The energy giant has enlisted Morgan Stanley to conduct a strategic review of its chemicals operations, the report stated. However, both Shell and Morgan Stanley declined to comment on the matter.
Potential buyers could include private equity firms and Middle Eastern entities looking to expand their presence in Western markets, the WSJ noted.
The review is still in its early stages, and Shell has not yet made any definitive decisions regarding a potential sale. Among the assets under consideration is Shell’s Deer Park facility in Texas, which is adjacent to a refinery. Shell previously sold its 100% stake in the refinery to its joint-venture partner, Mexican state oil firm Pemex.
This move aligns with Shell’s broader strategy to streamline its portfolio. Last year, the company sold its refining and chemicals hub in Singapore, one of the largest such facilities globally.
Earlier this year, Shell warned that trading in its chemicals and oil products division would likely decline significantly quarter-on-quarter due to lower seasonal demand.
Under CEO Wael Sawan, Shell has been focused on cost-cutting measures and refocusing on its most profitable sectors, including oil, gas, and biofuels, while scaling back investments in renewable energy.
In December 2023, Reuters exclusively reported that Shell was stepping back from new offshore wind investments and splitting its power division following a business review. This marked a shift from its earlier strategy, which had positioned renewable power as a key driver of the company’s energy transition.