After failing so far to find a buyer, Royal Dutch Shell Plc said it will shut down its Convent refinery in south Louisiana.
The 53-year old refinery has about 675 employees and the closing is part of the company’s plan to cut its portfolio to six refineries from 14 by 2025. It has production of 211,100 barrels a day.
“Shell will ensure a safe and responsible shutdown of the refinery with a focus on the people who are most directly impacted,” Curtis Smith, a spokesman with Shell said. “That includes supporting Convent employees at this difficult time by assisting them in applying for alternate opportunities within the company, or in transitioning to a future outside of the Shell.”
Louisiana Gov. John Bel Edwards called it “disappointing” news but explained it was not in response to the state’s relationship with the oil and gas industry.
“This is a difficult decision for Shell and a challenging time for the company’s 700 Convent employees and their families,” Edwards said. “It’s important to note that Shell is reducing the number of standalone refineries companywide… . This decision is not due to a lack of competitiveness on the part of Louisiana’s business climate or workforce.”
About 4,000 Louisiana residents work for Shell at other operations in the state.
“I have asked Shell to work with us in re-employing workers of the Convent Refinery at other Louisiana locations,” the governor said. “We also will support Shell in its efforts to sell and repurpose this important industrial site for the future benefit of St. James Parish, the River Parishes and our entire state.”
In announcing the plan, Shell said it will “invest in a core set of uniquely integrated manufacturing sites that are strategically positioned for the transition to a low-carbon future.”
The company explained it sees a key advantage with the core sites coming from integration with Shell trading hubs and production of chemicals in a low-carbon future.