AGL 6.39 Decreased By ▼ -0.06 (-0.93%)
ANL 9.65 Increased By ▲ 0.15 (1.58%)
AVN 77.01 Increased By ▲ 2.06 (2.75%)
BOP 5.40 Increased By ▲ 0.05 (0.93%)
CNERGY 4.92 Increased By ▲ 0.12 (2.5%)
EFERT 77.50 Decreased By ▼ -0.50 (-0.64%)
EPCL 55.20 Increased By ▲ 1.05 (1.94%)
FCCL 15.24 Increased By ▲ 0.24 (1.6%)
FFL 6.38 Increased By ▲ 0.18 (2.9%)
FLYNG 7.35 Increased By ▲ 0.34 (4.85%)
GGGL 10.32 Increased By ▲ 0.27 (2.69%)
GGL 16.30 Increased By ▲ 0.36 (2.26%)
GTECH 8.35 Increased By ▲ 0.50 (6.37%)
HUMNL 6.45 Increased By ▲ 0.18 (2.87%)
KEL 2.91 Increased By ▲ 0.08 (2.83%)
LOTCHEM 27.88 Increased By ▲ 0.23 (0.83%)
MLCF 28.07 Increased By ▲ 1.07 (3.96%)
OGDC 74.11 Increased By ▲ 0.76 (1.04%)
PAEL 15.52 Increased By ▲ 0.22 (1.44%)
PIBTL 5.20 Increased By ▲ 0.05 (0.97%)
PRL 16.65 Increased By ▲ 0.55 (3.42%)
SILK 1.06 Increased By ▲ 0.02 (1.92%)
TELE 10.62 Increased By ▲ 0.17 (1.63%)
TPL 7.83 Increased By ▲ 0.14 (1.82%)
TPLP 19.80 Increased By ▲ 0.58 (3.02%)
TREET 23.59 Increased By ▲ 0.84 (3.69%)
TRG 122.25 Increased By ▲ 6.35 (5.48%)
UNITY 22.86 Increased By ▲ 1.06 (4.86%)
WAVES 11.55 Increased By ▲ 0.40 (3.59%)
WTL 1.15 Increased By ▲ 0.03 (2.68%)
BR100 4,091 Increased By 52.5 (1.3%)
BR30 15,340 Increased By 355.9 (2.37%)
KSE100 40,940 Increased By 319.9 (0.79%)
KSE30 15,330 Increased By 117.6 (0.77%)
Follow us

LONDON: Shell will exit all its Russian operations, including a major liquefied natural gas plant, it said on Monday, becoming the latest major Western energy company to quit the oil-rich country following Moscow’s invasion of Ukraine.

The decision comes a day after rival BP abandoned its stake in Russian oil giant Rosneft in a move that could cost the British company over $25 billion. Norway’s Equinor also plans to exit Russia. Shell said in a statement it will quit the flagship Sakhalin 2 LNG plant in which it holds a 27.5% stake, and which is 50% owned and operated by Russian gas giant Gazprom.

Sakhalin 2, located off Russia’s northeastern coast is huge, producing around 11.5 million tonnes of LNG per year, which is exported to major markets including China and Japan.

For Shell, the world’s largest LNG trader, leaving the project deals a blow to its plans to supply gas to fast-growing markets in the coming decades.

Shell said the Russia exit will not affect its plans to switch to low-carbon and renewables energy.

The company also plans to end its involvement in the Nord Stream 2 Baltic gas pipeline linking Russia to Germany, which it helped finance as a part of a consortium of companies. Germany last week halted the project.

Shell said the decision to quit the joint ventures in Russia will lead to impairments. Shell had around $3 billion in non-current assets in these ventures in Russia at the end of 2021, it said.

“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” Shell Chief Executive Ben van Beurden said in a statement.

Shell will also exit the Salym Petroleum Development, another joint venture with Gazprom.

Together, Salym and Sakhalin 2 contributed $700 million to Shell’s net earnings in 2021.

Comments

Comments are closed.