Shell Expects Gas Trading Results to Exceed Q1
Shell PLC said Tuesday it expects trading results for its Integrated Gas segment to be "significantly higher" for the second quarter (Q2) compared to the prior three-month period.
As with Q1, Q2 production from Integrated Gas - under which Shell reports results spanning the production and delivery of natural gas and its derivatives to the market - will be impacted by reduced volumes from war-damaged assets in Qatar, Shell said in a statement. Segment projection for the April-June quarter is 610,000-650,000 barrels of oil equivalent a day (boed), down from 909,000 boed for Q1. The new Q2 forecast upgrades the 580,000-640,000 boed projection Shell gave in its report of Q1 results.
On March 19 Shell said production ceased at its Pearl gas-to-liquids (GTL) facility in Ras Laffan, Qatar after one of the facility's two trains sustained damage from an attack that caused a fire. Pearl produces up to 140,000 boed of GTLs by processing 1.6 billion cubic feet a day of gas from Qatar's North field, making it the world's biggest GTL facility, according to Shell.
Shell made "an initial assessment of around one year for full repair of train two", Shell said in an update March 20.
QatarEnergy has already declared force majeure on the production of liquefied natural gas (LNG) and other products since March 4 due to "military attacks" on energy infrastructure in which Shell is a stakeholder.
The force majeure means a production loss of 2.4 million metric tons per annum for Shell from its 30 percent stake in QatarEnergy LNG N(4), though the facility escaped the March 18 attacks. That was according to Shell's update March 20, which said, "We also have LNG supply contracts from other QatarEnergy LNG facilities".
In Tuesday's statement, Shell forecasts liquefaction volumes for Q2 to be 7.4-7.8 million metric tons, compared to 7.9 million metric tons for Q1. Shell's Q1 report projected Q2 liquefaction volumes to be 6.8-7.4 million metric tons.
Q2 upstream production is pegged at 1.75-1.85 million boed, compared to 1.84 MMboed in Q1. The new projection increased from the 1.62-1.82 MMboed projection in Shell's Q1 report.
In the marketing segment, Shell expects sales volumes of 2.55-2.65 MMbd, compared to 2.63 MMbd for Q1.
In the Chemicals and Products segment, Shell expects Trading and Optimization "to be in line with Q1'26", supported by higher margins. Shell expects its indicative refining margin to increase to around $20 per barrel from $17 per barrel for Q1. The indicative chemicals margin is also expected to increase to approximately $240 per metric ton from $139 per metric ton for Q1. Refinery utilization is expected to be about 100 percent, compared to 99 percent in Q1. Chemicals utilization is expected to be 80-84 percent, compared to 85 percent in Q1.
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