The Timi project team when first gas was achieved in August this year.
KUCHING (Oct 19): Energy is fundamental to economic growth and provides us all with a good quality of life.
It lights, heats and cools homes and businesses, transports and connects people and goods, and is essential to many industrial processes.
Today, 80 per cent of society’s energy still comes from oil, gas and coal. With that also comes the question – how do we balance the long-term action needed to address increasing global temperatures, with the immediate need to supply energy in a stable and affordable manner?
According to Shell Malaysia country chair Siti Hurrairah Sulaiman, the case for change is clear.
“In the longer term, as society transitions to a low carbon energy future, the demand for oil and gas will decline,” she said in an exclusive interview with The Borneo Post.
“However, even as the world decarbonises, the need for oil and gas will remain for decades to come.”
Siti Hurrairah during the exclusive interview with The Borneo Post.
In early 2023, Shell published the ‘Energy Security Scenarios’ which explores how the world reacts to the current tensions between energy security and sustainability.
Along with a previously published carbon-neutral scenario for Malaysia, ‘The Tree, The Sky, The Sun’, Siti Hurrairah said it was clear that oil and gas will continue to feature in our energy mix even as the world achieves net-zero emissions, albeit in a gradually diminishing capacity.
“Across the world, while technically and commercially challenging, Shell has been working to find solutions to decarbonise sectors such as aviation,” she said, adding that Shell became the first company to supply sustainable aviation fuel (SAF) to customers in Singapore in February 2022.
“We have also acquired Malaysian waste oil recycling firm EcoOils, securing long-term access to advanced biofuels feedstock that will enable the production and supply of low-carbon fuels like SAF.
“At the same time, Shell is working with numerous partners globally to develop the demand for SAF, e.g. we are working with Rolls-Royce to share our expertise and advance the use of SAF in aircraft engines.
“But these solutions will take time to scale up and the world will continue to need conventional oil and gas in the meantime. We must also recognise that we need energy to be affordable and equitable such that everyone can enjoy a good quality of life.”
Providing essential energy
In Malaysia, Siti Hurrairah noted that Shell’s upstream business provides the essential energy that the world needs today, and the cash it generates will help Shell profitably transition to become a net-zero emissions energy business.
“We have made changes to our global upstream business to become more focused and competitive, of which Malaysia is one of Shell’s core positions globally,” she said.
“In Upstream Malaysia, we are entrusted by Petronas to ensure our offshore facilities are performing well, both safely and reliably. We want our foundational business to be the best it can be.
“We are currently developing new projects and will continue to invest in future competitive opportunities. We will also continue to explore for oil and gas offshore Sarawak and Sabah. While continuing to meet today’s energy needs, we will also work on enabling the transformation of the energy system to net-zero emissions.”
Towards sustainable practices
Shell’s global strategy, called Powering Progress, aims to create value for its shareholders, customers and wider society, by achieving net-zero emissions, powering lives, respecting nature and generating shareholder value.
“Our purpose as a company is to provide more and cleaner energy solutions and we will do this while profitably transitioning Shell to become a net-zero emissions energy business by 2050,” Siti Hurrairah explained.
“Powering Progress makes the most of our strengths in Integrated Gas, Upstream and Marketing in order to deliver more value, with less emissions. Our immediate priority is to focus on performance, discipline and simplification in order to strengthen our balance sheet and demonstrate that Shell is best placed to win through the energy transition.”
Shell’s downstream business has also taken initiatives on the renewable scene via solar panels on the rooftops of over 200 retail stations.
Shell will work towards its climate target in a number of ways; first, the company needs to reduce emissions from its own operations, i.e. its Scope 1 & 2 emissions.
“We have a target to reduce absolute emissions by 50 per cent by 2030, compared to 2016 levels,” the country chair added.
“This covers all emissions in Scope 1, which come directly from our operations, and in Scope 2, from the energy we buy to run our operations.
“At the end of 2022, at a global level, Shell has reduced our carbon emissions from operations by 30 per cent compared with 2016 on a net basis. This is more than halfway towards the company’s target of a 50 per cent reduction by 2030.”
In Malaysia, Shell is starting to power its assets with renewable energy. For example, in upstream, the group has installed its first fully solar-powered wellhead platform at the Gorek field, offshore Sarawak.
The group also recently announced the start of gas production from its Timi platform which is powered by a solar and wind hybrid renewable power system, demonstrating that they are delivering more value with less emission.
Siti Hurrairah (right) and others seen with Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at the recent Rosmari-Marjoram ground-breaking event.
“Last year, we also took our final investment decision on the Rosmari-Marjoram gas project. Rosmari-Marjoram will be primarily powered by renewable energy – the offshore platform will utilise power from 240 solar panels, while the onshore plant is connected to the Sarawak grid system which will be supplied mainly from hydroelectric plants.”
On the other hand, Shell’s downstream business has also taken initiatives on the renewable scene via solar panels on the rooftops of over 200 retail stations.
“We also opened our flagship retail station at Mint Hotel in Klang Valley, in December 2020, which earned the Provisional Gold Standard from the Green Building Index (GBI) organisation and will be the benchmark for more stations to come.
“This station has sustainable features such as energy-efficient air conditioners and chillers, recycling facilities, smart LED lighting systems, a rainwater harvesting system, and a food waste composting machine.”
And for consumers, the recently launched Shell app allows users to make a fuel purchase from the comfort of their car using a credit or debit card. In addition to making fuel purchases, the app has BonusLink integrated so users can earn points and use them to redeem fuel or other rewards.
Shell has installed its first fully solar-powered wellhead platform at the Gorek field, offshore Sarawak.
At present, Shell App is available at 876 selected Shell retail stations nationwide. In Sarawak, Shell App is available in 84 stations.
Additionally, Shell Business Operations in Cyberjaya, which employs over 2,000 employees, has rooftop solar panels and an energy-offset arrangement with the procurement of renewable energy certificates.