COMMISSION DECISION
of 3 August 2011
on the aid SA. 26980 (C 34/09 (ex N 588/08)) which Portugal is planning to grant to Petrogal
(notified under document C(2011) 5546)
(Text with EEA relevance)
(2012/466/EU)
1.
PROCEDURE
2.
DETAILED DESCRIPTION OF THE STATE AID
2.1.
The beneficiary
2.2.
The Petrogal investment project
2.3.
Single investment project
2.4.
Costs of the investment project
Eligible costs (in EUR) |
2007 |
2008 |
2009 |
2010 |
Total |
Tangible fixed assets |
[ ](25) |
[ ] |
[ ] |
[ ] |
1 058 934 146 |
2.5.
Financing of the investment project
2.6.
Regional aid ceiling
2.7.
Contribution to regional development
2.8.
Form of aid
2.9.
Aid amount
Year |
estimated taxable Income |
Taxes |
Utilisation of the tax credit(27) |
2008 |
|
|
|
2009 |
|
|
|
2010 |
|
|
|
2011 |
[ ] |
[ ] |
|
2012 |
[ ] |
[ ] |
[ ] |
2013 |
[ ] |
[ ] |
[ ] |
2014 |
[ ] |
[ ] |
[ ] |
2015 |
[ ] |
[ ] |
[ ] |
2016 |
[ ] |
[ ] |
|
|
|
|
160 484 007 |
2.10.
General provisions
3.
GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE
3.1.
Compatibility with the general provisions of the RAG
3.2.
Assessment of the aid under the provisions for aid to large investment projects
4.
COMMENTS FROM INTERESTED PARTIES
4.1.
Comments from the Associação das Indústrias da Petroquímica, Química e Refinação (AIPQR)
4.2.
Comments from the Associação para a eficiência energética (COGEN)
4.3.
Comments from the Confederação da Indústria Portuguesa (‘CIP’)
4.4.
Comments from the União Geral de Trabalhadores (‘UGT’)
4.5.
Comments by the Municipality of Matosinhos (CMM)
4.6.
Comments by the Municipality of Sines (CMS)
4.7.
Comments by the Confederação Geral dos Trabalhadores Portugueses (‘CGTP’)
4.8.
Comments by the Associação Industrial Portuguesa (‘AIP’)
4.9.
Comments from Competitor No 1
4.9.1.
Comments on the opening decision
— Diesel
— Naphtha
4.9.2.
Comments submitted by letters dated 15 September and 10 November 2010 (in reply to Commission questions of 5 August and 13 October 2010)
4.10.
Comments from Competitor No 2
4.10.1.
Comments to the opening decision
— Ex-refinery level
— Non-retail level
— Non-retail and retail sales
4.10.2.
Comments submitted by letter dated 10 September 2010, in reply to the Commission’s request for information dated 4 August 2010.
5.
COMMENTS FROM PORTUGAL
5.1.
Comments on the opening decision
5.1.1.
Comments regarding the investment project
5.1.2.
Comments regarding the characterisation of the market and the relevant products
5.1.3.
Comments regarding the project within a European, national and regional strategy
5.1.4.
Comments regarding the contribution to regional development
(i) Sines
(ii) Matosinhos
5.1.5.
Jobs and Training
5.1.6.
Comments regarding the necessity of the aid
With the aid |
Net Present Value |
EUR [100-150] M |
Return Rate/IRR |
[9-11] % |
|
Without the id |
Net Present Value |
EUR [1-50] M |
Return Rate/IRR |
[8-10] % |
|
Source: GALP |
|
|
Business case |
New Final Investment Value |
With the Aid |
NPV |
EUR [200-250] M |
EUR [150-200] M |
Return Rate/IRR |
[10-12] % |
[10-12] % |
|
Without the Aid |
NPV |
EUR [100-150] M |
EUR [100-150] M |
Return Rate/IRR |
[9-11] % |
[9-11] % |
5.2.
Observations submitted by Portugal on comments by third parties
5.2.1.
Observations on comments by Competitors No 1 and No 2
Year |
2006 |
2007 |
2008 |
2009 |
|
IMPORTS |
Total (Ktonne) |
638 |
776 |
1 011 |
1 478 |
Petrogal |
[ ] |
[ ] |
[ ] |
[ ] |
|
Others |
[ ] |
[ ] |
[ ] |
[ ] |
|
EXPORTS |
Total (Ktonne) |
314 |
192 |
164 |
95 |
Petrogal |
[ ] |
[ ] |
[ ] |
[ ] |
|
Others |
[ ] |
[ ] |
[ ] |
[ ] |
|
Source: DGEG (italic) and Petrogal’s data |
6.
ASSESSMENT OF THE AID MEASURE
6.1.
Existence of State aid
6.2.
Legality of the aid measure
6.3.
Legal basis for the assessment
6.4.
Compatibility with the general provisions of the RAG — verification of the doubts expressed in the opening decision
6.5.
