Shell's gas division to focus on larger projects as it cuts spending

|By:, SA News Editor

Royal Dutch Shell's (RDS.A, RDS.B) global gas division will focus on larger projects where it has more control while continuing to cut some holdings and unprofitable investments, a senior gas exec tells WSJ.

Shell has added to its gas portfolio new regions in the U.S., Canada and Indonesia, and it continues to pursue expansion at its Sakhalin-II LNG project in Russia, according to the report.

Shell issued its first profit warning in a decade in January and has announced plans to cut capital spending ~20% in 2014 to $37B in response to rising project costs, disappointing drilling results and poor refining margins.

RDS.A +0.6% premarket.