Rigzone · April 8, 2026 (1d ago) · 1 min read

Refining Margins to Provide Buffer as Shell Gas Production Takes War Hit

Analysis

OilCyprus Editorial

Shell anticipates a decrease in Integrated Gas production in Q1 2026, projecting 880,000-920,000 boed compared to 948,000 boed in Q4 2025. This decline is attributed to the ongoing conflict in the Middle East affecting Qatari gas volumes.

Key Facts

Shell expects Integrated Gas production to fall in Q1 2026.
The projected production range is 880,000-920,000 boed.
The decline is linked to the Middle East conflict's impact on Qatari gas volumes.

Market Impact

The reduction in Shell's gas production could potentially tighten global LNG supply, especially if other producers face similar disruptions. This may lead to increased price volatility in the gas market and could impact companies reliant on LNG for power generation or industrial processes. However, the article also suggests refining margins will provide a buffer, implying downstream operations may offset some of the upstream losses.

Why This Matters for Cyprus

This production decrease highlights the vulnerability of global energy supply chains to geopolitical instability and the importance of diversified sourcing and robust risk management strategies for energy companies.

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