Shell Boosts LNG Volumes, Cancels Biofuels Plant Amidst Market Shifts
Shell has revealed a significant increase in liquefaction volumes for the third quarter, while also announcing the cancellation of a biofuels plant in Rotterdam and a sustainable aviation fuel project in Singapore. These moves come as the company adjusts its strategies in the face of evolving market demands and costs.
Shell's liquefaction volumes for the third quarter are set to reach 7 to 7.4 million tonnes, marking a substantial rise from the 6.7 million tonnes recorded in the second quarter. This increase signals a boost in the company's production capabilities.
Meanwhile, Shell has abandoned plans for a sustainable aviation fuel project on Singapore's Bukom Island. The cancellation of the Rotterdam biofuels plant is expected to impact upstream adjusted earnings by $200m to $400m. The decision to scrap the Rotterdam plant was due to it being 'insufficiently competitive' to meet customers' needs for affordable, low carbon products. The high costs associated with biofuels, currently two to three times more expensive than conventional jet fuel, have posed challenges in their widespread adoption.
As a result of the Rotterdam biofuels plant cancellation, Shell is writing down $600m. This write-down reflects the company's reassessment of its investment in the plant, given the current market conditions.
Looking ahead, Shell has revised its carbon emissions intensity target to a 15% to 20% reduction by 2030, down from its previous 20% target. This revision underscores the company's commitment to balancing environmental responsibility with financial sustainability in an ever-changing energy landscape.
Read also:
- U.S. CBP's Operation Plaza Spike Boosts Fentanyl Seizures Along Arizona-Mexico Border
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
- Siemens Energy Kicks Off Hydrogen Push in Chile
- Republican Representative Buddy Carter from Georgia discusses solar energy, electric vehicles, and nuclear power.
