<article><p class="lead">ExxonMobil has told <i>Argus</i> that its stopped operations at its 120,000 b/d Slagen refinery in Norway in June.</p><p>The company said in April that it would <a href="https://direct.argusmedia.com/newsandanalysis/article/2209768">permanently shut the refinery</a> over the summer, saying continued operation "is not economically viable over the long term" because of "strong competition, evolving regulatory measures, and falling demand."</p><p>Around 60pc of Slagen's products were exported. Its closure leaves state-controlled Equinor's 200,000 b/d Mongstad plant as Norway's only refinery.</p><p>Slagen is the fifth European refinery to halt completely since the Covid-19 pandemic, bringing the lost crude distillation capacity to more than 600,000 b/d. TotalEnergies halted its 93,000 b/d Grandpuits refinery in France, and will convert it to process pure renewable fuels. Portugal's Galp and Finland's Neste have permanently stopped their respective 110,000 b/d Porto and 55,000 b/d Naantali refineries to focus on products imports. </p><p>Trading firm Gunvor has long-term mothballed its 115,000 b/d Antwerp refinery, and UK-Chinese Petroineos has done the same with one crude distillation unit (CDU) at the 210,000 b/d Grangemouth refinery. Gunvor has also permanently stopped both CDUs at its 80,000 b/d Europoort refinery in Rotterdam, though it continues to run secondary units.</p><p>Europe's refineries have for years been contending with competition from producers in the Middle East and Asia-Pacific, where capacity continues to grow rapidly, while local fuel demand growth slows. Gasoline and diesel vehicles comprised just 62pc of <a href="https://direct.argusmedia.com/newsandanalysis/article/2237104">new car sales in the EU</a> in the second quarter of this year, down from more than 80pc a year earlier.</p><p class="bylines">By Benedict George</p></article>
