The company said in a statement, “In response to the drastic decline in local product demand and the significant deterioration of regional refining margins brought about the COVID-19 pandemic, the company will temporarily shut down its refinery operations for approximately one month starting mid-May 2020.”

It is reported that Shell will follow the government’s minimum requirement during the shutdown of its refinery. The company’s decision is also part of its cash conservation measures, media reports said.

“The temporary shutdown will help insulate the company from further potential drops in refining margins and will also aid in its cash conservation initiatives,” it added in the statement. Shell’s Tabangao refinery is one of the two refineries in the country.

More recently, Shell signed an agreement with the National Fuel Gas Company and its subsidiaries for the sale of Appalachia shale gas for $541 million. The sale is in line with Shell’s Shales strategy focusing on higher margin development and is part of its efforts in divesting non-core assets.

However, the sale of Shell’s Appalachia shale gas is subject to regulatory approvals. It is anticipated to close by the end of July 2020.

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