Page 17 - EurOil Week 48 2020

EurOil PROJECTS & COMPANIES EurOil

Neste closes Naantali refinery as

part of COVID-19 response

FINLAND FINNISH oil refiner Neste has shut down its Finland.
58,000 barrel per day (bpd) processing plant in A number of European refiners have
Neste does not expect Naantali, Finland, marking the latest in a wave announced the outright closure of plants or plans
conventional oil product of refining closures triggered by the coronavirus to convert them to biofuels since the COVID-19
demand to recover to (COVID-19) pandemic. crisis began. Europe has seen among the most
the pre-crisis level. Neste announced in September it would cut severe lockdown measures, and has therefore
up to 470 jobs in Finland as part of restructur- experienced the most serious collapse in fuel
ing plans at its refining operations in Porvoo demand.
and Naantali. Following statutory cooperation
negotiations with its employees, the staff reduc- Temporary closure at Donges
tion will only be 370. France’s Total, which in September presented
“The company will focus on the Naantali plans to convert its 93,000 bpd Grandpuits
site on the terminal and harbour operations, as refinery to manufacture biofuels and bioplas-
well as renew its Oil Products operating model,” tics, revealed last week it would close its 220,000
Neste said in a statement on November 30. bpd Donges plant as well until market conditions
The Naantali refinery will be closed by March improved.
2021, and Neste is also converting its Porvoo At current margins, weakened by the decline
refinery to co-process renewable and circular in fuel demand in France, Total said the plant
raw materials, it said. In total, the company aims was running at a loss.
to make €50mn ($60mn) in cost savings as a French fuel consumption took a significant
result of its actions. hit during the country’s first COVID-19 lock-
“The demand for fossil oil products will down in spring, with diesel demand declining
continue to decline, and the share of renewa- by 61.5% year on year in April to 271,000 bpd,
ble energy solutions will continue to grow in and gasoline consumption plummeting 70% to
the coming years,” Neste said. “The COVID- 61,000 bpd, according to industry association
19 pandemic has substantially accelerated Ufip.
the decline in demand for oil products, The demand contraction prompted Total to
which is not expected to recover to previous extend maintenance closures at the Grandpuits
levels.” and the 105,000 bpd Feyzin refineries this year.
The company said the measures it was tak- Operations were restored at Grandpuits in June
ing would help ensure the continued competi- and at Feyzin in September, although the for-
tiveness of its oil product business, noting that mer closed down again in early November after
the Naantali refinery’s shutdown would not cracks were discovered in the pipeline that deliv-
affect the security of fuel distribution supply in ers its crude oil. ™

Week 48 03•December•2020 www. NEWSBASE .com P17