- Operations halted from November 25, 2024, due to lack of viable feedstock.
- Operational costs rose over 25% in four years due to inflation.
- SAF facility with VARO Energy to complete FEED phase by year-end.
Temporary Shutdown
Gunvor Group has temporarily ceased operations at its 75,000 bpd refinery in Rotterdam, effective November 25, 2024. This decision is due to a lack of commercially viable feedstock, reflecting ongoing global refining market pressures.
Market Challenges
The company conducted a thorough evaluation of the refinery's financial outlook, considering current market dynamics in Europe and globally. Structural pressure on refining margins in Europe, new large-scale refining capacity in Africa and the Middle East, and a significant rise in operational costs—over 25% in the past four years due to inflation—have made continued operation economically unsustainable.
Continued Operations
Despite the shutdown, Gunvor will maintain other activities at the Rotterdam site, operating it as a trading terminal. Energy transition projects, including a joint venture with VARO Energy for a Sustainable Aviation Fuel (SAF) production facility, will proceed unaffected. The FEED phase for this project is expected to conclude by the end of the year.
Future Considerations
Gunvor acquired the Rotterdam refinery from Kuwait Petroleum International in 2016 and previously closed two crude distillation units in 2020. The company will continue to monitor the market situation and assess future feedstock resupply for the refinery.
