Galp project could create 100,000 jobs in Matosinhos

Galp‘s proposed Innovation District on the site of its former Matosinhos oil refinery could generate more than 100,000 jobs and contribute around €65 billion to Portugal’s economy over the next three decades, according to a new economic impact study.

The figures, prepared by PwC and seen by Portuguese business publication ECO/Capital Verde ahead of their official presentation at the QSP Summit in Matosinhos, suggest the large-scale regeneration project could inject close to €2 billion into the Portuguese economy every year once construction begins.

The study estimates that the redevelopment will create more than 100,000 jobs across Portugal over a 30-year period, starting from the beginning of construction. Building the new district is expected to take around four years.

According to the report, the project could also generate approximately €9 billion in tax revenues nationally, alongside a further €400 million in local tax income during the same period.

The redevelopment plans centre on the former Matosinhos refinery, which Galp closed in 2021 as part of its energy transition strategy. Demolition of the industrial complex began in 2023 and is progressing in two phases.

The first phase, involving the removal of 26 crude oil storage tanks, was completed last year. The second phase, which includes demolishing the former production units, remains on schedule and is expected to finish by the end of 2026. Construction of the Innovation District cannot begin until demolition is complete.

The project aims to transform the former industrial site into a mixed-use urban district combining housing, business, education, research, leisure facilities and green spaces.

Galp envisions the development as a sustainable “15-minute city”, where residents can access essential services, workplaces and amenities within a short walk or cycle.

Under the development scenario modelled by PwC, the district could eventually accommodate around 19,000 residents and 30,000 university students, supported by a new higher education campus.

The study also forecasts substantial benefits for the municipality of Matosinhos itself. It estimates the project could generate €43 billion in cumulative gross value added locally, with annual economic output exceeding €3 billion once the district reaches full maturity.

Around 65,000 of the projected 100,000 jobs are expected to be based in Matosinhos.

Researchers also predict a 25% increase in investment in research and development, growth of more than 50% in high value-added industries and a 38% rise in exports from the municipality.

The analysis was prepared by PwC with contributions from the CITTA Centre for Territory, Transport and Environment Research, transport consultancy OPT, ImoEconometrics and economist Ricardo Reis, professor at the London School of Economics.

Planning for the Innovation District formally began in February 2022, when Galp signed a cooperation agreement with Matosinhos Municipal Council and the North Regional Coordination and Development Commission (CCDR-N). Later that year, Dutch architecture firm MVRDV was selected to design the urban regeneration project.

The economic projections are based on one of several development scenarios examined in the study and represent the potential impact should the project proceed as currently envisioned. Galp is expected to present the findings publicly during today’s QSP Summit in Matosinhos.

Source: ECO/Galp