INDIA CEO SERIES: Shell increases low-carbon fuel focus for balanced energy transition

The India CEO Series by S&P Global Energy is a compilation of exclusive interviews by Asia Energy Editor Sambit Mohanty with some of the leaders of the biggest energy companies in India.

Shell aims to play a leadership role in LNG and is exploring opportunities to grow its clean energy offerings in India, aligning with New Delhi's objectives of energy security and large-scale decarbonization, said Mansi Madan Tripathy, chairperson of Shell Group of Companies in India.

In an exclusive interview with Platts, part of S&P Global Energy, Tripathy, who is also the senior vice-president for Shell Lubricants Asia Pacific, said India would be a key focus area for Shell, which is globally investing $10 billion–$15 billion between 2023 and 2025 in low-carbon energy solutions.

This would help expand Shell's footprint in India where it has so far invested $5 billion to build its presence across all its businesses -- lubricants, retail fuel, EV charging, LNG, and renewable energy.

"Over the next decade, our focus will be on strengthening our leadership in LNG. It offers both energy security and flexibility, as it can be easily transported to areas where it is needed the most and is also a critical fuel during the energy transition," said Tripathy.

India's LNG imports climbed 21% year over year to 27.3 million mt/year in 2024, supported by softer prices, increased gas in power demand, and less domestic gas allocation to city gas companies. The country's LNG demand is expected to reach close to 50 million mt/year by 2030, according to a recent forecast by Energy.

Tripathy said Shell's fully owned LNG regasification terminal at Hazira, with a capacity of 5 million mt/year, supplied about 10% of India's LNG imports in 2024, positioning the company to support the government's goal of increasing natural gas's role in the energy mix.

The company is focused on achieving the government's vision by driving gas demand in critical sectors like power, fertilizers, city gas distribution, and heavy-duty transportation. Its investments, such as the Hazira terminal, along with expertise in small-scale LNG, including truck-loading units, are improving access for off-grid industrial clusters and supporting decarbonization across various sectors, she added.

"At the same time, we are investing in future-ready energy solutions such as alternative fuels, AI-driven lubricant analysis, and other low-carbon technologies. These efforts are helping to create a more balanced and sustainable energy mix," Tripathy said.

Policy reforms

However, the country's gas sector was facing some challenges, and there was an urgent need for deep reforms and infrastructure expansion.

"Progress has been uneven, especially in power generation and heavy-duty mobility, where gas adoption remains limited due to volatility, infrastructure gaps, and policy challenges. Unlocking demand in these sectors will be critical," Tripathy said.

Some of the key enablers for the adoption of natural gas include incorporating it into the goods and services tax, separating gas marketing from transportation, and offering short-term incentives for LNG in transportation, such as toll exemptions and reduced GST on LNG kits, she added.

"Natural gas is poised to play a central role in India's energy transition. Its share in the energy mix is projected to more than double by 2030, supported by its ability to deliver reliable energy while complementing intermittent renewable sources. As a lower-carbon fuel, natural gas offers a practical bridge in India's evolving energy system," she said.

Tripathy said the country was pursuing one of the world's most ambitious clean energy programs, targeting 500 GW of non-fossil fuel capacity by 2030.

Shell is actively contributing to this shift through its acquisition of Sprng Energy, Tripathy added.

Shell in 2022 finalized a deal with Actis Solenergi Ltd. to acquire 100% of Solenergi Power Private Limited for $1.55 billion and with it, the Sprng Energy group of companies. This is helping the company in India to make inroads into the wind and solar energy segments, she added.

"One of the biggest opportunities also lies in India, accelerating a shift towards smarter and cleaner mobility. We are leveraging AI, traceability, and telematics to stay ahead of the product innovation curve from developing next-gen EV fluids to deploying predictive analytics for construction fleets," she added.

Acquisitions and partnerships

Commenting on some of the other recent business initiatives in India, Tripathy said Shell had recently completed the acquisition of Raj Petro Specialties Pvt. Ltd, a Mumbai-based specialty oil and lubricant manufacturer, strengthening its lubricants portfolio and expanding into sectors such as power transmission, personal care, and pharmaceuticals.

Shell already has a lubricant oil blending plant at Taloja in Maharashtra, with a network of more than 200 distributors. Additionally, Shell and Ceres Power have successfully generated the first hydrogen using India's inaugural MW-scale solid oxide electrolyser cell (SOEC) demonstrator.

And on the retail business side, Shell has more than 325 retail fuel outlets with EV recharge facilities across India.

Sharing her vision for the oil and gas sector, Tripathy added that India's energy sector was undergoing rapid transformation and the country's overall energy demand is expected to double by 2050. This growth will sustain steady demand for oil and gas, particularly in hard-to-abate sectors such as industry, transport, and petrochemicals.

Tripathy said that Shell's global ambition is to become the world's leading integrated energy company, delivering more value with less emissions. Globally, Shell has the ambition to grow volumes within the overall LNG portfolio at about 4%-5% compound annual growth rate until 2030, while sustaining liquids production of at least 1.4 million b/d until 2030.

"We are also committed to achieving net-zero emissions by 2050 across all our operations and energy products are transforming our business. We believe this target supports the more ambitious goal of the Paris Agreement, to limit the rise in the global average temperature to 1.5°C above pre-industrial levels," Tripathy added.