Oil and gas giant, Shell Plc, has said about 50 per cent of total routine and non-routine flaring in its integrated gas and upstream facilities in 2023 occurred in assets operated by the Shell Petroleum Development Commission and Shell Nigeria Exploration and Production Company.
This was revealed in its report titled ‘Shell Energy Transition Strategy 2024, according to The Punch.
In the report, Shell stressed that it has concluded an arrangement with a consortium of local energy companies for the sale of its gas flaring assets in Nigeria.
“Around 50 per cent of 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,” the report said.
The oil and gas giant said it’s working assiduously to cut down gas flaring, which is inefficient and contributes to climate change.
Routine flaring of gas occurs during normal oil production when it is not possible to use the gas or re-inject it into the well.
The report added “In 2021, we brought forward our target to eliminate routine flaring from our upstream operations to 2025 from 2030. This accelerates our commitment in 2015 to end routine flaring as a signatory to the World Bank’s Zero Routine Flaring by 2030 initiative.
“Total routine flaring 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 company disclosed that it had invested $5.6bn in low-carbon solutions in 2023, “which was 23 per cent of our capital spending.”
Furthermore, Shell pointed out “We are spending $10-15bn on low-carbon solutions between 2023 and 2025, making us a significant investor in the energy transition.
“With our focused approach, we believe our investments will have an important impact, allowing us to develop low-carbon solutions at increasingly affordable prices for our customers.”
Shell said it will provide acceptable alternative energy, especially in liquefied natural gas.
“We will invest in producing LNG with lower carbon intensity, in reducing emissions from oil and gas production, and in providing cleaner energy solutions. As we transform Shell into a net-zero emissions energy business, we believe we are the investment case and the partner of choice through the energy transition,” it stated.
Recall, that Ambusiness had reported that Shell had revealed plans to sell its stake in SPDC to Renaissance, but the federal government has not given its final approval to it.
