Shell is planning to shut down its gas trading operations in Madrid, Spain, for tax-related reasons, according to a report published Wednesday by the Spanish newspaper Cinco Dias. The company intends to move its approximately 50-person team, which is responsible for commercial activities, to Shell offices in Dubai, London, and Singapore.

The decision follows Shell’s acquisition of Pavilion Energy, a liquefied natural gas (LNG) company previously owned by Singapore’s Temasek investment fund, in June of last year. Pavilion Energy's operations, including the gas trading team, were integrated into Shell’s portfolio, and now, due to tax considerations, the company has opted to relocate the personnel handling these commercial activities to offices in other international financial hubs.

The move is expected to streamline Shell's gas trading operations and optimize tax efficiencies by consolidating resources in locations with more favorable tax regimes. The relocation will affect key members of the trading team and other personnel who were part of the Pavilion Energy acquisition, which aligned with Shell’s broader LNG business expansion.

This restructuring aligns with the broader trend of energy companies reassessing their operational locations to maximize financial and tax advantages. While Madrid's gas trading office will be closed, Shell’s ongoing investment in its LNG and energy trading portfolio remains a central component of the company’s strategy.

Shell plc, headquartered in London, England, is a leading multinational oil and gas company with a significant global presence. Operating in over 70 countries and employing over 103,000 people, Shell is a key player in the energy and petrochemical sectors. The company’s operations span oil and natural gas exploration, production, refining, and marketing, along with the manufacture of petrochemicals. Shell is also heavily invested in sustainable energy solutions, focusing on renewable energy sources such as wind, solar, and bioenergy, as well as the development of electric vehicle charging infrastructure and hydrogen technologies.

Shell serves over 1 million commercial and industrial customers worldwide, providing tailored energy products and services to various industries. Additionally, the company reaches approximately 33 million consumers daily through more than 47,000 Shell-branded retail service stations, offering fuel, lubricants, and convenience services. Shell's commitment to innovation and sustainability underpins its efforts to address global energy challenges and support the transition to a low-carbon future.