Shell makes exit from China’s power market businesses – CEO

Shell has exited China’s power markets as CEO Wael Sawan steers towards more profitable ventures, notably its natural gas and oil operations, Reuters reported on Wednesday.

The decision to exit the power value chain in China, encompassing power generation, trading, and marketing, was announced by Shell in a statement, effective from the close of 2023.

“We are strategically investing in power, prioritising value generation from our power portfolio, which necessitates tough decisions,” Shell stated.

Previously, Shell Energy China was among the pioneering wholly-owned foreign entities engaged in China’s carbon emissions market and registered to trade in its power market.

However, Shell clarified that these changes do not affect its electric vehicle charging business, which remains a pivotal growth sector.

According to Reuters, as part of Shell’s cost-saving initiative aiming for up to $3 billion in annual savings, the company has recently withdrawn from European power trading, including the UK and German retail power markets and offshore wind projects, put US solar assets up for sale, and initiated a review of its extensive refining and petrochemical complex in Singapore.

Additionally, the company has implemented company-wide staff reductions, including within its low-carbon solutions division.