Half of Shell’s total flared gas in 2023 from assets in SPDC, SNEPCO - Africa’s premier report on the oil, gas and energy landscape.

Half of Shell’s total flared gas in 2023 from assets in SPDC, SNEPCO

By Lukman Abolade, Senior Correspondent

In 2023, half of UK major, Shell’s combined routine and non-routine gas flaring at its integrated gas and upstream facilities originated from assets managed by SPDC and Shell Nigeria Exploration and Production Company (SNEPCo).

This was contained in its recently released Energy Transition Strategy report, stating that the total routine flaring from its upstream oil and gas assets remained ‘relatively stable in 2023’ compared with 2022, at 0.1Million tonnes, having reduced from 1.1Million tonnes in 2016.

Shell is letting go of some of these assets. On January 16, 2024, the company reached an agreement to sell SPDC to a consortium of five companies, subject to approvals by the Federal Government of Nigeria and other conditions. It will, however, keep SNEPCO, the deepwater subsidiary.

Shell’s Energy Transition Strategy report said its methane emissions include those from unintentional leaks, venting and incomplete combustion, for example in flares and turbines.

It added that its target to maintain methane emissions intensity below 0.2% continued to be met in 2023 as overall methane emissions intensity was at 0.05% for facilities with marketed gas and 0.001% for facilities without marketed gas.

The Company said it also recorded total methane emissions of 41 thousand tonnes compared with 40 thousand tonnes in 2022.

Shell added that the increase was due to venting (maintenance of Prelude asset and operational issues in assets operated by Sarawak Shell Berhad) and an increase in reported emissions from integrated gas assets in Canada resulting from the adoption of enhanced source level measurements in line with OGMP reporting requirements.

On direct GHG emissions (Scope 1, operational control boundary) Shell reduced its emission from 51Million tonnes of carbon dioxide equivalent (CO2e) in 2022 to 50Million tonnes CO2e in 2023 but this was largely due to divestments made in 2022.

Some of the assets include, Deer Park and Mobile refinery, Tunisia Miskar concession, offshore Baram Delta Operations (BDO) PSC and Block SK307 PSC in the Philippines) and handover of operations in OML 11 in Nigeria in 2022; unplanned downtime (e.g. Deer Park Chemicals); reduced flaring from assets including SNEPCo and reduction of activities and purchase of renewable electricity.

These decreases were partly offset by Shell Polymers Monaca having more units online in 2023 and higher emissions from its Pearl gas-to-liquids plant and Prelude floating liquefied natural gas facility with increased production.

The Oil major also announced its strategic shift in power business towards select markets and segments by selling more power to commercial customers, including renewable power, and less to retail customers.

As a result, Shell said it expects lower growth in sales of power overall. and have updated its net carbon intensity target to reflect that change, with a 15-20% reduction by 2030, compared with previous target in 2016, of 20% reduction commitment.

 

 

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