Shell to pull back from chemicals

The energy giant Shell plans to pull back from the chemical industry and instead focus on its liquified natural gas business. Speaking at the firm’s capital markets day meeting on March 25, Shell CEO Wael Sawan said that the chemical business is “not delivering adequate returns” and that “we do not believe we are the natural owners of this chemicals portfolio.” Shell sold almost 12 million metric tons of chemicals in 2024 but posted a net loss of about $102 million for the year. Sawan flagged a number of issues relating to Shell’s chemical portfolio, including a lack of scale in some areas and competition for capital within the wider company. The company will take a regional approach to its chemical activities. In the US, where in 2022 Shell opened a $14 billion ethylene and polyethylene plant in Monaca, Pennsylvania, “we will be pursuing strategic and partnership opportunities,” Sawan said.