Shell to press ahead with Rotterdam refinery upgrade

Royal Dutch Shell has decided to go ahead and build a major new unit at the Pernis refinery in Rotterdam, the Netherlands.

The Solvent Deasphalter (SDA) unit will remove heavier fractions from crude oil, allowing the refinery to upgrade a larger proportion of its oil intake into lighter, high-grade products.

Shell Pernis is the largest integrated refinery complex in Europe and occupies a strategic location in the Rotterdam industrial region.

The oil giant said the SDA unit will give the refinery more flexibility to respond to market developments and reduce the environmental footprint of its products.

It said the investment strengthens Shell Pernis’ position as an important contributor to the Dutch economy and as one of the largest employers in the Rotterdam port area.

Lori Ryerkerk, executive vice president for Shell’s global manufacturing business, said: “This important investment demonstrates our ongoing commitment to refining.

“The Pernis refinery plays a key role in the European market and this modern and innovative unit will further improve its performance and competitiveness.”

Construction work is planned to start next year, subject to permit approvals, with completion expected by the end of 2018.

The new unit will not change the refinery’s total processing capacity, but will allow a different product mix. Some existing units will require modifications in order to integrate with the new SDA unit.

At 1057 GMT, Shell shares were 0.3% lower at 1,514p.