Shell Adjusts LNG Production Outlook Amid Cyclone Impact
Cyclones and maintenance activities lead to revised estimates for LNG production as Shell aims for growth in a challenging market.
Shell has revised its outlook for liquefied natural gas (LNG) production in the first quarter of 2025, announcing an expected output of between 6.4 million and 6.8 million metric tonnes.
This adjustment represents a decrease from a prior forecast of 6.6 million to 7.2 million tonnes.
The company attributed this lower projection to the impacts of cyclones and unplanned maintenance activities affecting some of its assets in Australia.
As the world's largest LNG trader, Shell recently set ambitious sales targets, aiming to increase its LNG sales by 4% to 5% annually until 2030. This initiative is part of a broader strategy to enhance shareholder returns, amidst increasing pressure on oil and gas companies to improve profitability while navigating climate commitments.
In March, Shell announced plans to significantly ramp up cost savings, targeting reductions of between five billion to seven billion US dollars (£3.9 billion to £5.4 billion) annually by the end of 2028. This initiative comes as the company seeks to provide greater value with lower emissions, despite having adjusted its carbon reduction commitments from previous years.
Additionally, Shell reported a significant increase in its indicative refining margins for the three months ending in March, following a challenging year marked by reduced profit margins in its oil refining sector.
The reported refining margin stood at 6.2 US dollars (£4.8) per barrel, an improvement from 5.5 US dollars per barrel in the previous quarter.
The adjustments in refining margins reflect broader trends in the oil market, where global demand from both consumers and industrial sectors has exhibited downturns, impacting the overall profitability of energy companies like Shell and BP.
This adjustment represents a decrease from a prior forecast of 6.6 million to 7.2 million tonnes.
The company attributed this lower projection to the impacts of cyclones and unplanned maintenance activities affecting some of its assets in Australia.
As the world's largest LNG trader, Shell recently set ambitious sales targets, aiming to increase its LNG sales by 4% to 5% annually until 2030. This initiative is part of a broader strategy to enhance shareholder returns, amidst increasing pressure on oil and gas companies to improve profitability while navigating climate commitments.
In March, Shell announced plans to significantly ramp up cost savings, targeting reductions of between five billion to seven billion US dollars (£3.9 billion to £5.4 billion) annually by the end of 2028. This initiative comes as the company seeks to provide greater value with lower emissions, despite having adjusted its carbon reduction commitments from previous years.
Additionally, Shell reported a significant increase in its indicative refining margins for the three months ending in March, following a challenging year marked by reduced profit margins in its oil refining sector.
The reported refining margin stood at 6.2 US dollars (£4.8) per barrel, an improvement from 5.5 US dollars per barrel in the previous quarter.
The adjustments in refining margins reflect broader trends in the oil market, where global demand from both consumers and industrial sectors has exhibited downturns, impacting the overall profitability of energy companies like Shell and BP.
