CONVENT – Shell announced on November 5 its plans to begin closing its Convento refinery in the coming weeks, after failing to find a buyer for the facility.
According to a company statement, the location will begin the closing process in mid-November. Shell had been looking for a buyer to take to the site since July, but was unsuccessful.
Shell said the decision to close the refinery is “part of the company’s global strategy to invest in a basic set of uniquely integrated manufacturing sites that are also strategically positioned for the transition to a low-carbon future”.
The refinery has about 700 employees. Authorities said they were guaranteed that workers would keep their jobs until February 2021.
“Since 1967, this refinery has had an economic impact on St. James Parish, operating under several different companies over the years,” St. James Parish President Pete Dufresne said in a statement on Thursday. “The facility has consistently been the largest contributor to St. James Parish, so its consolidation is sure to have an impact on our community and the support companies that depend on the industry.”
Dear sir or madam:
I am writing on behalf of Equilon Enterprises LLC d / b / Shell Oil Products US, a subsidiary of Shell Oil Company (“Shell” or the “Company”) to warn that Shell intends to discontinue operations and complete the planned closure of its Convento Refinery, located at 10700 LA-44, Convento, Louisiana 70723 (the “Convento Refinery”). This closure is expected to be permanent. The shutdown process started in November 2020, with closing scheduled to be
completed on or around August 31, 2021. All local Shell employees who provide dedicated support to the Convento Refinery will be impacted by the closure and are not expected to continue working at Shell after the closure is complete. The number of people to be affected by the closure of the Convento Refinery is 698 employees. The shutdown will be a phased cessation of operations, but the expected date of the first separation will be effective on March 1, 2021, with all separations expected to be carried out on or around August 31, 2021. These planned separation dates are based on the best information available to the Company at this time. All affected employees or their union representatives have been or will be notified of the expected termination dates and that the termination will be permanent, as the phased termination continues and the information solidifies for the Company. There will be no setback for affected employees, that is, employees will not be able to remove more junior employees from their positions as a result of the closure. We have notified Eric Roy, the elected official chief of Local 750 for United Steel, Paper and Forestry, Rubber Manufacturing, Energy, Allied-Industrial and Service Workers International Union, about this information at the following address: PO Box 337, Norco, LA 70079.
Regards,
Alana Wierzchowski, Human Resources Consultant
Governor Edwards issued a statement saying:
“We are disappointed to hear that the Shell Convent Refinery in St. James Parish will be closed in the near future. This is a difficult decision for Shell and a challenging time for the 700 employees of the company’s convent and their families. The State of Louisiana will support them in any way we can through the Louisiana Workforce Commission Rapid Response Unit and through the priority placement of these talented workers in our state.
“It is important to note that Shell is reducing the number of independent refineries across the company in favor of consolidated industrial units that integrate chemical and refining operations. This decision is not due to a lack of competitiveness on the part of Louisiana’s business climate or workforce, and the company will continue to operate many vital assets here. Shell employs about 4,000 people in our state, with a similar number of retirees. The company’s stakes in Louisiana range from deepwater operations based in New Orleans and conducted offshore, to the Norco refinery, the Geismar chemical plant, the Port Allen catalyst site, pipelines and other operations.
“I asked Shell to work with us to re-hire workers at the Convent Refinery in other locations in Louisiana. We will also support Shell in its efforts to sell and reuse this important industrial site for the future benefit of St. James Parish, Parishes Rio and our entire state. ”
Read Shell’s full statement below.
Shell announced the closure of its Convent Refinery in Louisiana. The decision is part of the company’s global strategy to invest in a basic set of exclusively integrated manufacturing units that are also strategically positioned for the transition to a low-carbon future. The shutdown process will begin in mid-November.
In July 2020, we informed employees that the Shell Convent Refinery was being marketed. Despite efforts to sell the asset, a viable buyer was never identified. After examining all aspects of our business, including financial performance, we made the difficult decision to close the site.
Shell will ensure the safe and responsible shutdown of the refinery, focusing on the people who are most directly affected. This includes supporting Convent employees in this difficult time, helping them apply for alternative opportunities within the company, or in the transition to a future outside Shell. Shell will open a selective voluntary redundancy program at its Geismar and Norco facilities, subject to negotiation for employees represented by the union, to potentially create additional functions where Convent employees can be placed.
We will maintain a significant presence in Louisiana through our integrated refining and chemical sites in Norco and Geismar, our intermediate infrastructure assets, retail brand presence, Gulf of Mexico operations and our New Orleans offices.
Upon completion of the termination process, we will continue to market the Convento Refinery for divestment.
Recent history
Shell announced in September that its chemicals and manufacturing businesses will integrate to create an end-to-end product and chemical organization. This new organization will be reflected in six Chemical and Energy Parks that will allow us to fulfill the strategy of growing our Chemicals business and adapting our Refining footprint to provide customers with the low carbon products they want. An important advantage of these central locations will also come from closer integration with Shell’s trading centers and the production of more chemicals and other products that are resilient in a low-carbon future.
Remaining Sites
Shell’s remaining refinery locations include; Rheinland (Germany), Pernis (NL), Palau Bukom (Sinapore), Scotford (Canada), Norco (USA) and Deer Park (USA).
We currently operate 11 refineries (excludes Tabangao Philippines – terminal conversion) and we have stakes in another 3 (a total of 14)? Minus 5 refineries that were / are commercialized; Frederica (Denmark), Puget Sound (USA), Mobile (USA), Convent (USA), Sarnia (Canada)? Minus 3 non-operated JV refineries; SAPREF (South African Petroleum Refineries PTY LTD) (Durban, South Africa), Miro (Germany) and PCK (Schwedt, Germany).