Greece may struggle to maintain its customary level of diesel exports to its Mediterranean neighbours unless it can find an alternative feedstock to semi-processed Russian gasoil.
Before the EU's ban on Russian oil product imports came into force earlier this year, Greek refiners — Motor Oil Hellas (MOH) in particular — occupied a niche role in the Mediterranean diesel market by upgrading higher-sulphur gasoil from Russian Black Sea refineries into road diesel and exporting the finished product elsewhere in the Mediterranean, according to market participants.
Vortexa data show MOH imported 2.5mn t of Russian gasoil last year and over the same period exported 3.9mn t of gasoil from its terminal in Agioi Theodoroi, adjacent to its 180,000 b/d Corinth refinery. MOH's exports accounted for nearly two-thirds of all Greek gasoil loadings in 2022, most of which was finished road diesel heading to other Mediterranean ports.
Since EU sanctions cut off the supply of Russian gasoil to Europe in February, Greek refiners have had to rely on their stockpiles of semi-processed gasoil to sustain finished diesel exports. Greece reported to Eurostat that around 360,000t of "refinery feedstock" inventory was depleted between February and March this year. The country has in the past classified semi-finished gasoil as refinery feedstock in its national statistics.
There is no sign that Greek refiners have managed to source a sufficient alternative to Russian gasoil. Greece only imported 306,000t of gasoil by sea in February and March, according to Vortexa, less than half the amount it received in the same period last year when as much as 510,000t arrived from Russia alone. The country received even less in May and June, during which time Greece's diesel production and exports were also hindered by maintenance at the Corinth refinery.
Greece exported 1.28mn t of diesel and gasoil in February and March, according to Vortexa, half of it from MOH. This is roughly the same as in December and January, before sanctions stopped the feedstock supply from Russia. But in May and June, only 770,000t loaded. Although the maintenance at Corinth partly explains the recent drop, a return to earlier export volumes appears unlikely without a new source of ‘feedstock' gasoil.
Greece accounted for around 5-10pc of diesel arriving at Mediterranean ports in 2022, which means a sustained decline could significantly impact regional supply.
| Greek diesel exports | tonnes | |||
| May-Jun '23 | Feb-Mar '23 | Dec '22-Jan '23 | Feb-Mar '22 | |
| Greek gasoil import arrivals by sea: Vortexa | ||||
| Total | 220,000 | 310,000 | 910,000 | 720,000 |
| From Russia* | 0 | 80,000 | 740,000 | 510,000 |
| Greek gasoil export loadings by sea (including diesel): Vortexa | ||||
| Total | 770,000 | 1,280,000 | 1,310,000 | 810,000 |
| Greek domestic statistics: Eurostat | ||||
| Change in feedstock inventory | n/a | -361,000 | 100,000 | -100,000 |
| Feedstock imports | n/a | 521,000 | 1,058,000 | 679,000 |
| Diesel exports | n/a | 850,000 | 852,000 | 600,000 |
| Vortexa, Eurostat | ||||
| *The Russian gasoil in February all arrived before the EU ban came into effect on 5 February. | ||||
| Some of the products classified as 'refinery feedstocks' in Greek national statistics reported to Eurostat appear to be gasoil designated for further refining. This material appears to be excluded from the 'gasoil' statistics. | ||||
