Shell Closing Philippines Refinery, an Industrial Info Market Brief

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Pilipinas Shell Petroleum Corporation (PSPC), having temporarily shut its 110,000-barrel-per-day Tabangao Refinery operations on May 15, has reported to the Philippine Securities and Exchange Commission on August 12 its decision to permanently shut down all refinery operations.

A recent analysis showing the price of fuel products being lower than or almost equal to the cost of refining crude oil has prompted the company to secure its long-term sustainability and thrive in both the ongoing energy transition and the "new normal" created by the pandemic, hence the decision to begin transforming the facility into a world-class full import terminal to optimize its asset portfolio and enhance its cost and supply chain competitiveness. The shift in supply chain strategy from manufacturing to full import is also seen as a preparatory move for Shell to rely more on cleaner energy solutions.

Below is a map of the refineries in the Southeast Asian region monitored by Industrial Info.