Shell Nigeria’s flaring activity raises concerns: 2024 report

According to Shell Plc’s Energy Transition Strategy 2024 report, significant flaring activity occurred in assets operated by the Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration and Production Company (SNEPCo) in 2023.

The report indicates that around 50% of total routine and non-routine flaring took place in these facilities. Shell plans to divest these Nigerian assets to a consortium of indigenous energy firms, pending governmental approvals.

Shell’s commitment to accelerating the end of routine flaring is highlighted in the report, with a revised target of achieving this goal by 2025 instead of 2030.

The company has allocated $5.6 billion towards low-carbon solutions in 2023, representing 23% of its capital spending. Moving forward, Shell intends to invest $10-15 billion between 2023 and 2025 to further its energy transition initiatives.

In addition to reducing flaring and investing in low-carbon solutions, Shell aims to expand its renewable energy portfolio.

It plans to invest $11 million in 25 mini-grid projects across Nigeria to provide affordable solar energy to underserved communities.

However, Shell’s planned divestment from its onshore assets to Renaissance Consortium is pending approval from the Nigerian government.

This strategic move signifies Shell’s shift towards offshore operations and its ongoing commitment to adapting to the changing energy landscape.