1. The Refining Sector in Greece
Ministry for
Reconstruction of
Production, Environment,
and Energy-Greece
5th EU Refining Forum
15 June 2015, Brussels

2. The Refining Industry in Greece
2
Company Refinery
Refining capacity
Nelson complexity
factor
TypeMillion tones
per year
Thousand
barrels per
day
Hellenic Petroleum
Aspropyrgos 7.5 145 11.0 Cracking (FCC)
Elefsina 5.0 100 8.1 Hydrocracking
Thessaloniki 3.5 70 7.3 Hydroskimming
Motor Oil Korinthos 9 180 10.4 Cracking (FCC)
Total 25 495 9.6 (EU: 7.6)
Source: Ministry/IOBE
The refining sector in Greece: Contribution to the Economy and Prospects
(IOBE Danchev, Maniatis, 2014)

3. The demand for oil products has fallen sharply in Greece and in the wider
region since the start of the economic crisis
3
0
5
10
15
20
25
30
35
Greece Italy Spain Portugal Turkey S. Europe
milliontonnes
Gasoline
2007 2012
0
10
20
30
40
50
60
70
80
90
100
Greece Italy Spain Portugal Turkey S. Europe
milliontonnes
Diesel
2007 2012
-15,7%
Source: Eurostat/Petder
*South Europe here includes Greece, Italy, Spain, Portugal, Turkey, Cyprus,
Malta, Bulgaria, Romania, Slovenia and Croatia.
 Key drivers of the demand contraction
 Economic recession
 Tax hikes on oil products
 Weather conditions
Source: Ministry
2008 2012 2013 2013/12 2013/08
Domestic
market (%) Change
Other products 3214 1748 1717 -2% -47%
Heating oil 2457 1863 908 -51% -63%
Diesel oil 2976 1925 2009 4% -32%
Gasoline 4059 2943 2670 -9% -34%
Subtotal 12706 8479 7304 -14% -43%
International
market
Marine heavy
fuel oil 2815 2064 1912 -7% -32%
Marine Diesel 339 264 281 6% -17%
Jet fuel oil 965 641 656 2% -32%
Subtotal 4119 2969 2849 -4% -31%
Total 16825 11448 10153 -11% -40%
-26,9%

4. The domestic production has rocketed due to stronger exports
4
0
5
10
15
20
25
30
milliontones
Production
Demand (including international marine bunkers)
Exports
Imports
0%
10%
20%
30%
40%
50%
60%
19901992 19941996 19982000 20022004 2006200820102012
Share of exports in production
Source: Eurostat

5. Trade surplus of petroleum products since 2009, with 86% of the
exports going to non-EU markets
5
-4
-2
0
2
4
6
8
milliontones
Trade balance of petroleum products
2.8
0.1
0.2
0.2
0.2
0.3
0.3
0.4
0.4
0.5
0.5
0.5
0.5
0.6
0.7
2.1
0 1 2 3
Other
Montenegro
UAE
Egypt
Italy
Saudi Arabia
Cyprus
USA
Bulgaria
Israel
Singapore
Gibraltar
FYROM
Libya
Lebanon
Turkey
Billion €
Main export destinations for petroleum
products
ΕU 28: 14%
Third
countries:
86%
Source: Εurostat

6. The cost of capital has increased, with a negative impact on the
profitability of the sector
6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
01/01/2003
01/07/2003
01/01/2004
01/07/2004
01/01/2005
01/07/2005
01/01/2006
01/07/2006
01/01/2007
01/07/2007
01/01/2008
01/07/2008
01/01/2009
01/07/2009
01/01/2010
01/07/2010
01/01/2011
01/07/2011
01/01/2012
01/07/2012
01/01/2013
01/07/2013
(%)
Interest rate differentials of business loans in Greece vs Eurozone
Up to 1 year
Over 1 and up to 5 years
Over 5 years
Total
Source: ECB

