Shell trims Q1 gas production outlook after Qatar disruptions, citing Iran conflict
It dips to 880,000 to 920,000 barrels of oil equivalent per day (boed), from 920,000 to 980,000 boed
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[LONDON] Shell trimmed the first-quarter outlook for its integrated gas production on Wednesday (Apr 8), reflecting the effect of the Middle East conflict on volumes in Qatar.
The trading results of its chemicals and products business – which includes its oil trading desk – are expected to be “significantly higher” than in the previous quarter, similar to the adjusted earnings in its marketing arm, the British oil major said in a quarterly trading update.
Prices of Brent crude oil, the global benchmark, surged in the first quarter to multi-year highs near US$120 a barrel, after the US and Israel attacked Iran in late February, resulting in Iran effectively shutting the Strait of Hormuz and attacking its Gulf neighbours.
Big Oil is expected to reap a multibillion-dollar windfall from the conflict, because of the soaring prices of the energy they sell.
Q1 expected gas output dips
Shell’s Q1 2026 integrated gas production was expected to be about 880,000 to 920,000 barrels of oil equivalent per day (boed), the company said. It previously predicted 920,000 to 980,000 boed.
In Q4 2025, it produced 948,000 boed.
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Its Q1 2026 liquefied natural gas (LNG) production was expected to be about 7.6 million to eight million tonnes, the company said. It added that the figure reflected the ramp-up of LNG Canada, but was offset by weather constraints in the Australia and Qatar LNG outages.
It previously forecast 7.4 million to eight million tonnes. In Q4 2025, it liquefied 7.8 million tonnes.
Production at Shell’s Pearl gas-to-liquids (GTL) facility in Qatar stopped in mid-March, after an attack on Ras Laffan Industrial City damaged it, the company said.
Pearl GTL is a two-train facility that can process up to 45.3 million cubic metre a day of wellhead gas, which is equivalent to 140,000 barrels per day of GTL.
The company added that it sustained damage to one of its trains during the attacks, and the full repair of it would take around a year.
Working capital to reflect unprecedented price swings
Shell’s working capital, a short-term liquidity accounting measure of current assets minus liabilities, is expected to swing to minus US$15 billion to minus US$10 billion.
The gas giant said that this reflects the impact of unprecedented volatility in commodity prices on inventory.
Global benchmark Brent crude prices averaged around US$78.38 a barrel during the January-to-March quarter, against US$63.08 in Q4 2025 and US$74.98 a barrel in Q1 2025. REUTERS
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