Shell Considers Partnering with the U.S. and Closing European Chemical Assets

UK-based oil and gas giant Shell said on the 25th that it is seeking to improve the performance of its chemical asset base by exploring strategic partnerships in the U.S. and closing plants in Europe.

Shell hopes to improve returns and cut capital expenditures on chemicals by 2030 through "high-grade" and closing some European assets and possibly reducing its stake in the U.S. business.

The Wall Street Journal reported earlier this month that the company has commissioned Morgan Stanley to conduct a strategic review of its chemical portfolio and may sell U.S. and European assets.

Shell has previously sold its Singapore refinery and petrochemical assets to rationalize some of its chemical business in Asia. In the past few years, the company has also announced the closure of some smaller plants in Europe, including ortho-xylene and para-xylene assets in Wesseling, Germany, and methyl ethyl ketone (MEK) production base in Pernis, the Netherlands.

The company plans to achieve a 4-5% increase in sales of its liquefied natural gas business by 2030. The company also wants to increase upstream production, with a 1% annual oil and gas sales growth target by 2030.

The oil giant also said its annual spending will fall to $20 billion to $22 billion by 2028. Back in 2023, the company set a cost target range of $22 billion to $25 billion for 2024 and 2025.