Royal Dutch Shell Plc expects to produce more gas than oil for the first time in 2012, as the company aims to have cleaner-burning natural gas play a greater role in the energy-consumption mix, according to the company's recent sustainability summary report.

Shell is involved in nine liquefied natural gas projects in seven countries with an annual production capacity of 21.5 million tons. Shell's additional three other LNG projects under construction will have a total annual capacity of 15 million tons.

The available resources of natural gas in the world can be used for 250 years at current production levels, according to the International Energy Agency. Natural gas emits 50 percent less carbon than coal does when used to generate electricity.

Shell has been increasing its investment in LNG in recent years, and is working closely with giant Chinese players in the industry. Shell recently signed an agreement with China National Petroleum Corp to jointly develop shale gas in China.

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