Shell closes oil refinery in Germany and turns it into an oil production center
Shell plans to convert its oil refinery at the Wesseling site in Germany into a base oils production unit, the British multinational said on Friday .
Shell Deutschland GmbH has made a final investment decision (FID) to transform the Wesseling site at the Energy and Chemicals Park Rheinland into a production plant for Group III base oils, used for the production of high-performance lubricants. qualities such as engine and transmission oils.
Crude oil processing will end at the Wesseling site by 2025, but will continue at the Godorf site in Rheinland Park, Shell said in a statement.
Shell's Energy and Chemicals Park Rheinland, near Cologne, includes the Wesseling and Godorf sites. The park currently has the capacity to process over 17 million tonnes of crude oil per year, of which 7.5 million tonnes are processed at the Wesseling site. The closure of the plant will decrease the availability of fuel in Germany.
The Wesseling base oil plant is expected to come online in the second half of this decade. It will have a production capacity of around 300,000 tonnes per year, equivalent to around 9% of current EU demand and 40% of German demand for base oils.
The high degree of electrification of the new base oils plant and the cessation of crude oil processing at the Wesseling site are expected to reduce Shell's Scope 1 and Scope 2 carbon emissions – those arising directly from operations and those deriving from the energy used to make them work – of approximately 620,000 tons per year.
“This investment is part of Shell's commitment to create more value with fewer emissions,” said Huibert Vigeveno, director of Downstream and Renewables at Shell. At the same time, this decision will increase the demand for electricity on the German grid.
In recent years, Shell has divested several refineries globally, including the sale of the Martinez Refinery in California to PBF Holding Company and the sale of its 50% stake in the 340,000 barrels per day Deer Park Refinery in Texas to its joint venture partner Pemex.
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The article Shell closes oil refinery in Germany and turns it into an oil production center comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/shell-chiude-raffineria-di-petrolio-in-germania-e-la-trasforma-in-centro-produzione-di-oli-1/ on Sun, 28 Jan 2024 09:00:46 +0000.