Essar confident it can secure credit to keep Stanlow oil refinery running

Essar Oil UK, the operator of Britain’s Stanlow oil refinery, said on Friday it was confident it could secure financing to keep the plant running after hitting short-term financial difficulties.

“Short-term financial disruption was caused recently when a bank decided to amortise a credit facility related to the company’s facilities,” it said in a statement, without giving any specifics.

The facility allowed Essar to be paid immediately for sales, rather than waiting for up to 30 days, it said. But the company maintained that the bank’s decision did not have “a material impact on the company’s operations or financial outlook”.

It was able to quickly secure alternative financing for half the facility and is confident it can secure the rest in the near term, it said, adding that operations at Stanlow have not been impacted.

Fuel sales from the 200,000 barrel per day refinery are expected to hit 537,000 tonnes in April, a 63% rise from the same time last year, Essar said.

ET Energy World
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