01.06.2010

Global Refining Summit 2010 in Rotterdam



One of the main topics at this year's Global Refining Summit in Rotterdam was the surplus capacity on gasoline in Europe and related future strategies for refining companies.

 

The decreasing demand for gasoline from the US and the expected product supplies from new built refining capacities in India and Middle East to Europe, predict ongoing dropping marings.

Also renewable energies, optimized car motors with lower fuel consumptions, as well as hybrid technology seem to show first effects on the refining business and the future strategy plannings.

 

Such strategies may foresee shut downs of entire oil refineries or single units which don't run profitable. These facilities may be located in locations with high competition or low feedstock supply infrastructure.

However, not every oil refinery seems to be effected. Refining companies in Eastern Europe, concentrated on supplying the local market run extremely profitable and look forward into a promissing future and how to add value to their existing business.

Also markets with own crude feedstocks and high import rate of refined products should be interesting as profitable location to run an oil refinery, taking into consideration that a country like e. g. Nigeria, belonging to the world's largest crude oil producers, still imports more than 80 % of refined petroleum products, such as diesel and gasoline.

The queues at the Nigerian filling stations prove the high demand in the country and still unstable product supply.

Still, binding investments in a volatile region for long period of construction time (such as for oil refinery projects) remains a risk for investors. Therefore, the implementation of pre-owned equipment at lower costs and shorter delivery time becomes highly attractive.

 

Especially in times of shut downs of units in good maintained condition from Europe or other locations and such project opportunities, LOHRMANN was able to increase its market shares by securing on one side the exclusive sales mandates for pre-owned equipment and on the other side to position itself as one of worlds largest supplier of pre-owned oil refinery equipment.

Providing almost all related services, such as Conceptual Design Studies, Engineering, Match-Marking, Dismantling, Packing, Logistics and Re-Erection, LOHRMANN's offers become highly attractive for investors as well as for operators of existing oil refineries with capacity extension or conversion projects.

 

The conclusion became clear by the nummerous visitors of at LOHRMANN's booth at the Global Refining Summit, interested in either selling units being up for shut down or purchasing single units as pre-owned equipment.

 

Nardi Datcu

Director Business Development