Eni Plans to Turn Gela Refinery into Technological Hub

Italy-based Eni announced a project for the renovation and recovery of the Gela refinery, reads a note released on Tuesday.

“The recovery project will turn the Gela refinery into technological hub,” reads the note.

Eni intends to re-launch the refinery betting on technological innovation and research. The company led by Paolo Scaroni says to follow a substantially different strategy with respect to its competitors.

“Eni, unlike other European oil companies that are closing their refineries in Europe (15 have closed since 2008) in favour of investments in Asia and the Middle East, has decided to tackle the difficult economic situation without relocating, but rather by investing in the reorganisation of Italian sites experiencing a time of crisis,” reads the note. 

“The refining industry is experiencing a structural crisis in Europe, particularly in the Mediterranean. The fall in demand for oil products has created excess capacity of approximately 100 million tons per year, equivalent to 1.5 times the entire annual consumption in Italy. This has resulted in a change in refinery utilisation rates from 95% in 2005-2008 to the current 70% and a simultaneous fall in refining margins, causing significant losses for the industry,” explains the note.