London (Reuters)-Shell expects to register a loss of $ 600 million in the third quarter after leaving a Rotterdam biofuels project, raising the total of losses and provisions related to the venture to $ 1.4 billion, the company said on Tuesday.
Shell had approved the development of the 820,000 tonnes per year biofuels in 2021, but paused construction last year and canceled the project completely in early September because it would not have been competitive.
The decision to abandon the project is the latest in a series of measures taken by fossil fuel producers who have retreated from previous promises to expand their bet on cleaner energy.
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In February, BP announced that it would drastically reduce investments in renewable energy, while Equinor said it was decreasing its renewable energy ambitions.
Shell Elevates LNG Production Projection
Shell also signaled stronger performance in the liquefied natural gas business, raising its outlook on production in the third quarter to between 7 million and 7.4 million tons, reported in a quarterly commercial update.
The company had previously foreseen a hen production of about 6.7 million to 7.3 million tons, according to July, compared to 6.7 million tons in the second quarter.
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Shell also said it expects its indicative margin of refining in the third quarter to increase to $ 11.6 per barrel compared to $ 8.9 in the previous three months.
Shell, which is looking for new partners or buyers for some of its chemical assets, said the chemical division should record loss in the quarter.
The company also pointed to an impact of US $ 200 million to US $ 400 million due to a reduction in its participation in the production of Tupi fields in Brazil, to reflect up to date data on the reservoirs, which, according to a Shell spokesman, is the normal business course.
