The Netherlands-based energy company Shell will convert its Montreal East refinery in Canada into an oil-products terminal as part of a shake-up in strategy.
The 130,000 barrel a day refinery was opened in 1933 and will take about a year to convert into a terminal.
The terminal will be used to receive petrol, diesel and aviation fuels, which will be distributed through another Shell terminal in Montreal.
The move has spread fears about job security. Larry Lalonde, a spokesman for Shell Canada, says although there are 500 employees and contractors, in theory fewer staff will be needed in the long run.
Shells profits slumped 47% in Q3, and as a measure to break even, 5,000 jobs could be cut, reducing operating costs by about $1 billion (698 million) in the first nine months of last year.
Under a new strategy by CEO Peter Voser Shell has placed 15% of its refinery capacity, equal to about 600,000 barrels a day, under review.