Equinor has agreed to divest its Danish refining business, Equinor Refining Denmark, to industrial commodities company Klesch Group.
The assets considered for sale include the Kalundborg oil refinery and terminal located in the northwest of Zealand, the Hedehusene terminal near Copenhagen, and associated infrastructure and industrial property.
The deal, however, excludes Equinor’s ownership and/or operation of Danske Commodities, an energy trading house that specialises in electricity and gas.
Equinor marketing, midstream and processing executive vice-president Irene Rummelhoff said: “This transaction supports Equinor’s strategy to focus its portfolio around core areas.
“Equinor will concentrate its refining position around Mongstad, Norway, where the company can leverage its integrated industrial cluster, expand the portfolio of low carbon energy products provided, and contribute to Equinor’s efforts in the energy transition.”
The employees of Equinor Refining Denmark will be moved to the Klesch Group once the transaction is closed.
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By GlobalDataKlesch Group chairman Gary Klesch said: “Given the proximity of our refinery in Germany, I’m sure there will be lots of opportunities for both refineries to work together; especially when it comes to deploying our decarbonisation strategy.”
The deal is subject conditions and the approval of the Danish authorities. The financial terms of the deal were not disclosed.
The Kalundborg refinery’s current daily processing capacity stands at 107,000 barrels of crude oil and condensate for gasoline, propane, diesel, and heating oil.
Its annual production capacity is up to 5.5 million tonnes of oil products, such as naphtha, petrol, fuel oil, diesel, and heavy fuel.
