SAIPEC 2021: Bayo Ojulari Reveals Shell’s Energy Transition Strategy

Shell’s Energy Transition Strategy
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By Ndubuisi Micheal Obineme

SAIPEC 2021 – The outgoing Managing Director of Shell Nigeria Exploration and Production Company (SNEPCO), Bayo Ojulari, has revealed Shell’s Energy Transition Strategy which is designed to bring its energy products, services, and investments in line with the goal of the Paris Agreement and the global drive to combat climate change.

Bayo Ojulari, revealed this while contributing to the panel discussion on “IOCs perspective on Dynamics’s of Sub Saharan Africa’s Energy, Oil and Gas as we Strive to a Low Carbon Future” at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) 2021, said that Shell has set a target to become a Net-Zero emission company by 2050 in support of the Paris Agreement on Climate Change.

He said Shell has also set a short-term target to reduce carbon emission to 6 – 8% by 2023, the target covers the emission from all energy sold and not just the energy that it produces.

Other measures put in place by Shell to transit towards a low carbon future, according to him, include the adoption of new technologies for new projects and these technologies feature a flare gas recovery system that reduces emission on each of the projects.

He noted that Shell is using innovative technologies for the installation of compressors, drilling with LNG fuelled rig instead of rig that depends on diesel.

For digital technology, Ojulari explained that Shell is also using digital technology not only on an existing asset but also on the new assets, adding that the company has adopted the use of Remote Operated Vehicles which are monitoring Shell’s offshore operations.

“Our focus is around improving operational efficiencies in our assets. We are looking at fuel gas compressions, and optimising power in our existing assets. We are seeing a significant reduction in the greenhouse gas emission in these assets.”

He revealed that SNEPCO launched a ‘Digital Twin’ technology on the Bonga FPSO located in OML 118 offshore Nigeria, which is a replica of the whole of the FPSO making work easier and it significantly reduces the overall emissions.

He continued, “There are six key levers that Shell is focusing on globally which are, operational efficiency in our assets, focusing on natural gas, growing its low carbon business, providing low carbon fuels such as biofuels and hydrogen, developing carbon capture and storage using natural based solutions to mitigate greenhouse gas emissions.

“In Nigeria, we are pursuing operational efficiency in our assets and leading the transition towards the use of natural gas as a cleaner fuel to power the nation’s industries and the economy as well as stimulating access to renewable off-grid energy solutions.

“We are ending gas flaring and improving our operational efficiency. We have decreased routine flaring by almost 90% in Nigeria since 2002.

“We are expanding domestic gas supply capability. Shell Petroleum Development Company (SPDC) is working with the Nigerian Federal Government to deliver the Seven Critical Domestic Gas project including Assa North which is the major one and we have other three projects which we are involved in such as the Brass Fertilizer Development.

“We are also powering Nigeria open-air market with natural gas. Shell Nigeria Gas Limited (SNG) is the only Nigerian subsidiary of an International Oil Company (IOC) in domestic gas distribution in Nigeria. About 2 million traders have benefitted from it. The market is growing as it includes shoemaking, leather works, and many other activities.

“Traders in that market usually use petrol and diesel generators to power their lights and equipment. But, with the SNG, we are now applying natural gas into that market. There are more than 4,000 businesses that are beneficiaries of our natural gas distribution.

“Another part of work we are doing is Offgrid renewable energy supply in Nigeria. Shell constituted an entity called Allon.

“Shell Companies in Nigeria provided funding to create Allon where we have Independent Non-profit investment in Nigerian companies to build off-grid supply to homes and small and medium-size businesses.

“Allon aims to create an enabling environment for these start-ups and more than five million people are now connected.

“Allon has invested in over 30 energy off-grid companies and two major financiers leading to more than 29,000 new connections to low-income houses and businesses,” he concluded.

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