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SINGAPORE: Shell Singapore said on Tuesday (Nov 10) that it plans to repurpose its core business and halve its crude processing capacity at its Pulau Bukom oil refinery, as part of a review on its journey to a low future. carbon emissions.
As part of the transition, Shell will cut 500 jobs by the end of 2023 at the Pulau Bukom site, which now employs 1,300 people, a Shell spokesperson told CNA.
Shell outlined its transformation path in Singapore under a 10-year plan on Tuesday that will see it, among other things, with the goal of expanding its solar footprint and network of electric vehicle charging options.
Shell said it was studying the production of products that would still be viable after its energy transition, such as biofuels and specialties like bitumen. You are also studying the use of different raw materials or raw materials, such as recycled chemicals.
“Today, our extensive presence in Singapore’s energy sector carries with it a carbon footprint,” said Aw Kah Peng, President of Shell Companies Singapore.
“Our companies in Singapore must evolve and transform, and we must act now if we are to achieve our ambition to prosper through the energy transition. Our decisive action today will help Shell in Singapore remain resilient and build a cleaner and more sustainable future for all. . of us, “he added.
READ: Shell launches major cost-cutting campaign to prepare for energy transition
Shell’s business review in Singapore follows a commitment by parent company Royal Dutch Shell to become carbon neutral by 2050, coinciding with the commitment of rival BP as climate change looms over the energy sector.
The company said it plans to have net zero emissions from the manufacture of all its products by 2050 “at the latest.”
The goal is also in line with Singapore’s ambition to halve its peak greenhouse gas emissions by 2030 by 2050 and achieve net zero emissions “as soon as practicable” in the second half of the century.
REDUCE PULAU BUKOM’S OPERATIONS
As part of its plans, Shell will reduce crude processing capacity at Pulau Bukom, its largest refinery, to 250,000 barrels of oil a day from 500,000 today.
The move brings Shell’s total refining capacity cuts in recent months to 571,000 barrels a day, or just over a fifth of its capacity globally.
Pulau Bukom will be one of six oil and petrochemical refining sites that Shell will maintain, down from the current 14.
“Bukom will shift from a list of crude oil and fuel-based products to new low-carbon value chains,” Shell Singapore said in a press release.
“We will cut our crude processing capacity in half and our goal is to achieve a significant reduction in CO2 emissions,” he added.
However, doing so will also have a corresponding effect on Shell’s workforce.
“As Bukom transforms and becomes smaller and smarter, the resizing of operations will result in fewer jobs but more highly skilled jobs as digitization and automation advance,” the company said.
Shell plans to reduce its staff at the site to 1,100 by the end of 2021 and 800 by 2023, a spokesperson told CNA. It currently employs 1,300 people on the site.
The transition will occur over the next three years and the first turnover related to the reorganization will be only in the fourth quarter of next year.
In September, its parent company said it planned to cut up to 9,000 jobs globally, or more than 10 percent of its workforce.
“Singapore is a key hub for Shell. These decisions show how determined we are to remain part of Singapore’s energy future, as well as have been partners in economic development for decades, ”said Mr. Huibert Vigeveno, Downstream Director and member of Shell’s executive committee.
“The transformation of our business in Singapore, and in particular our largest refinery in Pulau Bukom into one of our approximately six energy and chemical parks, is crucial to Shell’s ambition to become a net-emitting energy business. zero by 2050 or earlier, in step with society and our customers ”.
READ: Shell will cut up to 9,000 jobs by 2022
PILLARS OF THE TRANSFORMATION OF SHELL’S BUSINESS
In Singapore, Shell said, its goal is to cut its carbon emissions by about a third in a decade.
This transition will be accelerated through three pillars:
First, the company plans to reuse its core by focusing its manufacturing assets to provide products that are more resilient to the energy transition.
Second, it also plans to provide low-carbon solutions for its customers in the following sectors: energy, mobility, transportation, aviation, and commerce.
Third, it will also partner with key stakeholders to “achieve sustainable change.”
In addition to plans to expand its solar footprint and its network of electric vehicle charging options, Shell Singapore’s LNG fueling joint venture, FueLNG, will also increase with the arrival of Singapore’s first fueling vessel to end of 2020.
Shell Singapore will also work with customers in Singapore to provide carbon neutral solutions, as well as with the National Environment Agency on a joint feasibility study for the installation of waste separation facilities and plastic pyrolysis plants to recycle plastic waste. from Singapore.
