Nov. 17 (Bloomberg) -- Petroplus Holdings AG and Tamoil SA said they will close oil refineries in Europe next year, the latest in a series of plants around the world slated for sale, closure or conversion into storage terminals.
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.
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