Shell has confirmed to OEM/Lube News that it has officially closed the API Group I base oil plant at its refinery in Pernis, Netherlands, in the first quarter this year. Pernis is a sub municipality of Rotterdam.

"I can confirm that the asset is now closed: this happened during Q1 2016. I can also confirm we continue to serve our customer as per usual and required after this change. Shell has a robust security of supply in its global network.", Shell spokesperson Mary Walsh told OEM/Lube News.

The Pernis plant, which had 370,000 metric tons per year (7,100 barrels per day) of Group I capacity, is over 60 years old and no longer efficient enough to compete, and that the global outlook for base oils is too weak to warrant the investment required to upgrade it, according to the company.

On April 22, 2014, Shell said it planned the closure of the two trains in two phases, with one train closing at the end of 2015 and the second likely to close in early 2016.

Shell sold its only other European base oils unit at the UK 296,000 bpd Stanlow refinery to Essar in 2011. Essar has since closed that production, citing the reduced refinery economics for base oils.

Shell also has a Group I plant in Pulau Bukom, Singapore, with 7,400 bpd Group I capacity and a smaller Group I plant in Buenos Aires, Argentina, with 1,500 bpd capacity.