UK energy giant Shell has lowered its LNG production outlook for the first few months of this year.
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LNG production reached between 6.4 mill and 6.8 mill tonnes in the first quarter of this year, down from an earlier forecast of 6.6 mill to 7.2 mill tonnes.
Shell explained that the drop was due to cyclones and unplanned maintenance at some of its Australian facilities.
The world’s largest LNG trader had recently said that it would seek to boost LNG sales by 4% - 5% per year between 2025 and 2030.
This target was part of a wider plan to boost shareholder returns, as oil and gas companies have come under increasing pressure to become more profitable and scrap climate targets, sources said.
Last month, Shell said that it would increase cost savings and cut spending as it promised to “deliver more value with less emissions”, despite having weakened its carbon reduction pledge in 2024.
Shell said that it was looking to cut a total spend of between $5 bill to $7 bill a year by the end of 2028.
In addition, Shell revealed in a business update that its refining margins had increased in the first quarter of this year, following a slump last year.
The lower margins seen in 2024 were partly due to a downturn in global oil demand in both the consumer and industrial sectors.
A refining margin this year of $6.2 per barrel, compared to $5.5 in the fourth quarter of last year, the energy major revealed.
