Sourcing, refining and logistics

Galp has a competitive refining system connected to an efficient logistics network.

Galp owns an integrated refining system comprising two refineries in Portugal. With a crude processing capacity of 330,000 barrels per day, Galp stands out for its complexity and competitiveness in the European sector.

Galp also operates several maritime terminals and storage facilities in Iberia, and is also developing new maritime terminals in Mozambique.

Refining and logistics portfolio

Sourcing

Galp manages the sourcing of crude oil and other raw materials, taking into account factors such as:

  • Maximising the refining margin.
  • Sourcing diversification strategy.
  • Specifications of the refining system.

Following the refining system upgrade, Galp now has a greater capacity for processing heavier raw materials.

We diversify our crude sourcing by using suppliers from several countries. This policy mitigates potential impacts from possible events, particularly, geopolitical conflicts.

Origin of processed crude in 2017

Refining

Galp has a modern and highly complex integrated refining system.

It consists of the Sines and Matosinhos refineries, which together provide a crude processing capacity of 330,000 barrels per day, about 20% of the Iberian refining capacity. The combined Nelson complexity index is 8.6.

The refineries are managed in an integrated manner, with the purpose of maximising the refining margin of the Company. The characteristics of each one ensure a balanced production mix with a predominance of medium distillates, such as diesel, jet fuel, and gasoline.

Aware of the future needs of its customers, Galp implemented a €1.4 bn upgrade plan for its refineries in early 2013, crucial to ensuring the Company's competitiveness in the medium and long-term.

Galp's refining system

Refineries production in 2017

Sines Refinery

Sines refinery began operations in 1978. Following the upgrade project in 2013, it now has a hydrocracking unit and a fluid catalytic cracking unit.

With a current distillation capacity of approximately 220 kbpd, it is the main refinery in Portugal, accounting for approximately 70% of the total refining capacity. It is also one of the largest refineries in Iberia.

The 43 kbpd hydrocracking unit attains 99% conversion. Diesel and jet fuel are the most important products, but it also produces naphtha and LPG.

Sines’ coastal location and its port infrastructures are advantageous both for sourcing of crude oil and for the export of products.

  • area
    320 hectares area
  • distillation capacity
    220 kbpd distillation capacity
  • processing units
    34 processing units

Matosinhos Refinery

The Matosinhos refinery is situated on the north-western coast of Portugal and it began operations in 1969.

It is a hydroskimming refinery with a distillation capacity of approximately 110 kbpd. The complex also houses an aromatics plant, a base oils plant and a lubricants plant.

The annual output of Galp's aromatics plant is currently 440 kton. Employing advanced technological systems, it excels in terms of reliability, economy of operation and quality.

The treatment capacity of the base oils plant is 1.18 mtpa of crude oil.

The lubricants plant has a production capacity of 80 kton per year. 

The Matosinhos refining complex is connected to a tanker terminal (in the port of Leixões) by several pipelines, spanning about two km.

Optimisation and energy efficiency

Focused on maximising energy efficiency and process optimisation of the refinery, we have implemented a set of actions.

  • Energy optimisation measures.
  • Implementing the lean six sigma methodology - Promotes continuous improvement, control of process variability, combating waste and staff management.
  • Reliability Centred Maintenance Programme (RCM) - Life cycle management of equipment, increasing predictability and availability of the units.

Logistics

Galp benefits from access to several maritime terminals in Portugal, namely in Sines and Leixões, and has storage facilities in Iberia with a total capacity of 8.9 mm³. The Company also holds interests in logistics companies in Portugal and has access to several pipelines in Iberia, totaling 4,300 km.

We hold a 65% stake in CLC, the Portuguese logistics company that owns the only multi-product pipeline in Portugal. The CLC pipeline is 147 km long and has the capacity to transport 4 mton of oil products sequentially.

Galp also holds a 75% interest in Companhia Logística de Combustíveis da Madeira, SA (CLCM), which operates the storage facility in Madeira, and a 60% stake in Sigás, the propane storage unit in Sines.

Galp's extensive logistics system is integrated with major logistics operations in Spain, enabling efficient delivery of products and high levels of flexibility in distribution and sales.

In Mozambique, Galp is developing a project to build two logistics terminals for receiving and storing liquid fuels in the Beira region and Matola, with a combined storage capacity of 111,000 m3.

This project strengthens the Company's strategic presence in the region. Its objective is to develop the fuel distribution business in the country, to ensure access to competitive sources, and to enable export to neighbouring countries.

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