In its latest trading update, Shell has tightened its guidance for fourth-quarter liquefied natural gas production to a range of 7.5 million to 7.9 million metric tons, compared with an earlier projection spanning 7.3 million to 8.0 million tons. The narrower forecast reflects planned maintenance at two key LNG trains in Australia and the Middle East, as well as delayed start-up activities on one Southeast Asian project. This adjustment is expected to reduce year-on-year LNG volumes by approximately 3%, highlighting potential margin pressure for investors focused on the company’s gas segment.

Shell now anticipates fourth-quarter upstream production of between 1.84 million and 1.94 million barrels of oil equivalent per day (boe/d), up from 1.83 million boe/d in the third quarter. The increase is driven by ramp-up at a new deepwater field in the Gulf of Mexico and higher output from two North Sea platforms commissioned earlier this year. However, despite stronger drilling performance, the company cautioned that integrated refining and marketing margins remain weak, with refining utilization projected at 82% for Q4, down from 86% last quarter, as global product cracks continue to languish below seasonal norms.

Shell has secured Petrovietnam Gas’ inaugural long-term LNG supply contract, committing to deliver 400,000 metric tons per year from 2027 over a 10-year tenor. The agreement will channel cargoes from Shell’s portfolio into Vietnam’s power and industrial sectors, supporting the country’s transition to lower-carbon fuel sources. Financial terms include an index-linked pricing mechanism tied to international gas benchmarks plus a fixed premium, underlining Shell’s strategy to deepen its presence in fast-growing Asian markets.

In a strategic move to bolster its upstream portfolio, Shell has agreed to acquire Chevron’s stakes in two undeveloped ultra-deepwater blocks offshore Angola. The deal, subject to regulatory approvals, adds a combined working interest of 45% in Blocks 15 and 17, home to several high-potential wells with estimated resources of over 1 billion barrels of recoverable oil. Shell will assume operatorship of Block 17, leveraging its deepwater expertise to advance appraisal drilling scheduled to begin in mid-2026.