Stanlow refinery faces uncertain future despite Essar’s denial over closure
Essar Energy yesterday denied plans to close the Stanlow refinery in north west England, after City A.M. reported the plant’s long-term future was under threat due to weak margins.
“Essar Energy and the entire transport fuel supply industry are working together with the UK government to improve the resilience of UK refineries and importers,” said the FTSE 250-listed firm in a statement to the London Stock Exchange.
Essar Energy has embarked on an estimated $100m cost improvement programme at Stanlow to ensure the business is able to weather this period of exceptionally poor refining margins.
It is understood that Essar Global Fund, Essar Energy’s majority shareholder, wants the UK government to lobby for a ban on US crude and gas exports to be overturned. The US is flooding the market with refined products as a result of the ban, which has caused European refineries such as Stanlow to sink into losses due to oversupply.