Shell begins permanent shutdown of Convent, Louisiana, refinery

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In this news, we discuss the Shell begins permanent shutdown of Convent, Louisiana, refinery.

HOUSTON (Reuters) – Royal Dutch Shell Plc has begun a permanent shutdown of its 211,146 barrels per day (b / d) convent in Louisiana refinery, the company said on Tuesday.

Sources close to the plant’s operations told Reuters that the permanent shutdown of the refinery, which Shell was unable to sell because demand for fuel was hammered in the COVID-19 pandemic, began Monday evening.

“We are committed to a phase-out of Convent and (will take) whatever time is necessary to get there safely,” Shell spokesman Curtis Smith said in an email Tuesday.

The shutdown began when Shell idled the 12,000 bpd isomerization unit on Monday evening, the sources said. The company decommissioned the 36,000 bpd diesel hydrotreater on Tuesday.

Shell said on November 5 that it would shut down the refinery permanently after failing to find a buyer for the plant, which had become unprofitable due to reduced demand during the COVID-19 pandemic.

Shell will keep the refinery in the market after it closes before the Christmas holidays, the sources said.

Shell and the United Steelworkers (USW) reached an agreement last week on severance pay for 350 hourly Convent workers.

The USW and Shell have agreed that hourly workers will be paid three weeks for each year of service with a minimum of 12 weeks and a maximum of 78 weeks, sources familiar with the deal said.

This package is similar to what salaried Shell employees are offered, they said. The number of salaried and hourly employees is roughly equal. 400 other contractors work at the Convent refinery.

Report by Erwin Seba, edited by Louise Heavens and Bernadette Baum

Original © Thomson Reuters

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