SEDES urges action to protect Sines refinery in Galp deal
SEDES has urged Portugal’s leaders to safeguard the Sines refinery in Galp’s planned downstream tie-up with Moeve, arguing the asset is strategic for supply security.
SEDES, a Portuguese economic and social development association, has urged the government, the president and parliamentary parties to do “everything possible” to ensure the Sines refinery remains viable as Galp pursues a downstream deal with Spain’s Moeve. Sines is Portugal’s only refinery, making the issue relevant for the country’s fuel supply security and strategic autonomy.
In a position paper seen by ECOnews and sent in recent days to Prime Minister Luís Montenegro, President António José Seguro and political parties represented in parliament, SEDES said the non-binding agreement signed by Galp and Moeve in January could have consequences that go beyond the companies’ shareholders and employees. The association said the deal would also have a “very significant” impact on the Portuguese economy and sovereignty.
SEDES argued that, while Spain has nine refineries, Sines is the only one in Portugal, and warned that if the transaction goes ahead the country could become dependent on decisions taken outside Portugal for refined product supply. Citing public reports referred to in its document, the association said Galp is negotiating an agreement with Mubadala that would include transferring control of the Sines refinery, with the asset to be placed in a new Spain-based company in which Galp would hold up to 20% and Mubadala and Carlyle would hold the rest.
The association also said that integrating Sines into a wider Iberian refining group could weaken guarantees over future investment, technical know-how and innovation capacity linked to the energy transition. On the retail side, it noted that the combined business would use the Galp brand in Portugal and the Moeve brand in Spain, meaning Galp would disappear from the Spanish market.
Galp expects to close an agreement with Moeve’s shareholders in October. Portugal’s environment and energy minister, Maria da Graça Carvalho, has already said the government is following the deal “very closely” and studying legal tools to ensure the Sines refinery remains in Portugal and can supply the country in a crisis.
Originally published at Eco.pt
