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