By an OGJ Online Correspondent
PARIS, Apr. 27 -- European refiners expect to help supply a strained US gasoline market this summer, Jean-Paul Vettier, refining-marketing president of French company TotalFinaElf SA, said Friday.
He said that last year, exports of unleaded gasoline and diesel fuel to the US bolstered refining margins in Europe. First quarter 2001 figures show European exports of motor fuels to the US already have increased by 7% for gasoline and by 37% for diesel.
Vettier said European refinery runs were up 3% in the first quarter, and prices have risen from $257/tonne in March to $335/tonne in April. He predicted last year's trend of disconnected product and crude prices will continue.
Vettier said that because refining represents less than 10% of TotalFinaElf's total capital employed, its operating income is less sensitive to refining margins. He intends to keep refining investments to $3/tonne, including upgrades to meet increased demand for middle distillates and tougher fuel specifications.
He said the refining group will use hubs with an integrated management for neighboring refineries, product swaps, and investments focused on the best performing unit. TotalFinaElf operates 19 of Europe's 29 refineries.
Vettier said the 323,643-b/d Gonfreville refinery in Normandy will be the site of a major cogeneration project with Texaco Inc. and Electricité de France. EdF will have 50% and the oil companies 25% each in the 1.5 billion franc, 260 Mw project. He said an agreement should be concluded shortly, and work would begin this fall.
In marketing, TotalFinaElf is striving to give its customers a more unified image of the three-pronged group. No single brand name will be devised, but each brand will be maintained where it is best known.
Both Total and Elf brands will be kept in France; all UK stations will convert to the Total brand by midyear; the Elf brand will be kept in eastern Germany; the Total brand in western Germany; Fina will be used in Belgium; Total in the Netherlands; and Total will predominate in Africa.
