Galp Stops Matosinhos Refining Operations

Galp Stops Matosinhos Refining Operations
Galp has announced that it will discontinue its refining operations in Matosinhos, Portugal, from next year.

Galp has announced that it will discontinue its refining operations in Matosinhos, Portugal, from next year.

The company, which said it will manage appropriate solutions for the necessary labor reduction, noted that it will continue to supply the regional market by maintaining all key Matosinhos import, storage and distribution facilities. Galp said it will also be assessing alternative uses for the site and confirmed that the security of fuel distribution supply in the country will not be impacted by its decision.

The system reconfiguration should reduce average annual fixed costs and recurrent capex by over $109 million (EUR 90 million) per year and contribute to an annual reduction of around 900 kton of scope 1 and scope 2 CO2e emissions, according to Galp.

“The structural changes in oil products demand patterns, driven by the regulatory context in Europe and the effects caused by the Covid-19 pandemic, have led to a significant impact on Galp’s downstream industrial activities,” Galp said in a statement posted on its website.

“After thoroughly assessing the alternatives, Galp will be concentrating its core refining activities and future developments in Sines, while discontinuing the refining operations in Matosinhos,” the company added in the statement.

Galp highlighted that it will focus on enhancing the resilience and competitiveness of the Sines industrial site. The company said solutions are being analyzed to improve Sines’ energy and process efficiency and to integrate the production of advanced biofuels and other cleaner products.

Galp explores and produces oil and natural gas, refines and markets oil products and distributes and supplies natural gas. The company’s refining system comprises the Matosinhos and Sines sites in Portugal, which together are said to provide a crude processing capacity of 330,000 barrels per day, or about 20 percent of the Iberian refining capacity.

To contact the author, email andreas.exarheas@rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.