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Shell looking to sell Corunna plant

Jan 9th, 2019
by John Donovan.

Shell Canada has announced it’s testing the waters to sell its refinery and chemical facilities in Corunna.

Shell’s plant in Corunna is for sale, the company announced Wednesday. (Handout)

Tyler Kula : More from Tyler Kula: Published on: January 9, 2019 | Last Updated: January 9, 2019 3:30 PM EST

Shell Canada is testing the waters to sell its Sarnia-Lambton refinery.

The fossil fuel giant that’s operated since 1963 at the 77,000 barrel-per-day Sarnia Manufacturing Centre in Corunna announced Wednesday it’s been looking to find a buyer for the refinery, chemical plant, and Sarnia distribution terminal – as well as another distribution terminal in Hamilton and Shell’s 45 per cent stake in the Sun Canadian Pipeline – for about a year, said spokesperson Olwen Gover.

The about 400 jobs on the grounds south of Aamjiwnaang First Nation and along the St. Clair River are being shopped as part of the deal, she said.

“The intent expressed to potential buyers is to preserve jobs and the capability that Shell people are known for,” she said.

Shell will continue operating the site if it doesn’t sell, she said.

“There are no plans to close any of the site.”

The refinery is one of the company’s best, but is not part of Shell’s long-term strategy to transition to “new energies,” Gover said, noting the announcement came Wednesday – the process to find a buyer is expected still to take months, she said – so Shell could be transparent with employees.

“Shell’s strategy is to focus on cash engines of conventional oil and gas, integrated gas and oil products to deliver the cash to fund future growth in new energies,” she said, pointing to an investment in liquefied natural gas the company made last year.

“Moving away from the oils to the gasses,” she said.

She touted the site’s strong performance when it comes to safety, calling it a cornerstone of Shell Canada and adding there are strong ties with the surrounding community.

“The team has really delivered incredible value to Shell and to the local community and Ontario,” she said.

Work has also been done in the last few years to improve reliability at the site, she said.

“We see the value in the Sarnia Manufacturing Centre and we think others will see more value.”

No information was available about the asking price or prospective buyers, she said.

Shell intends to continue marketing in Ontario, honouring branded supply and wholesale agreements, she said, in a news release.

Shell’s retail and aviation businesses in Ontario are not for sale, it says.

The company says the Sarnia Manufacturing Centre was originally built by Canadian Oil Companies Limited in 1952.

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