GALP’s plan for 19,000-home community on former refinery faces council opposition

GALP’s ambitious plans to build housing for around 19,000 people on the site of the former Petrogal refinery in Leça da Palmeira have run into stiff opposition from Matosinhos City Council, which says current planning rules do not allow residential development across much of the land.

The dispute centres on a 240-hectare site, one of the largest urban regeneration projects planned for northern Portugal, where GALP hopes to transform the former refinery into a mixed-use development after the facility’s closure.

Under the energy company’s proposal, around half of the land would be allocated to housing. However, Matosinhos’ Municipal Master Plan (PDM) currently permits residential construction on only around 10% of the site – with the remainder designated for economic activity.

“When our Municipal Master Plan was approved, there was still a refinery operating there and nothing suggested it would be decommissioned,” Matosinhos Mayor Luísa Salgueiro explained, saying that the existing zoning reflects the area’s historic industrial role.

Although the municipality acknowledges the need for more housing, Salgueiro stressed any revision of planning rules should be considered across the entire municipality rather than focusing solely on the former refinery.

“The council accepts that more land for housing is needed throughout the municipality, not just there,” she said. “We are not yet at the stage of making a decision, but we will have to consider increasing residential areas across the municipality as a whole.”

The council also argues that major improvements to public transport infrastructure will be essential before such a large residential development could proceed.

A Metrobus service, originally expected to begin operating by the end of this year, is now likely to be delayed by several months, the mayor added, reiterating calls for Porto’s Metro network to be extended to Leça da Palmeira to support future population growth.

The former refinery’s closure in 2020 was expected to cost the local economy around €200 million annually. However, Salgueiro said those forecasts had not materialised.

“From 2020 until now, Matosinhos’ economy has grown by 16%,” she said. “Not only did the anticipated negative impact fail to occur, but we have continued to grow across several indicators, particularly in employment.”

Redevelopment of the former industrial site is expected to begin in 2029, following the completion of refinery dismantling works and environmental decontamination.

The project is likely to become a key test of how Portugal balances the urgent need for new housing with long-term urban planning, transport capacity and the regeneration of former industrial land.

SIC’s report today barely mentioned the assessment made by Portuguese environment agency APA only three years ago that pointed to contamination of the site that would take “several years” to eradicate.

APA’s assessment also warned of “unacceptable risk for future users considering a possible residential or industrial use”.

Thus, why anyone would be considering residential use now, only three years on, has to be a question.

Source material: SIC Notícias