October 22, 2010 at 12:52 pm #2491
Petroplus Provides Update on Strategic Review of the Reichstett Refinery
Press Release Source: Petroplus Holdings AG On Thursday October 21, 2010, 5:40 am EDT
ZUG, Switzerland–(BUSINESS WIRE)– Regulatory News:
Petroplus Holdings AG (SIX: PPHN) today announced an update on the strategic review of its Reichstett refinery in France that was launched in April to evaluate alternatives for the site. The company has considered several possibilities, including a potential sale, further investments to improve its competitiveness, as well as a shutdown of refining operations and conversion to a terminal.
The process for a possible sale of the refinery has now concluded without presenting any buyers, and the company has determined that in the current challenging refining market and capital-constrained environment, the company cannot justify further sizeable capital investments in the plant. As a consequence, Petroplus has today informed the Work Council of the Reichstett refinery that it intends to commence a formal information and consultation process to propose terms for a project to cease refining operations and convert the site to a terminal. Petroplus is committed to help impacted employees and has proposed a job protection plan intended to mitigate the effects on them through measures such as assistance in securing new jobs, severance packages, and early retirements. Petroplus will continue to provide updates as this process continues.
Petroplus Holdings AG is the largest independent refiner and wholesaler of petroleum products in Europe. Petroplus focuses on refining and currently owns and operates six refineries across Europe: the Coryton Refinery on the Thames Estuary in the United Kingdom; the Belgium Refining Corporation Refinery in Antwerp, Belgium; the Petit Couronne Refinery in Petit Couronne, France; the Ingolstadt Refinery in Ingolstadt, Germany; the Reichstett Refinery near Strasbourg, France; and the Cressier Refinery in the canton of Neuchtel, Switzerland. The refineries have a combined throughput capacity of approximately 752,000 barrels per day.
October 22, 2010 at 12:52 pm #5459
The EU Refining consolidation/saga continues and here is another EU Refinery for S/D and conversion to terminal. Both the Petroplus 85MBD Reichstett Asphalt refinery near Strasberg was acquired from Shell in 2007 along with the 154MBD Pertit Couronne Refinery near Paris for total $475MM.
Petroplus had to shut the Reichstett Refinery in Sept 2009 due lack crude / ruptured 40inch crude P/L, the Fos-sur-Mer Port strike in Dec 2009, but has avoided problems with the French Union strike Oct 2010 at Fos Laverna Oil terminal — all of these have probably not helped Petroplus economic decision process for this refinery to survive.
India’s Essar was looking at several EU German refining plants at one time but Petroplus French Reichstett plant was not on their purchase list – or anyone else’s evidently.
October 22, 2010 at 12:53 pm #5458
The continued closure of Asphalt refineries combined with those installing cokers will put pressure / decrease coker margins going forward.
This assumes they actually operate the unutilized new coker capacity – ie US @ same coke production levels since 2004 despite +5MM new capacity.
Espcially in light of growing demand in both Asphalt & Fuel Oil at time when market surplus and base supplies have been removed in a global pattern.
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