Royal Dutch Shell Plc is seeking buyers for an Ontario refinery and some sour gas facilities in Alberta, as the company focuses on its $31 billion liquefied natural gas project in British Columbia, Canada’s Financial Post reported.
“These assets have been a cornerstone of Shell Canada for many years; however, they are no longer a fit with Shell’s evolving portfolio,” the company told the Post.
Shell is one of several supermajors that have sold their Canadian oil sands assets over the past few years as pipeline bottlenecks, high costs and low local prices discourage investment.
The supermajor last week joined Canada’s Husky Energy as the second company to announce plans to sell a Canadian refinery this week. Husky wants to sell its Prince George refinery in Prince George, B.C., Kallanish Energy reports.
Shell has increasingly focused on natural gas worldwide. Last October, the company announced plans for a liquefied natural gas export facility , to be built on Canada’s Pacific Coast, looking to tap Asia’s LNG demand.
The 72,000-barrel-a-day Sarnia, Ontario, refinery is the smallest of four refineries in Ontario. The company’s Greater Foothills sour gas assets at Waterton, Jumping Pound and Caroline total 225 million cubic feet per day (Mmcf/d) of natural gas production, according to the Post.
If no buyers are found, Shell will continue to operate the facilities and doesn’t plan to sell them, the company said.
Source: The NationalView more