Shell Australia ceased refining at its Clyde Refinery, on September 30, and will commence the conversion of the facility as a supply terminal.
The reason for the decision was threefold: a growing excess refining capacity in the region; Clyde is a small scale refinery in comparison to its regional competition and will not generate enough cash to justify further investment; and the company can access supply of Australian-grade products in the marketplace.
A scoping study by AECOM estimated the conversion to a storage facility would be in excess of $100 million.
The completion of the conversion is likely from mid-2016, subject to approval by the Department of Planning & Infrastructure.
Finished fuel products and product components will be imported to the Gore Bay Terminal by sea tankers and transferred via the existing pipeline to Clyde for storage, blending and distribution.
The number of tanks in use at Clyde will be reduced from the current 113 tanks – 36 in finished product service – to the proposed 23 tanks.
Refined products will continue to be distributed by pipeline to Sydney Airport and Newcastle and via road haulage from the Parramatta Terminal.
A further proposal may be made in relation to the land occupied by the refinery processing units, which will become surplus to requirements, including the potential remediation and/or subsequent redevelopment of that land.
Parramatta City Council has allocated $55,000 to help fund a study of the future of the Camellia peninsula.
