Shell aims to reduce costs by between US$5 billion to US$7 billion by 2028, compared with 2022 levels, the company said in a statement ahead of its investor event in New York.

That is an increase from its previous target of US$2 billion to US$3 billion in cost reductions by the end of 2025, which had involved hundreds of job cuts in its oil and gas division.

The London-based group said it aims to grow sales of LNG by 4% to 5% a year until 2030, while holding oil production flat.

“We want to become the world’s leading integrated gas and LNG business,” said chief executive Wael Sawan.

In an accompanying annual report, he added that “supplying LNG will be the biggest contribution we will make to the energy transition over the next decade”.

Gas is being touted by energy companies as cleaner than other fossil fuels as countries around the world strive to reduce their emissions and slow global warming.

In the latest update, Shell revealed plans to also limit capital expenditure and review its chemicals business, which may involve partnership opportunities in the US and selective closures in Europe.

It maintained its existing climate targets.

Shares in the company rose 1.9% in morning deals on London’s stock market following the update.

“Shell has its toes dipped in the renewable energy pool but hasn’t jumped face first into all things green,” AJ Bell investment director Russ Mould said today.

“It’s clear that oil and gas remain the primary profit engines,” he added.

Shell’s annual profit dropped 17% in 2024 from the previous year, weighed down by weaker oil and gas prices as well as asset write-offs.

British rival BP last month launched a major pivot back to its oil and gas business, shelving its once industry-leading ambitious renewable energy strategy.