Oil supermajor Shell is reportedly considering selling its chemicals assets in the Europe and the US, including its holdings in the Mossmorran plant in Fife.
The Wall Street Journal reported the London-listed firm is working with American investment bank Morgan Stanley to conduct a strategic review.
But Shell has not yet made a final decision on whether to sell the assets, the Journal said, according to people familiar with the matter.
In addition to its Fife plant, Shell’s European chemicals facilities include sites in Germany and the Netherlands.
Meanwhile, the company’s chemicals operations in the US include sites in Texas, Pennsylvania and Louisiana.
The plants produce a range of chemicals such as light and heavy olefins, solvents, surfactants and ethylene glycols.
The move aligns with Shell’s broader shift under chief executive Wael Sawan, who has prioritised higher-margin operations, including oil and gas production, while scaling back commitments to renewable energy.
The chemicals business has struggled financially due to high capital costs and market volatility, and weak natural gas prices.
The petrochemical sector has been particularly affected by rising global manufacturing capacity, leading to lower profitability.
As a result, Shell is following a pattern of divesting lower-margin assets, as seen last year with the sale of its Singapore chemicals park.
Shell has also moved to scale back its operations in the UK, selling off most of its Southern North Sea assets to Viaro Energy last year and signing a deal with Norway’s Equinor to form a new independent joint venture for its remaining operations.
