Shell to exit from Malaysia Port Dickson refinery

A business review concluded margins would remain small due to the global oversupply of oil

Shell is planning the sale or closure of its Port Dickson, Malaysia, refinery, on which it has spent large sums in modernisation projects in recent years. The firm said it is considering options including selling the facility or converting it into a storage terminal, after a business review found that refining margins are likely to remain depressed as a result of overcapacity worldwide. Although the refinery, on Malaysia’s west coast, has been upgraded into a relatively high-quality asset, it will face increasing competition from government-led plans to develop southern Malaysia as a refining and petrochemicals centre. Port Dickson, of 125,000 barrels a day (b/d) capacity, is now a high-conv