How many Shell jobs will be lost in restructure
Global energy giant Shell has announced it is slashing between 7000 and 9000 jobs worldwide, including a number of its about 1200-strong Queensland workforce.
Speculation 181 jobs will be cut from Shell QGC operations at Gladstone and around the state are inaccurate, according to a Shell spokeswoman.
The news comes as worldwide demand for LNG throughout remains solid, increasing from 358 million tonnes in 2019, to 360 million tonnes in 2020, according to Shell’s annual LNG outlook.
Prices of LNG globally hit a record low early in the year but ended the 12-month period at a six-year high as demand in parts of Asia recovered and winter buying increased against tightened supply.
“LNG provided flexible energy which the world needed during the COVID-19 pandemic, demonstrating its resilience and ability to power people’s lives in these unprecedented times,” said Maarten Wetselaar, Shell Integrated Gas, Renewables and Energy Solutions Director.
“Around the world countries and companies, including Shell, are adopting net-zero emissions targets and seeking to create lower-carbon energy systems.
“As the cleanest-burning fossil fuel, natural gas and LNG have a central role to play in delivering the energy the world needs and helping power progress towards these targets.”
Queensland Gas Company QGC was acquired by Shell in 2016.
Coal bed methane (coal seam gas) from the Bowen and Surat basins is extracted by Shell and pumped through a 540km long buried pipeline, Australia’s longest, from Miles to Gladstone.
The coal seam gas is then refined into LNG at the Curtis Island plant, before being used in Australia and exported around the world.
The spokeswoman said the job losses were a result of global restructuring.
“Shell is undergoing and implementing a strategic review of the organisation, which intends to ensure we are set up to thrive throughout the energy transition and be a simpler organisation,” the spokeswoman said.
“As indicated last year, because of the efficiencies we expect to gain we will reduce between 7,000 and 9,000 jobs globally by the end of 2022.
“We are on track with that process.
“The uncertainty caused by the current macro conditions is expected to persist for some time, and financial resilience is fundamental to our ability to sustainably weather those pressures.
“Any decisions that impact people are not ones we take lightly, and we will be engaging closely with our workforce throughout this process to ensure people are supported through the transition.”
Shell, whose sole business in Queensland is LNG, is anticipated to finalise job losses by August, with redeployments likely to be involved.