Shell's LNG Production to Decline 10% in Q1 2025 Due to Weather, Maintenance

Shell, a leading energy company, has announced that its liquefied natural gas (LNG) production for the first quarter of 2025 is expected to decrease to between 6.4 million and 6.8 million metric tons. This projection represents a decline from the 7.1 million metric tons produced in the fourth quarter of 2024. The reduction in output is attributed to adverse weather conditions in Australia and unscheduled maintenance work in the region.

The company's integrated gas business, which includes LNG production, is anticipated to see an increase in overall output. Shell expects the production to rise to between 910,000 and 950,000 barrels of oil equivalent per day (kboe/d). This increase is expected to offset the decline in LNG production, maintaining the company's overall output stability.

The adverse weather conditions in Australia have significantly impacted the operational efficiency of Shell's LNG facilities. The unscheduled maintenance work, necessitated by the harsh weather, has further exacerbated the situation, leading to a temporary reduction in production capacity. Despite these challenges, Shell remains committed to its operational integrity and safety standards, ensuring that all maintenance work is carried out to the highest standards.

The company's strategic approach to managing these disruptions highlights its resilience and adaptability in the face of operational challenges. By increasing production in other areas of its integrated gas business, Shell aims to mitigate the impact of the reduced LNG output on its overall performance. This proactive management strategy underscores the company's commitment to maintaining a stable and reliable energy supply for its customers.

In summary, Shell's projected decrease in LNG production for the first quarter of 2025 is a result of adverse weather conditions and unscheduled maintenance work in Australia. However, the company's integrated gas business is expected to see an increase in production, which will help offset the decline in LNG output. Shell's strategic management of these challenges demonstrates its commitment to operational integrity and maintaining a stable energy supply.