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RE: Shell considers Australia Clyde Refinery conversion Terminal due mega-refinery competition

Home Forums Refining Community Refinery News Shell considers Australia Clyde Refinery conversion Terminal due mega-refinery competition RE: Shell considers Australia Clyde Refinery conversion Terminal due mega-refinery competition

#5142

Charles Randall
Participant

Here is update on Shell converting Australian Clyde Refinery to Terminal to import fuels from Asia mega-refineries.
Spoken like true upsteam company that would rather put its market at risk for supply than invest in niche downstream markets. Shell as Dutch upsteam company has never been silent on its disdain for downstream assets & has already started ceeding Europe assets to others than upgrade them to capacity or heavier crude.

The next round will of industry consolidation is already taking out refineries below 100 MBPD capacity which cannot compete with world scale +250-600MBD mega-refineries and especially those without bottoms conversion capabilities to run the increasingly heavier crude slates while minimizing asphalt and fuel oil production in favor of LS gas/diesel.

The announced terminal conversion is necessary given the big exposure on clean up cost for refinery & also helps shake down regional concessions on tax breaks/ect given the loss jobs/revenue threats – but paves way for sales to new owner to have easier time with permits/operating cost with area.

Independent oil companies (PBF in US, Petroplus in EU, Essar in India, ect) are picking up these “brownfield” potential investments with also a view to using site as way of bringing in exports from the larger mega-refineries (like Essar in UK Stanlow, or Brazil in Pasadena, ect).
Regards

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