Shell initiates refinery-shutdown plan

Shell initiates refinery-shutdown plan

/ News & Interviews / Monday, 09 November 2020 07:44

Shell announced it will start shutting down a few refineries, a move that is part of a larger plan to reduce the number of its refineries as it transitions to a “low-carbon future.”

The first one is its 240,000 bbl/day refinery in Convent, Louisiana, which will shutdown in mid-November, making it the largest refinery closure to date due to the coronavirus pandemic.

“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.

The plant employs nearly 700 workers and 400 contract workers. “Employees will be supported in finding alternate positions within Shell,” the company said. “Employees who are not identified for open roles or choose to leave the company will be offered a severance.”

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.

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