December 23, 2024

Oil And Gold News

Oil And Gold Forecast, News and Analysis

Shell Turns Germany’s Top Refinery Green

Oil And Gold Forecast, News and Analysis:

  1. Home
  2. Latest Energy News

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Share

Related News

  • Largest UK North Sea Oil Producer Raises Output Guidance
  • Turbine Maker Nordex Sees ‘Large Enough’ U.S. Onshore Wind Market Despite Trump
  • Italy Urges EU to Revise Plans for Gasoline Car Ban in 2035
  • China’s Crude Oil Imports Continue to Slump
  • Biden Administration Plans Minimal Alaska Oil Lease Sale

Shell Turns Germany’s Top Refinery Green

Shell is gearing up to transform its largest German oil refinery, Rheinland, turning the crude-centric Wesseling site into a base-oil powerhouse. The overhaul, set to kick off next quarter, signals a major shift as Shell pivots from conventional oil refining toward high-grade lubricants. Goodbye crude processing at Wesseling—by 2025, that unit’s history. Instead, Shell’s revamp will see the site repurposed to produce Group III base oils, which are vital for premium lubricants in engines and transmissions.

Why the change? Simple: evolving markets demand evolving operations. With Europe’s push for cleaner tech and diminishing demand for certain petroleum products, Shell is playing the long game. The move is shrewd, not sentimental, targeting growth in specialized products as Europe’s fuel markets feel the squeeze.

‘;document.write(write_html);}

Shell’s plan has Rheinland’s other half, Godorf, still in the crude oil game, but not without a few adjustments. The fall overhaul will see Godorf’s crude unit take a breather, putting a temporary dent in output as Shell fine-tunes the machinery. This staggered shutdown strategy is smartly orchestrated to ensure that Germany’s energy supplies don’t get walloped by reduced capacity.

‘;document.write(write_html);}else{var write_html=’

ADVERTISEMENT

‘;document.write(write_html);}

Meanwhile, BP is also pulling back at its Gelsenkirchen refinery, leaving Miro in southwest Germany as the country’s biggest oil processor. As Rheinland refocuses, Germany’s refining landscape is clearly tightening, with Shell positioning itself to ride out the changes rather than resist them.

Shell’s gamble on high-grade lubricants may just set the pace for European refineries: go niche, go specialty, or go home. It’s a bold shift in an industry long defined by brute capacity, and if all goes as planned, the Rheinland complex will soon churn out a hefty 300,000 tons of base oil annually, meeting a chunk of EU demand.

Over the past few years, Shell has divested several refineries globally, including the sale of the Martinez Refinery in California to PBF Holding Company, and the sale of its 50% stake in the 340,000-barrels-per-day Deer Park Refinery in Texas to its joint venture partner Pemex.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com

  • Exxon Completes Sale of French Refinery to Trafigura-Led Buyer
  • Harris vs. Trump: Contrasting Approaches to Iran
  • TotalEnergies: Oil Demand Will Peak After 2030

Join the discussion | Back to homepage

Source: https://oilprice.com/