04 June 2010 19:40 [Source: ICIS news]
TORONTO (ICIS news)--Shell will permanently close its 130,000 bbl/day Montreal refinery in Canada’s Quebec province after an 11-month effort to sell the facility failed, the company said on Friday.
The refinery, which employs some 500 workers, would be converted into a fuel terminal, it said.
The decision came after “considerable effort” to sell the refinery, including an initiative supported by the ?xml:namespace>
Although this latter effort resulted in two expressions of interest, there was a “significant valuation gap” and Shell would no longer pursue discussions with the interested parties, it said.
“Today's announcement reflects our strategy to divest non-core assets, while making selective investments to enhance Shell's competitive position," said Shell downstream director Mark Williams.
"Although we will be closing the refinery, conversion to a terminal will ensure we continue to supply the
A Shell spokesman told ICIS news this week the refinery was scheduled to stop production in September. Base oil and wax production stopped this week as previously planned, he said.
According to Radio-Canada, analysts put the value of the Shell refinery at around $125m-$160m (€103m-€131m).
The Shell closure marks a further setback to
In 2008, Dow Chemical ended production at its Petromont olefins/polyolefins joint venture in
In March 2009, Shell’s Canadian affiliate PTT Poly
Shell is also reviewing downstream operations in
($1 = €0.82)
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