March 21, 2026 15:26
Against a backdrop of creeping deindustrialisation, the restructuring of the European petrochemicals industry continues, while its medium- to long-term outlook is becoming increasingly unclear. Strategic assets such as crackers are changing hands, but their future remains uncertain.
The latest development involves British group BP, which has found a buyer for the refinery integrated with a petrochemical hub in Gelsenkirchen that it decided to put up for sale at the beginning of last year.
The buyer is Klesch Group, the independent oil refiner founded and chaired by entrepreneur A. Gary Klesch. The group already owns the Heide refinery in Germany, acquired from Shell in 2010, and the Kalundborg refinery in Denmark, acquired from Equinor in 2022. Until now, it had not appeared to have any interest in the downstream petrochemicals business.
The Gelsenkirchen refinery (GSK) is one of Europe’s largest integrated refining and petrochemical complexes, processing 12 million tonnes of crude a year across two sites in Horst and Scholven and employing around 1,800 people.
The petrochemical assets include two crackers with capacity for around one million tonnes per year of ethylene and about 600,000 tonnes per year of propylene, as well as downstream plants producing around 50 products, including aromatics such as benzene, xylenes and toluene.
Also included in the scope of the agreement are the Bottrop tank farm, DHC Solvent Chemie, stakes in logistics joint ventures, and the marketing businesses related to petrochemicals and unbranded B2B fuels produced at the refinery.
The transaction is expected to close in the second half of this year, once the closing conditions have been met, including the required regulatory and governmental approvals. Financial details have not been disclosed.
The deal is also clear in terms of BP’s strategy, as the company has decided to simplify its portfolio and focus its downstream operations on its leading integrated businesses.
With the sale of Gelsenkirchen, it is increasing its structural operating cost reduction target by about $1 billion, bringing it to $6.5-7.5 billion by 2027.
What remains to be seen is Klesch’s plan for the petrochemical operations, particularly ethylene, which is going through a particularly difficult period in Europe, with the sole exception of Ineos’ Project One, which is moving forward despite numerous difficulties.
In the statement released alongside the transaction, A. Gary Klesch refers only to refining: “Our strategy is built around the long-term stewardship of high-quality refining assets. Gelsenkirchen Refinery fits within that vision and provides a strong foundation for sustainable value creation.”
© Polimerica - Reproduction prohibited, all rights reserved
