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Shell & HES to resurrect German oil refinery ahead of IMO 2020 shipping rules

Gasoil News - Published on Fri, 15 Mar 2019

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Two trading sources told Reuters that Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels. A new cap set by the International Maritime Organization that will cut the sulphur content in shipping fuel to 0.5% from 3.5% from next year is set to be one of the biggest fundamental events to hit oil markets in years.

A spokeswoman for the company said that HES Wilhelmshaven Tank Terminal is in the process of reinstalling the vacuum distillation unit (VDU) at Wilhelmshaven to produce low-sulphur bunker fuels ahead of the implementation of the IMO rules.

HES said it had "reached a tolling agreement with a customer," but declined to comment on the parties involved.

However, Shell declined to comment, two trading sources with knowledge of the matter told Reuters the customer in question is Shell.

One of the sources said that the agreement is akin to a processing deal, whereby Shell brings in the feedstock and handles the end product.

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Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
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