A new refinery in Turkey, plant upgrades in Algeria and Egypt and the Algerian purchase of an Italian refinery stand to dislocate petroleum product trading in the Mediterranean next year and beyond.
Europe produces fewer distillates, such as diesel and jet fuel, than it consumes and therefore relies on around 50 million tonnes a year (1 million barrels per day) in imports to cover the shortfall. Russia, India, Asia Pacific, and the Middle East, particularly Saudi Arabia, are some of the main suppliers into that shortfall. Turkey, Egypt, and Algeria consume around 48 million tonnes a year of diesel and gas oil, much of which they import.
A news report in Hydrocarbon Processing states that the new refinery projects in Egypt and Turkey are expected to replace a big chunk of the long-haul exports to those two countries from places such as India and the Middle East. They are also expected to take away business from trading companies that sell to those countries.