Equinor has entered into an agreement with the Klesch Group for the sale of its refining business in Denmark. The agreement covers the Equinor Refining Denmark A/S (ERD) company consisting of the Kalundborg refinery and terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen as well as associated infrastructure and industrial property.
Upon completion of the transaction, including approval by Danish authorities, all ERD employees will be transferred to the Klesch Group with equitable employment terms as within Equinor.
“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. Over the years, Kalundborg has provided solid results and strong efforts have been made to maintain safe and reliable operations, also with the recent challenges caused by the pandemic” says Irene Rummelhoff, Equinor’s executive vice president for Marketing, Midstream and Processing.
The Kalundborg refinery was built in 1961 and was acquired by Equinor in 1986 before significantly increasing capacity in 1995. The plant can process 107,000 barrels a day of crude oil and condensate for gasoline, diesel, propane and heating oil. Annual production capacity is up to 5.5 million tonnes of oil products.
Completion will, among other things, be dependent on approval by the Danish authorities. Further commercial details on the transaction will not be disclosed.