…paid $3.5 billion in production entitlements, royalties, fees, and taxes
Nigeria’s natural resources offer attractive investment opportunities and significant potential for Nigerians to boost their economy
Rashidat Olushola Okunlade Writes
Shell Companies in Nigeria have been contributing to economic growth in Nigeria by generating revenue for the government through taxes, creating employment opportunities, and contributing to the development of local businesses.
In 2021, Shell Companies in Nigeria directly employed 2,500 people, 97% of whom were Nigerian nationals. More than 8,500 contractors supported our operations during the year.
Shell Companies in Nigeria awarded contracts worth $800 million (the same as in 2020) to Nigerian-registered companies, of which 92% were to companies where the Nigerian ownership was at least 51%.
The latest country-by-country tax data available is for 2020 and can be found in the Shell Tax
Contribution Report. In 2020, Shell’s business in Nigeria collected and paid a total of $3.5 billion in production entitlements, royalties, fees, and taxes. Some tax numbers are available for 2021: SPDC paid $424 million and SNEPCo paid $562 million in corporate tax and payments to the government.
Shell Companies in Nigeria are investing in expanding offshore oil and gas production and developing infrastructure for domestic and export gas. These projects and assets will continue to bring employment and contract opportunities to Nigerians and their businesses.
Security Challenges Onshore Production: Shell Companies in Nigeria have a track record of strong production. But in 2021, the combined production from the SPDC JV and SNEPCo (Bonga) fell to 493,000 barrels of oil equivalent per day from 614,000 in 2020.
The SPDC JV produced 383,000 barrels of oil equivalent in 2021, compared with 497,000 barrels of oil equivalent in 2020. The fall in output was largely a result of curtailed oil production because of heightened security issues, such as crude oil theft and illegal oil refining. Production numbers were also down as a result of divestment action, including the sale of SPDC’s 30% interest in OML 17 for $533 million.
In the last quarter of 2021, crude oil theft from pipelines across the region increased ostensibly as a result of rising oil prices, which made the activity more profitable. Security risks have heightened and production in some areas has been put on hold. The situation is impacting operators across the Niger Delta. The Nigerian National Petroleum Corporation (NNPC) has reported that crude thefts in 2021 reached 200,000 barrels per day-a quarter of onshore production.
The SPDC JV declared a force majeure on its Bonny export program with effect from March 3, 2022. The declaration of force majeure was on account of significantly lower deliveries of crude oil to the Bonny Terminal because of theft from illegal connections to pipelines.
Offshore in the deep waters of the Gulf of Guinea, production at SNEPCo’s Bonga field continued steadily but not without its own challenges. Production fell to 110,000 barrels of oil equivalent per day from 117,000 barrels in 2020. This was because of repairs on two production lines in 2021.
The five-year average production for SPDC and SNEPCo is 606,000 barrels of oil equivalent per day.
Shell Companies in Nigeria stated its intention to reduce its involvement in onshore oil and gas production in Nigeria and to focus future investment on our deep-water and gas positions. This aligns with Shell’s Powering Progress strategy. We are in discussion with the Nigerian government and other stakeholders on how this can be best achieved.
Focus on Safety and Security: Shell Companies in Nigeria aim to consistently apply international safety standards. We work closely with communities, civil society, local businesses, joint- and co-venture partners, as well as federal and state government agencies, to promote a secure and safe environment. Shell Companies in Nigeria aim to achieve no harm to people and no leaks across operations.
Shell Companies in Nigeria also contribute to the safety of communities around their facilities by responding to third-party emergencies in these communities. These incidents include fires near our facilities. In 2021, Shell Companies in Nigeria responded to 32 third-party emergencies.
Tragically, six people working for a contractor company were killed in 2021 when gunmen attacked a convoy of buses traveling to the Assa North/Ohaji South gas development project site. A government security agent was also killed in the incident and seven other people were injured. This was a truly horrendous event.
