KONVENT – On November 5, Shell announced their plans to close its Convent refinery in the coming weeks, after failing to find a buyer for the facility.
According to a statement from the company, the location will start in mid-November. Shell has been looking for a buyer to take to the site since July, but was unsuccessful.
According to Shell, the decision to close the refinery is “part of the company’s global strategy to invest in a core 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. Officials said they were assured workers would retain their jobs until February 2021.
“Since 1967, this refinery has provided economic impact to St. James Parish, which has operated under various companies over the years,” the president of St. James Parish said. James Parish, Pete Dufresne, said in a statement Thursday. “The facility has consistently been the largest taxpayer in St. James Parish, and therefore the consolidation will certainly have an impact on our community and the supporting businesses that rely on the industry.”
Dear Sir or Madam:
I am writing on behalf of Equilon Enterprises LLC c / o Shell Oil Products US, a subsidiary of Shell Oil Company (“Shell” or the “Company”) to notify you that Shell intends to discontinue operations and the execution of the full planned closure of its Convent Refinery, located at 10700 LA-44, Convent, Louisiana 70723 (the “Convent Refinery”). This closure is expected to be permanent. The closure process began in November 2020, with the expected closure
completed on or about August 31, 2021. All Shell local employees who provide dedicated support to the Convent Refinery will be affected by the closure, and are not expected to continue their service at Shell after the closure is not complete. The number of individuals expected to be affected by the closure of the monastery refinery is 698 employees of the monastery. The termination of operations will be phased out, but the expected date of the first separation will take effect on 1 March 2021, with all separations expected to take place on 31 August 2021. These expected separation dates are based on the best information currently available to the company. All employees affected or their union representative have been notified or will be notified of their expected separation dates, and that their separation from service will be permanent as the phase closure continues and the information for the company strengthens. There will be no stamp duty for the employees affected, i.e. employees will not be able to relocate more junior employees from their positions due to the closure. We have informed Eric Roy, the Chief Electoral Officer of Local 750 for the United Steel, Paper and Forestry, Rubber Manufacturing, Energy, Allied-Industrial and Service Workers International Union, at the following address: PO Box 337, Norco, LA 70079.
Friendly greeting
Alana Wierzchowski, Human Resource Consultant
Governor Edwards issued a statement saying:
‘We were disappointed to learn that Shell’s Convent Refinery in St. James Parish is going to close soon. It is a difficult decision for Shell and a challenging time for the 700 employees of the monastery and their families. The state of Louisiana will support them in every way through the Louisiana Workforce Commission’s Rapid Response Unit and through prioritized placement of these talented workers in our state.
‘It is important to note that Shell is reducing the number of independent refineries worldwide in favor of consolidated industrial sites that include refining and chemical operations. This decision is not due to the lack of competitiveness of Louisiana’s business climate or workforce, and the company will continue to operate very important assets here. Shell has nearly 4,000 people in our state, with a similar number of retirees. Operating assets in Louisiana range from deepwater operations located in New Orleans and exported abroad, to the Norco refinery, the chemical plant in Geismar, the Port Allen Catalyst Center, pipelines and other operations.
“I have asked Shell to work with our Convent Refinery workers elsewhere 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. , the River Parishes and our entire state. ”
Read Shell’s full statement below.
Shell has announced the shutdown of its Convent Refinery in Louisiana. The decision is part of the global strategy to invest in a core set of uniquely integrated manufacturing sites that are also strategically positioned for the transition to a low-carbon future. The shutdown process begins in mid-November.
In July 2020, we shared with staff that the Shell Convent Refinery is being marketed. Despite attempts to sell the asset, a viable buyer has never been identified. After looking at all aspects of our business, including financial performance, we made the difficult decision to close the website.
Shell will ensure a safe and responsible closure of the refinery with a focus on the people most affected. This includes supporting Convent employees during this difficult time by helping them apply for alternative opportunities within the company, or moving to a future outside of Shell. Shell will open a selective voluntary severance program at its Geismar and Norco facilities, subject to bargaining for union-represented employees, to possibly create additional roles where employees of the convent can be placed.
We will maintain a significant presence in Louisiana through our integrated refining and chemical sites at Norco and Geismar, our midstream infrastructure assets, branded brands, operations in the Gulf of Mexico and our offices in New Orleans.
Once the closing process is complete, we will continue to market the Convent Refinery for sale.
Recent history
Shell announced in September that it would integrate chemical and manufacturing companies to create an end-to-end organization for chemicals and products. This new organization will be reflected in six energy and chemical parks that will enable us to pursue the strategy of expanding our chemicals industry and adapting our refinement footprint to provide customers with the low-carbon products. A major benefit of these core sites also comes from further integration with Shell trading hubs and the production of more chemicals and other products that are resilient in a low-carbon future.
Remaining sites
Shell’s remaining refinery sites include; Rhineland (Germany), Pernis (NL), Palau Bukom (Sinapore), Scotford (Canada), Norco (USA) and Deer Park (USA).
We currently operate 11 refineries (excluding Tabangao Philippines – terminal conversion), and have a stake in a further 3 (a total of 14)? Less than 5 refineries that have been / are being marketed; Frederica (Denmark), Puget Sound (USA), Mobile (USA), Klooster (USA), Sarnia (Canada)? Less than 3 JV refineries not in operation; SAPREF (South African Petroleum Refineries PTY LTD) (Durban South Africa), Miro (Germany) and PCK (Schwedt, Germany).