According to a Shell Energy Transition Strategy 2024 report, Shell Plc stated that approximately half of the total routine and non-routine flaring in its integrated gas and upstream facilities in 2023 occurred within assets managed by the Shell Petroleum Development Commission and Shell Nigeria Exploration and Production Company.
The report highlighted Shell’s intention to sell these gas flaring Nigerian assets to a consortium of indigenous energy firms.
In the report, it was mentioned, “Around 50% of the total routine and non-routine flaring in our Integrated Gas and Upstream facilities in 2023 occurred in assets operated by the SPDC and Shell Nigeria Exploration and Production Company. On January 16, 2024, Shell reached an agreement to sell SPDC to a consortium of five companies, subject to approvals by the Federal Government of Nigeria and other conditions.”
Shell emphasized its efforts to reduce flaring, which not only is inefficient but also contributes to climate change.
Routine gas flaring happens during normal oil production when the gas cannot be utilized or reinjected into the well.
“In 2021, we revised our target to eliminate routine flaring from our upstream operations to 2025 from 2030. This accelerates our commitment made in 2015 to end routine flaring as a signatory to the World Bank’s Zero Routine Flaring by 2030 initiative,” the report explained.
“Total routine flaring in our upstream oil and gas assets remained relatively stable in 2023 compared with 2022 at 0.1 million metric tons, having reduced from 1.1 million metric tons in 2016,” the report added.
The company disclosed that it invested $5.6bn in low-carbon solutions in 2023, which accounted for 23% of its capital spending.
Further, it stated, “We are allocating $10-15bn towards low-carbon solutions between 2023 and 2025, positioning us as a significant investor in the energy transition.
“Through our focused approach, we are confident that our investments will make a substantial impact, enabling us to develop low-carbon solutions at increasingly competitive prices for our customers.”
Shell expressed its commitment to providing various energy sources required globally, particularly emphasizing liquefied natural gas.
“Our investments will focus on producing LNG with reduced carbon intensity, curbing emissions from oil and gas production, and providing cleaner energy solutions. As we evolve Shell into a net-zero emissions energy enterprise, we believe we are the premier choice for investment and partnership throughout the energy transition,” the company asserted.
Shell announced plans to invest $11m in 25 mini-grid projects across Nigeria, aiming to offer affordable solar energy to communities in need.
“In Nigeria, Shell-funded investment company All On has committed to investing $11m in 25 mini-grid projects nationwide. The goal is to provide cost-effective solar energy to communities with high demand,” as per the statement.
Reports from NewsNow indicate that Shell intends to sell its shares in SPDC to Renaissance, transitioning away from onshore oil operations towards offshore endeavors.
However, approval from the Federal Government for the deal is pending.
