Bitumen production and supply from Spain’s 220,000 b/d Huelva refinery have faced significant constraints over the past month, with no signs of recovery in the near future. Market participants, as reported by Argus Media, attribute the slowdown to a change in the refinery’s crude slate, moving away from bitumen-rich grades. However, the refinery’s operator, Abu Dhabi-owned Moeve (formerly Cepsa), has yet to confirm these claims.
To compensate for limited production, Huelva has received at least three bitumen cargoes over the past six weeks. These include a September delivery from Saudi Arabia’s Yanbu port and two shipments in October and November from Tarragona, where Moeve operates a joint-venture bitumen plant with Repsol. Meanwhile, Huelva has continued exporting bitumen, sending shipments to Galp’s terminals in Portugal.
The production challenges at Huelva could have broader implications for regional importers such as Algeria, which recently resumed buying Spanish bitumen after a two-year trade halt. Algeria relies on Spanish suppliers like Huelva for its infrastructure needs, and any prolonged disruptions may tighten availability and increase costs, complicating the market’s recovery despite Algeria’s favorable trade conditions.
Crude receipts at Huelva rose to 170,000 b/d in October, up from 145,000 b/d in September, yet still below the year-to-date average of 190,000 b/d. Wider market disruptions, including a fire at Greece’s Motor Oil Hellas (MOH) Corinth refinery in September, further restrict Mediterranean supply.
Despite limited availability, falling construction activity ahead of winter has put downward pressure on Mediterranean bitumen prices. The outlook remains uncertain, leaving importers and producers, including key players like Moeve and Repsol, navigating a challenging market landscape.
