Shell Warns of Hit to Gas Production Due to Middle East Conflict

By Adria Calatayud

Shell warned that its first-quarter natural-gas production would be lower than anticipated, as the energy industry counts the cost of the damage caused by the conflict in the Middle East.

The U.K. energy giant said Wednesday that it expected first-quarter production in its integrated gas segment to range from 880,000 to 920,000 barrels of oil equivalent a day, against prior guidance of between 920,000 and 980,000 barrels of oil equivalent a day. The company said its outlook reflected the impact of the Middle East conflict on Qatari volumes.

The update from Shell comes after the war in the Middle East set off a volatile ride in energy markets and made some of the oil-and-gas industry's biggest investment targets in the conflict, including one of the U.K. company's crown-jewel assets--the Pearl gas-to-liquids facility in Qatar.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

04-08-26 0234ET