Shell to Restructure Chemicals Business, Exit Some Petrochemical Assets

• Source: Chemical & Engineering News (C&EN), March 26, 2025

• Summary: Shell will divest parts of its chemical portfolio to focus on core, high-return businesses, amid a challenging petrochemical market with weak margins and shifting demand.

• Details:

• CEO Wael Sawan stated, “We do not believe we are the natural owners of this chemical portfolio”.

• The move targets non-core assets; Shell will retain interests in JVs like the China cracker project (Jan 2025) and focus on downstream specialties tied to energy transition.

• This reflects a broader trend of European petrochemical firms optimizing portfolios to boost competitiveness.

• Original Text Excerpt:

Shell plans to reduce its footprint in chemicals, CEO Wael Sawan said March 26, as the company seeks to focus on businesses where it can generate top-tier returns. “We do not believe we are the natural owners of this chemical portfolio,” Sawan said in a statement. The decision comes as the petrochemical industry grapples with overcapacity, weak margins, and a shift toward more sustainable production methods. Shell will retain some chemical assets, including its joint venture to build a cracker in China announced in January 2025, and focus on downstream specialty chemicals that align with its energy transition goals