Fuel company halts expansion of oil refinery

Published:

On: Sep 2020

The biggest fuel firm of Sweden said that it has manifested to halt a proposed oil refinery expansion that would have created it the largest discharges of greenhouse gases of the country. It was growingly becoming a major problem for minority government of Sweden prime minister Stefan Lofven. Preem told that the coronavirus crisis and its impacts on the global economy have contributed to the project that is no longer feasible commercially.

The CEO of Preem Magnus Heimburg said that it was commercial decision relied on a balancing of the profitability as well as technical sustainability of project. He further added that the economic plunge and dropping demand for fuel have put huge pressure on the worldwide oil refinery industry. The government of Sweden has promised to decrease greenhouse gas discharges, but also to generate additional jobs. It had been planning to finalize whether to permit the extension of the oil refinery in Lysekil, southwestern Sweden.

The Swedish Green party which is the part of the 2-party administering coalition along with Social democrats of Mr. Lofven who was against the expansion. A court of Swedish in June had offered permission for the project, indicating it attached to European Union regulations. 

The climate minister Isabella Lovin said that I’m happy that we recently have extremely better plans of grabbing the weather goals and a member of the Green party said that we will drop the discharge of Sweden to zero in almost 25 years and this will create it much simpler. Environmental groups named the plan as a problem to people’s health, the climate as well as our future. It was also criticized by Greta Thunberg, who was the Swedish activist made protests outside the parliament which had helped motivate a worldwide youth development for weather protection.