Shell to lease Hamburg base oil plant to Sweden’s Nynas for 25 yrs

13 December 2011 19:23  [Source: ICIS news]

LONDON (ICIS)--Shell has agreed to lease its base oil plant and some facilities at its refining site in Hamburg-Harburg, Germany, to Swedish specialty oils firm Nynas for 25 years, officials said on Tuesday.

Nynas plans to rebuild the Hamburg refining site into a 330,000 tonne/year specialty oils refinery by around mid-2014, it said.

Nynas and its law firm, Clifford Chance, confirmed the deal in separate statements. Officials at Shell’s regional offices in Hamburg were not immediately available for comment.

“The [Hamburg-Harburg] refinery will continue to produce as today but will over the next 24 months be converted into a stand-alone specialty oil refinery,” said Nynas president Staffan Lennstrom.

“A new hydrogen unit and an extensive conversion programme will transform the premises into a world class stand-alone naphthenic specialty products refinery,” Lennstrom said.
 
Financial terms were not disclosed.

Nynas expects to employ about 220 of Shell's workforce in Hamburg. According to German media reports, Shell currently employs 530 people at the site.

The deal is subject to approval by EU competition authorities.

Shell had announced plans to dispose of the 5.5m tonne/year refinery at Hamburg-Harburg back in 2009 as part of its strategy to focus on its larger refineries, such a its facility at Wesseling-Godorf near Cologne, Germany.

After failing to find a buyer for the refinery, Shell said earlier this year it planned to run the refinery until March 2013, sell the base oil assets,  and convert the remaining site into a terminal for oil products.

Last year, Shell already sold its 4.5m tonne/year refinery at Heide, near Hamburg.

For more on Shell and other producers visit ICIS company intelligence


By: Stefan Baumgarten
+1 713 525 2653



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