Shell to Expand Upstream and Gas Business, Considers Selling Chemical Assets

Shell to Expand Upstream and Gas Business, Considers Selling Chemical Assets

Shell (SHEL) has announced plans to grow its upstream and integrated gas business by 1% annually through 2030, aligning with a broader industry shift back toward traditional energy investments. This comes just a month after BP (BP) revealed its own strategy to increase spending on oil and gas, moving away from its low-carbon focus.

As part of its expansion strategy, Shell aims to sustain 1.4 million barrels per day of liquid production while reducing carbon intensity. The company is also targeting a 4-5% annual growth in liquefied natural gas (LNG) sales through 2030.

Additionally, Shell is considering selling some of its chemical assets to enhance returns. It is exploring strategic partnerships for its U.S. chemical operations and may selectively close certain European facilities.

“We aim to be the world’s leading integrated gas and LNG business while maintaining significant liquids production,” said CEO Wael Sawan.

Shell’s U.S.-listed shares rose over 1.5% in premarket trading on Tuesday and are up nearly 7% over the past year.