The transition to electric vehicles (EVs) gains momentum as Shell, a leading oil and gas company, announces plans to close at least 1,000 of its gas stations over the coming years.
In their place, Shell intends to significantly expand its network of electric vehicle charging stations.
Shell plans to phase out 500 gas stations each year for the next two years. This move is part of Shell's broader strategy to adapt to the evolving energy market and customer preferences.
Vibert Vigeveno, head of Shell's renewables and energy solutions business, mentioned that the planned closures account for approximately 4% of Shell's current operations.
"We are updating our retail network with expanded EV charging offers and convenient offers in response to changing customer needs. In total, in 2024 and 2025, we plan to withdraw about 500 objects belonging to Shell ( including joint ventures)," according to the company's revised energy strategy.
Shell is setting a goal to boost the number of its electric vehicle chargers to 200,000 by 2030, a substantial increase from the current count of 54,000.
The expansion efforts will primarily target China, home to over half of Shell's current charging stations, and Europe, where the demand for EV charging continues to surge. With the growth of Shell's EV charging business, the company expects an internal rate of return of 12% or higher.
The specific gas stations set for closure have yet to be announced.