7. The Gross value added approached 1 bn € with significant impact on
employment
7
0.0%
2.0%
4.0%
6.0%
8.0%
0.0
0.2
0.4
0.6
0.8
1.0
1.2
ShareinManufacturing
Billion€
Gross value added
GVA Share in manufacturing 0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Billion€
GVA of industry sectors
60
70
80
90
100
110
120
130
Industrial Production Index (2005=100)
Manufacturing
Manufacture of refined petroleum products
0.0
1.0
2.0
3.0
4.0
5.0
2005 2006 2007 2008 2009 2010 2011 2012*
thousand
Total employment
Source: EL.STAT.
Petroleum products
Metal products
Food
1 bn €

8. Investments totaling 2,7 billion € in 2009-2012 when GDP contracted by more
than 20%
8
Source: EL.STAT 2011/Data processing IOBE
• Large part of the operating surplus is
reinvested
• Investment intensity index exceeded 28%
on average for the period 2005-2011
Sectors
Refining

9. Refineries’ activity contributed about 3,8 bn € in 2012 (2% GDP)
9
Source: IOBE
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Direct Indirect Induced Total
€billion
Impact on GDP
0
5
10
15
20
25
30
35
40
45
Direct Indirect Induced Total
Thousands
Impact on Employment
1,4
0,6
1,8
3,8
4100
7200
29200
40500

10. The key EU legislation that has a real or potential impact on the
competitiveness of the refining sector
10
Source: IOBE/Ministry
Emission Trading System (ETS)
• Estimated cost of direct
emissions 2013-2020 and
current protection (Refining
finally included in carbon leakage
list till 2020, but still risk for post
2020) :
• 5€/tCO2 : €108 million
• 30 €/tCO2 : €648 million
• Higher carbon leakage risk from
indirect emissions in Greece:
• High cost of indirect emissions
(electricity prod. Mix),(own
produced products instead of
gas)
• High trade intensity i.e. >50%
(significantly higher than EU -
38%)
Industrial Emissions Directive (IED)
• The recently adopted BREFs for
refineries (Oct14)
• Impose compliance with
stricter BAT-ELVs
• Provide tools for a cost-
effective reduction for air
emissions, i.e. bubble concept
for SO2 and NOX
• Compliance cost estimated at
€70-300 million per refinery
(Europia 2013)
Fuel Quality Directive (FQD)
• Reduction of the carbon
footprint, increased use of bio
fuels and specification changes
(e.g. sulphur, aromatics etc)
• Adjustment cost for the
refineries:
• Additional processing
requirements
• Substitution of fossil-based
fuels with bio fuels
• Potentially higher CO2
emissions during the
production process

11. Measures that could be taken to safeguard the competitiveness of the
refining sector
11
Source: IOBE/ Ministry
EU level
• ETS – Carbon leakage:
• Allocation of allowances to the refining
sector after 2019 as well
• Balanced approach in the implementation
of policy measures on climate, energy and
the environment
• Take into account impact on
competitiveness
• Take into account the fitness check’
conclusions before deciding on
changes in the legislation that affect the
refining sector
• Avoid unilateral EU measures
• Push for global agreement in COP Paris
2015 on greenhouse gas reduction
Domestic level
• Measures for Energy cost reductions:
• Excise duty on electricity (2,5
€/Mwh) and natural gas (5,4 €/Mwh)
• Contribution to RES (ETMEAR) ( 2,23
€/Mwh),
• Indirect CO2 emissions cost (electricity)
4,44 €/Mwh
• Public Service Obligations (YKO) (4,14
€/Mwh )
• Fully implement the adopted measures
for the elimination of the illicit fuel trade
(trade oil product sector)

12. Thank you for your attention
www.ypeka.gr
Directorate for Hydrocarbons
CHRYSOCHOOU Tasos
ChrysochoouA@eka.ypeka.gr
Ministry for Reconstruction of Production,
Environment and Energy
Greece