French integrated oil and gas company Total is reportedly planning to suspend operations at its Donges refinery in Western France for the next few months.
The move comes as the facility was financially hit as a result of the novel coronavirus (Covid-19) pandemic that continues to upend markets, Reuters reported.
Citing union sources, the news agency said that the suspension would be effective on 30 November.
It is expected to last for at least four months.
Reuters quoted Total as stating: “The Covid crisis has a negative impact on oil products demand, which causes a very sharp deterioration of refinery margins.
“In this context, the Donges refinery is operating at a loss. We have decided to halt it for the months to come, awaiting better economic conditions”
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By GlobalDataTotal said that the €450m ($534m) modernisation of the 220,000bpd facility was ‘nonetheless ongoing’.
Total has over 36,006 employees in France and approximately 3,550 service stations in the country.
The oil major is into businesses of renewable energies, refining and chemicals, gas and power, marketing and services, as well as trading and shipping in France.
In August 2017, Amec Foster Wheeler secured a front-end engineering design (FEED) contract for Donges refinery.
In October 2015, Total selected Axens VGO HDS technology for its new vacuum gasoil (VGO) hydro desulfurisation unit at the Donges refinery.
