Market Trends of France Refined Petroleum Product Industry
This section covers the major market trends shaping the France Refined Petroleum Product Market according to our research experts:
The diesel segment to grow significantly
- The French administration revised the deliveries of gas/diesel oil and fuel oil for international marine bunkers and consumption in domestic navigation from 2011 onwards due to a change in methodology and improved data for the overseas territories.
- In 2022, imports in the October period reached over 590,000 barrels per day (BPD). Data from oil analytics firm Vortexa showed up 37% from October 2021 levels, and also, it was the highest since Vortexa started tracking data in 2016.
- Moreover, in April 2022, TotalEnergies halted the refinery for economic reasons related to the COVID-19 pandemic, which caused demand for the prices of oil products to fall and for refineries that turn crude oil into products to experience a substantial decline in profits.
- In November 2022, 10 parts per million (ppm) diesel imports into France reached a new record, driven by both planned and unplanned refinery outages as well as rising demand. Also, diesel consumption in bakeries is reported in France's food, beverage, and tobacco.
- Therefore, owing to the above points, diesel oil is expected to dominate the market during the forecast period.
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Investments by Private Sector Expected to Drive the Market
- Due to increasing investments in the upgradation of the current refining infrastructure in the country, the supply of refined products is expected to increase, reducing costs and driving the market during the forecast period.
- In October 2021, France announced a EUR 30 billion investment plan for 2030, which targets French industrial development in the energy, automotive, and space sectors, including EUR 8 billion dedicated to energy technology investment in the decarbonization of industry, in hydrogen and small modular reactors, EUR 4 billion for electric and plug-in hybrid vehicles.
- Furthermore, French oil giant TotalEnergies intends to enhance investments and production capacity for liquefied natural gas (LNG). TotalEnergies plans to grow LNG sales by 3% a year through 2027 and boost LNG production by 40% to 2030, starting from 2021.
- In 2021, due to the COVID-19 pandemic, sales of passenger cars in France decreased by 25% as compared to 2019 and were likely to recover their pre-epidemic levels, creating demand for refined products in the forecast period.
- Therefore, owing to the above points, France is expected to witness significant growth during the forecast period.
