Shell announced its exit from China's power markets as part of CEO Wael Sawan's strategy to prioritise more profitable ventures, particularly its natural gas and oil sectors.

The decision to withdraw from China's power value chain, encompassing power generation, trading, and marketing, was conveyed in a statement. The effective date of this decision was the end of 2023.

Shell conveyed, "We are selectively investing in power, focusing on delivering value from our power portfolio, which necessitates making tough decisions."

As per information available on Shell's website, Shell Energy China had been among the earliest wholly-owned foreign entities to engage in China's carbon emissions market and was authorised to trade in the country's power market.

A spokesperson clarified that these changes did not impact Shell's electric vehicle charging business, which remained a pivotal growth area for the company. "We will collaborate with our partners and clients to support China's energy transition," Shell affirmed.

By 1050 GMT, Shell's shares had declined by 0.8%, contrasting with the broader European energy index, which experienced a 0.23% decrease.

In alignment with its initiative to save up to $3 billion annually, Shell has recently divested from the European retail power sector, as well as numerous offshore wind and low-carbon projects. Additionally, it has initiated the sale of its U.S. solar assets and is reassessing its significant refining and petrochemical complex in Singapore.

Staff reductions have been implemented across the company, including within its low-carbon solutions division.

Despite scaling back its presence in renewables and low-carbon energies, Shell intends to intensify its focus on natural gas, anticipating sustained demand growth in the ensuing decades.