France Raises Fuel Imports to Cover Shortages From Strikes
France is increasing its imports of refined fuels via cross-border pipelines, barges and tankers to replenish stocks and ease shortages after a more than week-long strike by oil workers disrupted supply, three industry sources said.
An over-capacity in the European refinery market meant that the continued shut down of at least four out of France's eight refineries had not translated into much higher prices, one of the sources said.
French oil industry group UFIP said in a statement that imports were being used to meet a production shortfall and replenish stocks but said it was too early to provide data on the increase, as did the government. Industry body Comite Professionel du Petrole (CPDP) will publish its monthly consumption data in mid-June.
"Even if all refineries were shut down, import and logistic channels exist already. All that is needed is to increase imports," an oil industry source said, requesting not to be identified.
"This is easy to do at a reasonable price because of the over-capacity in the European refinery market. So when French refineries are not producing, it does not really create any tension in the market," the source said.
Oil workers belonging to the hard line CGT and FO unions last week joined nationwide strikes against government plans to loosen France's rigid labour regulations, blockading refineries, oil terminals and depots.
Fuel shortages in petrol stations nationwide have eased significantly as blockades have been removed.
Total SA said that four of its five refineries remained shut down while a fifth was now operating at an improved 80 percent capacity. Exxon Mobil (XOM) says its two refineries are operating normally.
"With four out of five refineries down, you need imports to meet market demand," said a second industry source.
France consumes about 45 million tonnes of distillates (diesel and domestic fuel) per year, and 7 million tonnes of petrol. Just over half is normally imported.
CGT port workers and dockers plan fresh strikes at the Le Havre and Fos terminals, but the source said ports in Dunkirk, Marseilles, Bordeaux and Lorient ensured alternatives for unloading.
"There is also the NATO pipeline which interconnects much of Western Europe. The pipeline ... has enabled the delivery of refined products from refineries in Antwerp, Rotterdam and Amsterdam," the first source said. Barges were also being used to supply fuel to depots along France's main rivers.
(Reporting by Bate Felix)
