April 17, 2012:

Italian oil and gas group Eni said on Tuesday it had decided to proceed with a partial and temporary shutdown of its Sicilian refinery at Gela to offset difficult refining conditions. Eni, which said the measure had been taken to reduce the negative financial impact on its refining business, said the partial closure of the plant would be for 12 months. The group, which noted that 500 workers would be affected by the measure, said the decision had been taken after a meeting with trade unions.

"The picture painted continues to be worrying given the particularly sharp contraction in demand for oil products and refining overcapacity which have led to a collapse in margins," Eni said in a statement. Closure will affect the less profitable production cycles at the Gela plant including the refining of foreign crudes and residues while the refining of national crudes would continue, it said.

By Reuters