Neste confirms Naantali to stop refining by March 2021

Market: Oil products
30/11/20

Finnish refiner Neste has concluded negotiations over the future of its two refineries in Finland and has confirmed that the 55,000 b/d Naantali refinery will cease operating by March 2021.

Neste is transitioning to focus on terminal and port operations at the Naantali site. The second stage of the "transformation" will involve converting the 197,000 b/d Porvoo refinery to co-process crude oil and renewable feedstocks. The plans were first announced in September.

Neste says the conversion of the Porvoo refinery will allow it to save roughly €50mn ($59.7mn) a year in fixed costs. The planned changes will result in about 370 redundancies, but some new jobs will be created.

"The Covid-19 pandemic has accelerated the decline in demand for oil products, which is not expected to recover to previous levels," the company said in a statement. "Fundamental changes are therefore required to secure the competitiveness of Neste's oil products business."

Refiners across Europe are taking steps to reduce their crude processing capacity in light of falling products demand this year. Sweden's Preem has already begun converting its 220,000 b/d Lysekil refinery to co-process crude and renewables. Total will convert the 93,000 b/d Grandpuits refinery near Paris to process biofuels only. Trading firm Gunvor has mothballed its entire 115,000 b/d Antwerp refinery, while UK-Chinese joint venture Petroineos and Spain's Cepsa have done the same with individual distillation units.

By Benedict George

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

06/05/25

US EIA will not release international outlook in 2025

Washington, 6 May (Argus) — The US Energy Information Administration (EIA) no longer expects to publish one of its major energy reports this year after losing some of its staff through President Donald Trump's efforts to downsize the federal workforce. The EIA does not plan to publish its International Energy Outlook (IEA) — which models long-term global trends in energy supply and demand — this year because of a loss of staff responsible for producing the report, according to an internal email initially reported by the news outlet ProPublica . The EIA confirmed the authenticity of the email. "At this point, you can assume that we will not be releasing the IEO this year," the EIA's Office of Energy Analysis assistant administrator Angelina LaRose wrote in the 16 April email. "This was a difficult decision based on the loss of key resources." Oil and gas producers, traders, utility companies, federal regulators and foreign governments have come to rely on the data and models from the EIA, an independent agency within the US Department of Energy. The 2025 version of the IEO might still be published early next year, the EIA said. The agency for now is focusing on trying to "preserve as much institutional knowledge as possible" with an "all hands-on deck" effort under which remaining staff will document models and procedures on long-term modeling, LaRose wrote in the email. Trump and his administration have worked to cut the size of the government's workforce through voluntary buyouts and a process known as a reduction in force. The EIA has yet to say how many personnel it has lost, but about a third of the agency's 350 staffers have accepted voluntary buyouts, according to a person familiar with the situation. The White House last week proposed an 18pc budget cut for the non-nuclear portions of the Department of Energy, but has yet to say if it is seeking to cut spending at the EIA. Last month, the EIA released its premier report, the Annual Energy Outlook , but omitted its traditional in-depth analysis. A technical issue on 1 May delayed the release of a key natural gas storage report by more than three hours, the EIA said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Mexico's manufacturing contraction deepens in April

05/05/25

News

05/05/25

Mexico's manufacturing contraction deepens in April

Mexico City, 5 May (Argus) — Activity in Mexico's manufacturing sector shrank for a 13th straight month in April, with declines accelerating in production and new orders, according to a survey of purchasing managers. The manufacturing purchasing managers' index (PMI) fell to 45.5 in April from 46.9 in March, finance executives' association IMEF said, moving further below the 50-point threshold that separates growth from contraction. US tariffs imposed since March are adding pressure to Mexico's manufacturing sector, which makes up about a fifth of the national economy. The auto industry, responsible for roughly 18pc of manufacturing GDP, may be the hardest hit by the new measures, including a 25pc tariff on auto parts that took effect 3 May. Mexico remains the top exporter of vehicles to the US, supplying 23pc of all US auto imports in 2024. But IMEF said tariffs compound broader, mostly domestic headwinds, including reduced public spending and investor uncertainty stemming from sweeping legal and regulatory reforms. New investment has stalled since late 2024. The PMI index for new orders fell by 2.5 points to 41.8, the lowest since June 2020. Production dropped by 2.5 points to 43.6, while employment fell by 0.6 point to 46.4. New orders and production have now been in contraction for 14 straight months, and employment for 15. Inventories saw the steepest drop in April, falling 4 points to 46.3 — sliding from expansion to contraction — as manufacturers accelerated shipments after tariff implementation dates were confirmed. IMEF's non-manufacturing PMI — which covers services and commerce — remained in contraction for a fifth consecutive month but edged up by 0.5 points to 49.0 in April. Within that index, new orders rose by 0.6 points to 48.1, employment increased 1.3 points to 48.6 and production held steady at 47.5. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Alcmene withdraws ExxonMobil Miro shares offer

