Shell is marketing its U.S. chemical operations, valued at up to $8 billion, as part of a broader effort to exit underperforming assets. The portfolio includes four plants across Louisiana, Texas, and Pennsylvania, with the Monaca complex in Pennsylvania representing the largest single asset.
The Monaca facility, which began operations in 2022 at a reported cost of $14 billion, has an annual polymer production capacity of up to 1.6 million tons. Shell’s decision to divest follows a strategic shift away from chemical operations amid weaker margins and lower demand growth.
Exxon Mobil and LyondellBasell are among the companies evaluating bids, according to people familiar with the matter cited by the Financial Times. Private equity firm Apollo and Kuwait Petroleum’s chemical arm are also assessing the assets, the report said.
Shell has also engaged advisors to explore divesting its European chemical operations, though these are expected to attract lower valuations. The company’s push to sell the U.S. assets comes after non-binding offers were submitted last month, with a formal process still underway.
The potential deal would mark one of the largest chemical sector transactions in recent years, reflecting broader consolidation trends in the industry as companies reassess exposure to lower-margin businesses.
