Galp Sines Refinery among Europe's most competitive and resilient
- Sines ranks 9th among standalone European refineries and 11th including petrochemical-integrated facilities.
- Wood Mackenzie finds 21% of global refining capacity faces high closure risk by 2035, with Europe accounting for 60% of assets at risk.
- Galp is investing €650 million to convert Sines into a Green Energy Hub, including a 100MW electrolyser and a 270,000 t/y HVO/SAF unit.
- Sines’ configuration yields >45% middle-distillate output and benefits from deep-conversion units and Atlantic deep-water logistics, aiding margin resilience.
Wood Mackenzie ranking and market context
The 2025 Refining Industry Benchmarking Assessment by Wood Mackenzie places Sines first among nine Iberian refineries, 9th among standalone European refineries and 11th when petrochemical-integrated sites are included, situating it in the top quartile for Europe. The study notes a rising weighted-average net refining margin in 2025 driven by disruptions to Russian product exports and stronger middle-distillate spreads.
Operational strengths
Sines’ competitiveness rests on its deep-conversion configuration (hydrocracking, catalytic cracking, visbreaking), which enables processing of heavier crudes and yields middle distillates representing more than 45% of output. Its Atlantic deep-water port gives logistical flexibility and lower freight costs than inland or Mediterranean refineries, improving access to margin opportunities during global disruptions.
Transformation to a Green Energy Hub
Galp is allocating €650 million to decarbonise and repurpose Sines, building a 100MW green-hydrogen electrolyser that will replace roughly 15,000 tonnes/year of grey hydrogen and an advanced biofuels unit with 270,000 t/year HVO/SAF capacity. Both the green hydrogen and HVO/SAF units are scheduled to reach commercial operation in 2027.
Sector outlook
Wood Mackenzie’s closure-risk update indicates structural pressure on refining: 21% of global capacity faces high closure risk by 2035 due to peak oil demand and rising carbon costs, with Europe the most exposed region. Investments in low-carbon solutions are highlighted as key to maintaining competitiveness.
Source: Galp