SPDC, in its capacity as operator of the SPDC JV, and its employees, feel these losses deeply and, together with government security agencies, learn from such incidents to help prevent them from happening again. SPDC immediately stopped work on the site. Work will resume when we are satisfied that security has been restored around the project site. SPDC has supported the contractor during the emergency response and follow-on investigations.
Developing Gas Opportunities: Nigeria has around 200 trillion cubic feet of proven gas reserves and about 600 trillion cubic feet of unproven reserves. However, a lack of adequate power grid infrastructure results in unreliable power supply from the electricity grid and power shortages in urban and rural areas. The development of energy infrastructure is a priority for the country.
Nigeria has declared 2021-2030 the “Decade of Gas Development for Nigeria” and is determined to develop the gas sector to transform the country into an industrialised nation. Gas has enormous potential to diversify and lift the Nigerian economy.
Shell is investing in a gas portfolio that will increase supply for Nigeria’s growing industrial and commercial sectors, as well as international customers via an expanding network of plants, pipelines and export terminals. Shell has interests in two gas supply operations in Nigeria: NLNG and SNG. Both are supplied with gas by the SPDC JV and SNEPCo.
However, Nigeria needs to create an enabling environment to continue to foster investments in the gas sector.
According to Ed Ubong, SNG Managing Director and President of the Nigeria Gas Association, an enabling environment rests on the development of infrastructure across the gas value chain and a predictable regulatory, commercial and legal framework. He also states that all stakeholders need to uphold contracts and that resolving the security challenges in the Niger Delta is critical if Nigeria is to benefit from the “decade of gas”.
Shell Energy Nigeria To Grow SNG’s Customer Base Further: Nigeria has a population of more than 200 million and this is expected to double by 20505, so there is enormous potential to expand businesses within the domestic gas market. In 2021, on the back of the successes of SNG, Shell launched the Shell Energy Nigeria (SEN) business line. SEN aims to grow Shell’s natural gas marketing and sales business in Nigeria.
In 2021, SNG supplied more than 400 megawatts (MW) equivalent of gas-generated power in Nigeria. SEN’s goal is to distribute 1 billion cubic feet of gas in the domestic market by 2030.
SNG has a distribution network of 150 kilometers and is the only gas distribution company in Nigeria certified according to the ISO14001 international standard for an effective environmental management system. In 2021, it provided gas to more than 130 commercial and industrial customers.
In 2021, SNG signed a 20-year agreement for the domestic distribution of gas to industrial customers and manufacturing plants in Lagos and Ogun States. The new deal with the Nigerian Gas Marketing Company (NGMC) will also enable SNG to extend its distribution network to Badagry to serve a new market in the community that borders the Republic of Benin.
By the end of 2021, SNG had agreements in place with 165 customers across six states: Ogun, Abia, Rivers, Bayelsa, Oyo, and Lagos. The agreements will enable the supply of reliable, lower-carbon energy that drives industrialisation, provides employment for both the skilled and unskilled local population, as well as directly improve internally generated revenues in these states. Infrastructure is being built to supply gas to new customers where necessary as SNG was actually providing gas to around 130 customers at the time of writing this report.
Gas Partnership with Government: The SPDC JV has long produced oil in the Niger Delta but it also supplies about 10% of Nigeria’s domestic natural gas. Today, it aims to produce more natural gas and is working with the government and NNPC on developing four of the government’s seven designated critical gas supply projects. These are the Assa North/Ohaji South field; the four unitised gas fields – Samabri-Biseni, Akri-Oguta, Ubie-Oshi, and Afuo-Ogbainbri; Gas Supply to Brass Fertilizer Company; and Okpokunou/Tuomo West field cluster.
Construction of the Assa North/Ohaji South gas development project in Imo state started in 2019. However, the project was put on hold in August after the security incident described above. Prior to the suspension of the project, Assa North/Ohaji South was expected to be completed in 2023 with a potential capacity of 300 million standard cubic feet of gas per day, one of the largest domestic gas projects in Nigeria.
