Shell Adjusts LNG Production and Trading Outlook Amid Strategic Shifts

Shell revised its LNG production estimates and forecasted a dip in oil and gas trading outcomes for the fourth quarter, citing hedging contract expirations. The company announced potential impairments in its renewables division and noted a strategic shift away from new offshore wind investments.

In a recent trading update, Shell announced an adjustment to its liquefied natural gas (LNG) production forecast for the fourth quarter. The revised estimate ranges from 6.8 to 7.2 million metric tons, down from the previous 6.9 to 7.5 million tons. This shift is attributed to reduced feedgas and cargo deliveries.

The energy giant also projected a significant decline in oil and gas trading results compared to the third quarter. This forecast is primarily due to the expiry of hedging contracts, impacting its LNG trading division, the largest globally.

Shell is also preparing for non-cash, post-tax impairments of $1.5 to $3 billion, largely within its renewables sector. These updates align with CEO Wael Sawan's strategy to focus on the company's most profitable segments, abandoning new offshore wind projects in the process.

(With inputs from agencies.)