LNG leads Shell’s progress in emissions cut
Sopuruchi Onwuka
Investments in natural gas liquefaction and transportation to key power generation hubs have helped Shell cut is operations carbon intensity by significant 30 percent of its 2016 levels, leading the company’s progress in energy transition.
Shell is the operating partner in the 22 million tons per annum (mtpa) Nigerian Liquefied Natural Gas (NLNG) Limited which is on track with its seventh liquefaction train to hit significant 30 million tons of LNG.
Other investments by the company include billions of dollars sunk in renewable power, renewable gas, hydrogen fuel and charging ports for electric vehicles.
According to an Energy Transition Progress Report 2022which Shell’s Chief Executive Officer (CEO), Mr Wael Sawan, is scheduled to present to the company’s shareholders in May, Shell states that it has met set climate targets.
“I am especially proud of the progress we have made in reducing carbon emissions from our operations, with a 30% reduction by the end of 2022 compared with 2016 on a net basis,” Mrs Sawan will tell shareholders at scheduled Annual General Meeting.
By the end of 2022, the net carbon intensity of the energy products sold by Shell had also fallen by 3.8%, compared with 2016, the report holds.
“Our analysis, using data from the International Energy Agency, shows the net carbon intensity of the global energy system fell by around 2% over that time,” it related.
Shell stated that part of the most important strategies remains the significant investments in LNG, “which Shell expects to remain an important part of the energy mix for many years to come, partly because of its role in reducing emissions from power generation and transport.”
“Other steps include Shell’s $1.6 billion investment in Indian renewable power developer Spring Energy, and the final investment decision on the Holland Hydrogen 1 project in the Netherlands, which will be Europe’s largest renewable hydrogen plant.
“In 2022, Shell also announced the acquisition of Denmark’s Nature Energy, which produces renewable natural gas, for around $2 billion. This deal was completed at the beginning of 2023.
“Shell also increased the number of electric vehicle charge points it owned or operated worldwide by 62% to around 139,000 in 2022, up from 86,000 the previous year,” the report states.
Company Chairman, Sir Andrew Mackenzie, said the progress has been to the benefit of customers, shareholders and wider society.
The reported progress comes at a time when the energy system still faces challenges as high energy prices continue to contribute to a cost-of-living crisis for many people.
The challenges have highlighted the need for a balanced energy transition: one in which the world achieves net-zero emissions, while still providing a secure and affordable supply of energy.
Shell’s energy transition strategy was put to an advisory shareholder vote at its 2021 Annual General Meeting, where it secured 89% of the vote. At the 2022 AGM, almost 80% of shareholders who voted supported our progress in implementing this strategy.
This year, Shell is again asking shareholders to vote on its annual progress.