The other three projects are in the early stages and investment decisions have not yet been taken.
In 2021, the SPDC JV-operated AFAM VI power plant in the Oyigbo local government area of Rivers State supplied 7% of Nigeria’s grid-connected electricity. AFAM VI has a nameplate capacity of 650 megawatts (MW) but in 2021 operated between 250MW and 350MW depending on grid allocations. The SPDC JV’s Gbaran-Ubie gas plant achieved peak production in 2021 with about 182,000 barrels of oil equivalent per day.
Ending Routine Flaring: Shell Companies in Nigeria are working towards their goal of ending the routine flaring of associated gas from their oil production operations. They have made a series of investments and partnerships over the last 20 years to capture and supply associated gas for domestic and export markets.
In 2019, the Southern Swamp Associated Gas Solutions project was commissioned, and the SPDC JV is planning to reduce associated gas flaring further through its Forcados Yokri gas-gathering project, of which large parts are set to be completed in 2022.
Despite such efforts to reduce continuous flaring, unfortunately flaring intensity (the amount of gas flared for every tonne of oil and gas produced) at both SPDC- and SNEPCo-operated facilities increased in 2021 owing to short-term operational issues.
Flaring from SPDC-operated facilities increased by around 5% in 2021 compared with 2020.
The increase was primarily because of the extended outage of the gas compression system in SPDC’s shallow-water operations. The system was restored and became operational in January 2022.
Flaring at SNEPCo-operated facilities rose by around 160% in 2021 compared with 2020. This was mainly because of an increase in flaring on the Bonga floating production, storage, and offloading (FPSO) vessel. Repairs to a flex-joint on the Bonga FPSO’s gas export riser in the second quarter took longer than expected, in part because of weather conditions. While repairs were underway, the FPSO continued to produce oil, and therefore flaring was necessary for safety reasons. The repairs were safely concluded in July 2021.
Although flaring intensity levels rose in 2021, SPDC and SNEPCo over the last 10 years have almost halved the combined amount of hydrocarbons they flare from 1.5 million tonnes in 2012 to 0.8 million tonnes in 2021. This reduction is the result of a strict flaring reduction management process and both SPDC and SNEPCo will continue to work in close collaboration with joint-venture partners and the government to make progress toward ending routine
flaring of associated gas.
Nigeria LNG Expansion Underway: Global demand for LNG continues to grow as the world increasingly seeks reliable supplies of lower-carbon energy. Shell’s investment in Nigeria’s gas infrastructure for export is expected to help. This is according to data provided by global research and consultancy business Wood Mackenzie. the country benefits further from revenues. Shell Gas B.V. and its partners took a final investment decision in 2020 on a new LNG processing unit-known as Train 7 at NLNG.
The expansion is expected to create around 12,000 jobs for Nigerians during construction and stimulate the growth of the local oil and gas service sector, with 55% of engineering and procurement of goods and services being sourced in-country. Train 7 is expected to ensure Nigeria’s continued place as a global player in a lower-carbon energy source.
Once operational, Train 7 will add around 8 million tonnes per annum of capacity to the Bonny Island LNG facility, taking the total production to around 30 million tonnes per annum.
In 2021, NLNG began awarding procurement and construction contracts. Early works started at the site. The first phase of the worker village is expected to be ready for occupancy in 2022 and the new material offloading facility ready for use by the end of 2022. NLNG’s Train 7 is expected to come on stream in the middle of the 2020s.
Key Licence Renewed for Deep-Water: SNEPCo has interests in four deep-water blocks in the Gulf of Guinea, two of which it operates. Today, nearly one-third of Nigeria’s deep-water oil and gas production comes from the Bonga and the non-operated Erha fields.
