- Oil companies in Europe have reported lower throughput in the fourth quarter and 2020 as a whole, with many refineries continuing with run cuts in the first quarter of 2021.
- Total has agreed to sell its Lindsey refinery in the UK to fuel trading and marketing Prax Group.
- As the French oil major focuses on its integrated downstream assets and the coronavirus adds to the uncertainty over long-term demand for fuel.
A recent news article written by Elza Turner and published in the Platts highlights the plight of oil companies in Europe.
Highlights of the situation
In other news, Lukoil reported lower throughput at its Russian and European refineries in 2020. Overall throughput was 58.6 million mt in 2020, down 14.7% on the year.
The reduction was due to “optimization” of throughput at some plants against the background of lower oil products demand and refining margins caused by the Covid-19 pandemic and maintenance works.
Throughput in the fourth quarter was 13.1 million mt, 11.5% down quarter on quarter.
At its European refineries, throughput was 3.5 million mt in the fourth quarter, down 25.4% quarter on quarter, due to optimization and maintenance in Italy and Bulgaria.
Total’s Grandpuits refinery in central France
All units at Total’s Grandpuits refinery in central France are now fully offline as a result of a strike called by staff to protest against job losses resulting from the conversion of the refinery into a biorefinery, a union source said.
Total halted the crude distillation unit at Grandpuits Nov. 16 but the other units at the site had remained in operation.
All units are now halted and product deliveries have also stopped, while work to prepare the conversion of the refinery has also been halted.
Strikes started in October at the site.
Eni is evaluating conversion
Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company’s wider strategy to make its activities more environmentally sustainable, a company spokesperson said.
Eni has already converted two of its Italian refineries and said last October that it may speed up the conversion plan for its traditional refineries, with the aim to be producing 5 million mt/year of biofuels by 2050.
Portugal’s Galp
Portugal’s Galp said in a regulatory filing Dec. 21 it will discontinue refining operations at the Porto refinery from 2021 and concentrate its core refining activities and future developments at its larger Sines refinery.
Galp said it will focus on enhancing the resilience and competitiveness of the Sines site, with a view to improving efficiency and to integrate the production of advanced biofuels and other cleaner as well as more valuable products.
The Porto refinery, which came on stream in 1969, halted fuel production for a second time last year on Oct. 10 due to the impact of COVID-19 on fuel demand and high inventories.
France’s Donges refinery
France’s Donges refinery is not expected to restart before mid-March although with potential new lockdown in France the restart could be postponed further, a source from the CGT union said.
Total said Nov. 24 it was to halt operations at Donges from Nov. 30 for the coming months for economic reasons, due to weak margins, in the wake of the demand slump caused by the coronavirus pandemic.
The refinery has been operating at a loss, it said. At the time trading sources suggested that the refinery was likely to restart in January.
Petroineos
Petroineos said that it was continuing consultations with employees, which started on Nov. 16, regarding its proposal to reconfigure the Grangemouth refinery in Scotland “to meet current and future anticipated demand” for fuels.
The company proposes a smaller refining operation at Grangemouth and plans to mothball CDU1 and the FCC, two units that “have been closed throughout the COVID-19 pandemic due to significantly reduced local and international demand for fuels”.
Croatia’s Rijeka refinery
Croatia’s Rijeka refinery will optimize its operations from November “for a few months” and during that period will “perform regular technological activities at process units such as catalyst regeneration and preparation of these plants for the new processing cycle in 2021 through regular maintenance work.”
Local media reported that the refinery will temporarily halt production between November and January due to reduced demand.
Finland’s Neste
Finland’s Neste said it will shut down its Naantali refinery by the end of March as part of its restructuring.
Operations at its Porvoo refinery will be revamped to focus on co-processing renewable and circular raw materials.
It will focus the Naantali site on terminal and harbor operations and in the second phase of restructuring will develop the Porvoo refinery “towards co-processing renewable and circular raw materials.”
Gunvor Group
Gunvor Group said it would mothball its Antwerp refinery, but “will continue terminal activities, as well as further assess future development opportunities for the land and existing units.” The refinery stopped crude processing at the end of May.
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Source: Platts
