Shell Unveils Cost-Cutting, LNG Growth Plan

Shell has unveiled a new strategy to cut costs by billions of dollars and expand its liquefied natural gas (LNG) business, reinforcing its focus on natural gas as a key pillar of its future growth.

The British energy giant announced on Tuesday that it aims to reduce costs by between $5 billion and $7 billion by 2028, compared to 2022 levels.

This surpasses its previous target of cutting between $2 billion and $3 billion by the end of 2025, a plan that had already led to hundreds of job cuts in its oil and gas division.

Shell also outlined plans to increase LNG sales by 4-5% annually until 2030 while maintaining stable oil production.

CEO Wael Sawan emphasized the company’s ambition to become the world’s leading integrated gas and LNG provider, stating that expanding LNG supply would be its most significant contribution to the global energy transition over the next decade.

As countries seek to reduce emissions and combat climate change, energy firms are increasingly positioning natural gas as a cleaner alternative to other fossil fuels.

Shell is reviewing its chemicals division, with potential partnerships in the US and facility closures in Europe under consideration. Despite these shifts, the company reaffirmed its existing climate commitments.