Since production began in 2005, Bonga alone has produced more than 950 million barrels of oil with the 2021 average oil production per day at 105,000 barrels. The Bonga FPSO vessel has a total production capacity of 225,000 barrels of oil per day and 150 standard cubic feet of gas exported per day. In 2021, the availability of the FPSO vessel increased to 80% from 70% in 2020.
In addition to Bonga, SNEPCo’s exploration activities have led to several significant discoveries of oil and gas over the last two decades, including the Bolia and Doro fields (Shell interest 55%).
In the right investment climate, SNEPCo believes that there are opportunities to expand. In 2021 the OML 118 (Bonga) production-sharing contract was renewed and the lease was extended for 20 years. Bonga North and Bonga South West Aparo (BSWA) oil fields are two such potential opportunities. Bonga North is a proposed tie-back project to the existing Bonga FPSO with Phase 1 comprising 14 wells. BSWA is a development of a new FPSO with Phase 1 comprising 23 wells.
Supporting Renewable Energy Startups: Millions of Nigerians are excluded from the country’s power grid and Shell Companies in Nigeria have established and provided substantial funding for a not-for-profit, an impact-investing company called All On. Operating as an independent company, All On works to bring reliable electricity – often from renewable energy sources — to off-grid urban and rural customers. This support aims to build a solid pipeline of viable businesses that can create the scale required to address Nigeria’s access to energy gap.
In December 2019, SPDC and SNEPCo made a significant additional 10-year financing commitment of $160 million in All On, bringing the total commitment to $200 million. By the end of 2021, All On had provided investment capital to over 40 renewable energy start-ups in its portfolio – an increase of more than 30% from 2020. One such company is Infibranches Technologies Limited, to which All On has committed $2 million, which is expected to enable the indigenous technology company to expand sales of solar home systems via its more than 13,000 agent banking partners across Nigeria.
With the support of the Rockefeller Foundation, the All On Hub was established in 2020 to provide nonfinancial support and build the capabilities of off-grid energy entrepreneurs. In 2021, the hub supported 81 ventures – nearly double the 41 supported in 2020.
Also in 2021, All On, Odyssey Energy Solutions, and the Global Energy Alliance for People and Planet launched a $10 million equipment financing facility as part of the DART pilot program in Nigeria. DART will combine demand pooling, aggregated purchasing of solar equipment, and access to affordable finance to unlock economies of scale for solar companies, achieve cost savings for end-users, and accelerate the growth of the renewable energy sector in Nigeria and beyond.
Developing Local Content and Skills: Shell Companies in Nigeria contribute to the growth of Nigerian businesses that can provide technical and support services to the industry. This includes the manufacture of tools and technical kits, the operation of helicopter flights in the Niger Delta, and strategic partnerships between foreign and local companies to stimulate technology transfer and capacity development.
While there are government-required programmes in some areas, such as the Nigerian and Community Content Strategy embedded in the Assa North/Ohaji South gas development project, Shell Companies in Nigeria deliberately seeks to contract local businesses
In 2021, Shell Companies in Nigeria awarded $800 million worth of contracts to Nigerian registered companies. Of these, 92% were companies with at least 51% Nigerian ownership.
SNEPCo has awarded major engineering and construction contracts to companies that are indigenous, have local staff, or possess domestic capabilities in the country. At present, the manufacture and rebuild of hydraulic flying leads7 (HFLs) are being carried out in-country by wholly indigenous companies. Pressure Controls Systems Nigeria Limited, another Nigerian company, continues to refurbish old subsea trees.
Sometimes, a lack of access to capital hinders Nigerian companies from competing for and executing contracts effectively. Shell Companies in Nigeria have provided access to nearly $1.6 billion in loans to 901 Nigerian vendors under the Shell Contractor Support Fund since 2012. These loans help improve their tendering opportunities.
Gas To Play Significant Role In Africa’s Energy Mix, Says NLNG’s MD
Rashidat Okunlade Writes
Dr. Philip Mshelbila, Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG) has said Natural gas should and will play a significant role in Africa’s energy mix to meet the demands arising from rapid population growth and economic expansion, as well as the need for affordable access to clean energy and supply security for industrialisation.
