Shell anticipates a financial impact of up to $2 billion (£1.6 billion) after pausing construction on one of Europe’s largest planned biofuel plants and selling a refinery in Singapore.
The oil and gas giant stated that halting work on the biofuels plant in Rotterdam, announced earlier this week, is expected to cost up to $1 billion. Shell initiated work on the plant in 2021, but the project was sidelined as the oil supermajor reassessed its commitment to green energy initiatives.
Additionally, the sale of its Bukom refinery in Singapore is projected to incur costs between $600 million and $800 million.
In a second-quarter trading update released today, Shell announced it anticipates non-cash post-tax impairments of up to $2 billion. This includes up to $1 billion from pausing the on-site construction of its Rotterdam HEFA (Hydroprocessed Esters and Fatty Acids) facility.
The update also projects second-quarter production to range between 940,000 and 980,000 barrels of oil per day in the integrated gas segment and between 1.72 million and 1.83 million barrels of oil per day in the upstream segment.
