Shell to end bitumen truck flows from two French ports

Shell will halt its bitumen truck supply arrangements into France from the country's Atlantic import terminals at Nantes and Bayonne with effect from the end of this year, several French buyers and other northwest European market participants said.

Customers have been informed of the move by Shell, with one buyer told by the producer in a letter that the purpose of the move is to "improve performance and rationalise operations".

Another French market participant said Shell had decided, with effect from the start of 2025, not to renew its longstanding throughput arrangements for cargo supply into and truck flows out of the two French Atlantic bitumen terminals. They are operated by Netherlands-based Alkion Terminals, alongside storage units holding several other oil, chemical and speciality products.

A Shell official said the firm "does not comment publicly on its contractual positions, in terms of depots or others".

The oil company is expected to continue exporting bitumen to France with a mixture of cargo, truck and barge supplies from its 404,000 b/d Pernis refinery in Rotterdam, its 187,000 b/d Godorf refinery in western Germany and from the 310,000 b/d Miro refinery in Karlsruhe, southwest Germany, in which it holds a 32.25pc stake.

Nearly all bitumen cargoes shipped to Nantes last year — totalling 65,000t — were sourced from Shell production and stocks held in the Rotterdam area, while around half of the Bayonne imports of 113,000t originated from the same Shell supply points.

Shell's withdrawal from bitumen throughput and truck supply arrangements through the Atlantic coast terminals follows the firm's decision earlier this year to cease retail truck supply of bitumen into South Africa. There Shell plans instead to ship bitumen cargoes into the country's ports that will be offered to local importers on a delivered (CFR) basis.

By Keyvan Hedvat and Tom Woodlock