- Refining operations in Matosinhos will cease in 2021.
- Annual cost savings and CO2 reductions are estimated at €90m and 900 kton, respectively.
- The book value of decommissioned Matosinhos assets is estimated at €200m.
- Sines site improvements include advanced biofuels and cleaner products.
Operational Changes
The structural changes in oil products demand patterns, driven by the regulatory context in Europe and the effects caused by the COVID-19 pandemic, have significantly impacted downstream industrial activities. After thoroughly assessing the alternatives, refining operations in Matosinhos will cease from 2021, with core refining activities and future developments concentrated in Sines.
Labour and Supply Management
While managing appropriate solutions for the necessary labour reduction, the company will continue to supply the regional market by maintaining all key Matosinhos import, storage, and distribution facilities. Alternative uses for the Matosinhos site are also being assessed.
Financial and Environmental Impact
The system reconfiguration is expected to reduce average annual fixed costs and recurrent capex by over €90 million per year. Additionally, it will contribute to an annual reduction of approximately 900 kton of CO2e emissions (scope 1 and 2). The book value of the Matosinhos assets to be decommissioned is estimated at around €200 million.
Future Developments in Sines
The focus will be on enhancing the resilience and competitiveness of the Sines industrial site, which has a crude processing capacity of 220 kbpd and is equipped with deep conversion units. Solutions are being analyzed to improve Sines’ energy and process efficiency and to integrate the production of advanced biofuels and other cleaner and more valuable products. Potential investments will be supported by the restructuring savings and energy transition support mechanisms.
