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)