Shell mulling sale of assets in US/Europe

UK’s Shell PLC is mulling the sale of its chemicals assets in the US and Europe as part of an ongoing effort to streamline operations and focus on its most profitable businesses, the Wall Street Journal reported recently.

Potential buyers could include private equity firms and Middle Eastern entities seeking to expand their Western presence, according to the report.

The energy major has engaged Morgan Stanley to conduct a strategic review of its chemicals division, though no final decisions have been made, the report said.

Among the assets under review is Shell’s Deer Park facility in Texas, which produces a range of olefins used in products such as pharmaceuticals, adhesives, and detergents. The company also operates chemical plants in Pennsylvania and Louisiana, as well as in the U.K., Germany, and the Netherlands, WSJ reported.

Potential buyers could include private equity firms and Middle Eastern companies seeking to expand in Western markets, according to the WSJ report.

The move aligns with CEO Wael Sawan’s strategy to prioritize high-margin operations. Under his leadership, Shell has scaled back some green-energy targets and increased its focus on oil and gas, the report stated.

The company last year sold its chemicals park in Singapore following a strategic review.