Germany, Italy and Spain are the major contributors in the European crude oil refining industry, as the three countries together account for more than 35% of the active refining capacity among all the countries in the region, according to GlobalData, a leading data and analytics company.
The company's report: ‘Refining Industry Outlook in Europe to 2022' states that in 2017, Europe accounted for 14.1% of the total global refining capacity. Germany, Italy, Spain, UK and the Netherlands are the key countries in Europe, accounting for over 55.1% of the total refining capacity in the region.
In Europe, Germany has the highest active refining capacity of 2,136 thousand barrels per day (mbd) in 2017. The Rheinland refinery has the highest active refining capacity of 325 mbd. Shell Exploration und Produktion Deutschland GmbH is the operator of the refinery. Karlsruhe and Gelsenkirchen follow with refining capacities of 310 mbd and 265 mbd, respectively.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, explains: “Despite negligible domestic crude oil production, Germany has the largest refining capacity in Europe. The country heavily relies on crude oil imports from Former Soviet Union and North Sea for refining. Germany's refining industry currently is at cross roads due to increasing competition from Russian and Asian refiners and stiffening environmental regulations.”
GlobalData identifies Italy as the second highest country in Europe with active refinery capacity of 1,653 mbd in 2017. Melili refinery, a cracking type refinery operated by Lukoil Oil Co, has the highest active refining capacity in the country with 320 mbd. Sarroch and Sannazzaro de Burgondi follow with capacities of 300 mbd and 200 mbd, respectively.
Tejomoortula adds: “Like Germany, Italy's crude production is negligible when compared to consumption. The country mainly depends on imported crude for refining. Italian refiners are also facing stiff competition from international companies and toughening regulatory environment.”
Spain is the region's third highest country in terms of active refinery capacity. The country has a total active refinery capacity of 1,542 mbd from 10 refineries in 2017. Gibraltar-San Roque, operated by Compania Espanola de Petroleos SAU, has the highest active capacity of 241 mbd. Cartagena and Bilbao refineries follow with 220 mbd each.
Albania is the only country in Europe that has a planned refinery called Albania Petrosonic during the outlook period 2018 to 2022. It is expected to start operations in 2018 with capacity of 3 mbd. An estimated capex of $0.1bn is expected to be spent on this upgrader during the outlook period.
Information based on GlobalData's report: Refining Industry Outlook in Europe to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Refineries