Dr. Mshelbila made these remarks during a strategic session at the recently concluded 2023 Gastech Exhibition and Conference in Singapore, where he discussed Africa’s role in increasing supply resilience in the energy transition context. He stated that African gas could enhance global energy security by increasing gas production, ensuring a steady supply source despite rising domestic consumption, and the growth of floating LNG, facilitating the rapid delivery of gas products to the market.
He stressed the necessity of adopting a multi-dimensional approach to the energy transition, considering Africa’s specific context and evolving needs. Dr. Mshelbila pointed out that the continent is already capitalising on opportunities in the energy transition, utilising gas as an evolutionary energy source that offers a cleaner alternative to traditional biomass and coal. He highlighted that transitioning from polluting sources to liquefied petroleum gas (LPG) and compressed natural gas (CNG) can reduce emissions by up to 48%. He cited Nigeria as an example, where the government actively promotes CNG usage in the transportation sector to expand gas utilisation and drive progress across various industries.
Dr. Mshelbila also noted that Africa is maximising opportunities in the growing LNG market, increasing its production capacity to substantially contribute to global supply. He added that Africa is emerging as a critical global gas supply source, with production expected to double, solidifying the continent’s role in global energy security.
“The largest gas markets in Africa remain Algeria and Nigeria, which account for at least 55% of the continent’s gas reserves. However, exciting new gas markets are emerging across the continent, especially in LNG developments in Mozambique, Senegal, the Congo, and Tanzania,” he stated.
Furthermore, Dr. Mshelbila stated that efforts are underway to develop inter-regional gas supply pipelines to facilitate the movement of gas resources from West Africa to North Africa and beyond, promoting intercontinental trade.
Regarding the energy transition, he highlighted Africa’s progress in the field of hydrogen. He said that when produced using Africa’s abundant gas resources in conjunction with renewables, hydrogen can position the continent as a major hydrogen exporter in the near future.
In conclusion, Dr. Mshelbila emphasised that Africa is taking a proactive, region-specific approach that leverages its unique strengths and resources, offering promise for a sustainable energy future and a crucial role in the global energy transition.
The Gastech Exhibition and Conference is a significant platform for professionals in the natural gas, LNG, hydrogen, low-carbon solutions, and climate technologies industries to discuss the latest developments in the sector. NLNG actively participated in strategic leadership sessions and the exhibition.
Transformative Climate Technologies In Focus At asTech 2023
Rashidat Okunlade Writes
At the third day of Gastech 2023, senior ministers, business leaders, and global climate specialists reached consensus on the steps required to develop new solutions to reduce carbon emissions and accelerate climate technologies. Participants agreed that globally, a clearer picture of the transformative potential of climate technologies is emerging, with new infrastructure promising to mitigate emissions being brought to market.
Climate technology is a critical component of the world’s decarbonisation efforts and, in recognition of this, Gastech has expanded its 2023 edition to include a dedicated Climatetech exhibition and conference programme, bringing together established energy players, policy analysts, investors, and Big Tech.
The day began with a set of in-depth discussions on carbon capture and storage and its potential to accelerate and transform capabilities at a global scale. According to data from the Global CCS Institute, last year Europe and the US were on track to sequester just 1.5-2.0% of their current emissions by 2030, falling short of what is required by 2035 to meet the 1.5˚C pathway. Throughout the panel, speakers discussed the scale of momentum behind the technology, and the impact that a more favourable regulatory environment would have on the development of the technology.
Speaking on the panel, Paul Everingham, Chief Executive Officer Asia Natural Gas & Energy Association (ANGEA), said: “There will not be an orderly transition in Asia without natural gas and carbon capture. The big challenge, especially for heavy-emitting North Asian countries, is storage. We are going to invest significant funds in doing a detailed study on a framework for the Asia-Pacific region that looks at carbon capture, carbon storage, carbon transport, and carbon pricing. Using that, we can give certainty to financiers and engineers to implement the scheme.”
