Tamoil, Libya’s overseas refiner, plans to convert its 95,000 barrel-a-day Cremona facility in Italy to a storage depot by the end of 2011, the company said on Nov. 12.
Petroplus, Europe’s largest independent refiner, plans to stop operating its 81,000 barrel-a-day Reichstett plant in France and convert the site into a terminal after failing to find a buyer, the Zug, Switzerland-based company said Oct. 21.
Refiners including Royal Dutch Shell Plc, ConocoPhillips, Chevron Corp. and Total SA are selling, closing or converting plants, particularly in Europe, as they seek to reduce overcapacity amid falling demand for oil-products and declining profit margins.
Profits from turning crude oil into fuels in northwest Europe fell to an estimated average of $2.59 a barrel in the third quarter, the lowest level since the fourth quarter of 2006, according to data by BP Plc.
European refineries available for sale can only be converted into oil storage when the plants are in locations suitable as trading hubs, Jack de Kreij, chief financial officer at Royal Vopak NV said on Nov. 12.
CLOSURES, CONVERSIONS, POTENTIAL SALES
The following table lists refineries around the world that have shut, are slated for permanent closure or conversion, and units idled for economic reasons. Capacity is shown in thousands of barrels of oil a day.
Company Refinery Status Capacity
EUROPE
Tamoil Cremona Plans to convert to 95
Italy a storage facility
at the end of 2011,
company said Nov. 12.
Conoco Wilhelmshaven Production won’t be 260
Germany resumed, CEO said Oct.
27. Plans remain for
sale or conversion.
Conoco Humber Will consider selling 221
U.K. at “right price,”
CEO said Oct. 27.
Petroplus Reichstett Conversion to terminal 85
France after failing to find
buyer, company said
Oct. 21.
PKN Orlen Lietuva Under review because 200
Lithuania of low profitability,
company said Aug. 15.
OMV Arpechim Shut in June on 70
Romania weak demand. Site
may be sold, OMV
said Aug. 4.
Murphy Oil Milford Haven Up for sale, company 130
Wales said July 22.
Transaction expected
in first quarter 2011.
Total Lindsey Petroplus makes 221
U.K. non-binding offer,
CEO said on April 22.
Total Dunkirk Conversion to 137
France terminal. Announced
in March 2010.
Chevron Pembroke Up for sale. 210
U.K. Announced in March
2010.
Petroplus Teesside Conversion to 117
U.K. terminal end-2009.
Total Gonfreville Crude unit shut in 173
France August 2009.
Shell Stanlow Up for sale. 233
U.K. Announced in August
2009.
Shell Hamburg Up for sale. 110
Germany Announced in March
2009.
NORTH/CENTRAL AMERICA
Valero Aruba Plans to start in 275
mid-December, company
said Oct. 26. Plant
shut in July 2009 on
poor economics. Under
review for possible
sale.
Western Yorktown Shutdown completed 71
Virginia Sept. 13. Plant may
be restarted if
margins improve.
Exxon Chalmette Some units will be 196
Louisiana stopped, company
said in August.
Murphy Oil Meraux Up for sale. 125
Louisiana Announced July 22.
Murphy Oil Superior Up for sale. 35
Wisconsin Announced July 22.
Chevron Kapolei Operations may be 54
Hawaii reduced, company
announced in March
2010.
Sunoco Eagle Point Shut on poor 150
New Jersey economics in
November 2009.
Possible conversion
to biofuels announced
in February 2010.
Big West Bakersfield Shut in January 2009 68
California after Big West went
bankrupt. Alon bought
the plant in February
2010 and plans to
process vacuum gasoil
into gasoline and
diesel by mid-2011.
Western Bloomfield Shut in late 2009 on 17
New Mexico poor economics.
Operates as a
terminal.
Valero Corpus Christi FCC shut on economics 20
East, Texas in March 2009.
Shell Montreal Conversion to 130
Canada terminal after
operations ceased in
Oct. 2010.
ASIA PACIFIC
Showa Shell Keihin Permanent closure 120
Japan of Ogimachi crude
unit in September
2011.
*JX Holdings Negishi Permanent closure 70
Japan of a crude unit in
October 2010.
*JX Holdings Mizushima Permanent closure 110
Japan of crude unit 2 in
June 2010.
*JX Holdings Oita Permanent closure 24
Japan of crude unit 1 in
May 2010.
Nihonkai Oil Toyama Conversion to 60
Japan terminal in March
2009.
CPC Corp. Kaohsiung FCC shut on 25
Taiwan economics in
February 2009.
*JX Holdings Inc. is the parent company of JX Nippon Oil &
Energy Corp., Japan’s largest refiner, and was formed in April
2010 after the merger of Nippon Oil Corp. and Nippon Mining
Holdings Inc.
THIS YEAR’S SALES
Here is a further list of refineries that have been sold this year. Some of the sites had previously been considered for possible closure or conversion. Capacity is shown in thousands of barrels of oil a day.
Company Refinery Status Capacity
Shell Gothenburg Agreed sale to St1 78
Sweden Oy of Finland on Oct.
27.
Marathon St. Paul Park TPG Capital agrees 74
Minnesota to buy plant on
Oct. 6.
Valero Paulsboro PBF Energy agrees to 166
New Jersey buy on Sept. 27 for
$360 million.
Shell Heide Agreed sale to 91
Germany U.K.’s Klesch & Co.
on Aug. 20.
Valero Delaware City Sold to PBF Energy 190
Delaware in April 2010.
Shell Marsden Pt Shell sells 17% 109
New Zealand share to Infratil
and government
pension fund in
March 2010.
*Ruhr Oel Gelsenkirchen Russia’s Rosneft 266
Germany buys PDVSA’s 50
percent stake in
Ruhr Oel.
*Ruhr Oel Miro Russia’s Rosneft 311
Karlsruhe buys PDVSA’s 50
Germany percent stake in
Ruhr Oel.
*Ruhr Oel Bayernoil Russia’s Rosneft 240
Neustadt buys PDVSA’s 50
Vohburg percent stake in
Germany Ruhr Oel.
*Ruhr Oel PCK Russia’s Rosneft 226
Schwedt buys PDVSA’s 50
Germany percent stake in
Ruhr Oel.
*Ruhr Oel, part owned by BP, has a 100 percent stake in the
Gelsenkirchen refinery and a 24 percent share in Miro’s
Karlsruhe plant. It also holds a 25 percent share in Bayernoil
and a 37.5 percent stake in the Schwedt facility. The sale was
announced on Oct. 15.
