Germany, Italy and Spain contribute more than 35% of European refining capacity

The three countries together account for more than 35% of the active refining capacity among all the countries in the region.

GlobalData's report, 'Refining Industry Outlook in Europe to 2022' states that in 2017, Europe accounted for 14.1% of the total global refining capacity. Germany, Italy, Spain, the UK and the Netherlands are the key countries in Europe, accounting for over 55.1% of the total refining capacity in the region.

In Europe, Germany has the highest active refining capacity of 2 136 000 bpd in 2017. The Rheinland refinery has the highest active refining capacity of 325 000 bpd. Shell Exploration und Produktion Deutschland GmbH is the operator of the refinery. Karlsruhe and Gelsenkirchen follow with refining capacities of 310 000 bpd and 265 000 bpd, respectively.

Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, explains: “Despite negligible domestic crude oil production, Germany has the largest refining capacity in Europe. The country heavily relies on crude oil imports from the Former Soviet Union and North Sea for refining. Germany’s refining industry currently is at a crossroads due to increasing competition from Russian and Asian refiners and stiffening environmental regulations.”

GlobalData identifies Italy as the second highest country in Europe with active refinery capacity of 1 653 000 bpd in 2017. Melili refinery, a cracking type refinery operated by Lukoil Oil Co., has the highest active refining capacity in the country with 320 000 bpd. Sarroch and Sannazzaro de Burgondi follow with capacities of 300 000 bpd and 200 000 bpd, respectively.

Tejomoortula adds: “Like Germany, Italy’s crude production is negligible when compared to consumption. The country mainly depends on imported crude for refining. Italian refiners are also facing stiff competition from international companies and a toughening regulatory environment.”

Spain is the region’s third highest country in terms of active refinery capacity. The country has a total active refinery capacity of 1 542 000 bpd from 10 refineries in 2017. Gibraltar-San Roque, operated by Compania Espanola de Petroleos SAU, has the highest active capacity of 241 000 bpd. Cartagena and Bilbao refineries follow with 220 000 bpd each.

Albania is the only country in Europe that has a planned refinery, Albania Petrosonic, during the outlook period 2018 to 2022. It is expected to start operations in 2018 with capacity of 3000 bpd. An estimated CAPEX of US$100 million is expected to be spent on this upgrader during the outlook period.

Read the article online at: https://www.hydrocarbonengineering.com/refining/30082018/germany-italy-spain-contribute-more-than-35-percent-european-refining-capacity/