European refining suits some as sales go ahead

The gems among the 12 or so refineries for sale in Europe are being snapped up – but by new entrants

While Europe’s established refiners, mostly the majors, are rushing to reduce their exposure to the troublesome downstream business, new entrants are circling – and picking up assets at bargain prices. In March, Valero – the largest independent downstream specialist in the US – reached an agreement to buy the Pembroke, UK, refinery from Chevron; while India’s Essar sealed its earlier bid to buy the Stanlow, UK, refinery from Shell. Last month, commodity investment group Klesch was reported to be close to buying the Lindsey, UK, refinery from Total. Valero and Essar will pay only a small fraction of the costs of building the facilities they have acquired. Valero is to pay $480m for the Pembro