Shell to reopen Pernis distillation unit

- Leadership - Aug 09, 2017

Shell is attempting to revive one of the distillation units at its Rotterdam Pernis refinery after a fire shut it down last month. Pernis, the largest refinery in Europe, closed the unit when an issue with a short circuit caused a fire; it was anticipated that it would remain closed for two weeks at least.

After Bloomberg announced yesterday that Shell would reopen the unit, European diesel futures continued to drop in London at midday, with traders understanding that fuel is likely to start flowing sooner than expected. Shares were trading at $480 a metric ton. Prices in Europe surged last week after Shell’s refinery power outage and its US diesel imports were expected to hit a 12-week high. The restart of Shell’s Pernis unit looks set to change that.

 

According to Energy Voice, a Shell spokesperson said: “We are currently restarting a number of units as part of the phased restart of the full complex. Complete restart will take places in a structured and controlled way. Flaring and noise will be part of recommissioning. We will do out upmost to minimise impact for residents.

“We regret the impact this may cause for our customers, and we are working hard to minimise impact.”

Steve Sawyer, Analyst at FGE, added: “I would expect distillate cracks to come off quite a bit in the next few weeks as a reaction to Pernis coming back.

“They may weaken for the rest of August and September, until refineries start to go into maintenance in October.”

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