Page 12 - EurOil Week 14 2021

EurOil PROJECTS & COMPANIES EurOil

Repsol to close 135,000 bpd

Puertollano refinery

SPAIN REPSOL said on April 1 it planned to close its Finland’s Neste shut down its 58,000 bpd refin-
135,000 barrel per day (bpd) Puertollano refin- ery in Naantali in December, and Portugal’s Galp
The move comes just ery in Spain, because of challenging conditions was set to permanently halt fuel production at its
days after Petronor said on the fuel market. 110,000 bpd Porto plant last month.
it would furlough a third The move comes just days after another The Petronor facility in north Spain has
of its 900 employees. Spanish refiner, Petronor, majority-owned by been processing crude at only 60% capacity for
Repsol, said it would furlough a third of its 900 261 days, the company said on March 30, dur-
employees, highlighting the stress that Europe’s ing which time it has offered staff training to
refining sector is under as a result of pandemic keep them active. This is no longer sustainable,
travel restrictions. though, and the company has said it will start
Repsol has said the Puertollano plant will negotiating with labour representatives to decide
halt production of all fuels, but has not given a on temporary layoffs until the end of 2021.
timeframe for the closure. But it said the facility “The current uncertainty about a return to
would not resume operations until market con- mobility, primarily depending on the vacci-
ditions had improved. nation process, makes it impossible to predict
European fuel demand is once again under when the refinery can go back to functioning
pressure as some of its largest economies tighten normally,” Petronor said.
lockdown measures in response to a resurgence Repsol also announced in January that it had
in coronavirus (COVID-19) cases. Germany produced its first batch of aviation biofuel at its
in late March extended its lockdown measures, 186,000 bpd Tarragona refinery on the Medi-
while France started a new four-week national terranean coast. Many European refineries are
lockdown on April 3. investing in biofuels as an alternative to closing
Refiners have responded by closing down down facilities completely, which can be costly.
production trains or announcing plans to The Spanish firm is targeting 2mn tonnes per
convert their facilities to biofuels, banking on year of biofuel supply by 2030 under its new
stronger demand prospects for cleaner fuels. strategy. ™

P12 www. NEWSBASE .com Week 14 08•April•2021