Shell Australia says it will convert Clyde Refinery and Gore Bay Terminal in Sydney, Australia, into a fuel import terminal.
The adaptation will mean the end of all refining operations on the site and the converted Clyde terminal will help to meet the growing fuel demand in the western suburbs of Sydney, Shell says.
The company says it realises the 75,000 barrel per day Clyde Refinery is no longer competitive against new mega-refineries in the region and that significant investment including a maintenance turnaround scheduled for mid 2013 is needed.
The company is currently in a consultation period with its representatives before making a final decision on the project.
‘The proposal to convert Clyde into a terminal is consistent with Shell’s strategy to focus its refining portfolio on larger integrated assets, and to build a profitable downstream business here in Australia,’ says Shell vice-president, Andrew Smith.
‘Shell acknowledges the valuable contribution made by local employees in servicing the New South Wales market for more than 100 years. We commit to a timely consultation process and to providing support to our employees during this period,’ adds Smith.
The company is also planning to build new diesel storage facilities in Mackay, Newcastle, Kalgoorlie and King Bay in Western Australia