Shell may permanently shut Louisiana refinery next week: sources
[HOUSTON] Royal Dutch Shell may begin the permanent shutdown of its 211,146 barrel per day (bpd) Convent, Louisiana, refinery early next week, people familiar with plant operations said on Monday.
Shell announced on Nov 5 the refinery, located 57 miles (92 kilometres) west of New Orleans, was to close after the company failed to find a buyer amid the Covid-19 pandemic.
A Shell spokesperson did not reply to a request for comment.
The Convent refinery is the first US Gulf Coast refinery to permanently close because of the pandemic-related decline in demand for refined products. Eight other North American plants have been idled or targeted for shutdowns.
The coronavirus pandemic cut fuel demand by up to 30 per cent earlier this year, and even as economies recover the outbreak will likely reduce global demand by 4.7 million bpd over the next five years, analysts have said.
Three US oil refineries have shut already this year because of weak demand for jet fuel, diesel and petrol amid a slowing economy.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In August, Calcasieu Refining idled its 135,500 bpd Lake Charles, Louisiana, facility, citing weak margins from falling demand. Marathon Petroleum has said it will not restart production at its refineries in Martinez, California, and Gallup, New Mexico.
Shell this month halved its crude processing capacity at its 500,000 bpd Pulau Bukom plant in Singapore. Plants in the US and Europe are considering converting some facilities to produce biofuels.
US refineries in August ran at 78.8 per cent of their 18.6 million bpd capacity, according to the US Energy Information Administration, down from 83.1 per cent in March.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Coffee variety is priciest since 1970s in blow to instant brews
Gold dips as US dollar edges higher, investors seek more Fed cues
Saudi Arabia posts budget deficit of US$3.3 billion in first quarter
Saudi Arabia hikes oil selling prices for all grades to Asia
BHP’s biggest rivals sit on the sidelines of Anglo M&A drama
ExxonMobil to take 18 to 24 months to hit full stride with Pioneer purchase