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A nationwide strike by French refinery, power and gas workers lowered crude processing rates and cut power output while the possibility of fuel shortages loomed as Marseille oil terminals remained blocked.
Workers at ten of the country’s 12 refineries voted to strike today, CGT union representative Christian Votte said by telephone. Deliveries to and from plants on strike are blocked and refining rates reduced, he said.
Total SA began halting its Donges and Grandpuits refineries, according to spokesman Michael Crochet-Vourey. Workers at Donges, which can process 230,000 barrels a day and is the company’s second-biggest refinery in France, voted to halt operations. Management decided to begin shutting down Grandpuits, which has a capacity of 101,000 barrels a day, due to a disagreement with unions on the duration of the strike.
The walkout is affecting refineries owned by Total, Ineos Group Holdings Plc, LyondellBasell Industries NV, Exxon Mobil Corp. and Petroplus Holdings AG, according to the CGT union. Electricite de France SA’s nuclear output dropped by 5,000 megawatts today, CGT union spokeswoman Marie-Claire Cailletaud said. The utility said 18 percent of workers in France were striking.
Fuel Shortages
French workers are demonstrating for the fourth time in five weeks to oppose a plan to increase the retirement age to 62 from 60. A strike at Marseille’s oil terminals of Fos and Lavera entered its 16th day as employees demand changes to the way a 2008 ports reform law will be implemented. The halt of some refining operations because of crude shortages and the national strike could lead to fuel shortages for motorists next week, an industry group said.
Gasoline prices in the benchmark Rotterdam-Amsterdam- Antwerp barge market advanced to five-month highs. Eurobob grade traded at as much as $772 a metric ton yesterday, the highest price since April 30. Total was the main buyer of premium gasoline, which traded from $781 to $784 a ton, according to a survey of traders and brokers monitoring the Platts pricing window. That is up from $770 on Oct. 8.
Labor action is affecting all of Total’s crude-processing plants except Feyzin as well as two petrochemical sites, Votte said. Workers at Exxon’s Gravenchon refinery were not on strike today while Fos-sur-Mer is operating at minimum capacity with a limited supply of crude oil and deliveries have been halted from that plant, spokeswoman Catherine Brun said today.
‘Minimal Rate’
Between half and 80 percent of shift workers at Total refineries are participating in the strike, a number that is “comparable” to recent national strikes, Crochet-Vourey said.
Total began halting the crude-distillation unit at its La Mede refinery two days ago because of a shortage of crude supplies due to the port strike while Feyzin is operating at a ”minimal rate,” the company has said.
The Union Francaise des Industries Petrolieres expects some fuel shortages to develop around Marseille next week, Jean-Louis Schilanksy, who heads the French refiners’ organization, said in an interview on BFM radio station.
One way to resolve shortages of crude due to the strike at Marseille’s oil terminals is for the French government to authorize the use of strategic reserves, which are sufficient for the country for three months.
“This Plan B is not in our hands,” Schilanksy said. “The government could authorize the use of the strategic reserves at a given moment.”
Tomorrow
Total, Exxon, Ineos and LyondellBasell have plants in southeastern France that together account for 31 percent of French refining capacity. Workers at Exxon’s Fos-sur-Mer plant as well as the others in the region are on strike today and may continue tomorrow, the CGT union said.
Most of Total’s industrial sites in France have voted for rolling strikes, the CGT union said in an e-mailed statement. No products are leaving Total’s refineries, the union said, adding that it expects fuel shortages in the near future.
Eighty-five ships remained stranded outside the port of Marseille as dock workers and crane operators at all terminals went on strike, said Claire Battedou, a spokeswoman for the port authority, in a statement. At the oil terminals of Fos and Lavera, 56 fuel carriers were blocked including 22 crude tankers and 15 vessels transporting refined products.
The Marseille docks have experienced stoppages in recent years as unions have resisted efforts to transfer public-sector jobs to private companies.
A 12-day strike at the oil hub in December 2008 cost refineries 26 million euros ($36 million), including 15 million euros related to vessel delays and 11 million euros in lost revenue, UFIP estimated at the time. A strike at the oil terminals in March 2007 lasted 17 days.
