(Updates last three paragraphs to include the company's plans in its Chemicals, Mobility, and Lubricants businesses, as well as stock movement.)

Shell (SHEL) said Tuesday on Capital Markets Day it will raise shareholder distributions to 40-50% of cash flow from operations from 30-40% previously, while keeping its 4% annual dividend rate.

The company also said it aims to strengthen its position in liquefied natural gas by increasing sales by 4-5% annually until 2030.

This includes plans to produce 1.4 million barrels per day of liquids production until 2030, with a focus on growing its combined upstream and integrated gas business by 1% annually, Shell said.

Its cost reduction targets are set to $5-7 billion, while capital spending is expected to be around $20-22 billion annually through 2028.

Shell said it plans to "unlock more value" from its Chemicals business by exploring strategic and partnership in the US, as well as high grading its assets in Europe with "selective closures."

Further, the energy giant said it plans to pursue "focused growth" in its Mobility and Lubricants businesses.

The company's shares were up 2.2% in recent trading on Tuesday.

Price: 72.86, Change: +1.58, Percent Change: +2.22