🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Factbox-French strikes hamper refining, LNG imports

Published 23/03/2023, 12:26
© Reuters. FILE PHOTO: French energy workers on strike raise their hands in approval to vote on wether to continue their strike to protest against French government's pension reform plan in front of the oil giant TotalEnergies refinery in Donges, France, March 16, 2
FOS
-

By Forrest Crellin

PARIS (Reuters) - French refineries and depots have had deliveries blocked for more than two weeks, creating a backlog in storage and forcing companies to reduce production.

Liquefied natural gas (LNG) terminals have also been blocked, halting imports at three sites.

The energy sector has been caught up in nationwide protests over government plans to raise France's retirement age by two years and other proposed changes.

Here are the companies and sites affected:

TOTALENERGIES

Strikes have stretched into a 16th day, blocking deliveries of oil products from four TotalEnergies (LON:TTEF) refineries and hitting output at two of them as storage fills.

Production has been stopped as of Tuesday morning at its 240,000 barrel-per-day (bpd) Gonfreville refinery and production is reduced at its 119,000 bpd Feyzin oil refinery in southern France, the company said.

Its La Mede biorefinery, which can process 500,000 tonnes of hydrotreated vegetable oil (HVO) per year, has been shut for maintenance since the week before the strike action started.

Refining has been stopped for several weeks at the 230,000 bpd Donges refinery due to technical reasons, which a company spokesperson previously attributed to a transformer.

EXXONMOBIL

Strikes have also affected ExxonMobil (NYSE:XOM) subsidiary Esso's 140,000 bpd Fos refinery at Fos-sur-Mer where deliveries have been disrupted since March 7, and production is adjusted.

The French government has renewed the order to requisition staff to ensure the functioning of the Fos-sur-Mer petrol depot on Thursday morning, an energy ministry spokesperson said on Thursday.

A requisition order has also been prepared for the Gonfreville site in northern France, but the formal notification has not been issued at this stage, the spokesperson added.

A strike resumed on March 18 at the 240,000 bpd Port Jerome-Gravenchon in northern France, where deliveries are also blocked and production is reduced according to the supply of crude oil from the Le Havre terminal.

ENGIE

Deliveries of LNG to Engie subsidiary Elengy's three terminals have been blocked since March 7. The strike was renewed on March 20 and will stretch until March 27, when another general assembly will vote on a possible extension.

FLUXYS

© Reuters. FILE PHOTO: French energy workers on strike raise their hands in approval to vote on wether to continue their strike to protest against French government's pension reform plan in front of the oil giant TotalEnergies refinery in Donges, France, March 16, 2023. REUTERS/Stephane Mahe

Force majeure was declared at the Dunkirk LNG terminal in northern France after disruptions resumed Thursday morning, which are supposed to last until early Friday, restricting delivery capacity to 70 gigawatt-hours per day (GWh/d).

A general meeting will be held with workers around noon Friday to decide if the strike will be renewed, a union source said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.