BAKU, Azerbaijan, March 28. Analysts from Wood Mackenzie have pinpointed that 21 percent out of the 465 refineries worldwide are facing the risk of closure, Trend reports.
According to WoodMac, this is due to the declining gasoline margins and the increasing pressure to cut emissions, a situation that's intensifying every passing day.
The bulk of these high-risk refineries are situated in Europe and China, putting approximately 3.9 mb/d in jeopardy, as per WoodMac's estimations. Nearly half of these facilities are concentrated in 11 European locations.
Over the last 15 years, about 30 refineries in Europe have ceased operations, unable to compete with the newer and more advanced plants emerging in Asia and the Middle East.
Looking ahead, WoodMac predicts that by 2030, the margins for gasoline will continue to shrink alongside diminishing demand and the gradual easing of Western sanctions against Russia.
Adding to the pressure on European refineries is the upcoming full-scale operation of the massive Dangote refinery in Nigeria, with a capacity of 650,000 b/d. This new refinery could disrupt the decade-long trade of gasoline from Europe to Africa, valued at approximately $17 billion annually.
Furthermore, seven small independent refineries in China have made it onto the "red" list. These smaller players face stricter government regulations and must compete with larger, typically state-owned and better-equipped counterparts.
