Shell diversified investment in power sector

Source: China Chemical Industry News August 26, 2019

Shell Energy AustraliaMeans thatA total of 617 million Australian dollars (approximately 417.2 million US dollars) to acquire all shares of Australian power retailer ERM. The move underscores the growing investment of global oil and gas companies in the power and alternative energy markets, which is in line with their long-term strategy of diversifying their oil business.

Shell said it plans to become the world's largest power company in the next 10 years. ERM is the second largest energy retailer in Australia by load and generates electricity at two gas-fired power plants, Oakey, Queensland and Neerabup, Western Australia. Shell is an important natural gas producer in Australia and recently launched its Prelude FLNG offshore plant. The plant is one of the most anticipated LNG export projects in the world and the largest floating container. The investment in gas-fired power generation provides a downstream export for this energy company’s natural gas production.