Shell plans to sell its chemical assets in Europe and the United States

The Wall Street Journal recently quoted people familiar with the matter as saying that Shell is considering selling its chemical assets in Europe and the United States. The energy group has reportedly hired Morgan Stanley to conduct a strategic review of its chemical business. The report also mentioned that potential buyers may include private equity firms and Middle Eastern entities seeking to expand production capacity in the West.

In the United States, Shell operates chemical complexes in Deer Park, Texas, Geismar and Norco, Louisiana, and Monaca, Pennsylvania, and said it stabilized production in 2024. In Europe, Shell operates chemical complexes in Rhineland, Germany, Moerdijk, the Netherlands, and Mossmoran, the United Kingdom.

The Shell Netherlands Moerdijk Chemical Complex is located between the major ports of Rotterdam and Antwerp and is closely integrated with Shell Pernis, Europe's largest refinery. Shell Netherlands Chemical Company produces polyols under the Caradol brand with an annual production capacity of 255,000 tons.

Shell also produces polyols in China, including a 50/50 joint venture between Shell and CNOOC, and Shell Jurong Island Singapore, which produces 340,000 tonnes of polyols and propylene oxide per year for a range of chemical derivatives including polyols. The company also plans to expand its chemical business in China through a joint venture with CNOOC in Daya Bay near Huizhou.

Shell's chemical division has been losing money for the past three years. In 2024, its sales were $9.6 billion, the same as in 2023. The division lost $392 million, an improvement from $717 million in 2023.

Shell has been under a strategic review since 2023. This includes asset evaluations and potential divestitures as well as restrictions on future investments in Singapore and Europe.