Shell to partly close Hamburg refinery

Royal Dutch Shell PLC said it is continuing negotiations with several potential buyers of the lubricant manufacturing plant at its refinery in Hamburg, Germany, but has decided to close fuel-processing facilities at the plant. Shell has taken this decision after a search of almost two years failed to find a buyer for the entire Hamburg plant. The refinery will continue to operate normally while the negotiations proceed until at least the second quarter of 2012, a Shell spokesman said. Shell will continue to operate and retain ownership of the oil storage and distribution infrastructure at the facility regardless of the outcome of the sale process. The Hamburg refinery has the capacity to process 5.5 million tons of oil per year. It can produce propane, butane, gasoline, kerosene, white spirits, jet fuel, diesel, fuel oil and bitumen, in addition to base oils and waxes. The company is still talking to potential buyers of the base oil manufacturing and associated refining facilities, the spokesman said, without naming the buyers. (January 12, 2011)