Shell to begin shutting down US Convent refinery in Louisiana in November

HOUSTON (ICIS)–Shell plans to begin shutting down its 240,000 bbl/day refinery in Convent, Louisiana, in mid-November, making it the largest refinery closure to date due to the coronavirus pandemic, sources said.

Market sources attributed the shutdown to low fuel demand caused by the pandemic.

However, Shell said the decision was part of a large plan to prepare the company for a global economy that’s less reliant on carbon-based fuels.

“In July of 2020, we shared with staff that the Shell Convent refinery was being marketed. Despite efforts to sell the asset, a viable buyer was never identified. After looking at all aspects of our business, including financial performance, we made the difficult decision to shut down the site,” the company said in a statement.

Once the shutdown is complete, the company plans to market the refinery for divestment.

Shell had previously announced plans to reduce its refinery portfolio to six sites from 14 by 2025.

The following chart shows all refinery closures or conversions announced to date:

Refinery	Location	Previous Capacity (bbl/day)	Closure date	Plan
Phillips 66	Rodeo, California	140,000		Converting to renewables
Marathon	Martinez, California	161, 000		Converting to terminal
Marathon	Dickinson, North Dakota	19,000		Converting to renewables
PBF	Paulsboro, New Jersey	180,000	End of 2020	Idling some units, possible restarts in future
Phillips 66	Santa Maria, California	44,500	2023	Permanently shutting
Marathon	Gallup, New Mexico	26,000		Indefinitely shutting
Shell	Convent, Louisiana	240,000	Mid-November	Indefinitely shutting

(recasts, clarifying attribution in first paragraph and adding market source, Shell comments in paragraphs 2 and 3)

Thumbnail image by Shell