Laura Leonard, President, Technology Solutions, Worley, commented: “Worley’s mission is to deliver sustainability to the world and carbon capture is a critical part of our path to net zero. Because of that, we are focusing our efforts on enabling carbon capture to become a reality. The good news is that the technology is ready now, and proven. We need to be deploying the technology that can drive down the costs for carbon capture.”
Climate Tech was also the focus of a major Global Business Panel later in the morning between innovators and investors, encouraging the development, deployment, and diffusion of critically important solutions to tackle the critical issue of emissions reduction. Concerns were raised around how one-third of methane emissions come from the energy sector. Yet, methane, which is just one piece of the puzzle, is considered more than 25 times as potent at trapping heat in the atmosphere compared with CO2. Across the panel, it was recognised that the successful adoption of emissions abatement solutions will require supportive policy frameworks and cross-industry collaboration to enable Climatetech breakthroughs.
Addressing the audience, Jane Toogood, Chief Executive, Catalyst Technologies, Johnson Matthey, and UK Government Hydrogen Champion, said: “We have solutions around technologies today – such as hydrogen, sustainable fuels – and need to make sure that we are deploying technology at scale. Scaling is definitely one of the things we need to get on with. Currently we have an opportunity to decarbonise existing assets. Methanol is there, but e-methanol is not. Those technologies exist today, so there is no issue in deploying them. Looking ahead, our focus needs to be scaling up for the future.”
Mario Azar, Chairman and CEO, Black & Veatch, said: “Black and Veach is focused on critical human infrastructure, and energy is a big part of that. Energy has been the largest part of our portfolio, and lately, the energy transition has been a big part of focus strategy, and portfolio evolutions. It is great that we are talking about this at Gastech this year, because it is all about finding new solutions, and working together to develop these solutions.”
During an official signing ceremony, the Global Centre for Maritime Decarbonisation (GCMD) and the Society for Gas as a Marine Fuel (SGMF) signed a two-year Coalition Partnership agreement towards developing global guidelines on the use of ammonia as a marine fuel. Further, Allied Green Ammonia Pty. Ltd. Australia and Tecnicas Reunidas signed a Project Development agreement to develop a landmark 100% green ammonia plant in Australia that will produce 165,000 tons of green hydrogen a year, which will in turn serve as feedstock to generate 912,500 tons of green ammonia a year. In addition, Woodside Energy signed a non-binding Memorandum of Understanding with Japanese electricity generator Kansai Electric Power company to lock in third-party carbon dioxide supply for its future carbon capture and storage projects in Australia.
The Gastech 2024 Handover Ceremony took place, where the location for next year’s conference was announced as Houston, Texas, USA. Simon Ford, Vice President Gastech, dmg events, commented: “We are hugely excited to look ahead to next year, to another continent. I am delighted to officially announce that the next host city for Gastech 2024 will be Houston, Texas. We couldn’t think of a better location to be taking Gastech, to the energy capital of the world.”
Other panels on Gastech 2023’s third day included spotlight sessions on decarbonising shipping and increasing LNG supply resilience. The event, which has 40,000 registered visitors, features a line-up of more than 600 speakers during the four-day show, including Rt. Hon. Boris Johnson, former Prime Minister of the UK, H.E. Dr Tan See Leng, Singapore’s Minister for Manpower and Second Minister for Trade and Industry, and H.E. Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources.
GasTech 2023: Ministers, Global Business Leaders Commit To Unified Industry Action Towards Net Zero
By Rashidat Olushola Okunlade
Gastech 2023, the world’s largest meeting place for natural gas, LNG, hydrogen, low-carbon solutions, and climate technologies, opened today welcoming record-breaking numbers to Singapore EXPO.
