Nov 29, 2022 -- Screenshot from Dalian Refinery video | Youtube

PetroChina is set to shut down the final operational crude unit at its largest refinery in northern China, the Dalian Petrochemical Company, by June 30, 2025. This move marks the first complete closure of a state-run refinery in China, according to industry sources.

The closure involves the No.1 crude unit, which has a capacity of 200,000 barrels per day. Following this, the refinery’s secondary processing units are scheduled to be phased out in July. The Dalian plant, with a total capacity of 410,000 barrels per day, accounts for nearly 3% of China's total refining capacity and primarily processes Russian ESPO blend crude from Siberian fields.

This decision aligns with PetroChina’s long-term strategy to relocate and replace the Dalian facility with a smaller, more modern plant at a new location. The shutdown process began in late 2023, and the company will start reducing its crude oil and feedstock inventories this month, aiming to clear all product stocks by the end of August.

A spokesperson for PetroChina did not immediately respond to requests for comment. The final investment decision for the proposed new refinery complex on Changxing Island, about two hours from downtown Dalian, has yet to be made.

This development follows earlier reports confirming PetroChina’s intention to close the Dalian refinery by mid-2025 as part of broader restructuring efforts within China’s refining sector.

#dalian   #refinery   #cnpc   #petrochina   #crudeoil   #espo 

Total Annual Report 2024, Page 184

For the first time in the Middle East, SATORP has succeeded in co-processing used cooking oil to produce a fuel that meets all the quality criteria of the SAF ISCC+ certified specifications

AMUR GCC Project showing the 9 Linde Pyrolysis Furnaces and the Quench Tower | AGCC website

Amur Gas Chemical Complex: Navigating Technology Licensing Challenges

The Amur Gas Chemical Complex (Amur GCC) exemplifies the intricate balance between technological ambition and geopolitical realities. Originally designed to become the world’s largest polymer production site, the project has faced significant delays due to shifts in technology licensing dynamics, even as its core infrastructure advances.

The Amur GCC Project

Amur GCC stands as one of the most ambitious petrochemical undertakings in Russia’s recent history and a flagship of Russian-Chinese industrial cooperation. Located near Svobodny in the Amur region of Russia’s Far East, the project is a joint venture between SIBUR, Russia’s largest petrochemical company, holding a 60% stake, and China’s Sinopec, which owns the remaining 40%. When completed, Amur GCC will be among the world’s largest producers of base polymers, with a design capacity of 2.7 million tonnes per year—2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene.

The complex is integrated with the broader Amur gas processing and gas chemical cluster, ensuring direct feedstock supply via pipelines. Gazprom’s Amur Gas Processing Plant (Amur GPP), which processes natural gas from East Siberian fields, will supply the primary feedstock to Amur GCC: ethane (up to 2 million t/y), and LPG (propane/butane, ~1.1 million t/y).

Steam Cracker and Downstream Progress

At the heart of the complex lies its 2.3 million t/y ethylene plant, supplied and partially engineered by Linde before the German firm’s confirmed withdrawal in 2022. Linde’s contributions included delivering critical components like the 1,500-ton quench tower, transported from South Korea to the remote Amur site—a logistical triumph showcased in earlier project updates.



Quench tower delivery to AMUR GCC, Nov 2021 | Credit: Linde Engineering 

By January 2024, SIBUR released a progress video on AGCC status update as of December 2023, confirming that polyethylene (PE) and polypropylene (PP) production units were being deployed as originally planned. The footage shows equipment installation for these downstream facilities, suggesting that proprietary technologies from Western licensors—Univation (Unipol PE gas-phase plants), ChevronPhillips Chemical (PE slurry process, undefined if MarTECH Single Loop or Advanced Dual Loop), and LyondellBasell (Spheripol PP Technology)—remain integral to the project. This indicates that either licensing agreements persisted post-2022 or SIBUR/Sinopec retained rights to use the technologies despite licensors’ reduced involvement.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is a Slurry Loop Reactor | Credit: Sibur

Licensing Uncertainties and Delays

While Linde publicly exited the project by July 2022, when part of the equipment, including the pyrolysis unit, had already been built, SIBUR and Sinopec decided to reconsider the strategy for implementing the project, redesigned it and replaced contractors and license holders for the polyethylene and polypropylene lines. To this date, the status of other Western partners remains ambiguous as public disclosures from SIBUR and Sinopec have not clarified whether CPChem, Univation, or LyondellBasell continue to provide technical support or if their pre-sanction contracts are being honored. The lack of explicit withdrawal announcements contrasts with the project’s two-year delay.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is likely a Gas Phase Unipol PE reactor | Credit: Sibur

It is a matter of speculation if SIBUR and Sinopec may be relying on existing licenses, in-house expertise, or third-party intermediaries to proceed with the original technologies. The January 2024 video underscores that downstream unit construction aligns with initial designs, implying that the licensors’ intellectual property is still being utilized, albeit without confirmed active collaboration.

Construction began in August 2020 and mechanical completion has been delayed to 2026 (originally 2024–25). Despite licensing headwinds, the Amur GCC achieved 76% mechanical completion by mid-May 2025 with commercial polyethylene production to start by Q3 2026, polypropylene production and full operations expected to follow in 2027 (source: interfax.com).

Strategic Implications

The Amur GCC’s trajectory highlights the resilience of large-scale petrochemical projects in the face of geopolitical disruptions. While Linde’s exit created logistical and technical gaps, the continued use of Western-designed downstream technologies—whether through preserved licenses or workarounds—demonstrates SIBUR and Sinopec’s commitment to delivering a world-class facility. The complex’s success will hinge on operationalizing these units without direct licensor support, a challenge that could redefine global norms for technology transfer in sanctioned environments. For now, the Amur GCC stands as a testament to both international collaboration’s potential and its fragility in an era of shifting alliances.

#linde  #univation  #lyondellbasell  #chevronphillips  #cpchem  #sibur  #amurgcc  #sinopec 
#steamcracker  #ethyleneplant  #amur  #russia  #unipolpe  #martech  #slurryloop  #gasphasepe  #spheripol  #polyethylene  #polypropylene  #ethane  #lpg 

Amur GCC site production site has been created, plants with their capacities and technologies have been added.  

#amur  #amurgcc  #russia  #sibur  #sinopec #massbalance 

#amurgcc #sibur  #sinopec  #amurcomplex  #russia  #china 

#cosmo #chiba  #japan  #refinery 

Eastman’s Kingsport, Tenn. plant was initially estimated to cost $250 million over two years, but recent financial filings suggest the price tag has crept upward. | William Griffith/Shutterstock

Eastman Chemical Company has positioned itself as a leader in “molecular recycling,” focusing on advanced chemical processes to recycle hard-to-recycle polyester plastics. The company’s flagship technology, known as Polyester Renewal Technology (PRT), uses methanolysis to break down polyester waste into its original monomers, enabling the production of new, virgin-quality plastics from waste streams that cannot be recycled mechanically. This article reviews the status of Eastman’s key projects in the United States and France, the technology used, and the specific challenges—both technical and regulatory—facing these ambitious initiatives.

Existing Facilities and Technology

Eastman’s molecular recycling facility in Kingsport, Tennessee, has been operational since early 2024 and is claimed to be profitable as it is already generating revenue. This plant serves as the model for Eastman’s subsequent molecular recycling projects and showcases the company’s advanced PRT. At steady-state capacity, the Kingsport asset will recycle 110,000 metric tons of polyester waste annually and achieved sustained operating rates of ~70% capacity by mid-2024. While Eastman resolved a mechanical issue in July 2024 and continues ramping production toward its full capacity target, current output remains below nameplate levels. Kingsport facility is recognized as a benchmark for the company’s future sites.

At the core of this technology is the chemical recycling of polyester waste—primarily polyethylene terephthalate (PET), commonly found in packaging, textiles, and various consumer products. The facility uses methanol under controlled heat and pressure to break down PET into its original monomers: dimethyl terephthalate (DMT) and ethylene glycol (EG). Once separated and purified, these monomers are used as raw materials to manufacture new, virgin-quality polyester products. The plastics produced through this process are indistinguishable in quality and performance from those made with fossil-based feedstocks, supporting the development of a true circular economy for polyester materials.



Eastman Polymerisation Renewal Technology (PRT) description by Portfolio Planning PLUS

One of the key advantages of Eastman’s methanolysis-based recycling is its ability to process types of plastics that are unsuitable for traditional mechanical recycling. This includes colored, opaque, multilayer, and contaminated PET waste—materials that typically end up in landfills or are incinerated. By converting these challenging waste streams back into high-value inputs for new products, Eastman’s technology significantly reduces plastic waste and the environmental impact associated with virgin plastic production. According to Eastman, the Kingsport facility’s process results in greenhouse gas reductions of 20–50% compared to conventional production methods using fossil resources.

Projects in Development

Longview, Texas (USA)

Eastman is planning a second molecular recycling facility in Longview, Texas, which is expected to become operational in 2028. The facility will use the same PRT (methanolysis) as the Kingsport plant, with added innovations such as thermal batteries and on-site solar power to further decarbonize the PET production process. Designed to process approximately 110,000 metric tons of hard-to-recycle plastic waste annually, the Longview project is part of Eastman’s broader $2.25 billion investment in new recycling infrastructure. The facility is anticipated to create around 1,000 temporary construction and trade jobs, as well as 200 permanent full-time positions once complete.

A significant development affecting the Longview project occurred on 30 May 2025, when the Trump administration canceled a $375 million federal grant that had been allocated to support the facility’s construction. This grant, which was part of a larger Department of Energy initiative, was initially approved under the Biden administration in March 2024 but was revoked as part of a broader rollback of renewable energy and decarbonization funding. The estimated total cost of the Longview project is more than $1.2 billion. Despite this setback, Eastman has publicly maintained its commitment to the project as a key component of its global circularity strategy, though the loss of federal funding introduces new financial and logistical challenges for its timely completion.

Port-Jérôme-sur-Seine, Normandy (France)

A third molecular recycling facility using is planned to be built in the Port-Jérôme industrial zone in Normandy, France, which Eastman announced on March 15, 2024. The facility is designed to be developed in two phases: Phase I aims to recycle more than 110,000 metric tonnes of hard-to-recycle polyester waste annually, while Phase II is planned to expand capacity to over 200,000 metric tonnes per year. The plant will also use PRT, which breaks down polyester plastics into their monomers for reuse.

For Phase I alone, Eastman has planned an investment exceeding $1 billion. The project is expected to create 350 direct jobs and 1,500 indirect jobs, including 500 positions during the construction phase. To secure a steady supply of feedstock, Eastman has signed agreements with partners such as Interzero Plastics Recycling to provide PET household packaging waste for the facility. Additionally, several global brands—including LVMH Beauty, Estée Lauder Companies, Clarins, Procter & Gamble, L’Oréal, and Danone—have signed letters of intent for multiyear contracts to supply the plant.

This project is currently on hold as Eastman closely tracks the evolving regulatory landscape within the European Union regarding plastic waste and packaging. However, more crucially, according to a private source, the project’s future is fundamentally threatened by the absence of any plan to supply electrical power to the plant before 2028 at the earliest—a factor that places its timely realization in serious jeopardy, regardless of regulatory developments.

Outlook: Expansion at Risk Due to Regulatory, Funding, and Power Supply Issues

Eastman’s molecular recycling initiatives face significant uncertainty, as its two flagship development projects—the Longview, Texas facility and the Normandy, France plant—are both under threat from major external challenges. The Texas project is at risk due to the loss of critical federal funding, while the Normandy facility faces not only ongoing regulatory uncertainty in the EU but, more crucially, a lack of any planned electrical power supply to the site before at least 2028. If these obstacles are not resolved, both projects could ultimately be cancelled. Eastman’s ability to realize its circular economy ambitions now depends on overcoming these substantial financial, regulatory, and infrastructure barriers—an outcome that remains highly uncertain in the current environment.

#eastman  #circularity  #recycling  #molecularrecycling  #chemicalrecycling  #plasticwaste  #mixedplasticwaste  #polyesterrecycling  #depolymerization  #methanolysis  #longview  #kingsport  #portjerome  #Sustainability

Eastman polyester recycling technology has been added.

#eastman  #polyester  #recycling  #molecularrecycling  #chemicalrecycling  #depolymerization  #pet  #methanolysis 

#eastman #longview  #texas  #usa #steamcracking  #kbr 

Eastman Kingsport site has been added.

#eastman  #kingsport  #usa 

Eastman Chemical Company has been added.

#eastman  #eastmanchemical  company #usa  #kingsport  #tennessee 

#pearlgtl #gasification  #fischertropsch  #gastoliquids  

#qatar #qatarenergy  #qatarshell  #gtl 

Ras Laffan and Golden Triangle complexes' mass balances, technologies and flow charts | Sites' models by Portfolio Planning PLUS

Qatar Energy is embarking on a major expansion of its petrochemicals business, signaling a transformative phase for the country’s industrial sector and its global energy ambitions. The state-owned company has announced plans to more than double its petrochemical production capacity, with significant investments in both Qatar and the United States. This expansion is centered around the construction of world-scale ethane-based crackers, designed to meet the anticipated surge in global demand for plastics and chemical products as the industry shifts toward cleaner and more efficient energy sources.

At the heart of this strategy is the $6 billion Ras Laffan Petrochemical Complex, currently under construction in Ras Laffan Industrial City, about 80 kilometers north of Doha. This facility will house an ethane cracker with an ethylene production capacity of 2.1 million metric tons per year (MMtpy), making it the largest in the Middle East and one of the largest globally. The complex will also feature two polyethylene trains capable of producing a combined 1.7 MMtpy of high-density polyethylene (HDPE), raising Qatar’s overall HDPE output by about 50% and increasing ethylene production capacity by more than 40%. The project is a joint venture between Qatar Energy, which holds a 70% stake, and Chevron Phillips Chemical (CPChem), which owns the remaining 30%.

The Ras Laffan complex is expected to be operational by the end of 2026, at which point it will propel Qatar’s total petrochemical production capacity to approximately 14 million tons per year. This marks the largest single investment in Qatar Energy’s downstream sector and is a cornerstone of the company’s broader strategy to reinforce its position as a leading global energy player. The project is also notable for its focus on sustainability, with energy-saving technologies and emissions-reduction measures designed to lower the facility’s environmental footprint compared to similar plants worldwide.

Parallel to its domestic expansion, Qatar Energy is also investing heavily in the United States. In partnership with CPChem, the company is developing the Golden Triangle Polymers Plant in Orange, Texas. With a planned ethylene capacity of 2.1 MMtpy and two polyethylene units totaling 2.0 MMtpy, this $8.5 billion facility is expected to be one of the largest of its kind globally. Production is scheduled to commence in 2026, and the bulk of its output will be aimed at export markets, supporting the growing global demand for polyethylene products used in packaging, consumer goods, and industrial applications.

Qatari energy minister and Qatar Energy CEO Saad al-Kaabi said gas will be the world's energy "backbone"

These projects are underpinned by Qatar’s abundant natural gas resources, particularly from the North Field, the world’s largest non-associated natural gas field. The North Field Expansion project, which will increase Qatar’s liquefied natural gas (LNG) production capacity from 77 million to 110 million tons per year, is closely linked to the supply of feedstock for the new petrochemical facilities. Qatar Energy’s integrated approach, leveraging both upstream and downstream assets, is designed to maximize the value of its natural gas reserves and ensure long-term competitiveness in the global energy market.

Qatar Energy’s CEO, Saad Sherida Al-Kaabi, has emphasized that gas will remain a backbone for industry, power, chemicals, and food production for decades to come. He notes that the company’s investments in petrochemicals are a natural extension of its LNG leadership, enabling it to diversify revenues and support the country’s economic development. The projects also reflect a broader industry trend, with petrochemical producers worldwide investing in ethane crackers to capitalize on the availability of low-cost feedstock and to adapt to evolving market dynamics.

