Tuesday, Apr 12, 2011 at 12:58
And to highlight my point, the following is a news item (just) out today, if there was so much money to be made from refining oil into petroleum products they’d be opening refineries, not closing them. Another step towards having to rely on imported petroleum products....
Cheers, The Landy
MELBOURNE, April 12 (Reuters) - Oil giant Royal Dutch
Shell plans to close the smaller of its two refineries in Australia and turn it into a fuel terminal as it can no longer compete with Asia's mega-refineries, the company said on Tuesday.
Shell said the 75,000 barrels per day Clyde Refinery in
Sydney -- which accounts for about 10 percent of Australia's 750,800 barrels per day capacity -- would need a large investment, including a maintenance turnaround scheduled for mid-2013, if it were to continue running.
"The proposal to convert Clyde into a terminal is consistent with
Shell's strategy to focus its refining portfolio on larger integrated assets, and to build a profitable downstream business here in Australia,"
Shell vice-president Andrew Smith said in a statement.
Shell's Clyde and Geelong refineries supply about a quarter of Australia's petroleum product needs, according to the company's web site.
The company's downstream portfolio in Australian also includes more than 800
Shell branded service stations, a lubricants blending plant and 16 terminals.
It has an exclusive arrangement to supply around 600
Coles Express convenience stores and petrol stations, owned by Wesfarmers, around Australia.
Tuesday's announcement follows
Shell's sale last year of its 200 petrol stations, pipes and storage and a 17 percent stake in New Zealand Refining Company for $490 million.
It has also been selling refineries in Europe due to weak refining margins and falling European fuel demand.
Last week it agreed to sell its Stanlow refinery in England for $350 million to India's Essar Enegy.
Australia's refiners, including
Caltex and ExxonMobil, have long talked about shutting or consolidating plants to help improve their margins, but changes have been slow.
ExxonMobil was blocked by the competition watchdog from selling its petrol stations to
Caltex in late 2009 and ended up selling 295 service stations on Australia's east coast to convenience store chain 7-Eleven Australia for an undisclosed sum.
The Clyde shutdown marks the second refinery closure in Australia in the face of a refinery margin crunch and stricter fuel standards. ExxonMobil mothballed its Port Stanvac plant in
Adelaide in 2003.
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