French refinery strikes enter seventh day

Market: Biofuels, Crude oil, Oil products, Petrochemicals
14/03/23

Strikes at French refineries, fuel depots and petrochemical sites have extended into a seventh day as nationwide protests against government plans to reform pension rights rumble on. But with storage tanks filling up, some oil products are now being allowed to leave refineries.

Industrial action is continuing at TotalEnergies' three French refineries — the 219,000 b/d Donges, 109,300 b/d Feyzin and 246,900 b/d Gonfreville plants — as well as the firm's 500,000 t/yr La Mede hydrotreated vegetable oil (HVO) site, Flanders logistics depot and Carling petrochemicals unit.

Strikes are also continuing at ExxonMobil's 133,000 b/d Fos refinery and UK-Chinese venture Petroineos' 207,100 b/d Lavera refinery. Staff at ExxonMobil's 236,000 b/d Port Jerome refinery and adjacent Gravenchon petrochemical plant returned to work last week.

The refineries have continued producing during the strikes but workers have been stopping product from leaving the sites. The blockades have left storage tanks full, and workers said today they are now allowing some "spot movements of products, so we can keep the refineries running at their minimum levels".

Staff voted to halt operations at Feyzin last week, but have not done so following a meeting with management.

Meanwhile, dockers at the French Mediterranean port of Fos-Lavera have extended a proposed three day-stoppage that started at 22:00 GMT on 13 March. Their strike will now continue until 20 March, halting all crude and product discharge and loading schedules. It is possible harbour masters will strike too, although the situation is not clear. If harbour masters do down tools, it will mean no vessels can move at the port or its anchorage.

A backlog of crude is either waiting at Fos-Lavera or signalling arrival. Around 1mn bl of Caspian CPC Blend arrived at the port last night but cannot discharge. According to Argus tracking, another 6mn bl is signalling arrival including two very large crude carriers (VLCCs) carrying around 2mn bl each of US WTI Midland and Angolan Olombendo, respectively. A smaller 180,000 bl cargo of Italian heavy crude has been waiting at the port since 25 February.

France's CGT union said it will have a national assembly on 16 March, when the direction of the strikes will be discussed and votes taken.

By Adam Porter

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