Wael Sawan, Shell’s chief executive officer, is reportedly making changes to the energy giant’s strategy, with natural gas being seen as having a long future in the global energy mix.
Bloomberg reports speaking to people familiar with the company’s new plans. They say that teams focussed on liquefied natural gas (LNG) are being urged to find business opportunities in India and China, with deals in these and other priority countries being rewarded with higher bonuses. The company is also looking to secure long-term deals and exploring opportunities to invest in LNG infrastructure.
Bloomberg also reports seeing an internal memo from Shell’s executive vice president in charge of LNG, Cederic Cremers, which says:
“We have always known that gas is crucial for the energy transition, but our new strategy is built around a new belief—that gas will continue to play a key role in the energy mix.”
The curtailment of Russian gas supplies to Europe increased the demand for natural gas from other sources, and this drove Shell’s integrated natural gas division to perform better than ever last year. Shell, which also makes the Shell Gadus range of grease, has committed to becoming a net-zero carbon business by 2050, but there is a growing consensus among oil and gas majors that gas will be in demand for some years to come.
The internal memo also points to a focus on hydrogen in the new strategy, as well as working with customers more to reduce their carbon emissions through storage and carbon capture.
