News

Where will the next refinery closure be?

Published

10 years ago

January 5, 2015

OIL prices may be tumbling, Russia may be brought to its knees, but for Europe’s refineries little has changed. Margins remain as tight as ever, driven by a systemic overcapacity of petrol production and under-production of diesel. Last month, Murco refinery became the latest European refinery to succumb to market pressures. Murco was the third UK refinery to close in the past five years, following the closure of Petroplus’ Coryton refinery in 2012 and Teesside refinery in 2009.

With these three closures the UK has lost 445,000 barrels per day (bpd), one quarter of its refining capacity. And yet, as far as the whole of Europe is concerned, some say the closures to date haven’t gone far enough. Speaking to Process Engineering for our January 2015 cover feature, Wood Mackenzie downstream principal analyst Jonathan Leitch said that his firm’s modeling showed that “by 2018 we need to decrease crude runs in Europe by 1.6 million barrels per day – that’s twelve Milford Havens”.

While he pointed out that the UK’s top refineries are among the most advanced in the world, he also admitted that the closures needed to bring European production back to equilibrium wouldn’t necessarily come at the weakest refineries. “There are some smaller lossmaking refineries where, if they close down that’s the end of their business, and for that reason they continue to operate,” he said. “At the other end, some of the major oil companies may own several refineries across Europe.

The two or three they choose to close down will not be the worst in Europe.” For these reasons, further UK refinery closures cannot be ruled out. Most at risk would appear to be the country’s two smallest refineries. Total tried and failed to sell its 200,000 bpd Lindsey refinery in Killingholme, North Lincolnshire in 2011, and while it has since committed to investing in the plant and keeping it operational, there are worrying echoes of Milford Haven’s situation – like the Pembrokeshire plant, which had the larger, better connected Valero Pembroke refinery for a neighbour, Lindsey too has a local big brother in the form of the 221,000 bpd Phillips 66 Humber refinery.

Meanwhile, there was speculation in the summer that Indian company Essar was trying to sell its Stanlow refinery in Ellesmere Port. The company dismissed talk of a sale as nothing but rumours, but following the mothballing of a crude distillation unit at the plant in September and subsequent closure of Milford Haven, Stanlow is now the country’s smallest refinery at 195,000 bpd, and must therefore be considered at risk in an industry where it is generally the largest, most complex plants that are most likely to survive. No matter what the oil price does, there seems little respite for refiners in the year to come.

Community

Tractor run lights up Pembrokeshire and raises funds for charity

Published

4 hours ago

December 21, 2024

Tom Sinclair

THE PEMBROKESHIRE ILLUMINATED TRACTOR RUN took place today (Dec 21), raising funds for two vital charities: the Catrin Vaughan Foundation and Wales Air Ambulance.

Starting at Clarbeston Road AFC at 6:00pm, the brightly lit convoy of nearly 200 tractors made its way through Withybush Hospital and Haverfordwest High Street before finishing at the Pembrokeshire County Showground.

The annual event has become a highlight of the festive calendar, drawing large crowds to witness the spectacle of tractors adorned with colourful lights and decorations.

Funds raised from the event will support the Catrin Vaughan Foundation, which provides crucial assistance to families facing hardship, and the Wales Air Ambulance, delivering life-saving emergency medical care across the region.

Organisers praised the dedication of local farmers and volunteers, whose commitment ensures the event’s continued success year after year.

(Image: Nia Marshall/Facebook)

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

Published

11 hours ago

December 21, 2024

Tom Sinclair

PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

Community

Festive celebrations at St Davids Cathedral this weekend

Published

12 hours ago

December 21, 2024

Tom Sinclair

ST DAVIDS Cathedral is set to host two special events on Sunday (Dec 22), offering a blend of joyful participation and traditional carol singing to mark the Christmas season.

In the morning, families are invited to the Scratch Nativity at 11:00am. Attendees are encouraged to come dressed as wise men, angels, sheep, or shepherds and take part in an unrehearsed retelling of the Christmas story. Canon Leigh described the event as: “Complete, wonderful chaos for an hour… but with some poignant, thought-provoking moments to centre ourselves on the real meaning of Christmas.”

Later in the evening, the Festival of Nine Lessons and Carols by Candlelight will take place at 7:00pm, featuring the Cathedral Choir. The event, steeped in tradition, will see the cathedral bathed in candlelight as carols and scripture readings fill the historic space.

Doors will open at 5:45pm for those seeking unreserved seating, and a large turnout is expected for this beloved Christmas celebration.