MONTREAL – Shell Canada Ltd. said Friday a favourable Quebec Superior Court decision will allow work to start on conversion of its Montreal East oil refinery into a product distribution terminal. A provincial construction permit is expected soon.
Judge Yves Poirier rejected a request by the union representing the refinery workers for an order to prevent the company from proceeding with the conversion. Shell had complied with a July 7 interim order to delay the work.
The decision said Shell Canada can proceed with the conversion as originally planned and it cannot be legally forced to continue operating the refinery.
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Shell Canada first broached the possibility of closing the refinery in July 2009, saying it was no longer economic and required heavy investment. Last January, it said it would convert it into a distribution terminal after efforts to find a buyer failed. In June, it rejected two tentative offers as too low and in July the union won the interim order preventing the go-ahead on dismantling.
Finally, in August, Shell Canada and Delek U.S. Holding ended acquisition talks and the Quebec government declined to intervene.
Larry Lalonde, Shell Canada spokesman in Calgary, said one-third of the refinery’s 500 permanent employees have taken retirement and about 80 have found other jobs. The company is working to help find jobs for the rest. About 30 Shell Canada employees will operate the new terminal.
The court action will delay completion of the conversion from November to early next year, he added. The new terminal will import refined products from international and domestic sources.
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