French refineries to halt as strikes deepen: Update
Updates throughout
Four out of France's six refineries are stopping operations or plan to stop by 20 March, as industrial action deepens over changes to pension rights.
Workers and union officials say the refineries are shutting in response to the government's decision to force through its new pensions law using a controversial clause of the constitution that allows it to pass regulations without a vote in parliament. It also appears that refineries are running short of crude, as strikes by dockers and port workers hamper discharge.
The contentious passage of the pension reforms on 16 March, which include raising the eligible age to 64 from 62, has triggered widespread strikes and protest action across France today. Roads, ports and railway lines have been blockaded. A string of parliamentary parties have also tabled a no confidence motion in the government of prime minister Elisabeth Borne.
"Anger is rising," one refinery worker said.
TotalEnergies' 219,000 b/d Donges and 246,900 b/d Gonfreville refineries, UK-Chinese refiner Petroineos' 210,000 b/d Lavera plant and ExxonMobil's 207,100 b/d Port Jerome refinery should all be closed by Monday, according to workers. Donges is still running at the moment but workers there voted to extend their strike by another week to 24 March. No deliveries of oil products are leaving the plant.
"With the blockade of deliveries, we will indeed have to stop certain units once maximum stock levels are reached," TotalEnergies said. "But this will be done unit by unit, depending on the situation."
At the French Mediterranean terminal of Fos-Lavera, 4.3mn bl of crude is waiting at the mouth of the port, including around 1.2mn bl of Libyan grades — Mellitah, Sirtica and Amna — 1mn bl of Caspian CPC Blend and 1.9mn bl of Angolan Olombendo. The latter is likely to be split with another port. A small cargo of 200,000 bl of Italian crude has been waiting to unload at Fos-Lavera since 25 February.
The Fos refinery is still operating but at very low run rates. Products are being allowed to leave by striking staff, as storage tanks there are full. "Some products are being let out on a spot basis," workers said. Meanwhile, the Port Jerome refinery near the northern Atlantic port of Le Havre is shutting as it does not have enough crude to maintain throughput, workers said. Refinery staff there had previously voted to return to work. The adjacent Gravenchon petrochemical plant will also halt operations.
No crude appears to have discharged at Le Havre since 10-11 March after a vessel delivered around 700,000 bl of US WTI. Two cargoes are waiting at sea including around 1mn bl of Nigerian Odudu on the Maran Solomon, which has been anchored near Le Havre since the start of the month. A 600,000 bl cargo of Libyan Brega is also waiting.
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