Italy's Eni implements 12-month partial stoppage at Gela refinery

17 April 2012 17:41  [Source: ICIS news]

LONDON (ICIS)--Italy-based energy company Eni on Tuesday announced it will implement a temporary and partial stoppage at its Gela refinery following a fall in demand for petroleum products.

The stoppage will last for 12 months, with the plant scheduled to restart in April 2013. Approximately 500 employees will be affected by the measure, said Eni. Exact dates were not disclosed.

“The situation continues to be of concern, due to a significant contraction in demand for petroleum products, and the surplus of refining capacity, which have led to a collapse in margins,” Eni added.

“In this context, and given the persistence of this challenging scenario, Eni is announcing the need to implement a temporary, partial stoppage at the Gela refinery,” said the company.

Eni said the stoppage will involve the less profitable production cycles for the refining of foreign crude oil and residues, while the refining of domestic crude oil and that in the pipeline will continue.

The company, at a meeting with national and local trade unions on Tuesday, discussed the current environment for the refining sector in Europe, Italy, and particularly the Gela area, it said.

Eni confirmed that the application of safeguards for workers will continue to be provided as part of an agreement signed on 26 May last year and it plans to continue discussions with union representatives in order to define all aspects related to the stoppage and the conservation of the Gela refinery.

During the meeting, Eni also confirmed the restarting of its refinery in Venice for 2 May 2012.

By: Franco Capaldo
+44 (0)20 8652 3214

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