In summary, Qatar Energy’s aggressive expansion in the petrochemicals sector—both at home and abroad—signals a new era for the company and the country. By doubling its capacity and investing in state-of-the-art, environmentally conscious facilities, Qatar is positioning itself as a major global hub for petrochemical production, poised to benefit from the long-term growth in demand for plastics and chemical products worldwide.

#qatarenergy  #chevronphillips  #cpchem  #qatar  #naturalgas  #lng  #steamcracking  #worldscale  #goldentriangle  #raslaffan 

Gruppo API (Italiana Petroli) Fuel Station

Italiana Petroli (IP), a leading Italian oil refiner and fuel distributor, is currently the subject of a competitive bidding process involving three major international groups: Azerbaijan’s state oil company SOCAR, Swiss commodity trader Gunvor, and the Abu Dhabi-based Bin Butti Group. Final offers for the company are expected by the end of May 2025, with SOCAR and Gunvor seen as the main contenders due to their longer involvement in the process, while Bin Butti joined more recently and is considered less likely to win.

IP, owned by the Brachetti Peretti family, operates around 4,600 fuel stations and manages a refining capacity of about 200,000 barrels per day, making it one of Europe’s largest private refining and fuel retail groups. Its main assets include the Ancona refinery (focused on bitumen), the SARPOM refinery in Trecate (producing fuels and jet fuel), and a tolling agreement for the Alma refinery in Ravenna. The company is valued between €2.3 and €2.5 billion, reflecting strong financials with nearly €500 million in core profit and over €400 million in net cash at the end of 2024.

The sale comes amid significant changes in the European refining sector, with private investors increasingly selling to commodity traders and state-backed companies. The winner of the IP auction will gain control over a vast network of fuel stations and significant refining capacity, which could influence fuel supply and pricing in Italy and the region. SOCAR’s bid would strengthen Azerbaijan’s presence in the European energy market, while Gunvor aims to expand from trading into full-scale refining and distribution. The outcome of this sale is expected to have a major impact on the structure of Europe’s refining industry as it adapts to new market and regulatory pressures.

#gunvor  #socar  #italianapetroli  #gruppoapi  #refinery  #ancona  #ravenna  #alma  #fuels  #fuelstations  #jetfuel  #bitumen 

The Alma Refinery from Alma Petroli has been added.

#alma  #almapetroli  #almarefinery  #refinery  #italy  #ravenna 

#ancona #italy  #refinery  #gruppoapi  #italianapetroli 

Oil Reserves by Country in 2024 | Keyson Stats, Youtube

Venezuela was once renowned for having one of the world’s largest and most sophisticated refining systems, with the Complejo Refinador de Paraguaná (CRP) at its heart. For decades, refineries such as Amuay, Cardón, and El Palito enabled the country to meet robust domestic fuel demand and export a significant surplus to international markets. However, over the past two decades, chronic underinvestment, deferred maintenance, political interference, and the exodus of experienced personnel have eroded the operational reliability and capacity of these facilities. The situation has been further aggravated by tightening U.S. sanctions since 2019, which have restricted access to spare parts, technology, and international financing, compounding technical and logistical challenges already facing the sector.

Venezuela’s Extraordinay Hydrocarbon Wealth

This decline in refining performance stands in stark contrast to Venezuela’s extraordinary hydrocarbon wealth. The country holds the world’s largest proven crude oil reserves, estimated at over 300 billion barrels, primarily concentrated in the Orinoco Belt, as well as significant natural gas resources exceeding 200 trillion cubic feet. Oil has long been the backbone of Venezuela’s economy, accounting for about 90% of export revenues and supporting a trade surplus for much of the late 20th century. Despite this abundance, Venezuela’s oil production has dropped sharply in recent years, falling from more than three million barrels per day a decade ago to below one million barrels per day by the mid-2020s. The gap between resource potential and operational reality has widened as infrastructure deteriorates and access to capital and technology remains restricted, with projections suggesting continued volatility depending on market access and investment levels.

High Crude Oil Cost Structure

A key factor complicating Venezuela’s production outlook is the relatively high cost structure of its crude oil. The average production cost for Venezuelan crude is estimated at $18 per barrel, with some heavy grades like Boscan near $16 per barrel and synthetic crudes from the Orinoco Belt incurring additional costs due to the need for diluents and upgrading. These costs can become prohibitive when international oil prices fall, and profit margins are further squeezed when Venezuelan blends are sold at a discount compared to global benchmarks. For example, the Merey blend, a key export grade, has recently traded around $17–$18 per barrel, while diluted crude oil (DCO) from the Orinoco Belt can fetch even less, sometimes below breakeven when including diluent expenses. This cost dynamic means that, even with vast reserves, Venezuela’s ability to ramp up production and exports is highly sensitive to global oil prices and access to affordable financing and technology.

A Refining Sector Adrift

As of May 2025, Venezuela’s main refineries— as Amuay, Cardón, and El Palito—are producing a fraction of their potential output. At the CRP, which includes Amuay and Cardón, total crude processing was about 187,000 barrels per day, or just 20% of the complex’s 955,000 bpd nameplate capacity. Cardón recently restarted its 88,000 bpd fluid catalytic cracking unit (FCC) after more than a year offline. The FCC is now running at about 26,000 bpd, while only one of Cardón’s crude distillation units is operational, processing 50,000 bpd—far below the refinery’s design. Amuay, the country’s largest refinery, is processing 137,000 bpd of crude and its FCC is running at 38,000 bpd, both well under capacity. Feedstock for these refineries is supplied by Venezuela’s upgrading companies, Petropiar and Petromonagas, as well as crude from Zulia state. The El Palito refinery has also experienced repeated shutdowns and was recently brought back online after 11 months, with its FCC producing about 26,000 bpd of blendstock, but still far from full capacity.

Strategic Alliances with International Partners

To address these challenges, PDVSA has adopted a multi-faceted strategy. The company has focused on restarting critical units, such as the FCCs at Cardón and El Palito, often with technical and financial support from international partners. Iran has played a significant role, providing both expertise and equipment under a $460 million agreement aimed at overhauling the CRP and replacing U.S.-origin components with Iranian and Chinese alternatives. Chinese financing has also been instrumental, particularly in supporting the restart of Amuay’s FCC and the ongoing deep-conversion project at Puerto La Cruz. Domestically, PDVSA has implemented measures to conserve energy and prioritize feedstock allocation, sourcing crude from joint ventures and key producing regions to keep essential units running. The government has also sought new foreign investment, promoting opportunities in oil, gas, and refining at international forums, though the legal and political environment remains a deterrent for many potential partners. Meanwhile, opposition-led reform proposals have called for opening the sector to greater private participation, but these have not gained traction with the current administration.

Challenges and Opportunities on the Horizon

Looking ahead, Venezuela’s vast oil and gas reserves remain a strategic asset with the potential to reshape both the country’s economy and the global energy landscape—should the sector’s structural and political challenges be addressed. If sanctions were eased and substantial investment returned, Venezuela could rapidly increase production and refining throughput, leveraging its unmatched resource base to reclaim a major role in international oil markets. However, realizing this potential will require not only a supportive oil price environment, but also technical and financial rehabilitation, as well as significant reforms to governance, transparency, and the investment climate. In the absence of such changes, Venezuela’s refining sector is likely to remain underutilized, with the country’s enormous hydrocarbon wealth continuing to represent unrealized opportunity rather than actual market influence.

#venezuela  #petroleosdevenezuela  #pdvsa  #refineries  #crudeoil  #amuay  #cardon  #elpalito  #puertolacruz  #runrates 

Description of the Bajo Grande refinery has been updated.

#petroleos  #venezuela  #pdvsa  #bajogrande  #refinery  #crp 

Description of the Amuay refinery has been updated.

#petroleos  #venezuela  #pdvsa  #amuay  #refinery  #crp 

Description of the Cardón refinery has been updated.

#petroleos  #venezuela  #pdvsa  #cardon  #refinery  #crp 

Description of PDVSA has been updated.

#petroleos  #venezuela  #pdvsa 

Chevron Phillips Chemical's Singapore HDPE complex | Credit: Chevron Phillips Chemical Co.

Chevron Phillips Chemical (CPChem) has agreed to sell its entire stake in Chevron Phillips Singapore Chemicals (CPSC), a high-density polyethylene (HDPE) manufacturing joint venture located on Jurong Island, Singapore. The buyer, Aster Chemicals and Energy—a joint venture between Indonesia’s Chandra Asri and global commodities trader Glencore—will acquire CPChem’s 50% interest, alongside stakes held by Singapore’s EDB Investments and Japan’s Sumitomo Chemical. The financial details of the transaction have not been disclosed, and the deal is subject to customary closing conditions.

CPSC’s facility, with an annual capacity of 400,000 metric tons of HDPE, is a significant supplier to regional markets, sourcing ethylene feedstock from local partners. The plant employs around 150 people, who are expected to be offered positions with Aster to support a smooth transition and maintain operational continuity.

This divestment aligns with CPChem’s broader strategy to streamline its global asset base and focus on more integrated, higher-margin operations. Despite the sale, CPChem will maintain its Asia-Pacific headquarters in Singapore, ensuring continued engagement with the region’s markets.

For Aster, this acquisition expands its manufacturing presence in Southeast Asia, complementing its recent purchase of Shell’s refinery and petrochemical assets in Singapore. The addition of CPSC’s HDPE plant is expected to strengthen Aster’s product portfolio and support its regional growth ambitions.

Overall, the transaction reflects ongoing changes in the global petrochemical sector, with companies seeking greater integration and efficiency. For Singapore, it highlights the continued attractiveness of Jurong Island as a site for advanced chemical manufacturing.

#capcg  #aster  #cpchem  #shell  #singapore  #refinery  #petrochemicals  #acquisition  #martech  #hdpe  #cpchem  #glencore 

CAPCG and Aster Chemicals and Energy Singapore have been created.


#aster  #singapore  #glencore  #chandraasri 

The newly opened ten-MW plant (dark grey containers) in Schwechat produces between five and ten percent of the hydrogen required annually by the OMV Schwechat refinery for its operations.

OMV has successfully started up its landmark 10 megawatt (MW) polymer electrolyte membrane (PEM) electrolyzer at the Schwechat refinery near Vienna, marking the largest operational green hydrogen production facility in Austria and a significant step forward in the country’s energy transition. The project, known as UpHy II, is the result of years of collaboration, planning, and investment, and stands as a blueprint for industrial-scale green hydrogen integration in refining.

Project Location and Startup

The electrolyzer is located within OMV’s Schwechat refinery, Austria’s largest petroleum processing facility, strategically positioned to directly supply hydrogen to existing refinery operations. The plant began commercial operation in late 2024, with official announcements and public showcases taking place in spring 2025. Its startup represents not only a technical milestone but also a pioneering achievement in regulatory compliance, as it is among the first green hydrogen projects in Europe to achieve certification under the EU’s Renewable Fuels of Non-Biological Origin (RFNBO) standards.

Capacity and Production

With a total capacity of 10 MW, the electrolyzer can produce up to 1,500 metric tons of green hydrogen annually—equivalent to about 2,000 Nm³ of hydrogen per hour. This output is sufficient to supply 5–10% of the both the Schwechat refinery’s total hydrogen needs (estimated at 15,000–30,000 tons/year), displacing fossil-based hydrogen in refining processes such as hydrodesulfurization. The remaining hydrogen is channeled into mobility applications, such as fueling hydrogen buses and trucks. The hydrogen produced is of high purity (≥99.999%), meeting the strict requirements for both refinery use and mobility (ISO 14687-2 and EN 17124).



Feb 16, 2022 -- UpHy I + II – Upscaling of green hydrogen for mobility and industry, WIVA P&G, Youtube.

Technology and Selectivity

The electrolyzer uses state-of-the-art PEM technology, chosen for its efficiency, flexibility, and ability to respond quickly to fluctuations in renewable power supply. The system consists of four 2.5 MW PEM electrolyzer containers, each capable of producing 500 Nm³/h of hydrogen. Operating at temperatures between 50 and 80°C, the system achieves high system efficiency, ranging from 75% (start of run) to 68% (end of run) at full load. The hydrogen is delivered at 30 bar, reducing the need for additional compression before use in the refinery.

The selectivity of the PEM process ensures that only hydrogen and oxygen are produced, with minimal impurities, making the output suitable for both chemical processes and mobility applications. The facility also includes advanced purification and measurement technologies developed in partnership with HyCentA Research GmbH and V&F Analyse- und Messtechnik GmbH, ensuring compliance with stringent quality standards.



UpHy I + II - Upscaling of green hydrogen for mobility and industry.

Integration in Refining and Mobility

The green hydrogen produced at Schwechat is used to replace fossil-based (“grey”) hydrogen in the Schwechat refinery’s hydroprocessing units, which are essential for producing cleaner fuels and chemicals. This substitution reduces the refinery’s annual CO₂ emissions by up to 15,000 metric tons, equivalent to the carbon footprint of 2,000 people. Additionally, part of the hydrogen is made available for mobility, supporting the operation of hydrogen-powered buses and trucks, with dedicated logistics and filling infrastructure developed as part of the UpHy project.

Future Prospects

The successful operation of the 10 MW electrolyzer serves as a foundation for OMV’s ambitious plans to scale up green hydrogen production. The company has already announced a much larger project: a 140 MW electrolyzer to be built southeast of Vienna, with a target production capacity of 23,000 tons of green hydrogen per year—one of the largest such facilities planned in Europe. These projects are part of OMV’s broader strategy to become a leader in sustainable fuels, chemicals, and materials, and to achieve net-zero emissions by 2050.

#omv  #schwechat  #refinery  #hydrogen  #greenhydrogen  #sustainability  #electrolyzer  #greyhydrogen  #hydroprocessing  #austria  #pemelectrolyzer 

HyCentA (Hydrogen Research Center Austria) has been added.


#hydrogen  #greenhydrogen  #electrolysis  #electrolyzer  #sustainability 

Ulsan PP has been created. Its PP plant, technology and production capacity have been added.


#ulsan #ulsanpp   #spheripol  #lyondelllbasell #korea 

SK Advanced in Ulsan has been created. Its PDH plant, technology and production capacity have been added.


#sk  #advanced  #pdh  #catofin  #lummus  #korea 

PDH plants and PP3 Plant technologies and capacities have been added.


#pdh  #propanedehydrogenation  #oleflex  #catofin  #uop  #lummus 

Production capacities of the two PP Plants and technology of PP6 (Borstar PP) have been added.


#borealis  #omv  #burghausen  #germany  #borstar 

$5.2 Billion Vietnamese Project Records $304 Million Loss in 2024, Continues to Weigh Heavily on SCG’s Financial Results in Early 2025

The Long Son Petrochemical Complex (LSP), Vietnam’s first fully integrated petrochemical facility, has experienced a turbulent launch and operational trajectory since its much-anticipated commercial start-up in late 2024. This article aggregates the latest developments, contextualizes them within broader industry trends, and references previous communications that highlighted both optimism and early warning signs.

Background and Launch

Long Son Petrochemicals Co., Ltd., located in Ba Ria-Vung Tau and wholly owned by Thailand’s SCG Chemicals (a subsidiary of SCG Group), represents a $5.2–5.4 billion investment and is designed to produce 1.55 million tonnes of polyolefins (polyethylene and polypropylene) annually. The complex includes a world-scale, so-called Flex Feed Cracker with a capacity of 998,000 tonnes of ethylene, 500,000 tonnes of propylene, and 101,000 tonnes of butadiene per year, using naphtha, LPG, and soon, ethane as feedstock.

*Data from the Long Son Environmental Permit (in Vietnamese Language) dated August 30, 2023.

Interactive Process Flow Chart of Long Son Petrochemical Complex based on 2023's Environmental Permit Data | Unique Feature available only on Portfolio Planning PLUS Platform.

After years of construction and trial runs, LSP officially began commercial operations on September 30, 2024. The launch was heralded as a transformative step for Vietnam’s plastics and downstream manufacturing sectors, reducing reliance on imports and boosting local industry competitiveness.

