Shell Halts Leak-Hit Part of Major Europe Refinery

Shell Plc has been forced to halt part of Europe’s biggest oil refinery, potentially curbing supply of diesel in a tight market. 

A gas leak occurred in part of the Rotterdam plant this week, according to a local authority. While the refinery will continue to operate, the halt of what’s known as the Hycon plant will complicate production of finished fuels, particularly diesel and jet fuel. Shell doesn’t comment on refinery operations.

Europe’s diesel market has been tight for some time, losing a major external supplier when sanctions were imposed on Russia. A hot summer has also curbed production, leaving inventories in the region’s oil-trading hub lower than usual for the time of year. 

The fuel’s premium to Brent crude has been rising for months. The marker, a key measure of refining profitability, was more than $33 a barrel on Tuesday. The Hycon unit has capacity of 25,000 barrels a day, according to a Wood Mackenzie outage alert from last year. 

--With assistance from Rachel Graham.