Committee members, good morning. My name is Christian Houle. I am the general manager for Shell’s refinery in Montreal East.
Sitting next to me is Mr. Oblath, the vice-president responsible for Shell’s merger, acquisition and divestment activities, including those involving Shell’s Montreal East refinery. He is a senior member of Shell who is here to provide information and answer your questions regarding the significant efforts made to sell the refinery, and provide a perspective on global refining.
I will provide information and attempt to answer questions regarding our plans for converting the refinery to a terminal, including the supply of gasoline, diesel and aviation fuel to meet the demand of our customers in Quebec, Atlantic Canada and parts of Ontario.
For the past 77 years, Shell has operated its refinery in Montreal East; that is 77 years of Shell and its employees contributing to the economy and community of Montreal East. Taxpayers, governments, employees, customers, suppliers and Shell have all benefited.
First, please know that this outcome is not our first choice. As my colleague Mr. Oblath will demonstrate, for almost a full year we tried hard to sell the refinery. We realize that its conversion to a terminal will have a significant impact on many people—our employees and their families, as well as those who live and work near the refinery who benefit from our operations. We recognize how difficult this is for all and sincerely regret having to take this step. This was not an easy decision, but unfortunately it was the only viable decision in the difficult economic climate in the refinery sector.
On the matter of supply, we do not agree with the assumption that the conversion of the Montreal East refinery to a terminal will result in interruptions of fuel supplies for our customers. Shell has experience converting refineries to terminals. Within Canada, for instance, Shell converted its Shellburn and St-Boniface refineries into terminals. We learned a good deal through those conversion processes and continue to have a strong presence in those areas as a major fuel provider. We will continue to reliably supply our customers with quality products.
We announced our decision in January. We have since then cooperated with requests from the provincial and federal governments, which asked us to delay dismantling the refinery until June 1 to cooperate with a special committee and consider potential bids.
I should note that by agreeing to the special committee process, we also delayed normal business processes including moving forward with regulatory permits required for the conversion.
Normal permit requests for demolition, construction and operation of terminal equipment are needed. A delay in permitting can cause supply disruptions. Also, Shell needs to start shutting down the refinery in the near future to ensure safety and asset integrity.
I now turn the floor over to my colleague, Mr. Oblath.