Operational Suspension and Financial Losses

Despite the high-profile start-up, LSP suspended operations in mid-October 2024—just two weeks after commercial production began. This abrupt halt was attributed to:

• High production costs: Naphtha, the primary feedstock, remained expensive amid volatile crude oil prices.
• Weak global demand: A global downturn in the petrochemical market, exacerbated by oversupply and sluggish downstream demand, led to poor product margins.
• Low chemical spread: The spread between naphtha and polyethylene/polypropylene prices dropped to $300–$343 per tonne, below the threshold for profitable operations.

SCG Chemicals reported a staggering loss of $303.6 million from LSP in 2024, with monthly expenses at the complex reaching $35.5 million—40% of which are non-cash items like depreciation. The financial drag from LSP sharply reduced SCG’s consolidated profit, even as its other businesses remained profitable.

Capacity Questions and Technical Details

Our prior communication raised questions about the actual cracker capacity and the interpretation of trial run figures, whereby we issued a mass balancing challenge that still awaits contributions from users of the PPPLUS Platform.

Various data sources have reported diverging plant capacities for both the cracker and the downstream plants. In addition, calculated feedstock requirements to match the reported ethylene and propylene outputs are not making any sense in terms of cracker capacity. The figures we have used to generate the site's mass balance and process flow chart are taken from the Long Son Environmental Permit (in Vietnamese Language) dated August 30, 2023. During the brief operational window, initial output was reported at 74,000 tonnes—well below nameplate, reflecting the ramp-up phase and subsequent shutdown.

Strategic Adjustments and Future Plans

SCG has not abandoned the project. Instead, it is adapting the business model to address structural challenges:

• Feedstock flexibility: LSP is being retrofitted to use imported ethane as a primary feedstock, which offers better margins than naphtha. The company plans to invest an additional $400–700 million to enable the cracker to use up to two-thirds ethane, with completion targeted by end-2027.
• Cost management: SCG is implementing group-wide cost reductions and discontinuing unprofitable businesses, aiming to save 5 billion baht and cut working capital by 10 billion baht by early 2025.
• Potential restart: With recent improvements in polyolefin-to-feedstock spreads (averaging $396/t in April-May 2025), SCG is considering restarting LSP as early as August 2025, contingent on further margin recovery and market stability.

Long Son Petrochemical Complex Assets | Market Intelligence by Portfolio Planning PLUS

Market and Policy Environment

Vietnam’s government has signaled support for LSP’s expansion, promising to streamline procedures and facilitate stable gas imports, including ethane from the U.S.. However, the domestic market remains under pressure from competitive international polyolefin imports and subdued export demand.

Summary on Key Facts and Timeline

• Sep 30, 2024 - Commercial Start-up: Official launch of Vietnam’s first integrated petrochemical complex in Vietnam.
• Mid-Oct 2024 - Suspension of Operations: Halted after two weeks due to poor margins and high costs.
• Full Year 2024 - 2024 Financial Loss: $303.6 million loss from LSP; group profit slashed.
• 2025 - 2027 - Upgrade/Expansion Plans: $400–700 million investment to enable ethane feedstock; expansion under review.
• August 2025 (TBC) - Potential Restart: Dependent on market spreads and demand recovery.

Outlook

The Long Son Petrochemical Complex exemplifies both the promise and pitfalls of mega-projects in volatile global markets. While its technical capabilities and strategic significance remain intact, the project’s near-term viability hinges on market recovery, successful feedstock diversification, and continued government support. SCG’s willingness to invest further and adapt its strategy suggests a long-term commitment, but the road to profitability remains challenging and closely watched by industry observers.

#technipenergies  #basf  #mitsuichemicals  # univation #unipol  #hypol  #steamcracking  #lsp  #steamcracker  #vietnam  #crackerfeedstock  #massbalance  #longson  #scg 

Technologies and capacities at SMI Plant have been added.


#chandraasri  #philippines  #styrene  #ethylbenzene  #lummus  #badger  #smi 

North Atlantic France SAS announces European expansion with intention to acquire a controlling interest in Esso Société Anonyme Française SA and 100% of ExxonMobil Chemical France SAS 

• Entry into exclusive negotiations with ExxonMobil France Holding SAS (“ExxonMobil”) to acquire  an 82.89% controlling interest in Esso Société Anonyme Française SA (“Esso S.A.F.”) and 100%  of ExxonMobil Chemical France SAS (“EMCF”) 
• Ambition to consolidate Gravenchon site as a vital center of French energy and industry for  decades to come and to grow North Atlantic into a premier transatlantic energy champion  
•  Commitment to maintain continuity in crude supply, product quality, and customer relationships at Gravenchon 
• Acquisition of the block of Esso S.A.F. shares will be followed by the filing of a mandatory tender  offer for the remaining shares in Esso S.A.F on the same financial terms  
• Filing of the tender offer would be expected in the first quarter of 2026 

ST. JOHN’S, NL, CANADA May 28, 2025 – North Atlantic France SAS (“North Atlantic”) has entered into  exclusive negotiations with ExxonMobil France Holding SAS to acquire an 82.89% controlling interest in  Esso S.A.F. and 100% of EMCF by signing a put option agreement (the “Put Option Agreement”). The  contemplated transaction will be submitted to the relevant employees’ representative bodies, in  accordance with French law. 

ABOUT THE TRANSACTION 

North Atlantic, a key player in the energy industry with close to 40 years of experience in Atlantic Canada,  has a strong track record of operating and transforming refinery sites and seeks to build on the established  success of ExxonMobil in France.

Located on a 1,500-acre site in the Normandy region of France, the combined facility isthe second largest  refinery in France and one of the largest integrated chemical complexes in Western Europe. Encompassing two distillation trains, several conversion units and associated logistics facilities¹, the site has the capacity to process 230,000 barrels per day of crude oil and other feedstocks. 

North Atlantic’s objective is to build on this legacy through investment and by bringing its entrepreneurial agility and operational focus to increase capacity and unlock even greater value from the site. North Atlantic also aims to develop Gravenchon into a green energy hub, leveraging its infrastructure to accelerate the deployment of low-carbon fuels and renewable power. 

North Atlantic is committed to delivering a comprehensive and well-managed transition, with the intention to maintain employment and existing compensation and benefits.  

“This is a pivotal moment for North Atlantic as we enhance our transatlantic presence and commitment to energy security through innovative energy solutions aligned with global energy needs. Integrating the  capabilities of the highly skilled and experienced professionals in France with our established expertise and operational excellence in Canada demonstrates our commitment to growing North Atlantic into a premier transatlantic energy company” said Ted Lomond, President and CEO of North Atlantic, President of North  Atlantic France.  

“We are eager to consolidate Gravenchon’s role as a vital center of French energy and industry for decades to come. We see tremendous opportunity to grow the refinery complex with a strong commitment to being a long-term, responsible steward—aligned with France’s priorities for energy security, industrial resilience, and decarbonization” said Simon Fenner, CEO of North Atlantic France.

PURCHASE PRICE 

The purchase price for the contemplated acquisition of the 82.89% interest in Esso S.A.F. would correspond  to a price of €149.19 per share of Esso S.A.F. before any distribution by Esso S.A.F. (amounting to a €32.83 price per share assuming a total distribution amount of c. €116.36 per share prior to the completion of the contemplated acquisition, see the “Distribution” section below) and before giving effect to the adjustments described below.  

This price per share of Esso S.A.F. has been set assuming an amount of cash as of December 31, 2024 and  not yet distributed equal to €1,495,716,000, and a base purchase price for 100% of the shares of Esso S.A.F equal to €422,000,000. 

This purchase price would be subject to the following adjustments (on a 100% basis):  

• downward adjustment to the amount of cash Esso S.A.F. would distribute prior to the completion date  of the block acquisition (see the “Distribution” section below); 

• upward adjustment by a ticking fee mechanism corresponding to accrued interest on (i) a first base  amount of €362,000,000 at the euro short-term rate plus 2% per annum between March 2, 2025 and  the completion date, and (ii) a second base amount of €950,000,000 at a rate of 2.40% per annum between March 2, 2025 and the completion date; 

• upward or downward adjustment to reflectthe change in the value of Esso S.A.F.’s inventory and equal  to the difference between the crude oil value of ten (10) million barrels as of December 31, 2024 and the crude oil value of the same number of barrels as of the completion date. 

The purchase price paid for the contemplated carved-out business and for the carved-out assets (see the  “Carve-outs” paragraph of the “Other Key Terms” section below) will increase the available cash of Esso  S.A.F. and be taken into account in the purchase price adjustments described above. 

The final price for the contemplated acquisition of the 82.89% interest in Esso S.A.F. would be set  definitively prior to completion of the block acquisition and will be communicated to the public in due  course. 

DISTRIBUTIONS FROM ESSO S.A.F. 

Given the level of available cash, ExxonMobil has agreed to use its commercially reasonable efforts to cause Esso S.A.F. to make) an additional distribution prior to completion of the block acquisition up to  €63.36 per Esso S.A.F. shares (in addition to the distribution of a dividend of €53 per Esso S.A.F. share  submitted to the shareholders meeting to be held on June 4 2025 and to be paid (subject to approval by  said shareholders meeting) on July 10, 2025). 

TIMELINE – MANDATORY TENDER OFFER 

Assuming signing of the definitive acquisition agreement, completion of the contemplated acquisition of  the 82.89% interest in Esso S.A.F. and 100% of EMCF would be subject to the satisfaction of customary  regulatory conditions precedent and establishment of certain financing arrangements, and is expected  to occur in the fourth quarter of 2025.  

In accordance with applicable laws, following the contemplated acquisition of the controlling interest in  Esso S.A.F., North Atlantic would file a mandatory tender offer, for the remaining shares in Esso S.A.F. on  the same financial terms as the block acquisition. If the legal conditions are met at the end of the offer,  North Atlantic will request the implementation of a squeeze-out procedure. The filing of the tender offer  is expected to take place in the first quarter of 2026. 

OTHER KEY TERMS 

• Carve-outs: members of the ExxonMobil group would acquire trademark registrations and other  intellectual property rights which are part of the Exxon Mobil Corporation global trademark portfolio  currently owned by Esso S.A.F. and EMCF for historical reasons, as well as the lubricant and specialty  marketing businesses currently operated by Esso S.A.F. As mentioned above, the purchase price for  such contemplated transactions will increase the available cash of Esso S.A.F. and be taken into  account in the purchase price adjustments for the contemplated acquisition of the 82.9% interest in  Esso S.A.F. 

• Financing: the block acquisition would be financed by equity commitments from direct or indirect  shareholders of North Atlantic and by external debt to be secured. 

• Long-term agreements with ExxonMobil affiliates: following closing of the block acquisition, it is  contemplated that Esso S.A.F. would enter into long-term agreements with certain ExxonMobil  affiliates, notably (i) certain agreements to ensure continuity in the site’s crude supply, the continuous  buy and sell of feedstocks and manufactured fuel, lubricants and specialties products with ExxonMobil  affiliates and (ii) certain intellectual property agreements for the continued operation of the refinery’s  units and the marketing of fuels under the Esso brands in France 

Esso France Website

Esso S.A.F. announces that ExxonMobil has entered into exclusive negotiations for the sale of its stake in Esso S.A.F.

Batangas Plant Assets & Technologies | Portfolio Planning PLUS

JG Summit Halts Batangas Petrochemical Operations

JG Summit Holdings has indefinitely suspended operations at its Batangas petrochemical complex, marking a pivotal shift for the Philippines' sole integrated naphtha-based production facility. The decision, driven by structural challenges in global markets, will idle the site for at least two years while the conglomerate evaluates strategic alternatives.

Petrochemical Operations Overview

JG Summit Olefins Corporation (JGSOC) operates the country's only fully integrated petrochemical complex, featuring:

• Naphtha cracker: 480,000 t/yr ethylene and 240,000 t/yr propylene capacity

Downstream units:

• 570,000 t/yr polyethylene (PE) across three plants
• 300,000 t/yr polypropylene (PP)
• Ancillary units producing benzene, toluene, and mixed xylenes

The complex supplied 100% of domestic PE and 68% of PP demand in 2024

Shutdown Drivers

The shutdown of JG Summit’s Batangas petrochemical complex was driven by a combination of challenging market dynamics and structural industry pressures. A persistent global oversupply, largely from ethane-based producers in the Middle East and North America, steadily eroded profit margins for naphtha-derived products. This unfavorable environment pushed polymer spreads to historic lows, culminating in JG Summit Olefins Corporation (JGSOC) reporting a ₱3.3 billion ($59 million) loss in the first quarter of 2025.

Beyond market forces, structural challenges also weighed heavily on the operation. The Batangas facility faced significantly higher operating costs compared to gas-based crackers, making it less competitive on a global scale. At the same time, export demand weakened as new regional capacities came online, further limiting the company’s ability to offset domestic pressures.

Operational and Financial Impact

Operationally, these factors forced JGSOC to fully halt its polyethylene and polypropylene production since January 2025. The shutdown created a domestic supply gap, leaving the Philippines entirely dependent on imports for these essential polymers. Financially, the impact was severe: JG Summit’s consolidated profit dropped by 61% year-on-year to ₱4.3 billion ($77 million), and the parent company had to absorb ₱17.1 billion ($306 million) in subsidiary debt as part of the restructuring.

Strategic Adjustments

In the wake of the shutdown, JG Summit has prioritized asset preservation by keeping the Batangas facility’s equipment in a condition that would allow for a potential restart or sale in the future. The company has also introduced workforce rationalization measures, rolling out employee care programs to support staff affected by the closure. At the same time, JG Summit is managing its remaining inventory by continuing to sell products from existing stockpiles, ensuring that any residual market demand is met.

Importantly, the conglomerate’s LPG trading operations under Peak Fuel Corp. remain unaffected by the petrochemical plant’s closure, providing some continuity in its energy-related business activities. Financial analysts believe that, despite incurring one-time restructuring costs of ₱7.9 billion ($142 million), the shutdown could actually enhance JG Summit’s consolidated EBITDA by 12 to 15 percent annually, as the company eliminates the losses associated with its petrochemical operations.

This strategic retreat from the petrochemicals sector allows JG Summit to shift resources and focus toward its core businesses, such as food manufacturing through Universal Robina and aviation via Cebu Pacific—both of which achieved strong double-digit growth in early 2025.

Outlook

The company’s decision highlights the ongoing structural challenges faced by Asian naphtha-based producers in a global environment increasingly shaped by the economics of shale gas and the competitive advantage it offers to gas-based petrochemical facilities.

#jgsummit  #jsoc  #philippines  #batangas  #steamcracker  #petrochemicals  #feedstock 

SP Chemicals Gas Cracker. Credit: SP Chemicals.

Taixing, Jiangsu Province, China – May 2025

SP Chemicals, a leading Chinese petrochemical producer, has announced plans to significantly increase its use of ethane as feedstock at its flagship complex in eastern China, reflecting a broader industry move to cut costs and enhance competitiveness amid global oversupply and squeezed margins.

Ethane Utilization Set to Rise

Currently, SP Chemicals’ cracker in Taixing operates with ethane as about 75% of its feedstock. The company is now studying an increase to as much as 90% ethane utilization, according to CEO Chan Hian Siang. This shift is being evaluated in partnership with Technip, a global engineering firm, and would make SP Chemicals one of the most ethane-intensive operators in Asia.

Ethane, a derivative of U.S. shale gas, is typically cheaper than the more commonly used naphtha. With U.S. ethane exports projected to grow by 7% in 2025 and China recently waiving its 125% tariff on U.S. ethane imports, the economics for ethane cracking have become even more favorable. SP Chemicals sources its ethane primarily from Enterprise Products Partners, a major U.S. supplier.

