As Shell Posts $6.3bn Profit, Hope Rises For Nigerian Investments
There are high hopes that Nigeria will be among the beneficiaries as Shell mulls massive gas and Liquefied Natural Gas (LNG) investments after an impressive financial performance for the second quarter of 2024.
This is given the stupendous gas and LNG potential in the country. According to publications by Energy Connects and Blakeway, Nigeria is the world’s sixthlargest LNG exporter, with a six per cent market share in 2022.
It produces an annual capacity of 22.5 million tonnes with plans for further expansion. The Commission’s Chief Executive, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, recently said Nigeria had reserves of Associated Gas and Non-Associated Gas of 209.26 trillion cubic feet (TCF).
The Chief Executive Officer, Shell Plc, Wael Sawan, in the oil major’s financial reports for the second quarter of 2024, stated that Shell was also considering massive gas and LNG investments as its quarterly profits rose to $6.3 billion (£4.9b).
He also highlighted Shell’s global investments in gas and LNG. An energy analyst, Kyrian Amaechi, in an interview with New Telegraph yesterday, said Nigeria, considering its abundant gas and LNG, is likely to be among the countries that will be considered for Shell’s plan for massive gas and LNG investments.
Sawan, in the financial statement said that Shell delivered another strong quarter of operational and financial results, and added that the oil major has further strengthened its leading LNG portfolio, and made good progress across its Capital Markets Day 2023 financial targets, including $1.7 billion of structural cost reductions since 2022.
He said: “Today, we have also announced a further $3.5 billion buyback programme for the next three months. We continue to demonstrate that we are delivering more value with less emissions.”
The oil major stated its quarterly figures reflected “strong operational performance” and that it had stripped $1.7 billion of cost from the business since 2022, with $700 million cut in the first half 2024.
It also confirmed that it had committed to a final investment decision at a carbon capture in Canada. It added that the Polaris scheme targeted to capture approximately 650,000 tonnes of CO2 annually from the Shellowned Scotford refinery and chemicals complex.
It stated that it had also agreed to a partnership with UAE-state owned ADNOC in its Ruwais LNG project and also confirmed taking a final investment decision (FID) in the Manatee gas field in Trinidad.
