Shell is exploring the possibility of selling its chemical assets located in Europe and the US, as reported by the Wall Street Journal.
Sources with knowledge of the situation have revealed that the energy conglomerate has enlisted Morgan Stanley to conduct a strategic review of its chemicals operations.
The review process is in its nascent stages, and no definitive decisions have been reached regarding a potential sale.
Among the assets under scrutiny is Shell’s Deer Park facility in Texas. This facility is situated near a refinery in which Shell had divested its entire stake to its joint-venture partner, Pemex, the Mexican state oil company.
Potential buyers for these assets could include private equity firms and entities from the Middle East aiming to expand their footprint in Western markets.
In a broader context, Shell has been actively restructuring its portfolio. Last year, the company sold its refining and chemicals hub in Singapore, one of the largest globally.
Earlier this year, Shell cautioned about a projected decline in trading performance within its chemicals and oil products division, attributing it to lower seasonal demand.
Shell’s chief executive, Wael Sawan, has been steering the company towards cost efficiency and refocusing on its core profitable sectors, namely oil, gas, and biofuels. This shift marks a departure from previous investments in renewable energy.
In December 2024, Reuters reported that Shell was retreating from new offshore wind investments and reorganising its power business following a strategic review.
In a separate development, Shell’s joint venture with CNOOC Petrochemicals Investment, known as CNOOC and Shell Petrochemicals (CSPC), announced plans in January 2025 to expand its petrochemical complex in Daya Bay, Huizhou, southern China.
The joint venture has approved a final investment decision to enhance production capacity, with the goal of strengthening its position in China’s petrochemical market. The expansion will include the addition of a third ethylene cracker, designed to produce 1.6 million tonnes of ethylene annually, a critical component in plastic manufacturing.
