Shell will reduce capacity at its 500,000 b/d Pulau Bukom refinery in Singapore by 200,000 b/d in July, as part of long-term plans to cut its carbon emissions.
Shell announced in November 2020 that it would reduce crude processing capacity at Bukom by around half, as part of a 10-year plan to significantly reduce its emissions in Singapore. It did not give a specific timeline for the cuts initially, but a company spokeswoman has confirmed to Argus that the capacity reduction is on track to be implemented in July.
About 90pc of oil products from the Bukom refinery are exported, said Shell.
The impact of the Covid-19 pandemic on transportation fuel demand and China's rising export capacity has resulted in several refinery closures and conversions to import terminals in Asia-Pacific.
Shell has permanently closed its 110,000 b/d Tabangao refinery in the Philippines for conversion to an import terminal. ExxonMobil and BP in Australia are closing their respective 90,000 b/d Altona and 146,000 b/d Kwinana refineries. Refining NZ's 135,000 b/d Marsden Point refinery is considering converting to an import terminal by next year.
