Shell planning to leverage China's energy transition advances, deepen ties

As the world accelerates toward a low-carbon future, China has established itself as one of the most critical energy markets globally, and the trajectory and pace of its energy transition will exert a far-reaching influence on the international energy landscape, according to a senior executive at Shell.

"For Shell, China's energy transition is not only a vital industry topic, but also a crucial direction for our continued commitment to deepening our roots in China, joining hands with partners, and creating shared value," said Qu Xuemei, executive chairperson of Shell China.

Shell's strategic footprint across the country aligns closely with the core priorities underscored in China's policy planning, including the 15th Five-Year Plan (2026-30), which emphasizes energy security, sci-tech innovation, industrial upgrading and green, low-carbon development, she said.

"In this new policy cycle, Shell will actively play a role in sectors where we possess competitive advantages, where customers demonstrate robust demand, and where policy frameworks are clearly established," Qu said.

While anchoring its traditional presence — such as the Changbei natural gas project with China National Petroleum Corp, which has delivered over 60 billion cubic meters of natural gas, and maintaining its position as the world's leading lubricant supplier by volume for 20 consecutive years — the multinational giant is also developing solutions in thermal management, clean fuels and low-carbon technologies.

In the chemical sector, CNOOC and Shell Petrochemicals Co Ltd boast an annual ethylene production capacity exceeding 2.2 million metric tons, having reduced unit carbon emissions by 23.5 percent since starting operations in 2006.

Concurrently, Shell China is collaborating with the Guangdong provincial government and CNOOC to advance joint feasibility research on a 10-million-ton-scale carbon capture and storage (CCS) hub in the Daya Bay area.

Shell also views China as a vibrant global innovation hub. Shell and Tsinghua University recently upgraded their joint research center — originally established in 2017, to a university-wide level by launching the Tsinghua University-Shell Clean Energy Joint Research Center.

"The most valuable innovations often occur at the intersection of different disciplines, industries, and markets," Qu emphasized.

This philosophy is reflected in Shell's partnerships across China's booming new-energy vehicle and high-tech ecosystems. The company is collaborating with Li Auto and Xiaomi to develop smart oil-change solutions, while partnering with FAW Jiefang on a project to integrate vehicle electrification, battery thermal management and immersion cooling.

Furthermore, Shell Recharge has established roaming and platform interconnection agreements with domestic automakers including BYD, Geely and Xiaomi, while helping Chinese NEV brands expand to overseas markets — an approach Qu described as "investing in China to serve the world".

He Kebin, dean of the Institute for Carbon Neutrality at Tsinghua University, said the majority of capital in the energy investment sector is flowing into new energy, with a heavy focus on renewables, energy efficiency and end-use electrification.

"Among the top three economies leading this investment, China ranks first," he said.

Looking toward 2030, Qu pointed out that the speed of technological breakthroughs, the strength of policy execution and the maturity of market mechanisms represent the three indispensable variables governing China's energy transition.

"Real progress is never accomplished by a single entity. It is achieved through collaborative partnerships that bridge technical capabilities, policy frameworks, market demand and concrete application scenarios," Qu said.

Shell will continue leveraging its capabilities in global energy supply, technological innovation and complex value-chain integration to help China advance an energy transition that balances security, affordability and lower emissions, she added.