Galp and Moeve Agree to Merge Downstream Operations, Creating Iberian Refining Giant - GALP, MOEVE

Galp and Moeve announced on January 8, 2026, a non-binding agreement to merge their downstream operations, combining refining and retail assets into two new entities: IndustrialCo and RetailCo. The deal, expected to create one of Southern Europe’s largest downstream players, will consolidate refining capacity to about 710,000 b/d, with Mubadala and Carlyle holding 80% of IndustrialCo and Galp retaining a 20% stake. The retail network will span approximately 3,500 service stations across Spain and Portugal under a 50:50 ownership structure. Upstream assets are excluded from the merger. Galp retains its offshore oil and gas holdings in Brazil and Namibia, while Moeve has divested most upstream interests, retaining only Algerian gas assets for strategic energy security. The combined refining system includes San Roque (250,000 b/d), La Rábida (240,000 b/d), and Sines (225,000 b/d), producing roughly 40% diesel, 20% gasoline, and 10–15% jet fuel. Gasoline demand in Spain and Portugal rose 8% year-on-year through November 2025, driven by hybrid vehicle adoption and tourism growth, delaying anticipated declines in clean-product demand. The merger strengthens retail integration, enhances captive demand, and supports long-term decarbonization efforts, including biofuels and green hydrogen projects at Sines and La Rábida. The move challenges Repsol’s dominance and reflects broader industry consolidation amid regulatory and carbon pressures.