Our strategy seeks to reinforce our position as a leader in the oil and gas industry, while helping to meet global energy demand in a responsible way. Safety and environmental and social responsibility are at the heart of our activities.
Shell in China
Shell in China
As a leading global group of energy and petrochemical companies that is high up on the Fortune 500 list, Shell helps meet the world’s demand for energy in economically, environmentally and socially responsible ways. We embrace the ambition to be the most competitive and innovative energy company in the world.
Our business relationship with China dates back to more than a century ago, testifying to our long-term commitment to this country.
Today, all of Shell’s core businesses – Upstream, Integrated Gas and New Energies, Downstream and Projects & Technology – are active in China. With win-win partnerships with all of the major national oil companies in China, including China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC) and Shaanxi Yanchang Group Company (YCG), we aim to achieve End-to-End Integration of the whole value chain from Upstream molecules to Downstream markets and extract maximum value for business partners in and outside China.
Shell is proud to be ‘In China, for China’. We want to be the leading international energy company (IOC) in China, contributing to the sustainable economic prosperity of the country and our customers.
To realise these goals, we are focusing on four strategic business priorities:
- International cooperation with Chinese partners overseas to bring energy back to China;
- Developing unconventional gas resources in China and providing natural gas, liquefied natural gas (LNG) and quality oil products to help meet the country’s energy needs with cleaner fuels;
- Research and development (R&D) and technology cooperation;
- Taking Chinese enterprises overseas: leveraging China capability and growing business together.
Currently more than 20,000 staff and contractors are working in Shell companies and joint ventures in China. Taking Staff Localization and Development as one of our top priorities in China, we work hard to nurture a well developed and localised workforce with a “One Team, One Mindset” culture.
We are proud that today:
- Shell is one of the largest multi-national companies operating in China;
- Shell has the most dynamic Upstream business in China among all of the IOCs with a proud track record in natural gas development in the country;
- Changbei Project, jointly developed by Shell and CNPC with Shell as the operator, is the largest onshore gas development by IOC in China, supplying around 20% of Beijing’s gas consumption in 2016;
- Shell is a leading IOC LNG supplier to China;
- Shell is the No. 1 IOC lubricants manufacturer and marketer in China;
- Shell has the leading network of retail sites among IOCs in China;
- The leading international bitumen supplier in China;
- Shell’s CSPC project, is one of the largest Sino-foreign joint ventures to-date;
- Shell is a leading IOC supplier of coal gasification technologies in China;
- Shell is also the leading IOC in sourcing from Chinese suppliers
- Unconventional gas
Shell has applied cutting-edge technologies that enable us to produce unconventional gas in remote and difficult locations in a responsible way. Shell is working with PetroChina in Changbei gasfield in Shaanxi province to produce natural gas to Beijing and its surrounding areas.
World-class technologies are helping the CNOOC Shell Petrochemicals Company (CSPC, also known as the "Nanhai Project") to produce petrochemicals in an efficient and environmentally-friendly way. For example, compared with traditional technologies, one of Shell's proprietary technologies alone can help the plant save at least 5.5 million tons of water every year.
- Energy efficiency
Shell provides technologies and solutions to Chinese refineries and can help them cut energy bills by as much as 10 per cent. Efforts are also made in saving energy in our own operations. In just two years, the Nanhai project saved energy equivalent to 73,400 tonnes of standard coal, enough to power over 110,000 urban households in China for one year.
- Differentiated oil products
For over 60 years Shell has been working hand in hand with Scuderia Ferrari in Formula One to develop high performance fuels and Shell Helix lubricants. Building on this legendary technical partnership, Shell provides Chinese customers with high-quality fuels and lubricants that can keep the engine clean and improve fuel economy.
Currently more than 20,000 staff and contractors are working in Shell companies and joint ventures in China and more than 98 per cent out of them are PRC citizens.
More than 11 per cent of local staff under Shell’s direct employment has had the opportunity to work at Shell companies in other countries/regions.
Shell has formed partnership with all national oil companies in China, including PetroChina, Sinopec, CNOOC and Yanchang. Shell and our Chinese partners are collaborating in China and overseas in win-win partnerships.
“Energy Strategic Study and Cooperation”, the same level of but between “Partnership” Reputation”, also add the followings:
- China Energy Strategy Study
Shell has been working with Development Research Centre (DRC) of the Chinese State Council to jointly study China's medium- to long-term energy strategy. Unprecedented for both China and an international energy company, the study has combined Shell’s international and energy insights with the DRC's domestic and broader policy expertise. Supported by Chinese and Shell top leadership, the study has resulted in strategic findings and recommendations of referential significance since 2013. Two phases have been completed. The third phase is ongoing.
- China Development Forum
Shell shares policy recommendations at prestigious platforms such as the China Development Forum (CDF)
Shell is an active member of the ‘China International Council for the Promotion of Multinational Cooperation’ (CICPMC)
Well recognised as a leading multi-national company in China, Shell has received a number of awards for our high-quality products, good management and our social contribution.
For example, we are recognised as one of the Top 25 Most Responsible Companies in China by FORTUNE China; Daonong Centre for Enterprise and the Green Companies magazine put Shell on top of their list of “Top 100 Green Companies in China”; our outstanding contributions to public welfare have won Shell China the "2013 Poverty Alleviation Ambassador Award” from China Foundation for Poverty Alleviation (CFPA); and since 2007, we have been honoured as the only energy company on 51job.com’s list of China’s Best HR Management Companies.
Shell China: further information
Shell seeks to provide energy solutions and contribute to the country’s three key energy priorities: security of energy supply, environmental protection and energy efficiency, working in partnership with Chinese companies and customers to mutual benefit both in China and overseas. All of Shell’s core businesses are represented in China: Upstream, Integrated Gas and New Energies, Downstream and Projects and Technology.
Shell is a global group of energy and petrochemical companies.
Our operations are divided into four businesses: Upstream, Integrated Gas and New Energies, Downstream, and Projects & Technology.
In Upstream we focus on exploration for new liquids and natural gas reserves and on developing major new projects where our technology and know-how add value for resource holders.
In Integrated Gas and New Energies, we focus on liquefying natural gas (LNG) and converting gas to liquids (GTL) so that it can be safely stored and shipped to markets around the world. The New Energies business has been established to explore and invest in new low-carbon opportunities.
In Downstream, we focus on turning crude oil into a range of refined products, which are moved and marketed around the world for domestic, industrial and transport use. In addition, we produce and sell petrochemicals for industrial use worldwide. Shell’s oil sands mining activities in North America are also part of the Downstream organisation.
Our Projects & Technology business is responsible for delivering new development projects and the research and development that leads to innovative and low-cost investments for the future.