Portugal: Sines Oil Refinery - The Final Curtain

When I last wrote on this subject in July, it appeared that the government had only until the end of that month to avert the fall of this national asset into the realms of foreign investment. This deadline passed while talks were held in secret but it now seems that the deed of sale will be signed in early October and the closure of the plant is inevitable.

By Roberto Cavaleiro , in Opinion · 25 Sep 2026, 07:01 · 0 Comments

The underlying amalgamation between Galp and the Spanish Moeve companies is being financed by the U.S. private equity Carlyle Group which is notorious for its “buy-out” activities in relation to strategic assets; especially those of a bellicose nature.

Due to the potentially explosive situation in the Middle East and the ensuing chaos in global trade which has been caused by the intervention of the U.S. /Israeli alliance, the relationship between the EU and the USA has become strained to say the least.

Unease is felt both by workers who may lose their jobs in a progressive shutdown similar to that of the refinery at Matosinhos and by governance which foresees yet another aspect of national security slipping from its grasp.

The Sines Industrial Enclave is in danger of becoming a cyber-polis owned by mighty foreign investors who will have scant regard for EU regulations and taxation directives.

Moreover, little attention has been paid to the extent by which Portugal has already aided the transition of the refinery from production of petroleum to biofuel and green hydrogen. Japan´s Mitsui company has invested €400 million in a related project but it is not clear if this has been included in the Galp transaction or if the plant will operate independently.

Biofuels are produced by breaking down food waste, used cooking oils and animal fats. Predominant is diesel fuel for agricultural machines but a surprising by-product is Sustainable Aviation Fuel. Obviously, this transformation is considered to be of great importance to the EU which offers grants to aid expansion of the industry in central and northern Portugal.

The question of the extent to which Portugal and the EU should surrender sovereignty over strategic assets to foreign capital (be it from The West or the East) must rest heavily on our legislators. They should be careful to distinguish between constructive lobbying and long term planning for capture by the agents of industrial imperialists.

This needs to be debated honestly at the Atlantic Convergence conference which opens in Lisbon on 29 September-