Total to stop Donges refinery until economics improve

corrects Gonfreville refinery status

Total said today it will halt its 222,000 b/d Donges refinery near France's Atlantic coast for the next few months, until refining economics improve.

The firm said the plant is running at a loss as a result of the Covid-19 crisis. Margins are deteriorating because of the decline in oil demand resulting from the pandemic, it said.

Donges will be shut down from 30 November, French union CGT said.

France started a month-long lockdown at the end of October in an attempt to curb the rapid spread of the Covid-19 virus in the country.

French oil product consumption took a hit during the first spring lockdown, with diesel demand falling by 61.5pc on the year to 271,000 b/d in April, and gasoline demand dropping by 70pc to 61,000 b/d over the same period, according to data from industry association Ufip. Total extended maintenance shutdowns at its 105,000 b/d Feyzin and the 93,000 b/d Grandpuits refineries in France as a result.

Feyzin and Grandpuits restarted in September and June, respectively. But the latter is now down because of a new pipeline issue. Earlier this year, Total took the decision to cease conventional refining at Grandpuits to turn the site into a bio-refinery, as pipeline problems threatened its long-term financial viability.

The crude distillation unit at Total's 240,000 b/d Gonfreville refinery — France's largest refinery — will remain closed until mid-2021 following a fire in December last year, sources said.

The firm said work related to a modernisation project at Donges is continuing.

By Caroline Varin