Shell sells U.S. Refinery for $350 Million in latest divestment

[thackney]

Shell sells U.S. Refinery for $350 Million in latest divestment
https://www.houstonchronicle.com/business/energy/article/Shell-Sells-U-S-Refinery-for-350-Million-in-16152655.php
May 5, 2021

Royal Dutch Shell PLC reached an agreement to sell its Puget Sound Refinery to HollyFrontier Corp. for $350 million in the latest major divestment from the European oil giant that’s moving away from processing crude.

The U.S. refiner will also pay an estimated $150 million to $180 million for the hydrocarbon inventories at the facility based in Washington and Saraland, Alabama, according to a HollyFrontier statement. The transaction also includes on-site co-generation and logistical assets.

Shell is shrinking its refining portfolio as it adjusts its holdings to better align with a lower-carbon future. The company is instead focusing on sites that have integrated oil refineries and chemical plants -- a bet on the future growth of petrochemicals....

[IsailedawayfromFR]

Article spins this as Shell withdrawing from hydrocarbons but in reality this is likely more of a strategic business decision based upon the geography of where plant is located and the dwindling Alaska/West Coast crude resources available to it.  Shell is most decidedly not abandoning crude processing plants around the world and will continue to build and operate them.

Here's a partial list of those plants.  https://www.shell.us/about-us/projects-and-locations.html

Shell for many years has been at the forefront of utilizing the Fischer-Tropsch method of chemical conversion of natural gas into liquids and operates a large scale refinery in SE Asia using that process.

Shell is also full of shit at its Idaho Bioplant where it processes methane gas from cow manure.  SHELL DOWNSTREAM BOVARIUS, BIOMETHANE FACILITY (WENDELL, IDAHO)

[thackney]

Article spins this as Shell withdrawing from hydrocarbons but in reality this is likely more of a strategic business decision based upon the geography of where plant is located and the dwindling Alaska/West Coast crude resources available to it.  Shell is most decidedly not abandoning crude processing plants around the world and will continue to build and operate them.

Here's a partial list of those plants.  https://www.shell.us/about-us/projects-and-locations.html

Shell for many years has been at the forefront of utilizing the Fischer-Tropsch method of chemical conversion of natural gas into liquids and operates a large scale refinery in SE Asia using that process.

Shell is also full of shit at its Idaho Bioplant where it processes methane gas from cow manure.  SHELL DOWNSTREAM BOVARIUS, BIOMETHANE FACILITY (WENDELL, IDAHO)

In September, the European major said it would retain only six downstream facilities including Norco in Louisiana and Deer Park in Texas, paring back from 14. Shell then said in November it was shutting its Convent refinery in south Louisiana amid the devastating impacts from the pandemic on the fuel industry.