Shell says force majeure issued at Scotford upgrader in western Canada

The logo of Royal Dutch Shell is pictured during a launch event for a hydrogen electrolysis plant at Shell's Rhineland refinery in Wesseling near Cologne, Germany, July 2, 2021. REUTERS/Thilo Schmuelgen/File Photo

CALGARY, Alberta, March 9 (Reuters) - Shell (SHEL.L) has issued a force majeure at its 300,000 barrel per day Scotford, Alberta, upgrader in western Canada after a unit at the facility tripped, a company spokesman said on Wednesday.

The plant, which processes oil sands bitumen into light synthetic crude, is also scheduled to start a 65-day maintenance turnaround this month, according to an investor presentation from Canadian Natural Resources Ltd (CNQ.TO), which owns a share of Scotford.

Two trading sources said Shell had cut March deliveries by approximately 20%. One of the sources said the force majeure had been issued last week, but the impact was muted because Scotford's expected output for March had already been reduced by half because of the turnaround due to start next week.

Canadian light synthetic crude for April delivery settled at $6.85 per barrel over the West Texas Intermediate benchmark, according to NE2 Canada Inc, up 35 cents from the previous day.

Reporting by Nia Williams; Editing by David Gregorio and Richard Pullin

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