LONDON (Reuters) - Shell increased its shareholder distribution policy on Tuesday to 40-50% of cash flow from operations from 30-40% with a focus on share buybacks and lowered its spending outlook to a $20 billion-$22 billion range through to 2028.

The world's biggest liquefied natural gas (LNG) trader said it wants to grow LNG sales 4-5% per year in the next five years, while growing its production by 1% per year in that time frame, while keeping its oil output stable at 1.4 million barrels per day.

It said its aim was to spend up to 10% of its budget on low-carbon businesses by the end of the decade.

In terms of changes to its portfolio, Shell said it wants to "unlock more value from our strong portfolio of chemicals assets by exploring strategic and partnership opportunities in the (United States) and both high-grading and selective closures in Europe."