Compatibility with the criteria for large investment projects — verification of the doubts expressed in the opening decision
Product concerned |
2007 |
2012 |
||||
Petrogal and ENI sales |
Western Europe market |
Petrogal and ENI market shares |
Petrogal and ENI sales |
Western Europe market |
Petrogal and ENI market shares |
|
Diesel |
[ ] |
243,6 |
[5-10] % |
[ ] |
252 |
[5-10] % |
Product concerned |
2007 |
2012 |
||||
Petrogal and ENI sales |
EEA market |
Petrogal and ENI market shares |
Petrogal and ENI sales |
EEA market |
Petrogal and ENI market shares |
|
Diesel |
[ ] |
323,5 |
[5-10] % |
[ ] |
334,6 |
[5-10] % |
Products concerned |
2007 |
2012 |
||||||
Petrogal sales |
EEA market |
Petrogal market shares |
Petrogal sales |
EEA market |
Petrogal market shares |
|||
Heavy Naphtha |
[ ] |
49 172 |
[0-5] % |
[ ] |
49 769 |
[0-5] % |
||
Naphtha derivatives: |
[ ] |
16 045 |
[0-5] % |
[ ] |
15 640 |
[0-5] % |
||
|
[ ] |
10 093 |
[0-5] % |
[ ] |
10 093 |
[0-5] % |
||
|
[ ] |
681 |
[5-10] % |
[ ] |
606 |
[5-10] % |
||
|
[ ] |
2 169 |
[5-10] % |
[ ] |
2 169 |
[5-10] % |
||
|
[ ] |
2 503 |
[5-10] % |
[ ] |
2 173 |
[5-10] % |
||
|
[ ] |
599 |
[5-10 ] % |
[ ] |
599 |
[5-10] % |
Products concerned |
2007 |
2012 |
||||||
ENI sales |
EEA market |
ENI market shares |
ENI sales |
EEA market |
ENI market shares |
|||
Heavy Naphtha |
[ ] |
49 172 |
[0-5] % |
[ ] |
49 769 |
[0-5] % |
||
Naphtha derivatives: |
n.a. |
16 045 |
|
n.a. |
15 640 |
|
||
|
[ ] |
10 093 |
[5-10] % |
[ ] |
10 093 |
[0-5] % |
||
|
[ ] |
681 |
[5-10] % |
[ ] |
606 |
[10-20] % |
||
|
[ ] |
2 169 |
[0-5] % |
[ ] |
2 169 |
[0-5] % |
||
|
[ ] |
2 503 |
[5-10] % |
[ ] |
2 173 |
[5-10 ] % |
||
|
n.a. |
599 |
|
n.a. |
599 |
|
Products concerned |
2007 |
2012 |
||||||
Petrogal and ENI sales |
EEA market |
Petrogal and ENI market shares |
Petrogal and ENI sales |
EEA market |
Petrogal and ENI market shares |
|||
Heavy Naphtha |
[ ] |
49 172 |
[0-5] % |
[ ] |
49 769 |
[0-5] % |
||
Naphtha derivatives: |
n.a. |
16 045 |
|
n.a. |
15 640 |
|
||
|
[ ] |
10 093 |
[5-10] % |
[ ] |
10 093 |
[5-10] % |
||
|
[ ] |
681 |
[10-20] % |
[ ] |
606 |
[10-20] % |
||
|
[ ] |
2 169 |
[5-10] % |
[ ] |
2 169 |
[5-10] % |
||
|
[ ] |
2 503 |
[10-20]% |
[ ] |
2 173 |
[10-20] % |
||
|
[ ] |
599 |
[5-10] % |
[ ] |
599 |
[0-5 ] % |
Products concerned |
Production capacity in 2007 |
Production capacity in 2012 |
Increase in production capacity |
EEA market in 2007 |
Share of capacity increase to EEA market |
CAGR of the apparent consumption |
||
Heavy naphtha |
[ ] |
[ ] |
[ ] |
49 172 |
[0-5] % |
— |
||
Naphtha derivatives: |
[ ] |
[ ] |
[ ] |
16 045 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
10 093 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
681 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
2 169 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
2 503 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
599 |
[0-5] % |
— |
Products concerned |
Production capacity in 2007 |
Production capacity in 2012 |
Increase in production capacity |
EEA market in 2007 |
Share of capacity increase to EEA market |
CAGR of the apparent consumption |
||
Heavy naphtha |
[ ] |
[ ] |
[ ] |
49 172 |
[0-5] % |
— |
||
Naphtha derivatives: |
[ ] |
[ ] |
[ ] |
16 045 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
10 093 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
681 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
2 169 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
2 503 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
599 |
[0-5] % |
— |
Products concerned |
Production capacity in 2007 |
Production capacity in 2012 |
Increase in production capacity |
EEA market in 2007 |
Share of capacity increase to EEA market |
CAGR of the apparent consumption |
||
Heavy naphtha |
[ ] |
[ ] |
[ ] |
49 172 |
[0-5] % |
— |
||
Naphtha derivatives: |
[ ] |
[ ] |
[ ] |
16 045 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
10 093 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
681 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
2 169 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
2 503 |
[0-5] % |
— |
||
|
[ ] |
[ ] |
[ ] |
599 |
[0-5] % |
— |