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Portugal's Galp confident it will find alternative markets if US tariffs bite
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Portugal's Galp confident it will find alternative markets if US tariffs bite
Mar 25, 2025 9:50 AM

SINES, Portugal, March 25 (Reuters) - Portuguese oil

company Galp Energia's gasoline exports to the United

States could be curtailed if U.S. President Donald Trump imposes

tariffs on European goods, but the company is confident it can

find alternative destinations.

Executive Board member Ronald Doesburg, who is in charge of

industrial assets, told Reuters on Tuesday that if U.S. demand

for gasoline drops as a result of higher prices stemming from

the proposed 25% tariffs, Galp will be able to deal with it.

Galp's only refinery in Sines usually produces about 2

million metric tons of gasoline per year, of which between 1.2

million and 1.5 million tons are exported to the United States.

The remainder is taken by the Portuguese market.

Trump has threatened to impose 25% tariffs on all European

goods, raising the risk of a trade war that could prove damaging

for export-oriented European companies.

"The energy market is global, gasoline streams are global,

and hence our gasoline production will have sufficient

flexibility to find its way to different markets," Doesburg

said.

Tariffs would have an impact, "but it's an impact that will

be managed ... We will look at our options", he said, adding

that Galp has handled trade-related disruptions in the past and

that Sines could be realigned towards different types of

products, depending on prices and demand.

SUSTAINABLE AVIATION FUEL

In the meantime, Galp continues its shift towards greener

fuels and expects to start producing biodiesel and sustainable

aviation fuel from waste, such as used cooking oil, by mid-2026

at a unit it is building at its refinery, said Galp's head of

hydrogen, Sergio Machado.

The 400 million euro ($432 million) Hydrogenated Vegetable

Oil (HVO) plant, a 75% to 25% joint venture with Japan's Mitsui ( MITSF )

, will have annual production capacity of 270,000 tons

and will be using green hydrogen from a 100 megawatt

electrolyser that will cost 250 million euros.

"Our expectation is to have both units in production by

mid-2026 and to reach cruising speed shortly thereafter,"

Machado said.

($1 = 0.9254 euros)

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