Shell pulls plug on 2 Singapore projects, says clean-energy transition unchanged

ENERGY giant Shell on Thursday (Mar 30) announced that it would cease the exploration of two projects – a biofuels unit and a Group II base oil plant – in Singapore. 

In a statement provided to The Business Times, a spokesperson said it would continue supplying base oil and lubricants, as well as biofuels, to its customers in Singapore and the region. 

“The strength of our global supply network allows us to do this,” the spokesperson said. 

Back in November 2020, Shell Singapore announced that it would overhaul its business to reduce carbon emissions. The company had begun to cut its crude processing capacity, as well as jobs, at its refinery on Pulau Bukom. 

The company had also outlined a decade-long plan to make investments to repurpose its core business and halve its carbon dioxide emissions here over that period. The group’s overarching ambition is to be a net-zero emissions energy business by 2050 at the latest. 

In its Thursday statement, the Shell spokesperson said its “powering progress” strategy remains unchanged, and that Shell Singapore’s position as a trading and marketing hub for the region continues to thrive. 

“We will continue to drive the transformation of our business in Singapore through the energy transition,” said the spokesperson, adding that the company will continue to work with the government and its customers on opportunities to meet energy needs and to decarbonise. 

Shell Singapore still has a number of other projects going on. For instance, the plant that allows the company to upgrade pyrolysis oil from hard-to-recycle plastics and turn them into renewable chemicals will come onstream this year. 

Shell Singapore will also launch electric ferries, paving the way for the decarbonisation of vessels in Singapore’s port. The company is also installing nearly 5,000 electric vehicle (EV) chargers across Singapore in the coming years.