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Shell announces plans to reduce its refining portfolio

Royal Dutch Shell recently announced that it plans to reduce its refinery portfolio down to a count of six as the company plans to increase its lower carbon projects and to further support future cash planning.  A time frame was not specified but could be completed in the next five years.

Shell announced that it would transform a select group of refinery locations into what the company calls “high-value energy and chemical parks”.  The six sites to be transformed include Deer Park and Norco of the United States, Pernis of the Netherlands, Pulau Bukom of Singapore, Rheinland of Germany, and Scotford of Canada.  Shell plans to tilt towards more performance chemical production and to include recycled material in the feedstock base.  

The remaining refineries are likely to be divested as the company plans to think long term on renewable fuel production, and some decisions could be made by the end of 2020.  Some of the involved refineries for potential divestment are believed to include Fredericia of Denmark, Miro and Schwedt of Germany, Durban of South Africa, Sarnia of Canada, and Convent and Puget Sound of the United States.

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From the April 2018 issue of Hydrocarbon Processing


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