Bids of Up to $8 Billion on the Agenda for Shell's US Chemical Assets

Shell’s plan to divest its chemical production assets in the US has attracted the interest of ExxonMobil, LyondellBasell, Apollo Global Management, and the chemical arm of Kuwait National Petroleum Company. It is stated that the total value of the bids submitted for the portfolio, consisting of four petrochemical plants, could reach $8 billion.

British energy company Shell’s plan to restructure its chemical operations in the US and streamline its portfolio has attracted the interest of major players in the sector. ExxonMobil, LyondellBasell, Apollo Global Management, and the chemical arm of Kuwait National Petroleum Company (KPC) have submitted non-binding preliminary bids for the US chemical assets put up for sale by Shell.

It is noted that the bids cover various alternatives, ranging from the acquisition of the entire portfolio in a single transaction to the separate acquisition of specific facilities. The total value of the assets being sold is stated to potentially reach approximately $8 billion.

Shell’s four petrochemical plants in the US are up for sale
Shell’s sale plan covers four major petrochemical complexes located in the US states of Louisiana, Texas, and Pennsylvania.

Shell Polymers Monaca – Pennsylvania:
The plant, which came into operation in November 2022 with an investment of approximately $14 billion, has an annual polyethylene pellet production capacity of 1.6 million tons. Monaca stands out as one of Shell’s largest capital investments within the portfolio.

Deer Park – Texas:
The plant, with an annual ethylene production capacity of approximately 834 thousand tons, also produces propylene, butadiene, benzene, phenol, and acetone.

Geismar – Louisiana:
The plant has an annual linear higher olefin capacity of approximately 920 thousand tons, in addition to producing alpha-olefins, fatty alcohols, ethoxylated alcohols, and ethylene glycol.

Norco – Louisiana:
Integrated with a refinery, the Norco complex has an annual production capacity of 1.37 million tons of ethylene and 260 thousand tons of butadiene.

Profitability pressure in chemical operations
It is stated that increasing global supply capacity and shrinking product margins have played a role in Shell’s decision to divest its US chemical assets.

The company’s chemical product sales volume declined by 22 percent in 2025 to 9.26 million tons, while the adjusted loss of chemical operations is said to have increased by $693 million compared to the previous year.

This situation is viewed as part of Shell’s strategy to reshape its portfolio in the chemicals business in order to boost profitability and optimize capital utilization.

Sale may be carried out to a single buyer or in separate parts
Following its evaluation of the bids, Shell has the option of either selling all of the assets to a single buyer or transferring the facilities to different investors.

The inclusion of the Monaca plant, which was brought into operation in 2022 with an investment of approximately $14 billion, in the sale portfolio in particular points to a strategic portfolio shift for Shell.

A final sale value reaching the $8 billion level for the portfolio consisting of four plants could indicate a lower valuation compared to the total capital expenditure Shell has made on these assets. As the sale process progresses and the bids are evaluated, Shell is expected to decide whether to sell the entire portfolio or proceed on a plant-by-plant basis.