Shell Flags Up To $2 Billion in Impairments for Singapore, Rotterdam Plants

Shell plc plans to record $1.5-2.0 billion in impairments for second-quarter 2024 associated with its Singapore and Rotterdam plants.

In a July 5 update ahead of earnings season, the company said it expected to take non-cash post tax impairments of $600-800 million on the Singapore Chemicals & Products assets and $600 million to $1 billion on the Rotterdam plant.

In June, Shell said it entered a deal to sell its interest in Shell Singapore Pte. Ltd.’s integrated refining and petrochemical operations in Singapore as part of the parent company’s broader attempt to achieve net-zero emissions across its global operations by 2050 (OGJ Online, June 4, 2024). The purchase price was not released.

Last week, Shell PLC subsidiary Shell Nederland Raffinaderij BV reported that the company suspended construction activities on a proposed 820,000-tonnes/year (tpy) biofuels plant already under way at the Shell Energy and Chemicals Park Rotterdam, the Netherlands (OGJ Online, July 2, 2024).

On-site construction works for the biofuels plant have been “temporarily pause[d]…to address project delivery and ensure future competitiveness given current market conditions,” the operator and its parent company said in separate July 2 releases.

From Oil & Gas Journal