Infrastructure Expansion

To support the increased ethane use, SP Chemicals will invest between 400 and 500 million yuan (approximately $56–69 million) to construct a new 200,000-cubic-meter ethane storage facility at the Taixing site, nearly doubling current storage capacity. The company also plans to build three new Very Large Ethane Carriers (VLECs) by 2028 to secure long-term supply logistics.

Industry Context

The move comes as Asian petrochemical producers face thin profit margins and global oversupply. Flexible crackers—those able to process both naphtha and ethane—are seen as best positioned to weather market volatility. Other regional players, such as South Korea’s YNCC and Thailand’s PTT Global Chemical, are also ramping up ethane use to maintain cost competitiveness.

SP Chemicals was the first in China to operate a fully gas-based ethylene cracker, starting up its 650,000 tpa (now 780,000 tpa) facility in 2019. The cracker supplies ethylene to the company’s vinyl chloride monomer (VCM) and styrene units, as well as the merchant market.

Strategic Impact

By increasing ethane utilization, SP Chemicals aims to:

• Lower feedstock costs and improve margins in a challenging market.
• Enhance operational flexibility and resilience.
• Secure long-term supply through expanded storage and shipping.

CEO Chan Hian Siang noted that “ethane remains cheaper than alternative feedstocks,” underscoring the company’s commitment to cost leadership and innovation.

Outlook

SP Chemicals’ investment in ethane infrastructure and feedstock flexibility positions it at the forefront of China’s petrochemical sector transformation. As U.S. ethane exports rise and China’s demand for cost-competitive chemicals grows, the company’s strategy is likely to set a benchmark for the region’s evolving industry landscape.

#spchemical  #china  #taixing  #crackerfeedstock  #ethane  #gascracker  #technip  #enterpriseproductspartners  #yncc  #ptt 

HPCL Rajasthan Refinery. Credit: TATA PROJECTS

India’s Largest Greenfield Refinery-Cum-Petrochemical Complex Advances Toward Operational Milestone.

Hindustan Petroleum Corporation Limited (HPCL) is poised to commence crude oil processing at its 9 million metric tons per annum (MMTPA) Rajasthan refinery in October 2025, marking a critical step in India’s push for energy self-sufficiency. The greenfield refinery-cum-petrochemical complex, located in Pachpadra, Barmer, will be the country’s first new integrated facility in nearly a decade and a cornerstone of its strategy to meet rising fuel and petrochemical demand.

Project Progress and Timeline

• Physical Completion: 82% as of September 2024, with crude pipelines nearing 94% completion.
• Crude Unit Start: October 2025, with phased commissioning of downstream units to follow.
• Full Operations: Expected by December 2025, ramping up to 80% capacity by year-end and full utilization by 2027.
• Petrochemical Integration: Polypropylene, LLDPE, and HDPE units to begin operations in early 2026, three months after refinery startup.

Strategic Configuration and Technology

• Crude Flexibility: Processes a mix of indigenous Rajasthan crude (1.5 MMTPA) and imported Arab medium/heavy grades (7.5 MMTPA), shifting to 100% imported crude after eight years.
• Key Units:
  • Crude Distillation Unit (CDU): 9.0 MMTPA
  • Delayed Coker Unit (DCU): 2.4 MMTPA
  • Petrochemical Fluidized Catalytic Cracking Unit (PFCCU): 2.9 MMTPA
  • Polypropylene Units: 2 x 490 KTPA (Lummus Novolen technology).
• Licensors: Axens (naphtha hydrotreating, isomerization) and Lummus (polypropylene reactors).

Economic and Environmental Impact

• Investment: ₹72,937 crore ($8.8 billion), with ₹48,625 crore secured via consortium financing.
• Employment: Generated over 50,000 jobs during construction, with 10,000 permanent roles post-commissioning.
• Sustainability: BS-VI compliant fuels, CO₂ recovery systems, and a 17,000-tree plantation drive to combat desertification.
• Market Role: Addresses northern India’s fuel deficit, reducing reliance on imports and positioning India to surpass China in oil demand growth by 2027.

Challenges and Delays

Originally conceptualized in 2013, the project faced delays due to pandemic disruptions, logistical hurdles, and cost escalations. Revised timelines now align with India’s goal to expand refining capacity to 450 MMTPA by 2030.

Future Expansion

HPCL plans to double the refinery’s capacity to 18 MMTPA, leveraging its modular design and existing infrastructure. The expansion will further integrate petrochemical production, targeting 2 MMTPA of specialty chemicals by 2030.

Outlook

The Rajasthan refinery underscores India’s ambition to balance fuel production with high-value petrochemicals, positioning the country as a global refining hub. With commissioning on the horizon, all eyes are on HPCL to deliver a project that could redefine Asia’s energy landscape.

#india  #rajasthan  #refinery  #refining  #crudeoil  #rajasthancrude  #hpcl  #axens  #lummus 

#india #crudeoil  #rajasthancrude  #rajasthan 

ExxonMobil Joliet Refinery description has been updated.
However, available information is notsufficient to identify the technologies employed and generate a refinery flow diagram.
Any support from the community of eperts is welcome to achieve this.


#exxonmobil  #joliet  #refinery  #flowsheet 

CCR, Hydrocracker and Coker with their technologies and capacities have been added as far as identified.


#coker  #delayedcoking  #ccr  #platformer  #uop  #honeywell  #tuscaloosa  #refinery  #hunt  #hydrocracker  
 

PE and PP Plants with their technologies and capacities have been added.


#petronas  #saudiaramco  #prefchem  #pengerang  #lyondellbasell  #ineos  #spheripol  #spherizone  #innovene  #hostalen 

PRefChem Refinery Complex. Credit: prefchem.com

Malaysia’s Pengerang Refining Company (PRefChem Refining) has resumed operations by mid of May at one of its two residue fluid catalytic cracking (RFCC) units at the Johor complex, following an extended shutdown for repairs since late January. The two RFCC units at PRefChem have a combined processing capacity of 170,000 barrels per day (bpd), making them among the largest of their kind in the region

Operational Challenges and Market Impact

• Both RFCC units had previously encountered operational disruptions in the fourth quarter of last year, further impacting production reliability. The recently restarted RFCC unit, which primarily produces gasoline, is not yet operating at full capacity, according to sources familiar with the matter. The unit had been offline since the last week of January due to technical issues, contributing to a significant reduction in overall refinery throughput.
   
• During the shutdown, crude processing rates at the 300,000-bpd refinery dropped to around 50% on average over the past four months. Since the recent restart, sporadic offers for gasoline cargoes loading in June have appeared in the market, signaling a gradual return to normal operations.
   
• In addition to gasoline, the refinery is expected to load 5–6 cargoes of diesel (each 300,000 barrels) in May, according to trade estimates, rebounding from less than 1 million barrels in April.
   
• On the petrochemical side, PRefChem’s only steam cracker, with an ethylene capacity of 1.2 million metric tons per year, has also been offline for repairs since late January. The cracker is slated for a restart in the second half of June, according to industry sources.

Strategic Context

PRefChem, a 50:50 joint venture between Malaysia’s state oil company Petronas and Saudi Aramco, operates the integrated refinery and petrochemical complex at Pengerang, Johor. The facility is a cornerstone of the Pengerang Integrated Complex (PIC), which is Malaysia’s only fully integrated refinery, steam cracker, and petrochemical site. The complex is designed with multiple train configurations—including the two-train RFCC system using Axens technology (R2R) —to enhance production reliability and flexibility. Despite facing recurring operational disruptions since 2023, the company continues to invest in new technologies and capacity expansions to support long-term growth and regional energy security:

• New Projects: The $5.3 billion Pengerang Energy Complex, securing $3.5 billion in financing in December 2024, will add 2.6 million metric tons/year of aromatics capacity by 2028.
   
• Specialty Chemicals: The recently commissioned isononanol plant (250,000 tons/year) at the Pengerang Petrochemicals Complex achieved on-spec production in 2024, targeting full capacity by 2025.

Market Positioning

PRefChem remains strategically positioned as a major supplier of Euro 5-grade fuels and petrochemical feedstocks in Southeast Asia:

• Euro 5 Fuels: The refinery produces high-specification gasoline and diesel.
   
• Integrated Complex: The site houses 3.4 million tons/year of petrochemical capacity, including propylene and ethylene, though recent spot propylene tenders suggest inventory management amid cracker downtime.

Analysts note that while near-term operational reliability concerns persist, PRefChem's long-term growth pipeline and low-carbon investments position it to capitalize on Southeast Asia's rising petrochemical demand.

#prefchem  #saudiaramco  #petronas  #pengerang  #rfcc  #gasoline  #diesel  #steamcracker  #malaysia 

Source: Board Report, 2024

Source: SPDC website

Financial Data based on Tadawul reporting.
Crude Oil pricing from Macrotrends

The Middle East is seeing major investments in Ethylene derivatives capacities (UAE: ADNOC - Borouge, KSA: Satorp Refinery - Project Amiral, Petro Rabigh Expansion). All projects backed by major and cash rich investors. We can only hope, that the derivative value chains and feedstock configurations have been carefully examined, to not face a similar situation as Sadara.

Since its inception, the company has faced significant challenges, necessitating adjustments to feedstock and additional financing from its shareholders, Dow Chemicals and Saudi Aramco, following startup. Despite these efforts, the overall situation remains difficult, with Sadara continuing to struggle to generate profits for nearly three years.

Saudi Aramco has also taken the decision in 2024, to write off the investment in their books.

Source: Saudi Aramco Annual Report 2024

The configuration of the site with a very high degree of value chain complexity is not generating the results envisioned.

Please see here: 

• Mass Balance
• Flow Chart

Contact us for more insight.

#ineos #membraneelectrolyser  #hydraeonelectrolyser  #greenhydrogen  #emethanol  #alkalinewater  #electrolysis  #hydrogenproduction  #renewableenergy 

DOW Annual Report 2024, Page 103

Sadara In 2011, the Company and Saudi Arabian Oil Company formed Sadara -a joint venture between the two companies that constructed and operates a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. The Company has a 35 percent equity interest in this joint venture and continues to be responsible for marketing a significant portion of Sadara’s products through the Company’s established sales channels. In 2021, Dow and the Saudi Arabian Oil Company agreed to amarketing rights transition plan. Execution of the transition plan is ongoing and progressing towards aligning marketing rights and responsibilities to levels more consistent with each partner's equity ownership. This transition will not impact equity earnings, but is expected to reduce the Company's sales of Sadara products over the transition period. TheCompany’s investment in Sadara was $1,280 million less than Dow’s proportion ate shareof the carrying value of the underlying net assets held by Sadara at December 31, 2024 ($1,387 million less at December 31, 2023). This basis difference, which resulted from the 2019 impairment of the investment, is primarily attributed to the long-lived assets of Sadara and is being amortized over the remaining useful lives of the assets. At December 31,2024, the Company had a negative investment balance in Sadara of $517 million classified as "Other noncurrent obligations" (negative $128 million at December 31, 2023) in the Company’s consolidated balance sheets. The negative investment inSadaraChemicalCompany at December 31, 2024 is primarily due to the equity losses generated during the year.

Picture: Website Lotte

Website: The Edge Malaysia

KUALA LUMPUR (May 23): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) signed a three-year contract to purchase up to 400 kilotonnes (KT) of naphtha annually from Aramco Trading Singapore Pte Ltd, a wholly owned subsidiary of Saudi Aramco.

The loss-making olefin and polyolefin producer said the agreement, signed by its wholly owned subsidiary Lotte Chemical Titan (M) Sdn Bhd, will be effective from July 2025 to June 2028, according to a filing with Bursa Malaysia.

The pricing is based on market pricing, with the estimated annual volume ranging between 300KT and 400KT, it added.

Aramco Trading Singapore is a key feedstock supplier of naphtha to Lotte Chemical Titan and has been its long-term partner.

The sales contract will not affect Lotte Chemical Titan’s share capital or shareholding structure, the company said.

The group reported its eighth consecutive quarterly loss, although losses narrowed year-on-year on better margins and contributions from a US associate.

For the first quarter ended March 31, 2025 (1QFY2025), LC Titan incurred a net loss of RM125.67 million, versus a net loss of RM178.03 million in the same quarter last year, even as revenue dropped 22.3% to RM1.49 billion from RM1.92 billion on lower sales volume and average selling prices.

#naocl #hypochlorite  #chlorinebleach  #sodiumhypochlorite   #chloralkali

#chloralkali #bichlor  #ineos  #chlorine  #causticsoda  #hydrogen  #electrolyser 

#aramco #petronas  #prefchem  #pengerang  #refinerycomplex  #refinery 

#aramco #petronas  #prefchem  #pengrang  #petrochemicalcomplex  #crackercomplex 

(Photo: Ineos)

Hydrogen Insight, May 15th:

Ineos Electrochemical Solutions, a wholly-owned subsidiary of the British chemicals conglomerate, has launched a new alkaline electrolyser specifically for green hydrogen projects called “Hydraeon”, based on its existing electrolysis technology used for chlor-alkali plants.

The electrolysers are designed as modular systems for large-scale green H₂ production, with Ineos advertising units with 25MW and 100MW of nameplate capacity.

Hydraeon is also advertised as capable of operating at 10% of its capacity, in response to intermittent renewable power supply.

#hydrogen #chloralkali 

Dow Q1 Report:

EXPANDING SCOPE OF EUROPEAN ASSET REVIEW 
In addition, the Company is expanding its previously announced European asset review, which is focused on addressing the persistently challenging demand dynamics and regulatory environment in the region. The Company is committed to completing the full review by mid-2025, including all value-creating options for its Polyurethanes business in the region. Dow has identified three initial assets across all of its operating segments that it believes will require further action. [...]

• Packaging & Specialty Plastics: Ethylene cracker in Böhlen, Germany, resulting in idle or shut down
• Industrial Intermediates & Infrastructure: Chlor-alkali & vinyl (CAV) assets in Schkopau, Germany, resulting in idle or shut down

#chloralkali 

Simplified Reactor Schematics for High Pressure Ethylene Polymerisation. Credit: Portfolio Planning PLUS

Ningbo Zhenhai Refining & Chemical Company Ltd. (ZRCC), a key subsidiary of Sinopec, has signed a technology licensing agreement with ECI Group for a new ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plant in Ningbo, Zhejiang Province, China. The plant, designed for a capacity of 200,000 tonnes per year, will be part of ZRCC’s ongoing expansion of its integrated ethylene and downstream chemical complex in the Zhenhai District.

Details of the Licensing Agreement

Technology Scope: The agreement covers the licensing of ECI Group’s hybrid reactor technology, which merges the product versatility of an autoclave reactor with the higher throughput of a tubular reactor tail. This configuration is designed to enable the production of a broad range of high-pressure polyethylene products, including LDPE, EVA, and other high-value copolymers at larger scales, a capability that has traditionally been challenging for autoclave-based technologies alone.

Project Deliverables: ECI Group will provide the technology license, process design package, expanded process design package, and detailed design for the high-pressure system. The scope also includes technical procurement services and on-site support during installation, commissioning, and performance assessment.

Plant Integration: The new EVA/LDPE facility will be integrated into ZRCC’s large ethylene and downstream complex. ZRCC, as a Sinopec subsidiary, is a major operator in the region and has recently completed significant expansions to increase both crude oil processing and advanced materials production capacity at its Ningbo site.

Industry Context

Capacity Milestone: The contract marks a milestone for ECI Group, bringing its total nameplate licensed capacity for LDPE/EVA plants to 1 million tonnes since 2021, with projects in China ranging from 50,000 to 200,000 tonnes per year.

Strategic Expansion: The new plant forms part of NZRCC’s broader strategy to expand its portfolio of high-value specialty chemicals and polymers, supporting downstream industries such as automotive, home appliances, and textiles in the Yangtze River Delta.

Sinopec’s Role: NZRCC operates as a major refining and chemical subsidiary under Sinopec, one of the world’s largest integrated energy and chemical companies. The Zhenhai complex is a central hub for Sinopec’s advanced materials and petrochemical production in eastern China.


