Maarten: Welcome to Transition, one of Shell's
three strategic pillars.
Maarten: Im Maarten.
Integrated Gas, Renewables and
Energy Solutions.
Robin: And I'm Robin, executive vice president,
chemicals and Products here at Shell.
Maarten: Shell's integrated gas business and chemicals and
product business are helping customers move through the
energy transition and meet their climate goals while
supporting our target to reach net-zero emissions by 2050 or
sooner in step with society.
Robin: Both these businesses benefit from strong competitive
advantages with proven profit models.
Robin: They are also enabling our longer term strategy by
supporting our strategic growth pillar.
Maarten: First, let's look at the role of integrated gas in
meeting our customers needs.
Maarten: Natural gas emits less than one tenth of the air
pollutants and forty five to fifty five percent fewer
greenhouse gas emissions than coal.
When used for electricity.
Maarten: And to further improve this advantage, the industry
must increase its focus on reducing emissions of methane,
a highly potent greenhouse gas.
Maarten: So for all our operated oil and gas assets,
we have an industry leading target to maintain our methane
emissions intensity below 0.2% by 2025.
Maarten: Natural gas also has a pathway to net zero emissions
thanks to bio gas, carbon capture and storage and
nature based carbon offsets.
Maarten: In the next 20 years, gas and renewables are expected
to meet most of the growth in global energy demand.
Maarten: Today, Shell is the world leader in LNG,
serving more than 30 out of the 42 LNG importing countries
in the world.
Here is Medhi to tell you more about our LNG
trading business.
Mehdi: Thanks, Maarten.
Mehdi: Our leading global portfolio and LNG trading
capabilities allow us to meet changing demand across
the global market.
Mehdi: If supply is disrupted due to adverse
weather conditions, for example, our traders can
divert cargos to continue meeting customer demand.
Mehdi: It also allows us to offer our
customers bespoke solutions, from flexible contract terms to
carbon neutral LNG cargos.
Mehdi: In fact, we have already delivered seven carbon neutral
energy cargos through nature based carbon offsets, to power
nearly one million homes for a year.
Mehdi: We're proud to be leaders in LNG.
Maarten: With more than 40 million tonnes a
year of capacity, across
14 production locations, our LNG supply
portfolio is unmatched.
Maarten: Shell is also the world leader in
gas to liquids, GTL.
In GTL, we will continue to deliver strong free cash flow
and we see potential to further optimize this in the future,
Maarten: by expanding premium markets for a high value
differentiated GTL products.
Maarten: In the last five years, our integrated gas
business has produced fifty seven billion dollars of cash
flow from operations and forty one billion dollars of
free cash flow.
Robin: Now to chemicals and products.
Robin: We are reshaping our chemicals
and products businesses, by bringing them
even closer together.
Robin: This better meet the needs of our business
and our customers.
Robin: It strengthens our ability to respond to future
demand for low carbon products, to grow our
chemicals business and crucially, to deepen our
already successful integration with trading.
Robin: Delivering the most value from our manufacturing
assets and products.
So what does this look like?
Robin: In addition to a dedicated chemical facilities,
we will have six energy and chemical parks.
Robin: They will maximize the efficiency benefits of
integrated fuels and chemicals production and use repurposed
assets to produce more low carbon and synthetic fuels.
Robin: In addition to high value products such as
bitumen and lubricants.
Robin: Changes to our product portfolio will help cut
emissions generated by their use, while more renewable
and recycled feedstocks will help lower the emissions
generated in making them.
Plans for our assets are underway.
Here's Marco to tell us what it means that
our Rheinland facility.
Marco: Thanks Robin, here at Rheinland transforming oil
refining and chemicals complex means processing less crude oil
and using more recycled and renewable feedstocks such as
waste oils and plastic waste.
Marco: We will also be more focused on producing lower
carbon products such as bio LNG, biofuels,
including sustainable aviation fuel, and become the
center of Shell's hydrogen production here in Germany.
Marco: With our partners, we are building a PEM hydrogen
electrolyser and using renewable energy to power
the process, it enables us to manufacture hydrogen with
low carbon emissions.
Marco: Rheinland and our five other energy and chemical
plants are strategically located,
allowing us to deliver these lower carbon products to our
customers efficiently and competitively.
Robin: Now let's focus on chemicals.
Chemicals play a key role in daily life to help us live,
work and care.
They are integral to the energy transition,
providing the components for wind turbines and
solar panels.
Saving energy, home insulation and lightweight
materials for transport.
Building on the success of our base and intermediate
chemicals business, we will meet increased customer demand
for sustainable performance chemicals by adding new
products through our Pennsylvania facility in the
USA and our Nanhai complex in China at the same time.
Maarten: We also know our customers want more
recycled products, so we are using plastic waste as
feedstock at our Norco plant in the USA and to improve the
sustainability of our operations, we are using
solar power at Moerdijk in the Netherlands and pioneering
carbon capture and storage at Scotford, Canada.
Maarten: Another key competitive advantage across
both our businesses is systems integration,
which allows us to profitably meet the full range of our
customers energy needs.
For example, here in the Netherlands, Rotterdam is a
hub for energy and power coming in from offshore wind.
These kind, of course, both be sold in their own
right directly, or they can be used to
produce clean hydrogen, for LNG.
This also requires the application of carbon
capture and storage.
Maarten: This clean hydrogen then can be used in shell's
own facilities, so to transport customers or convert it
back into electricity.
This optionality allows us to adapt our approach to generate
the most value in any market circumstance.
It is an exciting time for both our integrated gas business and
our chemicals and products business.
Maarten: Shell's infrastructure systems integration experience
and people put us in an exceptional position to
profitably meet the current and future needs of our customers,
helping them and society decarbonise for a net
zero emissions future.