Cairo: Shell Egypt, a strategic partner of the Egypt Petroleum Show (EGYPES) 2024, emphasized the importance of addressing the energy trilemma, showcasing innovative initiatives aimed at shaping a sustainable energy future. Shell spokespersons also discussed the evolving role of natural gas and liquefied natural gas (LNG) in the context of transitioning to an energy future with fewer emissions.

Eugene Okpere, Shell Executive Vice President, Exploration, Strategy & Portfolio, took part in a panel entitled “The energy trilemma and the continued importance of fossil fuels,” where he underscored the complexities of global energy challenges and the imperative for a balanced approach towards energy security, affordability, and environmental sustainability.

Okpere stated: “Today, close to 1 billion people do not have regular access to energy, and close to 2 billion depend on coal for their primary source of energy. Oil and gas will continue to play a crucial role in the energy system for several decades to come, with demand reducing gradually over time. At Shell we subscribe to a just, and orderly energy transition. We will continue to produce the oil and gas as a reliable energy source the worlds needs today, whist ensuring we continuously reduce emissions from our own operations, and finding profitable and sustainable ways to transition to a net zero energy business.”

He concluded by emphasizing that solutions can only be found through 1) Collaboration: The Energy Industry, Governments and the Wider Society need to work together on winning solutions that match the resources and capabilities of their region or country.  2) Investment: Massive investment that is balanced – to produce lower-carbon barrels in the current energy system and lead the way in tackling the pressing imperative of transitioning to a future net zero energy system. 3) Technology & Innovation: Developing and deploying technology at scale, coupled with Innovation/New ways of working.

Key activities on the event’s second day included Shell’s participation in the panel discussion on “The Evolution of Natural Gas and LNG,” featuring Dalia Elgabry, Vice President & Country Chair of Shell Egypt. Panelists highlighted the essential role of natural gas and LNG in meeting the world’s growing energy needs while advancing towards a net-zero emissions energy system. Elgabry, representing Shell Egypt, contributed valuable insights into the significance of gas as a reliable, flexible, and lower-carbon energy source when compared to other fossil fuels.

Elgabry stated: “The need for low-carbon, affordable, and reliable energy is enormous and growing rapidly. Natural gas and LNG play a critical role in meeting this demand while contributing to the transition to a more sustainable energy future. Gas provides grid stability and flexibility, enabling the integration of renewable energy sources and supporting the decarbonization of various sectors.”

Elgabry emphasized the need to decarbonise the gas value chain, especially in light of Shell’s ambitions to become a net-zero emissions energy business by 2050 and showcased the company’s local initiatives, “In Egypt, Shell is implementing advanced technologies such as Leak Detection and Repair (LDAR) to reduce fugitive emissions from our operations in our joint ventures Rashpetco and ELNG. We are committed to achieving near-zero methane emissions by 2030 and to investing in innovative solutions to decarbonize industrial processes powered by gas.” She also highlighted Shell’s involvement in carbon capture and storage (CCS) projects worldwide as part of the company’s efforts to mitigate emissions from natural gas operations.

-Ends-

Enquiries
Sherine Nehad
Communications Manager
Shell Egypt N.V.
Sherine.Nehad@shell.com

Middle East & North Africa Media Relations
Mena.media@shell.com

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Forward-Looking Statements

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as Russia’s invasion of Ukraine, and a significant cybersecurity breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2022 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this announcement, February 20, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s net carbon intensity

Also, in this announcement we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year.  They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years.  However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Shell expects to publish its 2024 Energy Transition Strategy on March 14, 2024, which will include an update on Shell’s energy transition strategy and set out Shell’s climate targets and ambitions for the future.

Forward Looking Non-GAAP measures

This announcement may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

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