#ecigroup  #ldpe  #highpressure  #ethylenepolymerization  #autoclavereactor  #tubularreactor  #hydridtechnology  #sinopec  #zrcc  #refinery  #refining  #zhejiangrefinery 

ECI Group has been added.


#highpressure  #ldpe  #autoclavereactor  #ethylenepolymerization  #tubulareactor  #hydridtechnology  #simoncarves 

Cilegon Plant - LOTTE Indonesia New Ethylene (LINE). Credit: PT Lotte Chemical Indonesia

PT Lotte Chemical Indonesia (LCI) is undergoing a transformative phase marked by significant investment, new long-term supply agreements, and persistent industry headwinds. The company’s strategy and recent developments provide insight into both its growth ambitions and the broader challenges facing the Southeast Asian petrochemical sector.

Major Expansion: New Cracker Facility

LCI is set to commence operations at its new mixed-feed cracker in Cilegon, Banten province, Indonesia, in the second half of 2025. This facility, part of a $3.95 billion investment, will have an annual production capacity of 1 million metric tons of ethylene. The new cracker is a central component of the Lotte Chemical Indonesia New Ethylene (LINE) project, which aims to strengthen the company's upstream integration and supply chain resilience.

Strategic 10-Year Ethylene Supply Deal

In May 2025, LCI secured a 10-year ethylene supply contract with PT Asahimas Chemical, an integrated chemical producer in Indonesia. The contract, effective from July 1, 2025, to June 30, 2035, commits LCI to supply approximately 150,000 tonnes of ethylene per year to Asahimas Chemical. The agreement’s value is expected to exceed 10% of Lotte Chemical Titan (the Malaysian-listed parent)'s latest annual consolidated revenue, underlining its financial significance. Pricing for the contract is pegged to prevailing market rates, ensuring flexibility in a volatile market environment. The long-term deal provides both revenue stability for Lotte Chemical and supply security for Asahimas, supporting downstream chemical industries in Indonesia.

Financial and Market Pressures

Despite these strategic moves, Lotte Chemical Titan continues to face financial challenges. The company reported its eighth consecutive quarterly loss in Q1 2025, though losses narrowed year-on-year due to improved product spreads and contributions from its US associate. For Q1 2025, Lotte Chemical Titan posted a net loss of RM125.67 million, compared to RM178.03 million a year earlier, with revenue dropping 22.3% to RM1.49 billion on lower sales volume and prices. The global petrochemical sector is currently experiencing margin compression due to oversupply, particularly from China, which has weighed on profitability and forced companies like Lotte Chemical to operate existing Malaysian crackers at reduced capacity (45%-50% since December 2024).

Ownership Restructuring and Strategic Flexibility

To bolster its financial position, Lotte Chemical reduced its stake in the Indonesian venture from 49% to 24% in early 2025, selling the shares to a consortium of South Korean financial institutions. Lotte Chemical Titan retains a 51% stake in Lotte Chemical Indonesia. The company is also exploring feedstock flexibility for the new cracker, planning to source naphtha from the Middle East and potentially substitute up to 50% of naphtha feedstock with natural gas liquids such as LPG or ethane, depending on market economics.

Sector Outlook and Strategic Positioning

The Southeast Asian petrochemical industry is in a phase of consolidation, with mergers and acquisitions on the rise as companies seek to enhance shareholder value amid challenging conditions. Lotte Chemical’s long-term supply contract and the new Indonesian cracker position it to capitalize on regional  demand growth, even as it navigates short-term market volatility and restructuring pressures. The new supply agreement is not expected to impact the company’s share capital or ownership structure, maintaining stability for investors.

Conclusion

Lotte Chemical Indonesia’s ambitious expansion and strategic supply agreements reflect a commitment to long-term growth and regional market leadership. However, the company continues to navigate a difficult economic landscape characterized by global oversupply, margin pressure, and the need for financial restructuring. The coming years will be pivotal as the new cracker comes online and the company seeks to leverage its strengthened position in Indonesia’s growing chemical sector.

#lotte  #lottechemical  #indonesia  #malaysia  #lci  #lineproject  #cilegon  #asahimas  #agc  #asahiglass  #ethylene  #steamcracker  #ethyleneplant 

December 2024 Investor Presentation

• Global Leader in Chlor Alkali & Vinyls
• ✓#1 Global Chlor Alkali Producer
• ✓#1 Merchant EDC and Chlorine Supplier
• ✓#1 North American Bleach Producer
• ✓#1 Chlorinated Organics Position
• ✓#1 Burner-grade Hydrochloric Acid Produce

#chloralkali 

Dow plans to shut down that PO unit at the end of 2025, and those plans prompted Olin to close the diaphragm-grade chloralkali capacity that serves the Dow facility.

#chloralkali 

PT Lotte Indonesia LINE (LOTTE Indonesia New Ethylene) project has been partly modeled, some technologies have been (presumable) identified and mass balance mostly developed. Due to some uncertainties, the MB is yet not complete.


#lotte  #indonesia  #line  #mfc  #mixedfeedcracker 

Asahimas Banten factory and its main chemical production facilities with their respective production capacities have been added.


#agc  #asahimas  #chloralkali  #vcm  #vinylchloride  #pvc  #indonesia  #causticsoda  #edc  #chlorine  #hydrogen 

PT Asahimas Chemical (Indonesia), a subsidiary of AGC Inc. (Japan) has been created.


#asahimas  #indonesia  #agc  #chloralkali  #pvc 

The description of AGC Inc. has been updated, and all 6 chemicals and glass manufacturing plants in Japan have been created.


#agc  #asahiglass  #japan  #chloralkali  #causticsoda  #chlorine  #electrolysis  #hydrogen  

#agc #asahiglass  #chloralkali  #chlorine  #causticsoda  #electrolysis  #hydrogen #japan 

Goh, Jun Lai, Cheng Yi 

SAMREF Refiney. Credit: Samref

Aramco and ExxonMobil Plan Major Upgrade to Transform SAMREF Refinery into Integrated Petrochemicals Complex

Saudi Aramco has recently taken significant steps toward upgrading the SAMREF refinery, a 50:50 joint venture between Saudi Aramco and ExxonMobil, located in Yanbu, on Saudi Arabia’s Red Sea coast.

It is one of the Middle East’s leading and most sophisticated refineries, processing over 400,000 barrels per day (b/d) of Arabian Light crude oil. It is one of the oldest and largest refineries in the Kingdom, exporting products to Europe, North America, and Asia. The refinery previously underwent a clean fuels upgrade in 2014 to reduce sulfur content in its products. The refinery is notable for its high yield of gasoline and distillate products, exceeding 80% per barrel—higher than many comparable refineries. Its product mix can be adjusted to meet seasonal or market-specific demands, reflecting its processing flexibility.

Key Developments:

• MoU with ExxonMobil: In May 2025, Aramco and ExxonMobil signed a memorandum of understanding (MoU) to evaluate a significant upgrade of the SAMREF refinery. The planned upgrade aims to transform the facility from a conventional oil refinery into a world-class integrated petrochemicals complex. This move is part of Aramco’s broader strategy to increase the value derived from its crude oil by expanding into high-value petrochemicals.
• Strategic Objectives: The SAMREF upgrade is a core component of Aramco’s $100 billion liquids-to-chemicals program, which seeks to convert up to 4 million barrels per day of crude oil into petrochemicals and chemical feedstocks by 2030. This initiative is central to Saudi Arabia’s ambition to maximize economic returns from its hydrocarbon resources and diversify its downstream portfolio.
• Scope of Upgrade: The envisioned project involves adding a mixed-feed cracker to the existing refinery, enabling the production of a broader range of petrochemical products. This would align SAMREF with other major Aramco projects, such as the planned expansions at the SASREF and Yasref refineries, which are also being converted into integrated refining and petrochemical complexes

Recent Announcements:

• The MoU was signed during the Saudi-US Investment Forum in Riyadh in May 2025, underscoring the importance of international partnerships in Aramco’s downstream expansion plans.
• Aramco’s CEO Amin Nasser reported that, as of the end of 2024, the company had achieved 45% of its liquids-to-chemicals program target, with ongoing progress at SAMREF and other key sites.

A Word of Caution:

This latest development comes on the heels of Aramco’s recent announcements of other mega-project transformations, including the $10 billion expansion of the SASREF refinery (to add 400,000 b/d of petrochemicals capacity) and the $7 billion upgrade of the Yasref refinery (to integrate a 2.5 million-ton-per-year ethylene cracker). These projects are part of Aramco’s broader $100 billion liquids-to-chemicals program, which aims to shift its downstream focus from fuels to high-value chemicals.

Mohammed Al-Qahtani, Aramco’s downstream president, previously explicitly affirmed the 4 million b/d target in a 2024 statement:

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”

However, as industry analysts, while recognizing the impressive scale of the recently announced petrochemical transformation projects, we must caution this ambitious 4 million b/d target faces significant hurdles:

• To put things in perspective, 4 million b/d of crude oil—corresponding to approximately 200 million tonnes/year—is equivalent to about half of today’s global plastics market, which would require unprecedented speed and scale in petrochemical conversion project execution.
• Critically, full-barrel conversion technology—which would enable near-total transformation of crude oil into chemicals without producing fuels—does not yet exist at commercial scale. Current state-of-the-art refineries convert only 15–20% of each barrel to chemicals, with the rest yielding fuels.
•  S-Oil's Shaheen project employing TC2C technology developed by Saudi Aramco Technology Company (SATC) is presently about half-way complete and has a scheduled oil uptake capacity of 2.3 million tonnes of Arab Light, corresponding to 1.15% of the stated objective.
• Aramco’s timeline (less than six years to 2030) would also require parallel delivery of many more mega-projects than those recently announced, each typically requiring 5–7 years to complete, to reach this upper target.
   

#aramco #tc2c  #oiltochemicals  #liquidstochemicals  #fullbarrelconversion  #saudiaramco  #exxonmobil  #samref  #yasref  #sinopec  #sasref 

The description of the SAMREF refinery has been updated.


#samref  #gasoline  #refinery  #aramco  #exxonmobil  #distillates  #motorfuels  #saudiarabia 

#sustainability #saf  #sustainableaviationfuel  #hydrocracking  #fatsandoils  #biodiesel  #renewablennaphtha  #thenetherlands  #rotterdam  #nestle  #technipenergies  #biorefinery 

Neste Singapore entity created and embedded in Neste Coroporation.

#refining #Refinery 

(Photo credit: Neste)

Technip website:

A major Technip Energies project has come to fruition with the start of production of sustainable aviation fuel (SAF) by Neste at its modified refinery in Rotterdam, The Netherlands.

The modification of Neste's existing renewables refinery enables the production of up to 500,000 tons of SAF every year, increasing Neste’s annual SAF production capability to 1.5 million tons.

This achievement is the result of a joint effort between Neste and Technip Energies that started with the development of a conceptual and feasibility design, then was consolidated with the delivery of a FEED (front-end engineering and design) stage, and finally resulted in the execution of an engineering, procurement, and construction management contract.

The project obtained a remarkable safety milestone with 100% working hours without LTI and QHSE events.

Enabling SAF production in Rotterdam is also an important milestone for Europe as it supports the implementation of the ReFuelEU Aviation Regulation and other SAF mandates, helping accelerate the energy transition and reduce emissions of the aviation industry.

#Sustainability 

Aramco announces upgrade, but no details provided.

MoU related to evaluating a significant upgrade to the SAMREF refinery and expanding the facility into a world-class integrated petrochemical complex.

#refining #Refinery 

Europe is facing a deepening energy crunch as domestic natural gas production plunges to its lowest level since 2021, even as demand surges to multi-year highs. According to the latest Gas Exporting Countries Forum (GECF) report, European gas output dropped 8% year-on-year in the first quarter of 2025, reaching just 47.7 billion cubic meters (bcm)-a stark reversal after a brief rebound in 2023 and 2024. The decline accelerated in March, with production falling 4% compared to the same month last year, marking the fifth consecutive month of shrinking output.

Figure 1 - YTD Europe’s gas production. GECF Monthly Gas Market Report – May 2025. Source: GECF Secretariat based on data from Refinitiv, the Norwegian Offshore Directorate and JODI Gas


Norway, which supplies about two-thirds of Europe’s gas, led the downturn. Its production fell 7% to 31.5 bcm, reflecting both natural field depletion and a lack of new investments. The UK’s output also shrank by 5% to 8.3 bcm, largely due to extended maintenance at the Bacton Gas Terminal. The Netherlands, once a cornerstone of Europe’s gas supply, saw a dramatic 25% collapse to just 2.4 bcm, a consequence of depleted reserves and government-mandated shutdowns of key fields such as Groningen. Across the continent, new exploration and investment in upstream gas projects remain at a standstill, further constraining supply.

Figure 2 - Left - Europe's monthly gas production / Right - Y-o-y variation in Europe's gas production by country. GECF Monthly Gas Market Report – May 2025. Source: GECF Secretariat based on data from LSEG, the Norwegian Offshore Directorate and JODI Gas. Note: EU countries include Austria, Denmark, Germany, Italy, Netherlands, Poland and Romania.


While production falters, European gas consumption is moving sharply in the opposite direction. Demand surged 9% year-on-year in the first quarter, reaching 134.8 bcm, and totaled 160.6 bcm from January to April-up 6% from the previous year. March alone saw a 5.2% jump in EU gas demand, extending a seven-month streak of rising consumption. This demand spike is driven by colder weather, a rebound in industrial activity, and-critically-a sharp drop in electricity generation from renewables. As wind and solar output faltered, gas-fired power plants were forced to ramp up, especially to stabilize grids during periods of volatility.

Figure 3 - EU-16 incl UK: NatGas Consumption for Power Generation in bcm per month; Burggraben analysis; Commodity Essentials; Bloomberg.


The situation has been further complicated by the unprecedented blackout that struck Spain and Portugal in late April. The sudden loss of 15 gigawatts-around 60% of Spain’s power-within seconds exposed the vulnerabilities of a grid increasingly reliant on intermittent renewables and cross-border flows. During the restoration, Spanish grid operator Red Eléctrica prioritized dispatchable sources, notably nuclear and combined-cycle gas plants, to quickly bring the system back online. Compounding this, Spain’s reliance on imported gas has grown: LNG imports from the United States surged to 35% of Spain’s total this year, up from 20% last year.

Europe’s gas market is now under mounting pressure. With domestic production in freefall, the continent is turning increasingly to imports. The International Energy Agency forecasts a 25% surge in European LNG imports this year, as lower piped gas flows and robust demand force buyers to seek supplies on the global market. This scramble for LNG is driving up prices and intensifying competition with Asia, where demand is now falling in the face of higher costs and Europe’s willingness to pay a premium.

Figure 4 - EU quarterly imports by source. Last updated: 11/04/2025. Source: Bruegel based on ENTSOG, GIE and Bloomberg


At the same time, gas storage levels across the EU remain a concern, with inventories at 43.67% of capacity as of mid-May-significantly lower than the seasonal averages and well below last year’s levels at this time. The situation varies by country: Germany’s storage is at 36.45%, Italy at 52.78%, France at 50.78%, the Netherlands at just 29.67%, Austria at 50.20%, and Spain leading with 72.29%. This depletion reflects the impact of a colder winter and increased withdrawals to offset reduced imports, particularly following the halt of Russian gas transit through Ukraine at the start of 2025. While Norway remains the EU’s largest supplier, Russian gas flows have edged higher again, even as ongoing political uncertainty clouds the outlook for future deliveries.

Figure 5 - GIE's Aggregate Gas Storage Inventory


The combination of falling domestic output, rising demand, and tight global markets is pushing European gas prices higher. Industrial users now face costs up to five times those in the United States, threatening competitiveness and raising fears of renewed energy-driven inflation. Without urgent investment in new production, infrastructure, and flexible backup generation, Europe’s energy security risks further erosion-especially as climate volatility and grid instability become more frequent.

