Royal Dutch Shell plc said its Integrated Gas trading results for 1Q2021 fell “significantly below average,” in part because 80% of last year’s liquefied natural gas (LNG) term sales were oil-price linked, with a lag of up to six months.

In a preview of quarterly results issued on Wednesday, the energy major said Upstream and Integrated Gas segment production overall should average about 3.38 million boe/d. Prior midpoint guidance was closer to 3.43 million boe/d. 

For Integrated Gas, production averaged 920,000-960,000 boe/d. Liquefaction volumes are forecast to total 7.8-8.4 million metric tons (mmt) for 1Q2021, versus prior guidance of 8.0-8.6 mmt. The volatility of Japan Korea Marker spot gas prices in January “had limited impact” on profits.

During 4Q2020,...