Shell Expects Stronger Q2 Integrated Gas Trading Despite Lower Production
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Shell has forecast significantly stronger trading results for its Integrated Gas business in the second quarter of 2026, despite lower production due to ongoing disruptions at its operations in Qatar.
The company expects Integrated Gas production to range between 610,000 and 650,000 barrels of oil equivalent per day (boed) during the April to June period, down from 909,000 boed recorded in the first quarter. The decline is largely attributed to reduced output from assets affected by damage in Qatar.
One of the key disruptions stems from Shell’s Pearl Gas-to-Liquids (GTL) facility in Ras Laffan, where operations on one of its two processing trains remain suspended following damage sustained earlier this year. Shell has estimated that repairs to the affected train could take approximately one year to complete.
Despite the production setback, Shell expects its liquefied natural gas (LNG) liquefaction volumes to reach between 7.4 million and 7.8 million metric tonnes in the second quarter, slightly below the 7.9 million metric tonnes recorded in the previous quarter.
The company also projects upstream production of 1.75 million to 1.85 million boed, broadly in line with first-quarter levels.
In its downstream business, Shell expects marketing sales volumes to range between 2.55 million and 2.65 million barrels per day.
The Chemicals and Products segment is also expected to deliver solid performance, supported by stronger refining and chemical margins. Shell forecasts its indicative refining margin to increase to approximately $20 per barrel, while chemical margins are expected to improve to around $240 per metric tonne. Refinery utilization is projected to remain at approximately 100%, reflecting continued strong operational performance.
Overall, Shell expects improved trading conditions across key business segments to support stronger second-quarter financial results, even as production remains affected by operational challenges in Qatar.
