……….by Jenifer Dike……….
As part of efforts to align it’s global businesses to low carbon emissions and fast-track its energy transition policy, Royal Dutch Company, Shell has further taken another giant divestment stride in the US as it sells $9.5 billion asset and launches Renewable Natural Gas ( RNG) production after it’s divestments move in Nigeria.
The oil major is now set to sell its Permian Basin assets to ConocoPhillips for $9.5 billion in cash, an exit from the largest United States oilfield as the company pursue move to clean energy transition.
Furthermore the company in the US is now shifting attention to RNG, Shell Oil Products US, a subsidiary of the Royal Dutch Shell has successfully achieved startup and production of RNG at its first US biomethane facility at Shell New Energies Junction City in Oregon. The facility utilizes locally sourced cow manure and excess agricultural residues to produce an expected 736,000 MMBtu a year of RNG.
Earlier this year, Shell had said it was launching a major divestment of its Nigerian assets, especially those in the shallow-water and onshore, in a deal which could be one of the biggest in the oil and gas industry in Africa ever.
The Minister of State, Petroleum Resources, Chief Timipre Sylva and Shell officials had confirmed that talks have been ongoing on this divestment plan by Shell
These moves by Shell in divesting and engaging in low carbon businesses are seen as part of the company’s resolve to meet the net-zero carbon emission target by the year 2050.
This Shell biomethane facility, Shell New Energies Junction City in Oregon is regarded as a milestone in the company’s growing portfolio of developing RNG production and distribution assets supporting low-carbon intensity renewable compressed natural gas (R-CNG) as fuel for heavy-duty, on-road transport.
“Biomethane has a significant role to play in the energy transition, and this achievement advances our strategy as we work to reduce emissions from the fuels and other energy products we sell,” said Carlos Maurer, Executive Vice President Sectors and Decarbonization at Shell. “We are excited to offer renewable compressed natural gas as a low-carbon fuel choice for our customers.”
Shell is developing additional RNG production facilities to be located directly within operating dairies. Shell Downstream Galloway at the High Plains Ponderosa Dairy in Plains, Kansas and Shell Downstream Bovarius at the Bettencourt Dairies in Wendell, Idaho are part of this expanding biofuels portfolio utilizing cow manure as feedstock. Together, these two dairy RNG facilities can produce approximately 900,000 MMBtu a year of negative carbon intensity RNG.
However as Shell vigorously pursues its global energy transition, the Nigerian government has maintained that she is not in such a hurry to jump into the bandwagon of energy transition to zero carbon emission but that natural gas remains her transition fuel for now.
Therefore, Nigerian National Petroleum Corporation (NNPC), a major party to the ongoing divestment talks between Shell and Nigeria llast month pledged to protect the interest of Nigeria in any transaction involving international oil companies, including shell, if they are interested in divesting from the country.
Group Managing Director of the corporation, Mallam Mele Kyari, said that although the NNPC cannot stop any of the oil concerns from deciding to sell off any of their assets, but the rules must be strictly followed.