Workers at ten of the country’s 12 refineries voted to strike today, CGT union representative Christian Votte said by telephone. Deliveries to and from plants on strike are blocked and refining rates reduced, he said.
Total SA began halting its Donges and Grandpuits refineries, according to spokesman Michael Crochet-Vourey. Workers at Donges, which can process 230,000 barrels a day and is the company’s second-biggest refinery in France, voted to halt operations. Management decided to begin shutting down Grandpuits, which has a capacity of 101,000 barrels a day, due to a disagreement with unions on the duration of the strike.
The walkout is affecting refineries owned by Total, Ineos Group Holdings Plc, LyondellBasell Industries NV, Exxon Mobil Corp. and Petroplus Holdings AG, according to the CGT union. Electricite de France SA’s nuclear output dropped by 5,000 megawatts today, CGT union spokeswoman Marie-Claire Cailletaud said. The utility said 18 percent of workers in France were striking.
Fuel Shortages
French workers are demonstrating for the fourth time in five weeks to oppose a plan to increase the retirement age to 62 from 60. A strike at Marseille’s oil terminals of Fos and Lavera entered its 16th day as employees demand changes to the way a 2008 ports reform law will be implemented. The halt of some refining operations because of crude shortages and the national strike could lead to fuel shortages for motorists next week, an industry group said.
Gasoline prices in the benchmark Rotterdam-Amsterdam- Antwerp barge market advanced to five-month highs. Eurobob grade traded at as much as $772 a metric ton yesterday, the highest price since April 30. Total was the main buyer of premium gasoline, which traded from $781 to $784 a ton, according to a survey of traders and brokers monitoring the Platts pricing window. That is up from $770 on Oct. 8.
Labor action is affecting all of Total’s crude-processing plants except Feyzin as well as two petrochemical sites, Votte said. Workers at Exxon’s Gravenchon refinery were not on strike today while Fos-sur-Mer is operating at minimum capacity with a limited supply of crude oil and deliveries have been halted from that plant, spokeswoman Catherine Brun said today.
‘Minimal Rate’
Between half and 80 percent of shift workers at Total refineries are participating in the strike, a number that is “comparable” to recent national strikes, Crochet-Vourey said.
Total began halting the crude-distillation unit at its La Mede refinery two days ago because of a shortage of crude supplies due to the port strike while Feyzin is operating at a ”minimal rate,” the company has said.
The Union Francaise des Industries Petrolieres expects some fuel shortages to develop around Marseille next week, Jean-Louis Schilanksy, who heads the French refiners’ organization, said in an interview on BFM radio station.
One way to resolve shortages of crude due to the strike at Marseille’s oil terminals is for the French government to authorize the use of strategic reserves, which are sufficient for the country for three months.
“This Plan B is not in our hands,” Schilanksy said. “The government could authorize the use of the strategic reserves at a given moment.”
Tomorrow
Total, Exxon, Ineos and LyondellBasell have plants in southeastern France that together account for 31 percent of French refining capacity. Workers at Exxon’s Fos-sur-Mer plant as well as the others in the region are on strike today and may continue tomorrow, the CGT union said.
Most of Total’s industrial sites in France have voted for rolling strikes, the CGT union said in an e-mailed statement. No products are leaving Total’s refineries, the union said, adding that it expects fuel shortages in the near future.
Eighty-five ships remained stranded outside the port of Marseille as dock workers and crane operators at all terminals went on strike, said Claire Battedou, a spokeswoman for the port authority, in a statement. At the oil terminals of Fos and Lavera, 56 fuel carriers were blocked including 22 crude tankers and 15 vessels transporting refined products.
The Marseille docks have experienced stoppages in recent years as unions have resisted efforts to transfer public-sector jobs to private companies.
A 12-day strike at the oil hub in December 2008 cost refineries 26 million euros ($36 million), including 15 million euros related to vessel delays and 11 million euros in lost revenue, UFIP estimated at the time. A strike at the oil terminals in March 2007 lasted 17 days.
