European Refiners Hold Off on Investment as Oil Demand Slumps

摘要

Italian refiner Saras plans to go slow on planned capital spending until the economic clouds start to lift - and it will probably not be the only one.Saras had planned to spend euro 690 million ($880 million) on its refining and marketing business between 2008 and 2011, partly to boost diesel production. But the slowdown in global oil demand has prompted it to defer spending of euro 30 million-euro 40 million this year, euro 200 million in 2010 and around euro 100 million in 2011, in a bid to ensure liquidity. This will push back the revamp of hydrocrack-er and visbreaker units, as well as the construction of a new steam reformer, by 12-18 months.