It is an ill wind that doesn't blow someone some good, and so it is with the French Refinery Strike. As the workers in three refineries vote to return to work and the focus is on the losses to the French economy, its useful to remember that not everyone has lost out.
In comparison to the third quarter, refining margins in the Mediterranean are up in the fourth quarter, from 2.7 to 4.22 dollars a barrel.
France has 12 refineries with about 1.8 Million barrels per day of refining capacity. This is only about 2% of the global total, but the impact of the loss of this production has been significant. Although the return to work at Exxon's two refinieries and at one of Petroplus's is a move forward, it will take some time for the effected plants to get back to normal. Meanwhile there is more bad news from Petrolplus concerning the Reichstett Refinery .
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.
Not really a surprise but another indication of the state of the market.
The good news is that with stocks lower, and better margins all round, the 4th quarter could be a good one for the sector.
Details of French Refineries
- Donges Refinery, (Total), 231,000 bpd
- Feyzin Refinery, (Total), 119,000 bpd
- Flandres Refinery, (Total), 160,000 bpd - Closed
- Gonfreville l'Orcher Refinery (Total), 343,000 bpd
- Grandpuits Refinery, (Total), 99,000 bpd
- Provence Refinery, (Total), 155,000 bpd
- Berre L'Etang Refinery, (LyondellBasell), 80,000 bpd
- Fos sur Mer Refinery, (ExxonMobil), 140,000 bpd
- Lavera Marseilles Refinery, (Ineos), 220,000 bpd
- Petit Couronne Refinery, (Petroplus), 142,000 bpd
- Port Jerome Gravenchon Refinery, (ExxonMobil), 270,000 bpd
- Reichstett Refinery, (Petroplus), 85,000 bpd - To Be Closed