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Galp to shut Matosinhos refinery

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Hydrocarbon Engineering,


Galp has announced that it will be concentrating its core refining activities and future developments at the Sines refinery in Portugal, while discontinuing refining operations at Matosinhos, Portugal, from 2021.

While managing appropriate solutions for the necessary labour reduction, Galp will continue to supply the regional market by maintaining all key Matosinhos’ import, storage and distribution facilities. Galp will also be assessing alternative uses for the site.

Security of fuel distribution supply in the country will not be impacted by this decision.

The system reconfiguration should reduce average annual fixed costs and recurrent CAPEX by over €90 million per year and contribute to an annual reduction of c.900 kton of CO2e emissions (scope 1 and 2). The book value of the Matosinhos’ assets to be decommissioned are estimated at c.€200 million.

The company will focus on enhancing the resilience and competitiveness of the Sines industrial site, with a crude processing capacity of 220 000 bpd and equipped with deep conversion units. Solutions are being analysed to improve Sines’ energy and process efficiency, and to integrate the production of advanced biofuels and other cleaner and more valuable products, with potential investments supported by the restructuring savings and energy transition support mechanisms.

Read the article online at: https://www.hydrocarbonengineering.com/refining/22122020/galp-to-shut-matosinhos-refinery/

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