After extensively marketing the sale of Shell's permanently idled Convent, Louisiana, refinery, and turning down bidders, the company is now considering converting the site into a low-carbon alternative energy facility.
"Since closing Covent, we have regularly reviewed options that would deliver the best value for shareholders," said Curtis Smith, media manager for Shell - North America. "Given increasing customer demand for low-carbon fuels, we now view Convent as well-positioned to support Shell’s plans for growth in this area while delivering value to shareholders (pending final investment decisions)."
Smith said Shell’s Energy and Chemicals Parks strategy is focused on transforming sites into integrated production complexes where the company maximize the benefits of fuels and chemicals production.
Last year, Shell shuttered the Convent refinery, laying off 700 workers, as well as 400 contractors, after it became unprofitable in the midst of the COVID-19 pandemic. The company announced the closure on Nov. 5, while the refinery shutdown was complete on Dec. 14. The refinery is located next to the Mississippi River, midway between Baton Rouge and New Orleans and was designed to process approximately 240,000 barrels per day of crude oil, producing conventional petroleum products and refinery grade sulfur.
In May, Shell also announced the sales of its Anacortes, Washington, refinery as well as the controlling interest in the joint-venture Deer Park, Texas, refinery. The company additionally sold its chemical refinery in Mobile, Alabama to Vertex Energy.
LyondellBasell recently joined Shell's pattern of selling refineries when it announced last month that it is looking to sell its Houston refinery.
By the end of 2021, Royal Dutch Shell Plc will have just one operating crude oil refinery in the United States: The 227,400 barrel-per-day (bpd) refinery in Norco, Louisiana, reported Reuters. It also said the company will likely hang on to the Norco refinery because of its role supplying the company’s chemical plants.
Shell's strategy — called Powering Progress — to accelerate the transition of its business to net-zero emissions, is designed to create value for Shell’s shareholders, customers and wider society, the company says on its website.
