Shell Announced Plans to Close German Oil Refinery

SEATTLE (Oil Monster): Shell plc. announced plans to close its Wesseling, Germany refinery by next year.  As per plans announced, the site will be converted into a facility for producing lubricant feedstock. The new feedstock facility will commence its operations in the second half of the current decade.

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According to the company press release, the crude oil processing activities at the Wesseling site will come to an end in 2025. The site’s hydrocracker unit will be repurposed to produce Group III base oils, mainly used in engines. The transformation is part of Shell’s previously announced strategy to reduce its carbon emissions and reach the goal of net-zero emissions by 2050.

The company expects the lubricant feedstock production from the facility to touch 300,000 tonnes per year. This will be equivalent to almost 9% of the total EU demand and 40% of the German demand for base oils.

Huibert Vigeveno, Shell’s downstream and renewables director noted that the repurposing of the refinery is a major step that will help the company serve its customers with premium base oils. The investment will create more value, while delivering significant reduction in emissions, he added.