05/05/25

News

05/05/25

Alcmene withdraws ExxonMobil Miro shares offer

Hamburg, 5 May (Argus) — Austrian company Alcmene has withdrawn from its plans to buy ExxonMobil's share in German refining joint venture Miro. Alcmene told ExxonMobil of the withdrawal on 29 April, putting an end to a drawn-out sales process. ExxonMobil agreed in October 2023 to sell its 25pc stake in Miro, which operates the 310,000 b/d Karlsruhe refinery in Germany. The sale was initially put on hold by a court order following a petition by fellow shareholder Shell in April 2024. The court in Karlsruhe dismissed ExxonMobil's appeal in the final instance in July, prohibiting the company from selling its stakes without prior agreement by Shell. Shell holds 32.25pc in the venture, Russian state-controlled Rosneft has 24pc and US firm Phillips 66 has 18.75pc. Rosneft's German business has been under state trusteeship since September 2022. Rosneft plans to sell all of its German assets. By Natalie Müller and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Sunoco to buy Canadian fuel distributor Parkland:Update

05/05/25

News

05/05/25

Sunoco to buy Canadian fuel distributor Parkland:Update

Adds details on proxy fight, other background. Houston, 5 May (Argus) — US infrastructure operator and fuel distributor Sunoco said it will buy Canadian refiner and fuel retailer Parkland in a $9.1bn cash and stock deal. The deal comes as Parkland faces a proxy fight from its largest shareholder Simpson Oil, which was calling for a vote to change the board of directors at a now-cancelled 6 May shareholder meeting. The agreement with Sunoco "creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas," said Michael Jennings, executive chairman of Parkland. The transaction will further diversify Sunoco's portfolio and geographic footprint and increase cash flow generation for reinvestment and distribution growth, Sunoco and Parkland said. Parkland owns about 4,000 retail and commercial locations in Canada, the US and the Caribbean region, as well as the 55,000 b/d refinery in Burnaby, British Columbia. The refinery produces conventional oil products and has 4,000 b/d of co-processing capacity, meaning both petroleum and biogenic feedstocks are used. Sunoco said it is committed to continue investment in the refinery which supplies fuel to southwestern BC, including the Vancouver area. Under the deal, Sunoco will keep a Canadian headquarters in Calgary and "significant employment levels" in Canada, the companies said. The transaction is expected to close in the second half of the year. Sunoco is part of the Dallas-based Energy Transfer family of companies but is publicly traded under its own ticker symbol. Parkland has planned a special meeting of its shareholders on 24 June, to approve the transaction. The annual general meeting of Parkland shareholders, which was originally scheduled for 6 May has been cancelled. Proxy fight building before deal Parkland in March said it was conducting a review of strategic alternatives including a possible sale of the company. The review was led by a special committee of the board of directors. Parkland long-time chief executive Bob Espey announced on 16 April that he would step down sometime this year with the timing depending on the completion of the strategic review or the appointment of a new chief executive. Simpson Oil, which holds about 20pc of Parkland shares, called for a strategic review of Parkland in 2024 and re-iterated its concerns in a letter to the Parkland board of directors in February. Parkland and Simpson Oil have been mired in a dispute related to a 2019 governance agreement. Simpson Oil said on 2 May that it had the support of more than 60pc of Parkland's shareholders which would enable it to take control of the Parkland board of directors. An official vote would have taken place at the now-cancelled shareholders meeting. Simpson Oil on Monday urged Parkland to "respect the democratic process" and allow the 6 May shareholders meeting to proceed as scheduled. "Delaying the meeting and pushing forward with any transaction ahead of board transition represents a clear breach of fiduciary duty—an obvious attempt to cling to power and sidestep shareholder will," Simpson Oil said in a press release. Simpson Oil also called for all 11 incumbent directors to resign immediately. In 2023, activist investor hedge fund Engine Capital said that Parkland should consider shedding assets "that create unnecessary complexity and detract from its underlying value." Engine Capital said at the time that the Burnaby refinery is a "volatile and more capital-intensive refinery" that should be sold or spun off. Parkland last year sold its Canadian commercial propane business to Avenir Energy for C$115mn. Sunoco, meanwhile, has been growing its footprint in North America. The company [last year acquired] (https://direct.argusmedia.com/newsandanalysis/article/2530270) pipeline and terminal operator NuStar Energy for $7.3bn. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Sunoco to buy Canadian fuel distributor Parkland

05/05/25

News

05/05/25

Sunoco to buy Canadian fuel distributor Parkland

Houston, 5 May (Argus) — US firm Sunoco agreed to buy Canadian fuel distributor and retailer Parkland in a deal valued at $9.1bn, the companies said Monday. Sunoco, an energy infrastructure and fuel distribution company, will acquire all outstanding shares of Parkland in a cash and equity transaction. This deal "creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas," said Michael Jennings, executive chairman of Parkland. The transaction will further diversify Sunoco's portfolio and geographic footprint and increase cash flow generation for reinvestment and distribution growth, the companies said. Parkland owns a 55,000 b/d refinery in Burnaby, British Columbia, which produces conventional oil products and has 4,000 b/d of co-processing capacity, meaning both petroleum and biogenic feedstocks are used. Sunoco said it is committed to continue investment in the refinery which supplies fuel to southwestern BC, including the Vancouver area. Parkland owns about 4,000 retail and commercial locations in Canada, the US and the Caribbean region. Under the deal, Sunoco will keep a Canadian headquarters in Calgary and "significant employment levels" in Canada, the companies said. The transaction is expected to close in the second half of the year. Parkland has planned a special meeting of its shareholders on 24 June, to approve the transaction. The annual general meeting of Parkland shareholders, which was originally scheduled for 6 May has been cancelled. Parkland in March said it was conducting a review of strategic alternatives including a possible sale of the company. The review was led by a special committee of the board of directors. Parkland last year sold its Canadian commercial propane business to Avenir Energy for C$115mn. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more