Adds detail.
Shell will this month shut its 240,000 b/d refinery in Convent, Louisiana, the company said today.
The oil major notified workers of plans to begin shutting down the facility in mid-November while continuing to seek a buyer for the refinery. Shell began marketing the facility in July but has not found a buyer.
"After looking at all aspects of our business, including financial performance, we made the difficult decision to shut down the site," the company said.
Shell kept Convent as part of the 2017 breakup of its Motiva joint venture with Saudi Aramco. The oil major will continue to operate its nearby Norco and Geismer complexes as it works to concentrate its downstream assets into refining, chemicals and marketing hubs.
Convent receives most of its crude by pipeline, including Shell's Zydeco pipeline system moving crude from the Texas coast to Louisiana refineries. The site includes an associated truck terminal, marine docks, salt cavern LPG storage and access to the Bengal refined products pipeline system.
Shell plans to sell at least five refineries, including its 145,000 b/d Puget Sound Refinery in Anacortes, Washington, and 75,000 b/d Sarnia complex in Ontario, Canada.
Laisser les bon temps reviennent
US refiners have now idled almost 20pc of the state's roughly 3.3mn b/d of refining capacity. Louisiana refiners face tougher access to both the bountiful Permian and Bakken light, sweet and Canadian heavy sour crude production available to the Texas coast. Repeated hurricane shutdowns and Opec+ curtailments have meanwhile cut supplies of medium sour crude available to refineries in the state. US independent refiner Delek earlier today said it would shut crude and fluid catalytic cracking units at its 80,000 b/d Krotz Springs refinery to cut lower-margin production from the site. Another 380,000 b/d in the state already idled, waiting for stronger margins before returning to service following a busy hurricane season.
