Global Economy News

Shell's loss of 2 billion dollars due to the suspension of two projects

Eviralnews, quoted by Euronews, the British energy giant Shell announced on Friday that it will write down assets worth more than 2 billion dollars.

According to the report, the write-down is linked to Shell's refineries in Singapore and Rotterdam, the Netherlands, which has caused the company disappointment.

On Tuesday, Shell announced it would halt construction at its biofuel refinery in Rotterdam due to weak demand.

The company started building this refinery in 2021 in order to finance sustainable energy projects.

The refinery was expected to be operational by 2025 with a capacity of 820,000 tons per year, but it is currently expected to start production at the end of this decade.

Shell's director of downstream, renewable energy and energy solutions, Hubert Vigono, said: “The temporary suspension of construction at this site will allow us to assess the most commercial path forward for this project.”

European biofuel projects have been stagnant recently due to increased supply from the United States and reduced demand in the region, partly due to Sweden's easing of biofuel strictures last year.

In addition to the failure of the Rotterdam project, the reason for Shell's decline is related to its operations in Singapore.

In May, the energy company announced it would sell its refinery and assets in Singapore to a joint venture formed by Indonesian companies Chandra Asri and Glencore.

Shell now anticipates a $600-800 million impairment loss on these assets.

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Mhd Narayan

Bringing over 8 years of expertise in digital marketing, I serve as a news editor dedicated to delivering compelling and informative content. As a seasoned content creator, my goal is to produce engaging news articles that resonate with diverse audiences.

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