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Shell May Build New Facilities at Pernis Oil Refinery (Update1)

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Bloomberg: Shell May Build New Facilities at Pernis Oil Refinery (Update1) 

 

By Fred Pals and Nidaa Bakhsh

May 14 (Bloomberg) — Royal Dutch Shell Plc may build additional facilities at its Pernis oil refinery in Rotterdam, Europe’s largest, in order to export more fuel products mainly to the U.S. market.

Pernis plans to build more pipelines, terminals and blending facilities to be able to export to the U.S. as well as Africa and Asia, the company said in its magazine Shell Venster, which is published every two months.

“We’re not planning to increase the crude processing capacity of Pernis,” Wim van de Wiel, Shell’s spokesman based in the Hague, said in a telephone interview today. “We’re looking to make the refinery more flexible.”

That means that the company will focus on blending capabilities, to be able to produce more types of fuel for the international market, and logistics, he said. The new export terminal, to be located 20 kilometers (12 miles) from the refinery, would be able to accommodate larger crude tankers, he said. It would also need new pipelines to transport the fuels to this terminal.

A final investment decision for the 1 billion-euro ($1.54 billion) project is expected to be made early next year, he said.

Pernis can process 420,000 barrels a day and is an integrated oil-processing and chemicals plant that specializes in refining Middle Eastern crude. It also makes chemicals such as brake fluids and solvents as well as gasoline and other fuels.

Shell idled two fuel-producing units at the refinery at the beginning of April for a monthlong maintenance. Preparation work for the shutdown had started two weeks earlier.

To contact the reporter on this story: Fred Pals in Amsterdam at[email protected]Nidaa Bakhsh in London at[email protected]

Last Updated: May 14, 2008 11:44 EDT

 

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