Shell Refining Runs 99% YTD, Maximizes Diesel


   
Daniel Rodriguez Huerta
DTN Refined Fuels Market Reporter

   *Republishing story submitted at 12:37 p.m ET

   CALGARY, CANADA (DTN) -- London-based Shell ran its refineries at 99% 
utilization in the first nine months of 2026, versus 91% in the first nine 
months of 2025, and is maximizing diesel and jet fuel yields, CEO Wael Sawan 
said Thursday (10/29) on the third quarter earnings call.

   The company attributed the increase mainly to lower maintenance. Shell 
expects fourth quarter of 2026 refinery utilization of 92% to 100%.

   Shell embeds traders in its refineries, making a single team commercially 
accountable from feedstock procurement through product distribution, Sawan 
said. The team adjusts to market signals that currently favor diesel and jet 
fuel.

   Diesel production at 404,000 bpd Pernis refinery in Rotterdam set a record 
in August, while 114,000 bpd Scotford refinery near Edmonton, Alberta, set a 
record for jet fuel output, Sawan said.

   Shell's global indicative refining margin was $42 bbl in the third quarter 
2026, up 75% from $24 bbl in the second quarter, the company reported.

   Shell's integrated refining margin eased slightly in October from the third 
quarter level, Chief Financial Officer Sinead Gorman said.

   Spot freight from the Middle East to China costs 10 times its 2025 level, 
Gorman said. 

   According to Shell executives Shell's Gulf of Mexico assets produced their 
highest monthly volume in more than two decades in August. 

   Shell increased its stake in Tri Star Energy to 100% from 33% in September, 
adding 320 fuel and convenience retail sites and supply agreements with 552 
dealer-owned locations.

   On refining operations, Shell said it uses data and AI to anticipate 
equipment issues and perform maintenance when opportunities arise, even during 
periods of high utilization.

   The company also expects higher oil prices to be more sustained as 
inventories decline rapidly and take time to rebuild, while countries seek to 
bolster stocks for energy security.

   The operator will focus on offshore Venezuelan gas rather than heavy oil 
production, as new assets could be tied into its existing infrastructure in 
Trinidad, including Atlantic LNG capacity.




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