Shell's 418,000 bpd Pernis plant in Rotterdam, was forced to scale back operations as the refinery lost production of steam, crucial as a source of power for refinery operations and in high pressure, high temperature processes used to produce gasoline and diesel.
The refinery had stopped loading gasoline, withdrawn barge offers, and excess supplies from Shell's German refineries may be redirected from European markets into Shell's own system. This is the second time in six months that the refinery has had to cut production after utility problems. The refinery is Europe's largest refinery, and a key supplier to both export and European markets. A drop in supply could drive oil prices that stand near a three month high, higher.
Effects of the refinery shutdown were most felt on the petrochemical side, as the chemical plant at Pernis has been safely shut down purely as a precautionary measure. Shell has been bidding for its feedstock naphtha by as much as US$20 above pre shutdown levels. Shell's Dutch chemicals arm, Shell Nederland Chemie, manufactures lower olefins, solvents and gasoline blending component methyl tertiary butyl ether at its Pernis complex.
17-Jan-06 
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