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Shell will halve the crude oil processing capacity of its largest wholly owned refinery in the world, Pulau Bukom in Singapore, as part of its ambition to be a net-emission company by 2050 or sooner, the supermajor said Tuesday.
Pulau Bukom is home to the largest wholly owned Shell refinery globally in terms of crude oil distillation capacity, 500,000 barrels per day (bpd), and also has an ethylene cracker complex with a capacity of up to one million tons per day. year and a butadiene extraction unit of 155,000 tons per year.
As Shell is looking to reduce carbon dioxide (CO2) emissions and transforming its refining business for the new future, it will cut crude oil processing capacity in Pulau Bukom by about half, the company said. In that new future, the Pulau Bukom production site will be one of Shell’s six energy and chemical parks and will rotate from a range of crude oil and fuel products to new low-carbon value chains.
“Our Singapore businesses must evolve and transform and we must act now if we are to achieve our ambition to thrive through the energy transition. Our decisive action today will help Shell Singapore remain resilient and build a cleaner and more sustainable future for us all, ”said Aw Kah Peng, President of Shell Companies in Singapore.
The reduced capacity of the refinery in Singapore will result in fewer jobs at the site, Shell said, while a Shell spokesperson told Reuters that the supermajor will cut about 500 jobs by the end of 2023. Currently, Pulau Bukom employs about 1,300 people.
Shell is implementing a new downstream strategy to reshape its refining business towards a smaller, smarter refining portfolio, focusing on further integration with Shell Trading hubs, chemicals and marketing.
As part of this strategy, Shell sold the Martinez refinery in California to PBF Holding Company for $ 1.2 billion.
Shell also plans to close its 211,000 bpd refinery in Convent, Louisiana after failing to find a buyer for the site.
By Tsvetana Paraskova for Oil “
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