Shell has announced that it will sell its Geelong refinery in Australia, as part of its global strategy to focus investment on large-scale sites.
The hydrocarbon refinery in Geelong supplies about 50% of Victoria’s fuel and 30% of South Australia’s fuel.
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The sale of the 120,000 per day refinery is in line with the company’s strategy to concentrate on the Pulau Bukom refinery in Singapore.
Built on a 120ha site adjacent to Corio Bay in Geelong, Victoria, the Geelong refinery processes crude oil to produce major products, including Petrol (25% being high octane grades), diesel fuel, jet fuel, bitumen, LPG, specialty solvents, and avgas.
About 45% of Geelong refinery’s product is carried by pipeline to the Shell Newport terminal for distribution throughout Victoria, while the another 40% leaves by ship for Australian coastal cities and New Zealand.
Shell is also planning to increase its retail and bulk fuels business, as well as terminals and pipelines in Australia.
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By GlobalDataThe company said it is looking for a buyer, who will care for employees, provide honest supply for the company and its customers, and run the facility safely, considering the environment and the Geelong community.
Shell Australia downstream vice-president Andrew Smith said the company will support refinery employees, even though it is in an uncertain period.
"Refinery employees in Geelong have made a significant contribution to both Shell and the local community over many years, supporting the economy in south-east Australia," Smith added.
"Shell is one of Australia’s largest private sector investors, and remains committed to its business in Australia."
The company is planning to complete the sales process by the end of 2014.
Shell supplies fuel to about 900 branded service stations in Australia, as well as aviation fuel, marine fuel, chemicals, bitumen and lubricants.
The company’s upstream business in Australia is based in Perth, while it has exploration portfolio along the coasts of Western Australia and the Northern Territory, as well as coal seam (CSG) interests in Queensland.
Shell has plans to invest about $30bn in Australia.
In November 2010, the company announced that its subsidiary Shell Energy Holdings Australia (SEHAL) will sell 29.18% of its interest in Woodside Petroleum.
Image: Shell has announced the sale of its Geelong refinery in Australia. Photo: Courtesy of A7x.
