Galp Okays Investment Plan for Sines, Porto Refineries
by AFX News Limited
January 24, 2007
Galp Energia SGPS' board approved several upgrades to its
refining system to increase diesel production and decrease fuel oil production
by 2011, which will cost 274 mln eur.
The investment plans also includes total investments of around 998 mln eur
in Sines and Porto to maintain existing installed refining capacity of 15.2 mln
tons a year.
The spending is projected to have a 3 usd per barrel positive impact on
refining margins and a positive impact on EBITDA of about 200 mln eur, the
Galp's capital expenditure program for its refining system in 2007-2010 will
be about 1.420 bln eur.
Additionally, the oil and gas group will build a cogeneration plant at the
Porto refinery, similar to one now being built at Sines refinery, to supply
steam and electricity to its existing refineries. The two plants will cost 147
In a filing with stock market regulator CMVM, Galp said that "the increase
in diesel production will allow a better response to consumption trends in the
Iberian market, in which there is a clear growing demand for diesel and also
take advantage of price differential between diesel and fuel in international
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Galp Energia SGPS, SA