Sale talks end for Montreal East refinery

Aug. 3, 2010
Shell Canada Products is proceeding with the announced closure of its 130,000-b/d Montreal East refinery after ending talks with a potential buyer (OGJ, Jan. 25, 2010, Newsletter).

By OGJ editors
HOUSTON, Aug. 3
-- Shell Canada Products is proceeding with the announced closure of its 130,000-b/d Montreal East refinery after ending talks with a potential buyer (OGJ, Jan. 25, 2010, Newsletter).

Shell had been negotiating sale of the refinery to Delek US Holdings Inc., which operates a 60,000-b/d refinery in Tyler, Tex., and has distribution and petroleum retail businesses.

After negotiations ceased, Shell said it had been working on detailed planning for conversion of the refinery to a terminal in parallel with a year-long effort to find a buyer.

“During this time, more than 100 companies were contacted regarding the asset, none of whom saw an acceptable future for the site as a refinery,” said Richard Oblath, Shell vice-president, downstream portfolio.

He said Shell would convert the refinery into a terminal “as soon as possible” after completion of a regulatory review.