Shake up in Shell’s downstream portfolio

28-Mar-16

Royal Dutch Shell is expanding and modernizing its existing asset base. It plans to move ahead with its de-bottlenecking project at the Scotford refinery. Expected to be completed in 2016, the project will raise hydrocracker capacity by 20%. Shell also plans to expand its presence in the high-return petrochemical market. In 2015, Shell started production at its new high-purity ethylene oxide purification unit and its ethoxylates unit, doubling the production of both chemicals at Jurong Island in Singapore. Shell has also signed an agreement to double its ethylene capacity in China. Work is in progress at Shell’s proposed petrochemical plant in the Appalachian region in the United States. Plus, Shell is planning to construct its fourth alpha olefins unit at Geismar, Louisiana, which is expected to be completed by 2018. Shell’s downstream portfolio is evolving into a more competitive portfolio poised to grow with the company’s expansion plans. Shell’s aim to strengthen its petrochemical segment will further bolster its downstream segment’s earnings capacity. (Source: Michelle Rey, Market Realist)