March 24, 2006

Shell completes $400 million ultra low sulphur diesel project

Calgary, Alberta – Shell Canada Limited has announced the successful completion of its $400 million construction of two hydrotreaters to produce ultra low sulphur diesel fuel at its Montreal East and Scotford refineries. The project has been completed prior to new federal regulations that take effect on June 1, 2006.

The units allow Shell to reduce sulphur levels to fewer than 15 parts per million, down more than 90 per cent from previous levels. “Shell has demonstrated its ability to execute a major construction project such as this in a challenging labour market and do it safely, on time and within budget,” said David Weston, Senior Vice President, Oil Products, Shell Canada Limited. “This significant investment to reduce sulphur in fuel will contribute to improved air quality for all Canadians, building on Shell’s commitment to sustainable development.”

In tandem with new vehicle emission regulations, the upcoming Sulphur In Diesel Fuel Regulations will reduce nitrogen oxides and particulate matter emissions from diesel-powered vehicles by approximately 90 per cent in current model year vehicles.

The project also created approximately 1,800 construction and contract engineering jobs during its peak period, creating significant economic benefits for local communities in Alberta and Quebec. Shell was the first nation-wide refiner capable of producing low sulphur gasoline when it started up its gasoline hydrotreaters in late 2002, following an investment of $150 million.

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