Sign up: register@panafrican.email

European oil refining struggles amid development of African and Middle East refineries: reports



Refining in the G7 countries is in a depression, blamed on low demand, probably driven by the green agenda, and high competition from African and Middle Eastern refiners.

European energy companies such as TotalEnergies, Neste and Repsol are losing profits from their refineries. Underlying profitability at EU refineries fell 37% in the second quarter compared with the first three months of the year, Reuters writes, citing Western media reports.

For example, France’s TotalEnergies reported a 34% drop in quarterly operating profit from its refining and chemicals business, due to lower profits from refining crude oil into fuels such as diesel, gasoline and jet fuel.

European refining, which has long been under pressure from foreign competitors, was given a window of opportunity after the EU banned imports of refined products from Russia.

However, a slowdown in the EU economy and the commissioning of new refineries in Africa and the Middle East, such as the Dangote refinery in Nigeria  – the largest in Africa – have added to the pressure on the sector.

Meanwhile, US refiners are also expected to report a sharp drop in second-quarter profits after a sluggish summer driving season, according to Reuters.

Leave a Reply

Your email address will not be published. Required fields are marked *