Shell: Q3 Refining Margin Likely Up 30% Q-on-Q  

SECAUCUS, NJ (DTN) — Shell on Tuesday (10/7) anticipated its third quarter refining margins likely surged by 30%  from the second quarter and raised its expectations for oil and gas output as well.

The Anglo-Dutch energy major,  in a quarterly outlook update, put  indicative refining margin for the July to September period at $11.6 bbl, versus $8.9 during the April to June stretch.

For chemicals, Shell estimates that the indicative refining margin will drop in the third quarter to $160 per tonne from $166 in the prior quarter.

The refinery utilization rate is expected to rise from 94% to  98% in the third quarter, from 94% in the three months before. Chemicals utilization, meanwhile, is expected to have reached 79%-83% versus the 72% reported in the previous quarter.

In the upstream division, Shell raised its third quarter expectation to 1,890 kboe/d, from 1,732 kboe/d in the prior quarter.

For key integrated gas volumes. LNG liquefaction volumes are forecast to reach 7.0 to 7.4 MT, marking an increase from 6.7 MT in the second quarter.

Overall integrated gas production was expected to have climbed to 910-950 kboe/d in the just-ended quarter, from 913 in the prior three months.

Shell is scheduled to release its full third-quarter results, subject to finalization, on October 30.