Royal Dutch Shell PLC’s Shell Petroleum Co. Ltd. has agreed to sell subsidiary AS Dansk Shell to PL ESG Denmark Co. ApS (Postlane Partners).
Alongside Dansk Shell’s 68,000-b/d Fredericia refinery, Postlane Partners also will purchase Dansk Shell’s local trading and supply activities, including its existing inventory of refinery feedstocks and finished products, Shell said.
Subject to regulatory approval, the companies plan to complete the transaction in second-quarter 2021.
In line with Shell’s strategy to meet the cleaner energy needs of its customers, the operator said the Danish divestment will complete the company’s exit from downstream activities in Denmark as well as support the ongoing global downsizing of its 14-site refining portfolio to six integrated energy and chemicals parks to further its goal of becoming a net-zero emissions energy business by 2050 or sooner (OGJ Online, Nov. 23, 2020).
Shell said it will retain a presence in Denmark via its 49% interest with partner DCC Energi AS (51%) in DCC & Shell Aviation Denmark AS, which supplies aviation fuels to seven Danish airports.
The new sales agreement with Postlane Partners follows Shell’s cancellation of a 2016 deal to sell its downstream holdings in Denmark to Dansk Olieselskab APS (OGJ Online, Jan. 2, 2018).
Shell previously sold Dansk Shell’s retail, commercial fuels, and aviation businesses in Denmark to Canadian-based convenience store firm Alimentation Couche-Tard Inc., Laval, Que., in 2016, followed by sale of its Danish upstream assets to Norwegian Energy Co. ASA (Noreco) in 2019 (OGJ Online, Oct. 17, 2018; Sept. 15, 2016).
Fredericia’s future
In addition to retaining Dansk Shell’s existing 260 employees, independent renewable-energy investment firm Postlane Partners plans to equip the Fredericia refinery for coprocessing of bioproducts, as well as carry out work focused on green hydrogen and the potential for advanced biofuels, Shell said.
In a separate release, Shell assured the sale of its refinery will in no way impact supply of Shell-branded fuels to the Danish market, as DCC Energi will continue under its existing licensing agreement to market and sell Shell products in Denmark.
DCC Energi, which operates Denmark’s 234 Shell-branded retail stations, also supplies Shell heating oil, lubricants, natural gas, diesel, and gas-to-liquids (GTL) fuel to Danish customers.
