Exxon considers closing Slagen refinery in Norway

London (Quantum Commodity Intelligence) - US energy giant Exxon is looking at closing its 120,000 barrel per day (bpd) Slagen oil refinery in Norway, the company said Thursday.

Exxon did not say when the final decision would be made, but converting the site into an import terminal was an option.

A collapse in oil product demand in 2020, political weight behind the green industrial revolution, and the expansion of refining capacity in the Middle East and China have already accelerated the rationalisation of Europe's refining sector.  

Scandinavian countries have taken leading roles in efforts to decarbonise energy markets and Norway has the largest fleet of electric vehicles in the world, with over 50% of 2020 new vehicle sales electric.

It has also introduced a 0.5% mandate for sustainable aviation fuel, which it intends to raise to 30% by 2030.

European refining is increasingly less economically competitive and with European governments leading the move away from petrol and diesel engines, the market is expected to become more challenging.

The Slagen refinery in southeast Norway opened in 1961 to process North Sea crude, and increasingly caters for the export market.