Royal Dutch Shell is working with advisers to evaluate divesting its 40% interest in the C$40 billion LNG Canada export project in British Columbia. The review, which also involves partner Mitsubishi Corporation considering a similar move for its 15% holding, reflects Shell’s push to streamline its portfolio and free up capital for renewable energy investments and debt reduction. Sources indicate that potential buyers could include Asian trading houses and private equity funds seeking long‐term exposure to Canadian LNG off-take agreements. A decision on the sale process is expected by mid-year, with Shell aiming to maximize value by capitalizing on robust contracted volumes and low operating costs at the Kitimat facility.

Despite a roughly 20% decline in Brent futures during 2025, Shell outperformed many peers, delivering a 12% total shareholder return as investors rewarded its aggressive cost‐cutting initiatives. The company achieved $37 billion in free cash flow last year, reaping benefits from a disciplined capital program and synergies from its 2022 acquisition of BG Group. Shell also maintained its dividend payout, increasing distributions by 5% in Q4, and repurchased $5 billion of shares, underscoring its ability to generate cash even with benchmark oil prices lingering in the low $60s. Management has signaled further structural cost reductions of up to $3 billion annually to protect shareholder returns if market conditions deteriorate.

Shell and ExxonMobil have terminated the planned sale of a package of U.K. North Sea gas infrastructure to Viaro Energy after nearly nine months of negotiations. The decision followed an impasse on regulatory approvals from the U.K. Competition and Markets Authority, shifting market dynamics that depressed asset valuations, and disagreements over the scope of decommissioning liabilities. Shell will now retain its positions in the Bacton terminal and associated pipeline networks, integrating them into its broader North Sea gas strategy aimed at supporting domestic energy security and maximizing late‐life asset returns.