretation of Wood Mackenzie Q4 2016 data

0

1000

2000

3000

4000

5000

45% 26%

22% 7%

Global gas demand growth by sector (bcm)

GLOBAL GAS DEMAND GROWTH BY REGION (BCM)

0

1000

2000

3000

4000

5000

39% 25%

15% 21%

Global gas demand growth by region (bcm)

Gas playing a prominent role in meeting growing energy demand


Gas provides competitive, flexible, cleaner energy

Average Time Required To Come Online, Minutes Supporting renewable generation growth

Capital Cost Of Power Plants KW/yr Gas plants are cheaper to build & operate

$0

$100

$200

$300

$400

$0

$2,000

$4,000

$6,000

$8,000

Biomass CC Geothermal Offshore Wind

Dual Nuclear

Solar Thermal

Photovoltaic Coal Single Unit

Hydro Onshore Wind

CCGT

lb/MWh gross Addressing local air quality concerns

0

0.2

0.4

0.6

0.8

SO2 NOx PM2.5

5

Negligible emissions from

gas

Coal Emissions, Supercritical Pulverized Coal Boiler Natural Gas CCGT Overnight Capital Cost ($/kW) Fixed Operation & Maintenance Cost ($/kW-yr) RHS

Time to synchronise with grid Time to reach full load

Negligible emissions from

gas

300

15

85

80

22

0 50 100 150 200 250 300 350 400

Coal

Gas CCGT

Gas Large OCGT

Source: IEA, NETL 2015-Cost & Performance baseline for Fossil Energy Plants, NETL; Life Cycle Greenhouse Gas, DECC

Life-cycle GHG Emissions: kg CO2e/MWh,100-year Global Warming Potential

518

1,133

0200400600800

10001200

Average Natural Gas Fleet, baseload Coal Average Fleet, baseload

Facilitating climate change objectives

54% lower than coal emissions


Policymakers increasingly choose gas

6

Leaders’ Communique pledged to ‘enhance collaboration on solutions that promote natural gas’ as ‘a less emission-intensive fossil fuel’

170+ members agreed sulphur limit in shipping fuel of 0.5% from 2020 LNG as a fuel contains virtually zero sulphur vs. 3.5% specification for global marine fuel today

13th Five Year Plan targets 45 bcm of incremental gas consumption by 2020. China has suspended more than 100 coal-fired plants either approved or under construction

“We have given priority to move towards a gas based economy. Effort must be made to increase natural gas production while also creating import infrastructure to meet the growing domestic demand.’’ Prime Minister Modi

France and Canada announced plans to phase out coal fired generation by 2023 and 2030 respectively. They join Austria, Belgium, Britain, Denmark and Portugal in pledging to close coal fired generation by the end of the next decade

EU Liquefied Natural Gas Strategy acknowledged critical role of gas in support of energy security, increasing competitiveness and greenhouse gas emissions targets


0

20

40

60

80

100

120

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2008

2009

2010

2011

2012

2013

2014

2015

2016

PM 2.5 Gas to Coal ratio

Emission reduction policies drive increased gas demand

7

UK: Lower CO2 emissions Beijing: Improving air quality

0

2

4

6

8

10

12

-

2

4

6

8

10

12

Apr

-15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

MtCO2e TWh UK Power Dynamics

£18/t CO2e floor kicked in

Action Plan for Air Pollution Prevention

Beijing Olympic Games

Closure of coal boilers

Germany: Static CO2 emissions

0

5

10

15

20

25

30

-

5

10

15

20

25

30

Mar

-15

Apr

-15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

MtCO2e TWh German Power Dynamics

Power CO2 Emissions

WHO PM 2.5 guidance

Coal generation PM 2.5 Gas vs. coal consumption ratio Power CO2 Emissions Coal generation Gas generation Gas generation

Source: Aurora Energy Research; Embassy of the USA – Beijing, China; National Bureau of Statistics of China


0%

20%

40%

60%

80%

100%

0

10

20

30

40

50

2015 2016 2017 2018 2019 2020

Annualized capacity additions

Share online

MTPA Capacity additions

One-third of new LNG supply growth already online LNG volume set to expand 50% from 2014 to 2020

8

Source: Shell interpretation of IHS (LNG Waterborne Trade, Liquefaction Projects Database) and Wood Mackenzie Q4 2016 data

265

100

150

200

250

300

350

400

2006 2008 2010 2012 2014 2016 2018 2020

MTPA Delivered volume

Note: only includes projects online by 2016 or currently under construction


-4

-2

0

2

4

6

8

Braz

il

Uni

ted

King

dom

Japa

n

Belg

ium

Mex

ico

Arg

entin

a

Net

herla

nds

Mal

aysia

Can

ada

Dom

inic

an R

epub

lic

Thai

land

Turk

ey

Col

ombi

a

Jam

aica

Uni

ted

Stat

es

Portu

gal

Puer

to R

ico

Gre

ece

Israe

l

Sing

apor

e

Italy

Chi

le

Sout

h Ko

rea

Lith

uani

a

Taiw

an

Pola

nd

Indo

nesi

a

Kuw

ait

Spai

n

Uni

ted

Ara

b Em

irate

s

Fran

ce

Jord

an

Paki

stan

Indi

a

Egyp

t

Chi

na

2016 import growth dominated by China, India & new entrants

Net imports vs 2015 = +17.0 million tonnes

Million tonnes

Source: Shell interpretation of IHS (LNG Waterborne Trade) data, delivered volumes; red denotes new entrants (2015-2016)

