Shell’s refining footprint: Walking the talk of asset high grading

Shell recently announced plans to shut its 260 kb/d refinery in Convent, Louisiana. The move is potentially the first of several such maneuvers as the major seeks high grade its downstream and chemicals asset portfolio to focus on integrated refinery and petrochemical plants as part of its supply and trading network. As a standalone refining asset, Convent’s margins are weaker than the integrated plants within Shell’s portfolio, and the very current challenging downstream market environment has further suppressed margins and likely expedited the decision to shut the site for which it was known to be seeking a buyer.