Shell Oil to sell two U.S. refineries

Equilon Enterprises LLC d/b/a Shell Oil Products U.S. (Shell), a subsidiary of Royal Dutch Shell plc, announced it is marketing two of its refineries in the United States: Mobile, Alabama, and Puget Sound, Washington state.

Mobile lies near the U.S. Gulf Coast at the north end of Mobile Bay in Alabama. The Puget Sound refinery sits on March Point, near Anacortes.

The Mobile refinery reportedly has a processing capacity of approximately 90,000 barrels per day (bpd) of crude oil. It produces LPG, diesel fuel, jet fuel and gasoline. It has the potential to operate as a standalone refinery that produces base oils or chemicals feedstock.

Meanwhile, the Puget Sound refinery has a processing capacity of about 149,000 bpd of crude oil. It also produces various chemicals, such as nonene and tetramer, used in plastic products.

The decision is consistent with the company’s previously disclosed plans to reshape its refining portfolio globally to leverage Shell’s natural strengths and integration opportunities. 

 “We are refocusing our global presence in line with that of our customers, trading operations, and chemicals plants.  This will result in a more valuable, integrated downstream business,” said Robin Mooldijk, EVP Manufacturing.

This process could take many months and may or may not result in a finalized sales transaction.  Shell may elect to discontinue the marketing process for one or both assets at any time.  If the marketing process does not result in a finalized sales transaction, Shell plans to continue operating the refineries.

“Both refineries have done an excellent job over the last number of years and have made several notable achievements in safety, reliability and performance,” said Mooldijk. 

The U.S. Gulf Coast will remain a key manufacturing hub for Shell, along with Rotterdam and Singapore.  Likewise, Shell will maintain its marketing presence and continue to honor branded wholesale agreements within both the West and Gulf Coast regions.

Last month, Equilon Enterprises concluded the USD1.2 billion divestment of the Martinez Refinery in California to PBF Energy subsidiary PBF Holding on behalf of Shell Oil Products US.