Attempts to sell its Montreal refinery have failed and now Shell Canada is converting the facility into a terminal.
Shell and Delek US Holdings ended talks on the potential sale of the Montreal East refinery, meaning bad news to employees.
Shell has been under political pressure to make every effort to save the 800 jobs at the refinery instead of converting it to a terminal, which would retain only about 30 jobs at the end of the conversion.
Shell is now focusing on safely converting the facility to a terminal in a way that ensures adequate supply of fuel for its customers in Quebec, Atlantic Canada and eastern Ontario, not before getting the Quebec government's approval to shut down the refinery.
Shell says the total price tag to purchase and upgrade the refinery would be at least $1 billion (737.5 million). The purchase includes Shell's Montreal refinery, light oil terminal and 19% in Portland Pipe Line.