Fires and strikes leave French refining in disarray

France's beleaguered downstream sector is experiencing significant disruption as fire damage at two of TotalEnergies' refineries coincides with industrial action by ExxonMobil workers.

Three of France's six refineries, accounting for around 40pc of the country's 1.15mn b/d refining capacity, are either shut or in the process of shutting down, while LPG production is affected at a fourth refinery. The shutdowns are likely to increase French demand for refined product imports at a time when Europe is trying to wean itself off Russian supplies.

Workers at TotalEnergies' 103,900 b/d Feyzin refinery in eastern France told Argus today that a fire broke out in the crude distillation unit on 16 September, leading to a full shutdown. Two employees and a sub-contractor were injured in the blaze.

Separately, a leak has been detected at the refinery's fluid catalytic cracker (FCC), with workers saying the unit will be shut "for a long time". They claim it confirms the poor state of the FCC's metallurgical equipment, "which has been complained about for a long time".

France's CGT trade union said it expects Feyzin to be shut for 4-6 weeks. The refinery receives seaborne crude feedstock via the port of Fos-Lavera, and Argus tracking shows only two crude tankers have called at the terminal for TotalEnergies this month.

Separately, workers at TotalEnergies' 246,900 b/d Gonfreville refinery said a butane and propane production unit has been shut because of a fire. Gonfreville only resumed crude runs in June 2021 following an explosion at the end of 2019. TotalEnergies has had a string of operational issues at its domestic refineries in recent years. There was a fire at Feyzin last October, a fire at the 219,000 b/d Donges refinery in May, as well as cracks in crude pipelines in 2019-21.

Strike impact

The latest problems at Feyzin and Gonfreville coincide with shutdowns at both of ExxonMobil's French refineries caused by workers going on strike in a dispute over pay. The firm's 236,000 b/d Port Jerome refinery and adjacent Gravenchon petrochemicals plant have already shut down as a result of the industrial action, and operations at the company's 133,000 b/d Fos refinery are in the process of being halted, the CGT said. The union claims ExxonMobil's management has refused to hold talks over wages. Another general assembly of workers will be held at Port Jerome later today.

Crude tankers may be delaying discharge for ExxonMobil at the Fos-Lavera terminal, according to Argus tracking. The Seavision arrived on 17 September with 1mn bl of Caspian CPC Blend but is not slated to unload until 30 September at the earliest. And the Delta Mariner arrived on 21 September with 1mn bl of Nigerian grade Usan but is not expected to discharge until 2-4 October.

By Adam Porter