Shell Expects up to 33% Quarterly Decline in Integrated Gas Segment Output in Q2

Energy major Shell (SHEL) on Tuesday said it expects its integrated gas segment to report an up to 28-33% quarterly decline in production to 610,000-650,000 barrels of oil equivalent per day in Q2, citing the impact of the Middle East crisis on its Qatari volumes. In an update to its Q2 outlook published Tuesday, Shell said indicative refining margins are expected to rise to about $20 a barrel for the quarter, up from $17/bbl reported in Q1. In Q2, the group expects liquefaction volumes for liquefied natural gas in the range of 7.4-7.8 metric tonnes, compared with 7.9 MT in the previous quarter. Shell expects upstream production to average between 1.75-1.85 million Boe/d in the second quarter. This compares with average output of 1.843 million Boe/d in Q1. The group projected sales volumes of between 2.55-2.65 million barrels per day in Q2, versus 2.63 million b/d in the earlier quarter. In Q2, Shell expects to report refinery utilization at almost 100%, bettering the reported 99% in Q1.