London – Shell plc is considering selling its chemicals assets in Europe and the US, the Wall Street Journal reported on 2 March, citing sources familiar with the matter. The energy group has hired Morgan Stanley to conduct a strategic review of its chemicals operations, the WSJ said. Potential buyers may include private equity firms and Middle Eastern entities seeking to expand capacity in the west, the report added.
In the US, Shell operates chemical complexes in Deer Park, Texas, Geismar and Norco in Louisiana, and Monaca, Pennsylvania, where it says it stabilised production in 2024. In Europe, it operates chemical complexes in Rheinland, Germany; Moerdijk, Netherlands; and Mossmoran, UK.
The Moerdijk chemical plant is located between the major ports of Rotterdam and Antwerp, and is closely integrated with Shell Pernis, which is home to Europe's largest refinery. Shell Nederland Chemie makes polyols under the Caradol trade name, with a capacity of 255kT/year.
Shell also produces polyols in China under a 50:50 joint venture between Shell Nanhai and CNOOC Petrochemicals Investment, and Shell Jurong Island Singapore, which produces 340KT/year of polyols and also propylene oxide, used in a range of chemical derivatives including polyols. It also plans to expand its chemical operations in China through its joint venture with CNOOC at Daya Bay, near Huizhou.
Shell has posted annual losses in its chemical segment for the past three years. In 2024, it generated sales of $9.6bn, flat with 2023. The segment recorded a loss of $392m, an improvement from the $717m loss in 2023.
Shell has been under strategic review since 2023. This includes the assessment and potential divestiture of assets and limits to future investments in Singapore and Europe.
