Neste plans to reorient its refinery operations in Finland as fuel demand continues to decline
Neste of Finland recently announced that it plans to permanently close in the processing and production at its refinery in Naantali for terminal operations, along with a reorientation of the company’s Porvoo facilities towards renewable production.
Earlier this week, Neste president and CEO Peter Vanacker stated that “The energy transition is proceeding faster than expected. The forthcoming operating and maintenance investments in the Naantali refinery are not viable nor sustainable in a situation where there is large over-capacity for oil refining globally.” Neste believes that fossil fuel demand will continue to decline, and these changes will be necessary to remain competitive as the company plans to reach carbon neutral production by 2035.
Neste has already delayed a planned expansion at its refinery in Singapore due to the pandemic effect, and this latest step involving the reimagining of the 58,000 barrel per day Naantali refinery into a harbor/terminal focus and the integrated 206,000 barrel per day Porvoo refinery into a complex capable of processing renewable products circular raw material production. The company expects that this latest change in direction will result in annual fixed cost savings of €50 million, or approximately $64 million USD.
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From the April 2018 issue of Hydrocarbon Processing