Shell, BP to Close, Sell Oil Refineries in Europe, U.S.

Royal Dutch Shell Plc and BP Plc, Europe’s largest oil companies, plan to close and sell refineries in the U.S. and Germany on declining demand for fuels such as gasoline in developed nations.

BP plans to sell its 475,000 barrel-a-day Texas City refinery in Texas and its 266,000 barrel-a-day Carson plant in California, the London-based company said on Feb. 1.

Shell plans to stop oil-processing at its 110,000 barrel-a-day Hamburg facility in 2012 after failing to find a buyer, the company based in The Hague said on Jan. 12.

Following are two tables. The first lists refineries around the world that have shut, are slated for permanent closure or conversion, units idled for economic reasons, and those that are up for sale. The second shows refinery sales that have been agreed or completed since early 2010. Capacity is shown in thousands of barrels of oil a day.


Company Refinery Status Capacity

EUROPE Petroplus Reichstett May stop oil 85 France processing in the second quarter, company said on Feb. 3. Conversion to terminal announced Oct. 21. Unipetrol Pardubice Nine-week shutdown 20 Paramo Czech Republic from Jan. 20 on low profits. Shell Hamburg Plans to convert 110 Germany site into terminal in 2012, after failing to find buyer, company said on Jan. 12. OMV Arpechim Shut in June on 70 Romania weak demand. First contacts with possible buyers, CEO said Nov. 19. Tamoil Cremona Plans to convert to 95 Italy a storage facility at the end of 2011, company said Nov. 12. Conoco Wilhelmshaven Production won’t be 260 Germany resumed, CEO said Oct. 27. Plans remain for sale or conversion. Conoco Humber Will consider selling 221 U.K. at “right price,” CEO said Oct. 27. Lyondell- Berre May sell unless 105 Basell France profits improve, CEO said Sept. 16. PKN Orlen Lietuva Under review because 200 Lithuania of low profitability, company said Aug. 15. Murphy Oil Milford Haven Up for sale, company 130 Wales said July 22. Transaction expected in first quarter 2011. Total Lindsey Petroplus CEO said 221 U.K. April 22 company makes non-binding offer. Total Dunkirk Conversion to 137 France terminal. Announced in March 2010. Chevron Pembroke Up for sale. 210 U.K. Announced in March 2010. Petroplus Teesside Conversion to 117 U.K. terminal end-2009. Total Gonfreville Crude unit shut in 173 France August 2009. Shell Stanlow Up for sale. 233 U.K. Announced in August 2009.


BP Texas City Up for sale, company 475 Texas said Feb. 1. BP Carson Up for sale, company 266 California said Feb. 1. Valero Aruba At full rates since 275 Jan. 31. Plant was shut in July 2009 on poor economics. Company pursues sale or joint venture. Marathon 6 refineries To be spun off into 1,140 Marathon Petroleum, company said Jan. 13. Western Yorktown In process of 71 Virginia converting to storage terminal, company said Dec. 8. Is also negotiating a sale and deal may occur in first or second quarter. Exxon Chalmette Some units will be 196 Louisiana stopped, company said in August. Murphy Oil Meraux Up for sale. 125 Louisiana Announced July 22. Murphy Oil Superior Up for sale. 35 Wisconsin Announced July 22. Chevron Kapolei Operations may be 54 Hawaii reduced, company announced in March 2010. Sunoco Eagle Point Shut on poor 150 New Jersey economics in November 2009. Possible conversion to biofuels announced in February 2010. Alon Bakersfield Shut in January 2009 68 California after Big West went bankrupt. Alon bought the plant in February 2010 and said Jan. 28 it expects to start production in June. Western Bloomfield Shut in late 2009 on 17 New Mexico poor economics. Operates as a terminal. Valero Corpus Christi FCC shut on economics 20 East, Texas in March 2009. Shell Montreal Conversion to 130 Canada terminal after operations ceased in Oct. 2010.


Showa Shell Keihin Permanent closure 120 Japan of Ogimachi crude unit in September 2011. JX Holdings* Negishi Permanent closure 70 Japan of a crude unit in October 2010. JX Holdings* Mizushima Permanent closure 110 Japan of crude unit 2 in June 2010. JX Holdings* Oita Permanent closure 24 Japan of crude unit 1 in May 2010. Fuji Oil Sodegaura Permanent closure 52 Japan of crude unit 1 in November 2010. Nihonkai Oil Toyama Conversion to 60 Japan terminal in March 2009. CPC Corp. Kaohsiung FCC shut on 25 Taiwan economics in February 2009. *JX Holdings Inc. is the parent company of JX Nippon Oil & Energy Corp., Japan’s largest refiner, and was formed in April 2010 after the merger of Nippon Oil Corp. and Nippon Mining Holdings Inc.


Company Refinery Status Capacity Ineos Grangemouth PetroChina buys 210 Scotland 50 percent stake. Announced Jan. 31. Ineos Lavera PetroChina buys 210 France 50 percent stake. Announced Jan. 31. Sunoco Toledo PBF Energy agrees 170 Ohio to buy on Dec. 2. Shell Gothenburg Agreed sale to St1 78 Sweden Oy of Finland on Oct. 27. Marathon St. Paul Park TPG Capital agrees 74 Minnesota to buy plant on Oct. 6. Valero Paulsboro PBF Energy agrees to 166 New Jersey buy on Sept. 27 for $360 million. Shell Heide Agreed sale to 91 Germany U.K.’s Klesch & Co. on Aug. 20. Valero Delaware City Sold to PBF Energy 190 Delaware in April 2010. Shell Marsden Pt Shell sells 17% 109 New Zealand share to Infratil and government pension fund in March 2010. Ruhr Oel* Gelsenkirchen Russia’s Rosneft 266 Germany agrees to buy PDVSA’s 50 percent stake in Ruhr Oel Oct. 15. Ruhr Oel* Miro Russia’s Rosneft 311 Karlsruhe agrees to buy PDVSA’s Germany 50 percent stake in Ruhr Oel Oct. 15. Ruhr Oel* Bayernoil Russia’s Rosneft 240 Neustadt agrees to buy PDVSA’s Vohburg 50 percent stake in Germany Ruhr Oel Oct. 15. Ruhr Oel* PCK Russia’s Rosneft 226 Schwedt agrees to buys PDVSA’s Germany 50 percent stake in Ruhr Oel Oct. 15. * Ruhr Oel, part owned by BP, has a 100 percent stake in the Gelsenkirchen refinery and a 24 percent share in Miro’s Karlsruhe plant. It also holds a 25 percent share in Bayernoil and a 37.5 percent stake in the Schwedt facility. The sale was announced on Oct. 15.
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