The first day featured a range of insightful contributions from policymakers, CEOs, and business leaders on the multiple, interconnected challenges facing the global energy sector. Delegates discussed the critical role of natural gas, LNG, and hydrogen in Asia and beyond as key enablers of future energy security and accelerators of the energy transition.
Speaking at the Gastech 2023 Gala Dinner at Raffles Hotel yesterday, Rt. Hon. Boris Johnson, former Prime Minister of the United Kingdom, Leader of the Conservative Party, Foreign Secretary, and Mayor of London, said: “The complexity of today’s geopolitical and economic climates have left governments grappling with the dual challenge of addressing climate change and meeting increasing energy demand. This winter, businesses, and families around the world face high inflation, high interest rates, and uncertainty over energy prices. At events like Gastech, the global energy community has a unique and important opportunity to align on collective action towards a cleaner, more affordable, and more secure energy future.”
This morning, H.E. Dr Tan See Leng, Minister for Manpower and Second Minister for Trade and Industry, Singapore, welcomed attendees to Singapore at the Opening Ceremony: “The world is undergoing a profound energy transition, getting to net zero while preserving energy security and economic competitiveness. Moving forward, the demand for natural gas in Asia will only continue to grow. Singapore is committed to satisfying the region’s energy needs.”
The Strategic Conference began with a high-level discussion between international energy ministers on how natural gas and LNG will enable the global energy industry to meet near-term demand for low-carbon energy. H.E. Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources, shared valuable insights on the rapid expansion of natural gas and LNG in the region: “We have all agreed that natural gas is the best choice for the energy transition. Egypt has built on the momentum of COP27, but continued investment, as well as sustained cooperation among countries, is very much needed.”
Also speaking at the Gastech 2023 Ministerial Session, Hon. Joseph McMonigle, the Secretary General of the International Energy Forum (IEF) emphasised the need for inclusive dialogue on decarbonisation ahead of the COP28 Summit: “What we have learned is that this linear approach to net zero is an outdated approach that is not workable in many areas around the world. We need everyone at the table, and I hope that at this COP, we will focus on progress and not perfection. There are so many things we can do to make progress on climate change, and natural gas is going to help the world to decarbonise.”
A CEO panel was attended by industry heads from JERA Co., Inc, Baker Hugues, Woodside Energy, ADNOC, Mitsubishi Corporation and Pavilion Energy, focused on transforming global energy through collaborative business models and constructive partnerships. Speakers shared insights into the new business models being deployed to support a net zero energy future, with low-carbon solutions applied to the hard-to-abate industries.
Another high-level session saw business leaders from ExxonMobil, Eni, Chevron, Shell, and Vitol delve into the dynamic global LNG market, as a resilient industry with the potential to meet the demands of the future energy system. Participants discussed how Europe’s changing LNG needs are forecast to outpace global supply capacity until the middle of this decade, resulting in heightened levels of competition as Asian demand picks up.
Gastech 2023’s opening day also saw Venture Global LNG CEO Mike Sabel and Baker Hughes Chairman and CEO Lorenzo Simonelli announce Venture Global LNG’s long-term expansion plan to increase production from 70 million tonnes per annum (MTPA) to more than 100MTPA of LNG export capacity. To support this initiative, Venture Global LNG and Baker Hughes have together executed an expanded master equipment supply agreement for the delivery of additional liquefaction train systems and power island systems for Venture Global LNG’s future export projects.
“Venture Global LNG is thrilled to announce our long-term plan to expand LNG production both in and outside of Louisiana, building on the momentum of our first three projects – Calcasieu Pass, Plaquemines LNG and CP2 LNG,” said Mike Sabel, CEO of Venture Global LNG speaking following the announcement. “Now more than ever we are committed to our mission of delivering low-cost LNG at a larger scale to support the world’s growing demand for energy security, prosperity, and environmental progress. We are grateful for our continued partnership with Baker Hughes, a world leader in energy technology, and look forward to building on our successful collaboration in our upcoming projects.”
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