Between incidents and transitions, the future of French refineries in question

French refineries are facing technical problems and declining demand, highlighting the tensions in a sector in the midst of an ecological transition.

Share:

raffineries françaises défis 2024

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

French refineries are facing incidents and falling demand, impacting employees in a fast-changing sector. The Donges refinery, managed by TotalEnergies, was shut down in February due to corrosion and leaks. Eric Sellini, CGT coordinator at TotalEnergies, criticizes the lack of preventive maintenance. Management, represented by Jean-Marc Durand, refutes these accusations, assuring us that safety and maintenance are top priorities. A recovery is expected in early April, marking an effort to overcome these challenges. In addition, a fire broke out at the Esso-ExxonMobil refinery in Port-Jérôme on March 11, causing five minor injuries. According to the CGT, this incident is not directly linked to a lack of maintenance. However, CGT delegate Germinal Lancelin points to industrial disinvestment. These events highlight the challenges of safety and investment in the sector.

The challenge of competitiveness

The competitiveness of French refineries is being challenged by the high cost of energy, particularly gas and electricity. Olivier Gantois of Ufip points out that natural gas prices are significantly higher than before the pandemic. Jean-Marc Durand mentions that TotalEnergies strives to reduce its energy consumption in order to remain competitive. This difficult context is exacerbated by falling demand for petroleum products.

Investments and reconversions

TotalEnergies plans to invest 350 million euros in a new plant at Donges to meet European specifications. This plan contrasts with the general trend to convert refineries into bio-refineries, such as the projects at La Mède and Grandpuits. These conversions, however, led to a reduction in headcount, from around 400 to 250 employees per site. A potential conversion project is also being studied for the Feyzin refinery.

An industry in transition

According to Olivier Gantois, the refining industry will have to adapt to a changing market, with the possibility of processing a mixture of oil and biomass in the future. Despite the IEA’s Net Zero Emission scenario, France could still have refineries in operation in 2050. This vision reflects an industry in full evolution, seeking to reconcile ecological imperatives with economic and social realities.

Recent incidents and competitiveness challenges underline the complexity of maintaining a viable refining industry in France. Between the need for investment, the challenges of ecological transition and the impact on employment, the sector has to navigate between preserving business and adapting to a sustainable energy future.

The removal of two Brazilian refiners and Petrobras’ pricing offensive reshuffle spot volumes around Santos and Paranaguá, shifting competition ahead of a planned tax increase in early 2026.
Shell Pipeline has awarded Morrison the construction of an elevated oil metering facility at Fourchon Junction, a strategic project to strengthen crude transport capacity in the Gulf of Mexico.
An arrest warrant has been issued against Timipre Sylva over the alleged diversion of public funds intended for a modular refinery. This new case further undermines governance in Nigeria’s oil sector.
With only 35 days of gasoline left, Bulgaria is accelerating measures to secure supply before US sanctions on Lukoil take effect on November 21.
Russia is negotiating the sale of its stake in Serbian oil company NIS as US sanctions threaten the operations of the company, which plays a key role in Serbia’s economy.
TotalEnergies, QatarEnergy and Petronas have signed a production sharing contract to explore the offshore S4 block in Guyana, marking a new step in the country’s opening to operators beyond ExxonMobil.
India boosts crude imports from Angola amid tightening U.S. sanctions on Russia, seeking low-risk legal diversification as scrutiny over cargo origins increases.
The shutdown of Karlshamn-2 removes 335 MW of heavy fuel oil capacity from southern Sweden, exposing the limits of a strategic reserve model approved but inoperative, and increasing pressure on winter supply security.
The Bulgarian government has increased security around Lukoil’s Burgas refinery ahead of a state-led takeover enabled by new legislation designed to circumvent international sanctions.
Faced with US sanctions targeting Lukoil, Bulgaria adopts emergency legislation allowing direct control over the Balkans’ largest refinery to secure its energy supply.
MEG Energy shareholders have overwhelmingly approved the acquisition by Cenovus, marking a critical milestone ahead of the expected transaction closing later in November.
Petrobras reported a net profit of $6 billion in the third quarter, supported by rising production and exports despite declining global oil prices.
Swiss trader Gunvor has withdrawn its $22bn offer to acquire Lukoil’s international assets after the US Treasury announced it would block any related operating licence.
The Trump administration will launch on December 10 a major oil lease sale in the Gulf of Mexico, with a second auction scheduled in Alaska from 2026 as part of its offshore hydrocarbons expansion agenda.
The US group increased its dividend and annual production forecast, but the $1.5bn rise in costs for the Willow project in Alaska is causing concern in the markets.
Canadian producer Saturn Oil & Gas exceeded its production forecast in the third quarter of 2025, driven by a targeted investment strategy, debt reduction and a disciplined shareholder return policy.
Aker Solutions has secured a five-year brownfield maintenance contract extension with ExxonMobil Canada, reinforcing its presence on the East Coast and workforce in Newfoundland and Labrador.
With average oil production of 503,750 barrels per day, Diamondback Energy strengthens its profitability and continues its share buyback and strategic asset divestment programme.
International Petroleum Corporation exceeded its operational targets in the third quarter, strengthened its financial position and brought forward production from its Blackrod project in Canada.
Norwegian firm DNO increases its stake in the developing Verdande field by offloading non-core assets to Aker BP in a cash-free transaction.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.