Parramatta. Shell refinery may close

Shell today announced a proposal to convert its Clyde Refinery and Gore Bay Terminal into a fuel import terminal. The proposal recognises the 75,000 barrel per day refinery is no longer competitive against new mega-refineries in the region – and requires significant investment including a maintenance turnaround scheduled for mid 2013. Employees at Clyde and Gore Bay have been informed of the proposal and a period of consultation with them and their representatives will be undertaken before a decision is made on the proposal. If accepted by the relevant Shell Australia boards, the proposal would see the end to refining operations at the site, with Clyde converted to a competitive fuel import terminal, well located to supply the New South Wales market and the growing western suburbs of Sydney, the company said. The refinery, built in the early 1920s has been in operation longer than any other oil refinery in Australia. It has been owned by Shell since 1928.