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

Author: Alex Snodgrass


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