Strategy

Energy is a sector with challenging market dynamics. Recent years have been marked by geopolitical instability, supply chain disruptions, and price volatility. Even in the face of disruption, the creation of long-term sustainable value and decarbonisation remain embedded in Galp's strategy.

How we see the future of energy

Focus on the "trilemma" of sustainability, energy security, and affordability
Peak European demand for oil and natural gas is expected to be reached during this decade. Nevertheless, these fuels will continue to be important, both for ensuring energy security and affordability and for non-electrifiable and hard-to-decarbonise sectors. In this field, there will be a gradual replacement of fossil fuels by less carbon-intensive alternatives. Renewable hydrogen and biofuels take centre stage
European refining system pressurised by environmental regulation, falling demand, and rising carbon costs
Intensification of the pace of electrification
Regulation, technological maturity, infrastructures, fiscal stability, capital, and access to raw and rare materials emerga as determining factors for the pace and ambition of the energy transition

Our strategy

Galp's CapEx plan for 2023-25 allocates more than 70 per cent to growth and transformation projects, most of which have already been identified. In addition, around 45 per cent of the company's investments are directed towards low carbon projects.

Upstream Focus on extracting the full potential of Galp's portfolio, both competitive and unique to the sector, improving efficiencies and reducing risks. The company has already identified projects for the discoveries in the pre-salt Santos Basin, Brazil, and the Rovuma Basin, Mozambique. In the potential areas of Namibia and São Tomé and Príncipe, exploration activities are targeted at resources that can show economic viability and sustainability.

Industrial and Midstream Focus on the transformation and decarbonisation of Sines, taking into account the needs of a low-carbon energy system and the operational performance, reliability, safety, and long-term viability of Galp's legacy refinery. Priorities include the green H2 and HVO/SAF projects. Midstream supports this transformation by adapting the supply, trading, and shipping of energy products to the needs of emerging value chains.

Commercial Focus on the transformation of service stations, exploring non-fuel offers and services and introducing digital functionalities that improve the customer experience. In the field of electric mobility, Galp aims to have more than 10,000 charging points on the Iberian Peninsula by 2025.

Renewables and New Businesses Focus on the selective integration of renewable energies throughout the value chain. Galp is looking for opportunities to optimise its exposure to large-scale solar energy and considers wind hybridisation fundamental to maximising the value of its portfolio and boosting industrial needs.

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