Page 16 - NorthAmOil Week 47 2020

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Shell reportedly ready to shut Convent refinery

LOUISIANA ROYAL Dutch Shell may begin the permanent Data from the US Energy Information
shutdown of its refinery in Convent, Louisiana Administration (EIA) shows that US refineries
next week, according to sources familiar with the were running at 78.8% of their total combined
plant’s operations that were cited by Reuters on capacity of 18.6mn bpd in August, down from
November 24. 83.1% in March.
This comes after Shell announced on Novem- Shell’s Convent refinery, located around 57
ber 5 that the refinery would close after failing to miles (92 km) west of New Orleans, has a capac-
find a buyer for the facility amid the coronavirus ity of 211,146 bpd. The facility employs 700 Shell
(COVID-19) pandemic. workers and 400 contract workers. It is not the
The Convent plant is the first refinery on the only one of Shell’s facilities globally to be affected
US Gulf Coast to close permanently owing to the by the downturn in demand – the super-ma-
pandemic-related decline in demand for refined jor also halved crude processing capacity at its
products, though eight other such facilities 500,000 bpd Pulau Bukom plant in Singapore
across the country have either been idled or are earlier this month, and has been seeking to sell
preparing to be shut down. In August, Calcasieu other plants in the US.
Refining idled its 135,500 barrel per day (bpd) Shell has previously said that it would con-
plant in Lake Charles, Louisiana, citing weak tinue to look for a buyer for the Convent refin-
margins from falling demand. Permanent clo- ery after completing the shutdown process.
sures, meanwhile, are being seen at plants else- The company also noted that while it would
where in the US. This includes two of Marathon retain a refining and chemicals presence on
Petroleum’s refineries, in Martinez, California the Gulf Coast, the decision to shut the refin-
and Gallup, New Mexico, which the company ery is in line with its strategy to focus on a
has said it will not restart. low-carbon future.™

ENERGY TRANSITION

Enbridge starts work on second

solar-powered compressor station

US NORTHEAST ENBRIDGE announced last week that it had Merit SI has been selected as the engineering,
broken ground on the Heidlersburg solar pro- procurement and construction (EPC) contrac-
ject – the company’s second solar facility that tor for the Heidlersburg, having also worked on
will be built to supply part of the power needs the Lambertville solar plant. Enbridge noted
for a compressor station serving one of its that it is continuing to evaluate the potential for
pipelines. developing solar capacity to help power other
Like Enbridge’s Lambertville solar project compressor stations along Texas Eastern.
in New Jersey, which NewsBase has previously Together, the Lambertville and Heidlersburg
Enbridge launched its covered, the Heidlersburg compressor station projects are anticipated cumulatively to reduce
first solar plant that in Pennsylvania’s Tyrone Township serves the GHG emissions by nearly 131,700 tonnes over
will serve a compressor Texas Eastern Transmission pipeline system. their 25-year lifespan.
station in October. The Lambertville solar project entered service “This second project in the programme
in October, and Enbridge said at the time that it tangibly demonstrates the natural gas-renewa-
was looking for other compressor stations where bles partnership and will help pave the way for
similar solar facilities could be installed. The our natural gas pipeline operations to be even
Calgary-based company subsequently unveiled more environmentally focused, further solidi-
a goal of net zero greenhouse gas (GHG) emis- fying Enbridge’s role as an industry leader in a
sions by 2050, suggesting that its push into sustainable lower-carbon reality,” commented
renewables and decarbonisation was taking on Enbridge’s director of market innovation, Cait-
more urgency. lin Tessin.
The Heidlersburg solar project will produce The intermittent nature of renewable power
2.5 MW of solar energy to help power the com- generation means it is generally used to supply
pressor station. The project will cost around only part of the power needs of facilities such as
$6.5mn to develop, and electricity production compressor stations. Gas flowing through the
from the solar plant is expected to begin in the stations is used for the remainder of the power
second quarter of 2021. requirement.™

P16 www. NEWSBASE .com Week 47 26•November•2020