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Shell's decision to hold on to Corunna plant welcomed by community

Shell Canada’s decision to take its manufacturing centre near Corunna off the market, for now, is a relief for the community, says the mayor of St. Clair Township.

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Shell Canada’s decision to take its manufacturing centre near Corunna off the market, for now, is a relief for the community, says the mayor of St. Clair Township.

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Shell Canada said recently it had decided to stop actively looking for a buyer for the refinery and chemical plant at its manufacturing centre near the St. Clair River, as well as distribution terminals there and in Hamilton, and the company’s 45 per cent interest in the Sun Canadian Pipeline.

“It gives everybody a little bit of peace of mind because there has been a lot of turmoil since they announced they were headed on the market,” said Mayor Steve Arnold.

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The company announced in January 2019 it was looking for a buyer.

“Shell will continue to operate these assets while maintaining our marketing presence in Ontario and continuing to honour branded supply and wholesale agreements,” the company said recently in a statement.

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“Should we receive interest at a later date, we will assess next steps,” it added.

The refinery, which the Shell website says has 350 full-time employees, was opened in 1952 by Canadian Oil and purchased by Shell in 1963.

“They did have a suitor, my understanding was, they were close with at one time,” Arnold said about Shell’s efforts to sell the site.

But the company’s decision, in the end, to keep the holdings in Ontario is positive, he said.

“It shows that it’s still a viable operation – still profitable.”

He added Shell has been strong “community partner” providing support for local projects, including a health centre in Corunna.

The Shell site, located along the St. Clair Parkway between Sarnia and Corunna, manufactures gasoline, distillates, liquid petroleum gas, heavy oils, pure chemicals and solvents.

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In its statement, Shell thanked its staff and contractors.

“Despite uncertainty for nearly two years, they remained steadfastly focused on operating safely and reliably,” the company said.

Stephen Thompson, CEO of the Sarnia-Lambton Economic Partnership, said Shell’s announcement was “fantastic news” for the local economy, including engineering, fabrication and maintenance contractors who provide services to refineries and chemical plants in what’s known as Chemical Valley.

“We see this decision on the part of Shell as adding some certainty to the future of the facility, as well as for the suppliers,” Thompson said.

While Shell remained a “great corporate citizen” during the past two years, “there were fewer projects at the site,” he said.

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The partnership has already heard from local engineering firms who are “very excited about Shell’s plans to remain and invest in the community,” Thompson said.

Royal Dutch Shell, which owns Shell Canada, has said it wants to become a net-zero emissions company by 2050 or sooner.

CEO Ben van Beurden said in September Royal Dutch Shell plans to refocus its refinery business to be “smaller but smarter,” and plans to end up with fewer than 10 refineries, compared to 55 it had 15 years ago.

“We will keep only what is strategically essential to us and integrate those refineries with our chemicals business, which we plan to grow,” he said, according to the company’s website.

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