Shell lowers gas outlook for first quarter after cyclones hit production

Shell has lowered its outlook for liquefied natural gas (LNG) production in the first months of 2025.

The fossil fuel giant said LNG production reached between 6.4 million and 6.8 million metric tonnes in the first three months of this year, down from a previous forecast of 6.6 million to 7.2 million tonnes.

The lower figure is because of cyclones and unplanned maintenance of some of its assets in Australia, Shell said.

Shell is the world’s largest LNG trader and recently said it would look to boost sales of the product by 4% to 5% a year between now and 2030.

The target came as part of a wider plan to boost shareholder returns, after oil and gas firms have come under pressure to be more profitable and scrap climate targets.

Shell said in March that it would ramp up cost savings and cut spending as it vowed to “deliver more value with less emissions” despite having last year weakened its carbon reduction pledge.

The oil giant is looking to strip out a cumulative five billion US dollars to seven billion US dollars (£3.9 billion to £5.4 billion) a year by the end of 2028.

Meanwhile, Shell said on Monday that its indicative refining margins have jumped in the three months to the end of March, after a slump last year.

Energy giants like Shell and BP have suffered lower profit margins at their oil refining businesses in the last year, which have hit overall income.

The lower margins have partly as a result of a downturn in global demand for oil across both consumer and industrial sectors.

The company pointed to a refining margin of 6.2 US dollars (£4.8) per barrel, compared to 5.5 dollars per barrel in the final quarter of last year.