Shell to convert Montreal refinery into fuel terminal

Calgary :  Royal Dutch Shell is pursuing plans to convert its Montreal refinery into a fuel terminal starting in September after the last interested buyer withdrew.

The refinery will continue to operate and process crude oil into gasoline and other products until the conversion process starts, Ed Greenberg, a spokesman for the company, said in an e-mail. The company had been trying to sell the refinery for a year.

Michel Arsenault, president of the Quebec Labour Federation, said in a news conference the latest offer from the unnamed party "far exceeded" C$150 million (Dh521 million). He blamed Shell for ending the discussions and breaking a pledge the company made when it announced its decision to close the refinery earlier this year.

Shell declined to give details of bids for the plant, which can process about 130,000 barrels a day. Delek US Holdings was the last reported bidder for the refinery, offering C$150 million, according to a June 16 report from the Canadian Broadcasting Corporation.

"Shell told us that if we found a buyer, they were ready to sell," Arsenault said. "Well, we found the buyer, we put the money on the table and they don't want to sell. It's unacceptable."

Arsenault urged Canada's federal government to step in and prevent the closure. Failing that, gasoline prices in Quebec will probably increase once the plant shuts, he said.