Shell (SHEL, Financial) is set to initiate a significant transformation of Germany's largest refinery in the first quarter of next year. This redevelopment could lead to a reduction in crude oil processing at the facility. The refurbishment involves shutting down part of the crude oil units at the Wesseling section of the Rhineland integrated facility, with plans to repurpose the hydrocracking unit for base oil production.
Shell announced in a statement that preparations for the measures will commence in the first quarter. The company has not provided specific timelines for when the crude oil and hydrocracking units will cease production, noting that the refit is a complex process that will occur in stages.
In addition to Shell's overhaul, BP (BP) is also planning to cut crude oil capacity at its Gelsenkirchen refinery in Germany. These adjustments at BP’s facility and Shell’s restructuring will make Miro in Southwest Germany the largest crude processing plant in the country.