Figure 6 - Dutch TTF Gas Jun '25 (TGM25) in euros per megawatt-hour (€ / MWh). Source: Barchart


The Spanish blackout stands as a warning: in a system where renewables dominate but dispatchable capacity is neglected, the margin for error is razor-thin. As Europe scrambles to keep the lights on and factories running, the continent’s self-inflicted gas crunch is fast becoming a test of both energy policy and political resolve.

#naturalgas  #powerplant  #combinedcycle  #gasplant  #nuclearenergy  #npp  #dispatchableenergy  #solarenergy  #windenergy  #blackout  #gasprices  #lng

Kuraray has been added.


#kuraray  #japan  #rayon  #pvoh  #pvb  #evoh  #maa  #mma  #pmma  #isoprene  #elastomers  #polyamide  #pva  #polyester  #membranes  #watertreatment  #fibers  #syntheticfibers 

thyssenkrupp Uhde has been added.


#thyssenkrupp  #uhde  #germany  #engineering  #sustainability  #chloralkali  #refining  #petrochemicalrpocesses 

A generic Suspension VCM Polymerization technology for PVC manufacturing is provided whenever technology provider or commercial polymerization technology is not known.


#vcm  #vinylchloride  #polyvinylchloride  #pvc  #suspensionpolymerization  #vcmpolymerization #chloralkali 

Suspension VCM Polymerization Process for PVC manufacturing has been added.


#vcm  #vinylchloride  #polyvinylchloride  #pvc  #suspensionpolymerization  #vcmpolymerization #chloralkali 

XRG Website:

ADNOC International Germany Holding AG (the “Bidder”), a wholly owned indirect subsidiary of XRG P.J.S.C. (formerly known as ADNOC International Limited, together with the Bidder and other companies of ADNOC Group, “XRG”), today, after expiry of the additional acceptance period, announced the final results of the voluntary public takeover offer (the “Takeover Offer”) to all shareholders of Covestro AG (“Covestro” or the “Company”).

At the expiry of the additional acceptance period on December 16, 2024, at 24:00 hrs (Frankfurt am Main local time) / 18:00 hrs (New York local time), the aggregate of the shares tendered and already purchased by XRG amount to c. 91.32% of the total shares outstanding of Covestro.

XRG will become the new majority shareholder of Covestro AG, a world leader in high-quality polymer materials, subject to outstanding regulatory approvals. Today’s announcement marks a significant milestone in XRG’s ambitious growth strategy to become a top five global chemicals player, while unlocking new growth opportunities.

In their joint reasoned statement, published on November 7, 2024, the Board of Management and Supervisory Board of Covestro recommended that shareholders accept the Takeover Offer.  

Investment arm of Adnoc, now named XRG

#agc #asahiglass  #chloralkali  #chlorine  #causticsoda  #electrolysis  #hydrogen #japan 

#lotte #lottechemical  #malaysia  #unipolpe  #univation  #lyondellbasell  #spheripol 

Polyethylene plants with technologies and capacities have been added.


#lyondellbasell  #spheripol  #mitsui  #mitsuicx  #hdpe  #ldpe  #lottechemical  #malaysia 

Therefore, while LC Titan's stake in LCI will remain at 51%, its parent's direct interest in the ethylene project in Indonesia will be reduced to 24% following the stake sale.


#lci  #lotte  #lottechemical  #indonesia  #shareholding 

PJSC Nizhnekamskneftekhim (NKNKH), part of the SIBUR petrochemical holding, has successfully completed construction and initiated commissioning of its new EP-600 ethylene plant in Nizhnekamsk, Tatarstan. Construction concluded in December 2024, marking a major milestone for both the company and the Russian petrochemical industry.

Key Project Highlights

• Construction Completion: The EP-600 complex, the largest petrochemical expansion in Tatarstan’s modern history, was finished in December 2024 after four years of development.
• Startup and First Ethylene Production: In January 2025, the plant received its first tons of ethylene as part of commissioning activities, with commercial-grade ethylene already delivered to downstream consumers at Nizhnekamskneftekhim and Kazanorgsintez.
• Capacity Expansion: EP-600 doubles Nizhnekamskneftekhim’s ethylene production capacity, adding 600,000 tonnes per year. The facility can process 1.8 million tonnes of straight-run gasoline annually, also producing over 270,000 tonnes of propylene, 245,000 tonnes of benzene, and 88,000 tonnes of butadiene.
• Downstream Integration: The new complex enables expanded output of premium polymers and chemicals, including: 300,000 tpy of metallocene polyethylene, 250,000 tpy of polystyrene, 350,000 tpy of ethylbenzene, 400,000 tpy of styrene and 50,000 tpy of hexene.
• Investment and Technology: The project represents an investment of about 200 billion rubles. Notably, commissioning was managed using in-house expertise-without reliance on foreign licensors or vendors-demonstrating SIBUR’s growing technical independence.
• Environmental Standards: EP-600 incorporates advanced environmental solutions, including CO₂ emissions 10% below the best available technologies, and nitrogen oxide emissions significantly lower than both Russian and European standards.

Strategic Significance

The EP-600 project is central to SIBUR’s and Nizhnekamskneftekhim’s strategy for expanding Russia’s chemical and petrochemical complex through 2030. The facility’s products will support both existing and new production chains, boosting the development of the Volga petrochemical cluster and stimulating further investment in high-value polymer processing in the region.

Next Steps

• Ramp-Up: The plant aims to reach full design capacity by the end of 2025.
• Further Expansion: With EP-600 as a foundation, SIBUR is advancing additional projects, including new hexene, ethylbenzene, styrene, and polystyrene units, as well as premium metallocene polyethylene production. Construction of these downstream facilities is scheduled to begin in 2025, with commissioning targeted for 2028.

With the successful completion and startup of EP-600, Nizhnekamskneftekhim and SIBUR have reinforced their leadership in Russia’s petrochemical industry, laying the groundwork for further growth and innovation in the sector.

#sibur  #nizhnekamskneftekhim  #kazanorgsintez  #ethyleneplant  #steamcracker  #russia 

#chloralkali #univation  #unipol  #olefinsplant  #steamcracking  #linde  #pvc  #thyssenkrupp  ##uhde #nucera 

Lukoil Stravolen petrochemical producer has been created, some of the technologies added with known capacities.


#lukoil  #stravolen  #univation  #unipolpe  #grace  #unipolpp  #ethyleneplant  #steamcracker  #technip 

Polyolefin plants, technologies and capacities have been added.


#orlen  #unipetrol  #czechia  #unipolpe  #univation  #ineos  #innovene  

Well Resources and PetroChina Dagang refinery personnel tour the Ionikylation Unit at PetroChina's Dagang Refinery, which reached 1,000 Days of Continuous Operation.

Well Resources, Calgary, Canada | May 12, 2025 –  PetroChina Dagang Petrochemical Company has reached the milestone of 1,000 continuous days of operation for its 150,000 tpy Ionikylation unit.

The successful commissioning of the ¥330 million RMB alkylation unit based on composite ionic liquid (CIL) alkylation technology was reported on August 14, 2022. Throughout its operation, the unit has produced 98 RON alkylate. The Dagang Ionikylation unit occupies a plot space of 159m x 71m.

The Dagang refinery has an annual crude processing capacity of 5,000,000 tpy, producing 1,500,000 tpy of gasoline. Ionikylation was selected for its demonstrated ability to improve the quality and efficiency of alkylate production, enabling the company to meet National VI gasoline upgrade requirements while improving its environmental and operational safety profile.
 
Representatives from Well Resources recently visited the Dagang refinery to celebrate the 1,000-day operational milestone and discuss ongoing process optimization initiatives. In late 2023, the Dagang refinery began field-testing next-generation CIL catalyst formulation, which has resulted in a 35% reduction of the catalyst consumption rate compared to the original design basis.

Ionikylation is a ionic liquids-based alkylation technology for the production of high-octane alkylate that is free from sulfur, benzene, olefins, and aromatics. The inherently safe and sustainable process allows a refiner to transition away from using hazardous and corrosive acid catalysts and additives. All Ionikylation process equipment is manufactured using carbon steel, and the process eliminates the need for costly containment systems for handling hazardous chemicals.

In 2020, Ionikylation achieved an industry milestone as the first ionic liquids-based technology to be used to revamp an existing hydrofluoric acid alkylation unit at Sinopec’s Wuhan refinery. Well Resources is the global licensor of Ionikylation developed by China University of Petroleum (CUP).

#ionikylation  #wellresources  #cup  #chinauniversityofpetroleum  #sinopec  #china  #dagang  #refinery  #gasoline  #alkylation  #octane 

According to Market Screener, the company is majority owned by its chairman: Soon-Gyu Lee

Scaling New Heights: How Univation and Industry Rivals Are Redefining Polyethylene Production Capacity and Flexibility

The polyethylene (PE) production industry is experiencing a remarkable transformation, driven by advances in process technology and a relentless pursuit of scale and efficiency. At the center of this evolution is Univation Technologies, which recently announced a new UNIPOL™ PE Process design capable of producing 800,000 tonnes per year. This announcement marks a significant leap forward in the scale of single-line PE production, underscoring the company’s commitment to pushing technological boundaries while maintaining the flexibility to meet diverse market needs.

Univation’s journey toward ever-greater production capacities is a testament to decades of innovation. The company’s first UNIPOL™ PE plant, built in 1989, had a capacity of 225,000 tonnes per year, which at the time was a world record for a single-reactor PE facility. By 2016, the landscape had changed dramatically, with more than twenty operating lines each producing at least 400,000 tonnes per year, and single-line capacities reaching today 650,000 tonnes. The latest 800,000 tonnes per year design represents a substantial 23 percent increase over the previous benchmark, and the scale of this expansion is even more striking when considering that a 150,000-tonne increase is equivalent to the entire output of a typical reactor from the 1970s, highlighting the extraordinary progress that has been made in reactor engineering and process optimization.

A key differentiator for the UNIPOL™ PE Process is its product flexibility, enabled by a sophisticated portfolio of catalysts. By selecting from a dedicated line of catalysts, producers can seamlessly switch between a full spectrum of PE products, including metallocene-based resins, bimodal and unimodal HDPE, and LLDPE, all within the same reactor. This versatility allows manufacturers to respond rapidly to changing market demands without the need for costly and time-consuming reactor modifications, setting UNIPOL™ PE apart from many competing technologies, which often require dedicated lines for each product type.

The race for the world’s highest-capacity PE plant is intensifying, with Univation’s latest announcement coming on the heels of significant developments from Chevron Phillips Chemical (CP Chem). CP Chem’s MarTech™ single-loop slurry process is now being deployed at a massive scale, with the Golden Triangle project in Texas featuring two HDPE lines, each with a capacity of 1,000,000 tonnes (1 million tonnes) per year, and a similar scale project with two HDPE lines, each with a capacity of 850,000 tonnes per year at the Ras Laffan Petrochemical Complex in Qatar. While CPChem has focused on maximizing HDPE production through specialized lines, Univation’s approach emphasizes both scale and product diversity, offering producers a compelling combination of flexibility and efficiency.

Achieving such immense reactor capacities is a feat of engineering that cannot be overstated. Scaling up polymerization reactors to handle up to 1 million tonnes per year and beyond requires overcoming significant technical challenges. Advanced cooling systems, real-time temperature controls, and innovative designs are essential to manage the intense heat and mixing requirements of high-throughput polymerization, as well as enhancing operational reliability and efficiency, ensuring that these mega-plants can run safely and consistently at peak performance.

In this rapidly evolving landscape, access to accurate and up-to-date technical information is more important than ever. Platforms like portfolio planning PLUS (ppPLUS) have emerged as invaluable resources for industry professionals, offering open-access, collaborative tools for tracking global PE plant deployments. Through ppPLUS, users can explore detailed information on PE plants worldwide, visualize production clusters, and contribute data on plant capacities, technology choices, and mass balances. This level of transparency and collaboration supports better decision-making and accelerates the adoption of best practices across the industry.

In summary, the latest advances in PE production technology, exemplified by Univation’s 800,000 tonnes per year UNIPOL™ PE Process and CP Chem’s MarTech mega-projects, are redefining the limits of scale and flexibility in polymer manufacturing. These achievements are not only a testament to the ingenuity of process engineers but also a harbinger of a more efficient, responsive, and interconnected global PE industry. As collaborative platforms like ppPLUS continue to democratize access to technical knowledge, the pace of innovation is likely to accelerate, shaping the future of plastics production for decades to come.

#hdpe  #lldpe  #bimodal  #metallocene  #univation  #unipol  #martech  #slurryloop  #gasphase  #massbalance #cpchem  #chevronphillips 

#ethyleneplant #technip  #univation  #unipol  #ldpe  #autoclave  #highpressure  #russia  #kazan 

#linde #ethyleneplant  #steamcracker  #sibur  #nizhnekamskneftekhim 

PJSC "Nizhnekamskneftekhim" has been created.


#Nizhnekamskneftekhim  #sibur  #russia  #rubber  #ethyleneplant  #steamcracker 

KPIC entity and its production sites in Onsan and Ulsan have been added. Mass balance for both sites has been initialized. 


#kpic  #korea  #onsan  #ulsan  #naphthacracker  #kbr  #lummus  #scientificdesign 

Sabic European Head Office in Sittard, The Netherlands

Sabic, the Saudi chemicals giant majority-owned by Aramco, is preparing to exit its European petrochemicals business—a move that underscores the mounting pressures facing the region’s manufacturing sector. The company’s plants and operations, spanning Germany, Spain, and the UK, are now up for sale, with investment banks Lazard and Goldman Sachs overseeing the process. These assets, which generate billions in annual sales, are among the largest of their kind in Europe.

Why Is Sabic Leaving Europe?

Sabic’s planned departure is not simply a business reshuffle but a reflection of deep-rooted challenges in Europe’s chemicals industry. Over the past several years, European producers have been squeezed by a combination of macroeconomic headwinds, persistent overcapacity, and intensifying global competition. The sector has faced years of oversupply and falling prices, with demand for petrochemicals closely tied to sluggish GDP growth. Sabic itself recently cut its 2025 GDP forecast, citing weaker prospects for the industry as a whole.

The economic backdrop is further complicated by Europe’s high energy prices and strict environmental regulations. European producers pay significantly more for natural gas than their US counterparts, and the cost of emitting carbon dioxide continues to rise under the EU’s ambitious climate policies. While American and Middle Eastern producers benefit from cheaper feedstocks and less stringent emissions rules, European plants—many of them older and reliant on naphtha—struggle to compete. The result is a cost gap of up to $300 per tonne for key products like ethylene and propylene, putting relentless pressure on margins.

Industry Consolidation and Rationalization

These structural disadvantages have triggered a wave of rationalization across the continent. Sabic is not alone: ExxonMobil, Dow, and other multinationals are also closing or idling European assets, as high costs and weak demand make it difficult to justify continued investment in aging facilities. In 2024 alone, nearly 1 million tonnes of ethylene capacity is being permanently phased out, with more closures likely as the industry adapts to the “new normal” of lower profitability and higher sustainability standards.

The European Union’s push for emissions reductions-targeting at least a 55% cut from 1990 levels by 2030-adds another layer of complexity. Modernizing old plants to meet these goals is often more expensive than closing them, and the introduction of mechanisms like the carbon border adjustment tax could further deter outside investment.

Who Might Buy Sabic’s Assets?

With Sabic’s portfolio now on the market, potential buyers are weighing both risks and opportunities. European rivals such as BASF and INEOS may see value in expanding their networks, while Middle Eastern energy firms could be interested but wary of Europe’s carbon costs. Private equity investors, particularly those focused on green technology, are also watching closely, drawn by the chance to modernize facilities and tap into EU subsidies for hydrogen and recycling projects.