Existing demand New entrants

9


-5

0

5

10

15

20

Total exports Australia US Rest of World

Growth in LNG demand absorbed increase in supply

Source: Shell interpretation of IHS data, delivered volumes

Net exports: 2016 YoY Net imports: 2016 YoY

Million tonnes

10

Million tonnes

-5

0

5

10

15

20

Total imports Rest of World Northwest Europe


0%

5%

10%

15%

20%

25%

J F M A M J J A S O N D

Range 2010-2014 2015 2016

Robust spot prices reflect the market’s ability to absorb new supply

11

Global LNG prices ($/MMBTU) Asia spot (JKM as % Brent)

0

5

10

15

20

25

2000 2002 2004 2006 2008 2010 2012 2014 2016

Energy price range Henry Hub BrentNBP JKM (Platts) Japan LNG ImportCoal (ARA)

Source: Japanese customs data (Japan LNG import), Platts (JKM), ICE (NBP, Brent, ARA coal), NYMEX (Henry Hub)


0%

20%

40%

60%

80%

100%

2008

2009

2010

2011

2012

2013

2014

2015

2016

A-rated B-rated Non-investment grade

Trend to shorter and smaller contracts with emerging buyers

12

Average contract length, years Average contract volume, MTPA LNG buyer credit ratings

Investment grade

0.0

0.5

1.0

1.5

2.0

2.5

2008

2009

2010

2011

2012

2013

2014

2015

2016

0

4

8

12

16

20

2008

2009

2010

2011

2012

2013

2014

2015

2016

Source: Shell interpretation of IHS (Energy LNG Sales Contracts Database), Moody’s and Fitch data


New FIDs required to meet demand growth after 2020

LNG supply/demand gap

13

0

100

200

300

400

500

2000 2005 2010 2015 2020 2025 2030

LNG supply in operation LNG supply under construction Demand forecasts

0

10

20

30

40

50

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

MTPA

Overview of LNG FIDs

MTPA

Source: Shell interpretation of Wood Mackenzie Q4 2016, IHS, Poten, Gas Strategies and PFC.


Changing drivers of LNG demand growth

0

100

200

300

400

500

2000 2005 2010 2015 2020 2025 2030

LNG imports by role in meeting gas demand (MTPA)

Source: Shell interpretation of Wood Mackenzie Q4 2016 data * Denotes new or emerging LNG importing countries

Gas supply solely dependent on LNG

Japan Korea Taiwan

Puerto Rico Dominican

Republic

Jamaica* Panama*

Balances LNG supply Northwest Europe

Bunker fuel

LNG demand driver

Atlantic

Countries/regions

Middle East Pacific

LNG complements domestic and pipeline supply

Southern Cone Eastern Europe Southern Europe North America

China Singapore

Morocco* Jordan* Israel

India Thailand Indonesia Malaysia Pakistan*

LNG replaces declining domestic production into existing demand

Egypt* Kuwait UAE Colombia*

Bangladesh* Bahrain* Philippines* Vietnam*

14


LNG to take larger share of European gas demand

0

100

200

300

400

500

600

2010 2015 2020 2025 2030 2035

LNG

Russia pipe

Other pipe

Algeria

Norway pipe

Indigenous production

2035 demand forecast range: 540-575 bcm

15

European gas supply (bcm)

Source: Shell interpretation of Wood Mackenzie Q4 2016, IHS, and Eurogas data


Policy and macroeconomics driving gas demand growth in China

16

4%

2015

China’s share of global LNG demand

16%

2030

China total primary energy demand

5%

Gas Renewables Nuclear Oil Coal

2015

11%

2030

Gas supply by source 2030, bcm

0 50 100 150 200

LNG imports

Other pipeline imports

Russia pipeline imports

Shale

Other unconventional

Conventional


Gas demand potential 2030, bcm

400 450 500 550 600 650

+1% GDP growth rate

+1% gas demand CAGR

+1% gas in energy mix

15% gas in energy mix

Demand forecast

0 / /


Southeast Asia to become net LNG importer by 2035

17

Indonesia 0

10

20

30

2015 20350

10

20

30

2015 2035

0

10

20

30

2015 2035

0

10

20

30

2015 2035

0

10

20

30

2015 2035

0

10

20

30

2015 2035

-100

-50

0

50

100

2015 2025 2035

LNG Export

LNG import

Net imports

Traditional exporters ramping up demand MTPA

Vietnam

Thailand

Philippines

Singapore Malaysia



Potential demand upside from transport sector

0

200

400

600

800

1000

1200

1400

Heavy duty and marine transport LNG industry LNG for transport -Forecast range

Heavy duty Marine

18

MTPA equivalent, 2025

Source: Shell interpretation of Wood Mackenzie and IHS

LNG contributes virtually zero

sulphur emissions and has reduced

particulates and NOx emissions,

compared to heavy fuel oil.

LNG can help reduce the well-to-

wheel emissions compared to

conventional fuels.


Summary

Strong growth in LNG supply in 2016, one-third of new supply online

LNG demand growth from China, India and new entrants absorbed supply growth in 2016

Continued LNG supply growth to 2020

Global demand for gas is expected to increase by 2% a year between 2015 and 2030; LNG

is set to rise at twice that rate at 4 to 5%

Future LNG demand growth will be driven by: policy, floating storage regasification units,

replacing declining domestic gas production, small scale LNG and transport

LNG and Russian gas imports required to balance European gas demand

New investments required to meet growing LNG demand after 2020

LNG trade is changing to meet the evolving needs of buyers, including shorter-term and lower-

volume contracts

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LNG Outlook...Source: Shell interpretation of Wood Mackenzie Q4 2016 data 0 1000 2000 3000 4000 5000 45% 26% 22% Global gas demand growth by sector (bcm) GLOBAL GAS DEMAND GROWTH BY

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