Shell Considers Sale of Chemical Assets in Europe and the US Amid Ongoing Losses

Shell is reportedly evaluating the sale of its chemical assets in Europe and the United States, according to sources cited by The Wall Street Journal. This decision comes as the energy giant has engaged Morgan Stanley to conduct a strategic review of its chemical operations, signaling a potential shift in its business focus.

In the United States, Shell operates chemical complexes in Deer Park, Texas, Geismar and Norco in Louisiana, and Monaca, Pennsylvania, claiming to stabilize production by 2024. Meanwhile, in Europe, its chemical facilities are located in Rhineland, Germany, Moerdijk, Netherlands, and Mossmoran, UK.

The Moerdijk complex in the Netherlands is strategically positioned between the key ports of Rotterdam and Antwerp, closely linked with the Pernis Refinery, Shell's largest in Europe. Notably, the Dutch chemical company produces polyols under the Caradol brand with an annual capacity of 255,000 tons.

In China, Shell also manufactures polyols through a joint venture with CNOOC, as well as at its Jurong Island facility in Singapore, which produces 340,000 tons of polyols and propylene oxide annually. The company plans to expand its Chinese operations through further collaborations near Daya Bay.

Over the past three years, Shell's chemical division has faced persistent losses. In 2024, the division reported sales of $9.6 billion, consistent with 2023 figures, but incurred a loss of $392 million, an improvement over the previous year’s $717 million loss.

Since 2023, Shell has been undergoing a strategic review, which includes asset evaluations and potential divestitures, alongside limitations on future investments in Singapore and Europe. With the market rapidly evolving, this could be a pivotal moment for Shell as it reassesses its chemical business landscape.