Global Shifts and the Road Ahead

Sabic’s strategic pivot comes as the global chemicals market is being reshaped by geopolitics and shifting trade flows. Ongoing trade tensions between the US and China, along with the prospect of increased supply from Iran, are pushing more business toward the Middle East and Asia, further eroding Europe’s traditional advantages. Meanwhile, Sabic and Aramco are doubling down on investments in high-growth Asian markets, including a $6.4 billion petrochemical complex in China, betting on robust demand for plastics and chemicals in the region.

#sabic #aramco  #ineos #basf  #dow  #exxonmobil  #recycling  #carbontax

Description of the Sabic Innovative Plastics site in Bergen Op Zomm has been updated.


#polycarbonate  #phosgene  #chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

#chloralkali 

Braun (Sysadmin), Uwe - Updated Mass Balance for chloralkali and caustic soda capacity

Saudi Aramco, 24^th June 2023

Aramco and TotalEnergies award contracts for $11 billion Amiral project

The EPC contracts were awarded to ../.. Maire Tecnimont SPA for two polyethylene units—each with a capacity of 500,000 tpy—based on proprietary Advanced Dual Loop technology codeveloped by TotalEnergies and Chevron Phillips Chemical Co. LLC—and derivative units.

Lummus Technologies, 22^nd Feb 2024

Lummus Announces Heater Supply Contract for Mega Petrochemical Project in Saudi Arabia

Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced a contract award from Hyundai Engineering & Construction Co. Ltd. to provide eight proprietary Short Residence Time (SRT^®) ethylene cracking heaters at SATORP’s Amiral petrochemical complex in the Kingdom of Saudi Arabia.

SATORP has licensed multiple Lummus technologies at this complex including its ethylene, refinery off-gas recovery and treating, pygas hydrotreating, methyl tertiary butyl ether, isobutylene, butene and butadiene extraction technologies.

By: Portfolio Planning PLUS, 7 May 2025

Lianyungang Jiaao Enproenergy: Accelerating China’s Sustainable Aviation Fuel Industry with Global Partnerships and Export Milestones

Lianyungang Jiaao Enproenergy Co., Ltd. (连云港嘉澳恩普能源有限公司), a subsidiary of Zhejiang Jiaao Enprotech Stock Co., Ltd. (浙江嘉澳环保科技股份有限公司), has rapidly emerged as a leader in China’s sustainable aviation fuel (SAF) industry. The company focuses on converting waste oils into low-carbon fuels using advanced processing technologies, positioning itself at the forefront of green energy innovation both domestically and internationally.

In August 2022, Lianyungang Jiaao Enproenergy attracted significant international attention when BP Global Investments Ltd. acquired a 15% equity stake in the company for $49.56 million (CNY 354 million). This strategic investment marked BP’s first major SAF investment in China. The partnership is designed to accelerate the development and commercialization of SAF in China, leveraging BP’s global energy expertise and Jiaao’s technological capabilities.

The momentum continued in September 2022, when Lianyungang Jiaao Enproenergy officially launched a landmark project in collaboration with Honeywell UOP. The facility, located in Lianyungang, Jiangsu Province, is designed for an annual output of 500,000 metric tons of SAF, making it the largest single-unit SAF plant in China. The project integrates Jiaao’s proprietary waste oil pretreatment technology with Honeywell’s cutting-edge UOP Ecofining™ process and Experion® PKS control systems, ensuring the production of high-quality SAF that meets stringent international standards, including those required for export to the European Union. The plant began production in March 2025, further solidifying Jiaao’s leadership in the sector.

In April 2025, Lianyungang Jiaao Enproenergy received approval from China’s Ministry of Commerce and other authorities to participate in a “white list” export trial for bio-jet fuel, allowing up to 372,400 tons of SAF production for export in 2025. The company completed its first export shipment of 13,400 tons to Europe in May 2025. These milestones position Jiaao to benefit from China’s anticipated SAF blending mandate of 2–5% by 2030.


#saf  #sustainableaviationfuel  #sustainability  #hydroprocessedestersandfattyacids  #hefa  #hefaspk  #lianyungang  #jiaao  #enproenergy  #enprotech  #bp  #britishpetroleum  #lowcarbonfuels  #honeywell  #uop  #ecofining  #china  #exportlicense  #blendingmandate 

Zhejiang Jiaao Enprotech, a Chinese producer of Eco-friendly Plasticizers, Biodiesel and Sustainable Aviation Fuels (SAF) has been created.


#jiaao  #enprotech  #china  #zheijiang  #plasticizers  #sustainability  #saf  #sustainableaviationfuels  #biodiesel 

Oil Majors Market Capitalization. By: Aniekpong D. Effiong. Data source: CompaniesMarketCap.

By Portfolio Planning PLUS, 6^th May 2025

BP, the British energy giant, has become a focal point of merger speculation as rivals Shell and Abu Dhabi’s ADNOC weigh strategic moves to acquire the company. The developments highlight BP’s vulnerability amid lagging stock performance and shifting energy priorities, with potential bids reflecting divergent visions for the future of the oil sector.

Shell’s Calculated Interest

Shell is actively evaluating a takeover of BP, according to Bloomberg and Reuters sources, with advisers assessing regulatory, financial, and operational implications. The rationale centers on BP’s discounted valuation-its shares have fallen nearly 30% over 12 months-and the strategic appeal of combining Shell’s $197 billion market cap with BP’s assets to rival U.S. giants ExxonMobil and Chevron.

A merger would create a $320 billion behemoth, dominate LNG and deepwater drilling portfolios, and unlock an estimated $5–7 billion in annual synergies. However, Shell CEO Wael Sawan has emphasized caution, telling the Financial Times that share buybacks and smaller acquisitions remain priorities. Regulatory scrutiny in the EU and U.S., particularly over overlapping downstream assets, could also complicate a deal.

ADNOC’s Earlier Overtures

ADNOC, the UAE’s state-owned energy leader, previously explored acquiring BP in 2024 but abandoned the idea after deeming the company a poor strategic fit. Sources cited BP’s renewable energy pivot and political sensitivities as key deterrents. Instead, ADNOC has focused on gas and chemical ventures, including a $3.6 billion Fertiglobe acquisition and a joint venture with BP in Egypt.

The UAE giant’s decision underscores BP’s challenging position: criticized by investors for its energy transition strategy yet still seen as insufficiently green by some state-backed players. ADNOC’s pivot toward partnerships rather than outright acquisitions suggests BP’s mixed appeal in a sector prioritizing either scale or decarbonization.

BP’s Crossroads

BP’s struggles are multifaceted. Its market capitalization of $110 billion trails Shell’s by nearly half, and its revised transition plan-scaling back renewables investment to focus on oil and gas-has yet to reassure markets. Activist investor Elliott Management acquired a 5% stake in late 2024, intensifying pressure to improve returns.

CEO Murray Auchincloss, who took the helm in 2024, has pledged $20 billion in asset sales by 2027 to streamline operations. However, these efforts have done little to lift its stock, leaving BP exposed to takeover interest.

Industry Implications

A Shell-BP merger would accelerate consolidation among European majors, mirroring U.S. deals like Exxon-Pioneer and Chevron-Hess. For ADNOC, BP’s appeal lies in LNG and trading capabilities, but its renewables portfolio clashes with the UAE’s oil-focused growth strategy.

Analysts note that BP’s future hinges on whether it can stabilize operations independently or becomes a target for firms seeking to bolster reserves and market share. “BP is caught between competing visions: too green for some, not green enough for others,” said energy strategist Kathleen Brooks. “That paradox makes it a compelling but risky target.”

What’s Next?

Shell’s next steps depend on BP’s stock trajectory and oil price stability. ADNOC, while out of the running for now, could re-engage if geopolitical or market conditions shift. For BP, the path forward involves either executing its turnaround plan or succumbing to the pressures of an industry increasingly defined by scale.

As the energy transition reshapes priorities, BP’s fate may well determine whether European majors can compete globally-or become acquisition targets themselves.

#energytransition  #renewableenergy  #oilmajors  #oilandgas  #shell  #adnoc  #bp  #exxonmobil  #chevron  #fertiglobe  #lng  #naturalgas  #crudeoil  #merger  #acquisition 

PLA Synthetic Pathways

By Portfolio Planning PLUS, May 6, 2025

The global market for biodegradable bioplastics—particularly polylactic acid (PLA) and polyhydroxyalkanoate (PHA)—is at a crossroads following the high-profile Chapter 11 bankruptcy filing of Danimer Scientific, one of the sector’s most visible pioneers. Danimer, headquartered in Bainbridge, Georgia, sought court protection on March 18, 2025, after months of financial distress, underutilized plants, and delayed customer commitments, casting a shadow over the fast-growing but still volatile biopolymer industry

Danimer’s collapse underscores the challenges facing the sector, even as the global market for biopolymers continues to expand. The company’s flagship PHA product, Nodax®, and its PLA-based resins were once hailed as game-changers for sustainable packaging, food service items, and consumer disposables. However, despite strong regulatory and consumer tailwinds, Danimer struggled to translate innovation into profitability. The firm’s revenues fell sharply in 2024, with major customers such as Starbucks scaling back orders, and its manufacturing facilities operating at only 15% of capacity.

A liquidity crisis, mounting debt, and the withdrawal of a key strategic investor ultimately forced Danimer into bankruptcy, where it now seeks to sell its assets and technology portfolio through a court-supervised process.

Danimer’s bankruptcy highlights the persistent hurdles for biopolymer makers: high production costs, slow adoption by large brands, and the capital intensity of scaling up manufacturing. While PLA enjoys relatively mature supply chains and broad applications, PHA’s market is still fragmented, with no dominant player and ongoing competition from established chemical giants and emerging startups alike. The sector’s growth is also tempered by infrastructure gaps for composting and recycling, as well as the need for further cost reductions to compete with conventional plastics.

Industry analysts say Danimer’s asset sale could trigger consolidation in the biopolymer sector, with larger chemical companies or international players potentially acquiring its technology and facilities. As the dust settles, Danimer’s journey serves as both a cautionary tale and a testament to the promise of biopolymers. The sector’s next chapter will likely be shaped by those able to pair technological innovation with commercial scale and financial discipline.

#biopolymer  #recycling  #composting  #biodegradability  #pla  #pha  #polylacticacid  #polyhydroxyalkanoate  #danimer 

Lukoil Neftohim Burgas Oil Refinery

 May 5, 2025 -- Russia’s Lukoil is actively exploring the sale of its Burgas refinery, Bulgaria’s largest and only operational oil refinery, as mounting sanctions, new Bulgarian regulations, and shifting crude oil supply dynamics reshape the country’s energy landscape. The 190,000 barrel-per-day facility, officially known as Lukoil Neftochim Burgas, has been a cornerstone of Bulgaria’s fuel supply since Lukoil acquired it in 1999. Now, the company is seeking to exit under growing economic and political pressure.

The push to sell comes after Bulgaria banned the use of Russian crude in March 2024 and imposed a 60% tax on the refinery’s profits, a rate that will only drop to 15% if the asset is sold to a non-Russian owner. The European Union’s broader sanctions against Russia over the war in Ukraine have further complicated Lukoil’s position, forcing the refinery to pivot to Kazakh, Middle Eastern, and other non-Russian oil sources. These changes have squeezed margins and made continued Russian ownership increasingly untenable.

Lukoil has confirmed it is reviewing its Bulgarian strategy with the help of international consultants and is considering various options, including a full sale of its Bulgarian business. Several potential buyers have emerged. Kazakhstan’s state oil company KazMunayGas has publicly confirmed its interest, reportedly offering around $1 billion for the refinery. The company already supplies about 40% of the crude processed at Burgas and owns significant refining assets in Romania, making the acquisition a strategic fit. Hungary’s MOL Group and a Qatari-British consortium led by Oryx Global and DL Hudson have also been reported as bidders, though Lukoil has denied that any deal is finalized.

The refinery’s strategic location on the Black Sea, with access to the Rosenets port, makes it a valuable asset for regional fuel supply and export. However, the combination of sanctions, a ban on Russian crude, and new tax burdens have weighed on its valuation and complicated negotiations. Analysts note that while the reported $1 billion price tag is below some comparable deals, the regulatory environment and need for further modernization-estimated at €500 million-are likely factors in the discounted value.

As of May 2025, the sale process is ongoing, with binding offers accepted but no final agreement announced.

#lukoil  #burgas  #bulgaria  #molgroup  #kazmunaygas  #oilrefinery  #russiancrude  #ural 

Mexico, 29 April 2025 -- Mexico’s state-owned energy giant Pemex closed 2024 with a staggering net loss of $30.3 billion, a dramatic reversal from its modest $398 million profit in 2023, as plummeting crude production, refining inefficiencies, and soaring debt obligations crippled its financial health. The results, detailed in company filings and analyst reports, underscore deepening challenges for a firm critical to Mexico’s economy but increasingly seen as a liability in global energy markets.

Financial Freefall and Debt Crisis

Pemex’s revenue fell 2.4% in 2024, driven by declining oil exports and weaker international crude prices. The company’s refining segment, despite processing 905,607 barrels per day-its highest volume since 2016-remained a drag, operating at just 46% of capacity. The much-touted Olmeca refinery, a $24 billion project initially promised to revolutionize domestic fuel production, processed a meager 23,275 barrels per day on average, barely 6.8% of its 340,000-barrel capacity.

Debt, however, remains Pemex’s most pressing issue. By year-end 2024, liabilities reached $97.6 billion, rising to $101.1 billion by March 2025. Government bailouts, including an 80 billion peso ($3.9 billion) infusion in early 2025, have done little to stabilize finances. Fitch Ratings affirmed Pemex’s ‘B+’ credit rating in December 2024 but warned that interest payments alone-estimated at $8.3 billion annually-consume over half its operating cash flow.

Production Woes and Leadership Turbulence

Crude and condensate output averaged 1.67 million barrels per day (bpd) in 2024, far below the government’s 1.8 million bpd target. Aging fields and delayed drilling projects exacerbated the decline, with Q1 2025 production dropping 11.3% year-on-year to 1.5 million bpd. Pemex’s inability to reverse this trend has raised doubts about President Claudia Sheinbaum’s pledge to achieve energy self-sufficiency by 2030.

Leadership instability further complicates recovery efforts. In May 2025, Pemex abruptly reinstated Ángel Cid Munguía as head of exploration and production after his predecessor, Gustavo Martínez, resigned unexpectedly. The shuffle reflects mounting pressure to address operational setbacks, including a 31% reduction in drilling activity
compared to 2023.

Strategic Gambles and Long-Term Risks

Pemex’s $109.4 billion five-year investment plan, announced in February 2025, aims to revive production and modernize infrastructure. Yet skepticism abounds. The company owes suppliers $19.9 billion, jeopardizing partnerships essential for new projects. Meanwhile, its refineries—burdened by decades of underinvestment—remain reliant on imported feedstock, costing Mexico $18 billion annually in fuel imports.

The Olmeca refinery epitomizes these struggles. Despite claims of “progress,” the facility operated sporadically in 2024, with December output at just 13% of capacity. Analysts warn that without significant operational overhauls, Pemex’s refining ambitions will remain unmet, perpetuating reliance on foreign gasoline and diesel.

Outlook: A Precarious Balance

Pemex’s survival hinges on continued government support and successful debt management. While officials tout joint ventures with private firms-offering at least 40% stakes to attract capital-investors confidence remains fragile. The firm’s reliance on volatile oil prices and political favoritism leaves it vulnerable to external shocks.

As Mexico grapples with Pemex’s systemic issues, 2025 looms as a pivotal year. Will the energy titan stabilize its finances and production, or will it become a cautionary tale of resource nationalism gone awry? For now, the scales tip perilously toward the latter.

#pemex  #refineryutilization  #refining  #refinery  #olmeca  #mexico  #oilrefinery 

#cenovus #refinery  #lloydminster  #canada  

#cenovus #upgrader  #canada  #lloydminster 

U.S. refineries have been reassigned to a US wholly owned subsidiary of CENOVUS.


#cenovus  #refineries  #usa 

#cenovus #toledo  #refinery 

ONGC Petro additions Limited (OPaL) refinery.

