Preem refers to commercial reasons as the motive behind the announcement to withdraw its controversial application to expand the refinery in Lysekil.
World market prices for oil have fallen sharply, which makes it more difficult to recoup the profit on such investments.
At the same time, DN reports that Preem has financial problems and, among other things, has requested a deferral of paying taxes and fees.
Of course, the ambiguities surrounding a government decision also play a part in Preem's decision basis.
The Green Party has been strong opponents of the expansion, as has the entire environmental movement.
Sweden's total carbon dioxide emissions would increase sharply with such an expansion.
The MP's opposition created uncertainty
The Green Party's opposition and the fact that the issue is being raised to government level has created increased uncertainty about a forthcoming government decision.
Even if the government had ultimately come to some kind of green light for the expansion, such a decision would in all probability have been surrounded by significant requirements and restrictions, which of course would also affect the profitability of the investment.
And even after a government decision, the legal process had probably continued with appeals and new trials.
The government's climate and environmental policy also seems to have had an impact on Preem's statement.
These include the reduction obligation, which will be gradually tightened until 2030 with increased requirements for the mix of renewable fuels in petrol and diesel, but also increased opportunities for state support for biorefineries.
In his press release, Preem writes that the government's decision on a more "ambitious reduction obligation" and a stated will to support domestic renewable fuel production has "improved the investment climate" for such investments.
The company also announces that it will submit a new application during the autumn to enable large-scale production of renewable fuels at the refinery in Lysekil.
Preem's announcement to stop the plans to expand the oil refinery in Lysekil is undoubtedly a great victory for the Green Party and the environmental movement, which has constantly questioned and criticized this project.
More conflict issues can be cleared away
For Stefan Löfven, today's announcement means that one of several difficult political conflict issues is now removed from this autumn's list of problematic issues that could trigger a government crisis.
He thus draws a sigh of relief after Preem's decision.
And there may be more similar messages this week.
If the social partners on Wednesday or Thursday can present a settlement on the rules of priority and labor law, another controversial dispute will be cleared from the government's table.
If the parties in the labor market fail to make amends, the Left Party has threatened to try to obtain permission for a no-confidence vote in the Riksdag on the Prime Minister.
Make the parties up fall that threat falls.
In one fell swoop, the conditions have increased considerably for Löfven to cope with the autumn without a government crisis, even though the disagreement over migration policy still hangs over the government.