Sep 2024

India’s Oil and Natural Gas Corporation (ONGC) is considering a major new investment in the country’s energy sector with plans for a large refinery and petrochemical complex in Uttar Pradesh. The proposed facility, which would have a capacity of 9 million tonnes per year, is estimated to require an investment of more than ₹700 billion ($8.3 billion).

According to people familiar with the discussions, ONGC has begun talks with Bharat Petroleum Corporation Ltd. (BPCL) about partnering on the project. BPCL owns a parcel of land in Prayagraj, which could be used for the refinery. Access to this land could help ONGC avoid common delays associated with land acquisition, a frequent obstacle for large infrastructure projects in India.

The move comes as India’s demand for fuels and petrochemicals continues to rise, driven by rapid economic growth and expanding industrial activity. While the country is also increasing its renewable energy capacity, the need for refined petroleum products remains strong, especially in populous states like Uttar Pradesh.

The Uttar Pradesh project is part of ONGC’s broader strategy to expand its downstream presence and tap into India’s growing energy market. If it moves forward, the refinery would not only boost local fuel supplies but also create jobs and support regional development.

BPCL is also exploring new refining projects, with both Uttar Pradesh and Andhra Pradesh under consideration. The company has hired a US-based consultant to help select the best site, and Andhra Pradesh is reportedly favored due to state-offered incentives, though Prayagraj remains a strong contender because of the available land.

ONGC and BPCL have not yet made public statements about the project, and discussions are ongoing. If approved, the new refinery could mark a significant step in meeting India’s future energy needs and strengthening the country’s refining capacity.

#ongc  #bpcl  #refinery  #india 

Screenshot showing Indian crude oil refineries from the Portfolio Planning PLUS Refinery Module.

Saudi Aramco, the world’s top oil company, is close to sealing a major deal in India that could change the energy landscape for both countries. The company is in advanced talks to buy a 20% stake in two brand-new oil refineries being planned by Indian state-run firms ONGC and BPCL. These massive projects, set for Gurajat and Andhra Pradesh, will each process 12 million tonnes of crude oil every year. The total investment for both refineries is expected to reach around $24 billion, with Aramco’s share estimated at up to $5 billion.

This isn’t just about buying into a couple of refineries. For Aramco, it’s a smart way to make sure its oil has a steady home in India, which is one of the world’s fastest-growing energy markets. As global oil demand slows in other regions, India’s appetite for fuel is still rising. By owning a slice of these refineries, Aramco can lock in sales for its crude oil for years to come. For India, the deal is a win in several ways. It brings in foreign investment, creates new jobs, and helps guarantee a reliable supply of oil. The partnership also means India can tap into Aramco’s technology and expertise, which could help the country strengthen its position as a major refining and petrochemical hub.

This potential partnership is no coincidence as it follows a high-level meeting in April between Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman. The two leaders discussed ways to deepen their countries’ energy ties, and this deal is a clear sign of that growing relationship. Aramco’s interest in India comes after some earlier attempts to invest in the country’s refining sector didn’t work out. But this time, the talks are progressing well, and both sides seem eager to make it happen.

Aramco isn’t the only Gulf oil giant looking to strengthen its ties with India. The United Arab Emirates’ ADNOC recently signed a long-term deal to supply liquefied natural gas (LNG) to Indian Oil, and QatarEnergy is investing heavily in India while also signing a major supply agreement with Shell. Oman’s OQ is also moving forward with a big petrochemical project. All of this shows how important India has become for Gulf energy companies as they look for new markets.

If the deal goes through, Aramco will become a key player in India’s energy sector. It’s a move that could help shape how oil flows into and out of Asia for years to come. For India, it means more investment, jobs, and energy security. For Aramco, it’s a way to stay ahead in a changing world where energy demand is shifting. In short, this isn’t just a business deal-it’s a sign of how the energy world is changing, with India and the Gulf states building stronger ties and planning for the future together.

#aramco  #saudiarabia  #india  #ongc  #bpcl  #refining  #refinery  #crudeoil  #oilrefining  #adnoc  #qatarenergy  #shell  #oq 

Grangemouth oil refinery officially closes after 100 years in operation. Photo credit: yahoo

Grangemouth Refinery Halts Operations: Transition to Import Hub, Calls for Policy Reform, and Strategic Implications for Scotland's Energy Sector.

The end of crude oil processing at Scotland’s Grangemouth refinery marks a pivotal moment for the nation’s industrial and energy landscape. Petroineos, a joint venture between INEOS and PetroChina (CNPC), confirmed in late April 2025 that the site would transition from refining to serving as an import terminal for finished fuels, following sustained financial losses and mounting competition from larger, more efficient refineries abroad. This closure brings an end to more than 70 years of refining at Grangemouth, with the loss of around 400 jobs and significant concern for the local community, which has long depended on the site for stable employment and economic security

The decision has been met with regret and frustration by many in Scotland, including the Scottish Government, which described the closure as premature and detrimental to both the economy and the country’s transition to net zero. Workers and unions have voiced deep concerns about the lack of consultation and the adequacy of transition plans, fearing a repeat of the economic decline seen in other former industrial communities. While some government support for retraining and local investment has been pledged, the loss of Grangemouth’s refining capacity is widely seen as a blow to the region’s industrial fabric and a test of policymakers’ commitment to managing the energy transition responsibly.

Against this backdrop, INEOS Chairman Sir Jim Ratcliffe has been outspoken in his criticism of the UK’s energy and environmental policies. Ratcliffe argues that high energy costs and carbon taxes-particularly those imposed under the UK Emissions Trading Scheme (ETS)-are “squeezing the life out of” British industry and making it uncompetitive globally. INEOS faces a £15 million bill for carbon emissions at Grangemouth for 2024 alone, a cost Ratcliffe says is forcing the company to pause critical investments in green projects and efficiency upgrades. He warns that such policies risk accelerating deindustrialization, citing energy bills that are 400% higher than those in the US and double the European average. “This is not just INEOS; this is a reality for British manufacturers across the nation: carbon taxes and soaring energy costs are suffocating the industry,” Ratcliffe said. He has called for a fundamental rethink of the UK’s approach, urging, “Give us competitive energy costs, give us the incentives to invest in new assets and to play our part in building a strong sustainable industrial future,” emphasizing the need for entrepreneurial freedom and lower taxes to allow the energy sector to function and invest in decarbonization.

Strategically, the closure of Grangemouth means Scotland will now import all of its motor fuels, relying entirely on international supply chains to meet domestic demand. This shift increases exposure to global market fluctuations and supply risks, reducing the country’s energy self-sufficiency. While Petroineos has emphasized that the new import terminal will safeguard fuel supply for Scotland, the loss of domestic refining capacity leaves the nation more vulnerable to external shocks and diminishes its leverage in shaping fuel standards and supply terms. In effect, Scotland’s energy security and industrial autonomy have been significantly lowered, underscoring the far-reaching consequences of the Grangemouth closure for both the local community and the wider Scottish economy.

#petroineos  #grangemouth  #refinery  #refining  #ineos  #cnpc  #petrochina  #plantclosure  #carbontax  #energytransition  #netzero  #ratcliffe 

The description of the H-Oil process has been updated.


#axens  #hoil  #hydrocracking  #heavyoil  #residue  #residuum  #crudeoil  #ebullatedbed 

ISAB Refinery @ ISAB

Italy’s largest oil refinery, the ISAB complex in Priolo, Sicily, is facing a deepening crisis just two years after its high-profile sale by Russia’s Lukoil. The facility, which accounts for roughly 20% of Italy’s refining capacity and directly employs about 1,000 people, has become a flashpoint for the challenges facing Europe’s energy infrastructure in the wake of the continent’s break with Russian energy supplies.

The ISAB refinery was sold in 2023 to G.O.I. Energy, a Cyprus-based private equity firm, in a deal backed by global commodity trader Trafigura. The transaction, finalized under intense pressure from European sanctions that cut off Russian crude supplies, was orchestrated with the involvement of Israeli magnate Beny Steinmetz and received last-minute approval from the Italian government. As part of the agreement, Trafigura was to supply crude oil and handle product off-take, ensuring the plant’s continued operation after the loss of Russian feedstock.

However, the arrangement has since unraveled amid internal shareholder disputes and mounting financial pressures. Greek shipping tycoon George Economou, through his Argus New Energy Fund, emerged as the main financier and majority shareholder behind G.O.I. Energy, though the ownership structure remains opaque and subject to ongoing legal wrangling. Economou has argued that the supply and off-take deal with Trafigura is overly favorable to the trading group, allowing it to profit while the refinery itself operates at a loss. These tensions have been exacerbated by the refinery’s reliance on expensive international crude sources and the need to restructure debt under court supervision.

The crisis at ISAB has far-reaching implications for Italy’s energy security. The refinery’s output is critical not only for Sicily but for the entire country, supplying about a fifth of Italy’s fuel needs and supporting an estimated 8,500 indirect jobs in the region. The Italian government, which approved the sale with strict conditions to maintain employment and environmental standards, now faces renewed pressure to intervene as the facility’s viability comes into question.

Broader industry trends are also at play. As Europe pivots away from Russian energy, asset-backed partnerships between private equity and commodity traders have become more common, but the ISAB saga highlights the risks of such arrangements when shareholder interests diverge. For Italy, the fate of the Priolo refinery is not just a local issue but a test of how strategic energy assets will be managed in an era of fragmented supply chains and geopolitical volatility.

With negotiations ongoing and the possibility of new partners or government intervention on the table, the future of the ISAB refinery remains uncertain. What is clear is that Italy’s efforts to secure its energy independence from Russia have come at a high cost, exposing vulnerabilities in both ownership structures and supply logistics that will shape the country’s energy landscape for years to come.

#isab  #isabcomplex  #isabrefinery  #italy  #sicilia  #goienergy  #goisrl #russiancrude #trafigura 

#goienergy #priolo  #isab  #refinery  #italy  #lukoil 

Portfolio Planning PLUS provides a comprehensive overview of refining and petrochemical activities in every world' s country. Screenshot shows Spanish refineries via the platform's refining module.

Portfolio Planning PLUS | April 30, 2025

A massive power outage swept across Spain and Portugal on April 28, forcing all major Spanish refineries and several petrochemical plants into an emergency shutdown. The blackout, which struck at around 12:30 CET, caused an abrupt drop of over 10GW from the Spanish electricity grid, disrupting industrial complexes, halting metro and rail services, and even grounding flights across the region

• All five of Repsol’s Spanish refineries-representing a combined refining capacity of 890,000 barrels of crude oil per day-were compelled to cease operations, alongside the company’s petrochemical plants in Tarragona and Puertollano.
• Moeve, another key Spanish refiner with 464,000 barrels per day of refining capacity, also shut down its Algeciras and Huelva refineries, as well as two petrochemical plants in southern Spain.
• Dow Chemical Spain’s Tarragona industrial complex was similarly affected, and emergency flaring was observed at some sites as part of safety protocols during the shutdown.

Following the restoration of power from late on April 28, refinery operators began the complex process of restarting their facilities. According to Repsol, crude oil crude distillation units require about three days to come back online, while secondary conversion units, including hydrocrackers, may take up to a week to resume normal operations. The company confirmed that its Bilbao refinery was the first to restart, aided by electricity imports from France, and emphasized that no significant damage occurred during the outage.

Moeve and other operators are also in the process of progressively bringing their plants back online, though none have specified when output will return to pre-outage levels.

The outage has prompted Spain’s petroleum reserves corporation Cores to temporarily relax strategic reserve requirements, reducing the obligation by four days to help mitigate potential supply disruptions. Meanwhile, Exolum, the country’s main pipeline and storage operator, reported that its infrastructure is functioning normally and that essential services and airports continued to receive fuel throughout the blackout

While most industrial activity is expected to recover within a week, the incident has highlighted the vulnerability of Spain’s energy infrastructure and the critical importance of grid stability for the country’s refining and petrochemical sectors.


#electricitygrid  #electricity  #poweroutage  #refineryshutdown  #refineryrestart  #refining  #spain  #repsol  #moeve  #petronor  #dowchemical 

Valero Benicia Refinery @Valero

April 16, 2025 | Valero Energy Corp.

Valero Energy has announced it will shutter its Benicia refinery near San Francisco by the end of April 2026, marking another major reduction in California’s refining capacity. The company formally notified the California Energy Commission of its intent to idle, restructure, or cease operations at the 145,000-barrel-per-day facility, which accounts for nearly 9% of the state’s gasoline production. Valero is also weighing strategic alternatives for its remaining California operations, including its Wilmington refinery near Los Angeles, as part of a broader review of its business in the state

This decision comes as California’s regulatory environment for refiners becomes increasingly stringent. Recent state legislation has imposed new mandates, including requirements for refineries to maintain minimum gasoline inventories and develop contingency plans to prevent price spikes. These rules, combined with California’s aggressive emissions targets and unique fuel standards-such as the exclusive requirement for California Reformulated Blendstocks for Oxygenate Blending (CARBOB)-have raised compliance costs and operational complexity for in-state refineries

The Benicia closure follows a similar move by Phillips 66, which plans to shut its Wilmington refinery by the end of 2025. Together, these closures will eliminate almost 300,000 barrels per day of refining capacity, raising concerns about fuel supply stability and the potential for even higher gasoline prices in a state where drivers already pay some of the highest prices in the country

California’s policies aim to reduce gasoline consumption and transition to cleaner energy, but the rapid pace of regulatory change has contributed to a wave of refinery exits and conversions to renewable fuels.

Valero has recorded a combined pre-tax impairment charge of $1.1 billion for its Benicia and Wilmington refineries, reflecting the financial impact of these strategic shifts. The company also faces significant asset retirement obligations as it prepares for the Benicia shutdown

Industry analysts warn that the loss of refining capacity could make California more reliant on imported fuels, further exposing the market to price volatility and supply disruptions.

As California continues to pursue its ambitious climate goals, the state’s refining landscape is undergoing a profound transformation, with traditional operators reassessing their future amid intensifying regulatory and market pressures.

#valero  #benicia  #refinery  #refineryclosure  #wilmington  #california  #regulatorypressures 

South Bay History: Phillips 66 oil refinery has been a Wilmington fixture since 1919 @Daily Breeze

Phillips 66 has announced it will cease operations at its Wilmington refinery, located just outside Los Angeles, by the fourth quarter of 2025. Wilmington is a facility part of the Los Angeles refinery, with a processing capacity of 139,000 barrels of crude oil per day and has long been a major supplier of gasoline, diesel, and jet fuel for Southern California. The company will work with the state to ensure continued fuel supply, including exploring alternative sources within its network and increasing production of renewable fuels from its other facilities

The closure comes as California tightens its regulatory environment for refiners. Recent legislation, including AB 1 X2 signed by Governor Gavin Newsom, grants the California Energy Commission expanded oversight of refinery operations and requires companies to maintain minimum gasoline inventories and develop contingency plans to prevent supply disruptions

These measures are intended to stabilize fuel markets and prevent price spikes but have added to the operational complexity and cost for in-state refiners.

California’s unique fuel requirements further complicate the situation. Only specialized gasoline formulations, known as California Reformulated Blendstocks for Oxygenate Blending (CARBOB), can legally be sold in the state. These stringent standards, combined with the state’s Low Carbon Fuel Standard and aggressive emissions reduction targets, have made it increasingly difficult for traditional refineries to remain profitable

The state’s geographic isolation from other major refining hubs and lack of interstate pipelines means California must produce most of its own motor fuels or import them from overseas, increasing vulnerability to supply disruptions.

The Wilmington refinery closure is part of a broader trend, as several California refineries have either shut down or converted to renewable fuel production in recent years. Industry analysts warn that continued regulatory pressure and declining demand for conventional fuels could lead to further closures, potentially impacting fuel prices and supply stability across the region.

#california  #refineryclosure  #phillips66  #losangeles  #wilmington  #motorfuels  #carbob  #emissionsreduction  #regulatorypressure