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The Berre petrochemical plant is one of the sites involved in exclusive sales negotiations between LyondellBasell and Aequita | PHOTO: Frédéric SPEICH, La Provence

LyondellBasell’s (LYB) agreement to divest four major European production sites to AEQUITA marks a pivotal moment not only for the company but for the continent’s entire petrochemical sector. The transaction, encompassing plants in France (Berre), Germany (Münchsmünster), the UK (Carrington), and Spain (Tarragona), is emblematic of a broader industry shift as producers grapple with persistent overcapacity, high costs, and the need for structural transformation.



LyondellBasell Transaction Footprint | Jun 5, 2025 | LyondellBasell Investors Presentation

Strategic Rationale: From Rationalization to Refocus

LYB’s decision to sell these assets is rooted in a deliberate strategy to sharpen its operational focus and enhance profitability. The divested sites, which together account for roughly 1.4 million tonnes per year of polyolefins and olefins output, have delivered only modest returns while consuming significant capital—averaging €110 million in annual capex from 2020 to 2024. By transferring these facilities to AEQUITA, LYB expects to reduce its fixed costs by approximately €400 million per year and reallocate capital toward its most competitive and sustainable European operations.

Notably, this move is not an isolated event. LYB’s review initially spanned six sites, including Brindisi (Italy)—where one polypropylene plant has already been shuttered—and Maasvlakte (Netherlands), a joint venture (with Covestro) asset not included in the AEQUITA deal. This highlights the depth of LYB’s strategic review and underscores the scale of rationalization underway across the region.

Industry Context: A Wave of Closures and Consolidation

LYB’s asset sale is part of a much larger trend. European petrochemical producers are facing unprecedented headwinds: high energy costs, aging infrastructure, tightening environmental regulations, and lackluster demand. Other industry leaders, such as ExxonMobil, Sabic, and Indorama Ventures, have also closed or downsized European operations in the past year. Ultimately, up to half of the continent’s ethylene crackers could ultimately face closure, as the economics of small, old plants become increasingly untenable.

This rationalization wave is not simply a response to cyclical weakness but a recognition of structural change. Freight disruptions and temporary supply shocks have only delayed the inevitable need for consolidation and transformation.


LyondellBasell' Assets for Sale | Jun 5, 2025 | LyondellBasell Investors Presentation

Deal Structure and Financial Terms

The transaction with AEQUITA is structured to enable a smooth transition:

• LYB will contribute €265 million (of a €275 million carve-out support fund) to facilitate the separation, with AEQUITA providing €10 million.
• LYB stands to receive up to €100 million in earnouts over three years.
• AEQUITA will assume approximately €150 million in pension and employee liabilities, as well as all environmental obligations.
• The deal is expected to close in the first half of 2026, subject to regulatory and works council approvals.

Importantly, LYB’s exit from these sites will also spare it from the need to invest hundreds of millions in decarbonization upgrades, particularly at Berre and Münchsmünster, where meeting 2030 emissions targets would have required major capital outlays.

LYB’s European Commitment: Core Sites and Circular Ambitions

Despite the high-profile asset sale, LYB has made clear that Europe remains a core region. The company’s retained portfolio includes technologically advanced and economically advantaged sites in Ferrara, Frankfurt, Ludwigshafen, and Rotterdam, as well as integrated supply hubs in Cologne and specialty operations in APS. These facilities are positioned to support LYB’s ambitions in circular and low-carbon solutions, including advanced recycling (MoReTec) and the CirculenRecover product line.

LYB’s future European footprint will be more focused, with a higher share of capacity in cost-advantaged regions (U.S. and Middle East), rising from 61% to 68% post-transaction. The company is also stepping up investment in recycling and circular economy initiatives at its core sites, aiming to deliver 2 million tonnes per year of recycled and renewable polymers by 2030.

Market Implications and Competitive Dynamics

LYB’s withdrawal from these European assets will reshape the regional supply landscape, opening opportunities for Middle Eastern and Asian exporters to increase their market share. The move also contrasts with the strategies of some competitors, such as SABIC, which is expanding its footprint in Asia. For LYB, the divestment enables a sharper focus on direct customers, brand owners, and high-growth segments, while freeing up resources for innovation and portfolio upgrades.

Berre Petrochemical Cluster Process Flow Diagram | ppPLUS Interactive Visualization Tool

Outlook: More Closures Ahead

The European petrochemical sector is entering a “new normal” characterized by ongoing rationalization. With many crackers and polymer plants facing existential threats due to age, size, and economics, further closures are likely. LYB’s asset sale could be a bellwether for additional portfolio actions across the industry.

How ppPLUS Can Help

For investors and stakeholders evaluating LyondellBasell’s divested assets, Portfolio Planning PLUS (ppPLUS) offers tailored economic modelling capabilities to assess risks, opportunities, and transaction value. ppPLUS specializes in developing site-specific models that integrate:

Asset configurations: Detailed analysis of production units, technologies (e.g., Steam Crackers at Berre and Münchmünster, Novolen Gas-Phase PP at Tarragona, Hostalen ACP HDPE at Münchsmünster, Lupotech T LDPE and Spheripol Bulk-Slurry PP at Berre), and feedstock flexibility.
Capacity utilization: Scenario-based projections accounting for market demand, regulatory constraints, and operational synergies.
 Financial and operational metrics: Capex/opex forecasting, decarbonization cost avoidance, and liability assumptions (e.g., pensions, environmental obligations).

Using ppPLUS’s interactive platform, users can:

• Generate gross margin models for individual sites or combined portfolios.
• Simulate the impact of energy price volatility, carbon pricing, and feedstock availability.
• Benchmark asset performance against industry standards and regional competitors.

ppPLUS’s tools align with global best practices in economic modelling, including compliance with frameworks like the UK’s TAG M5.3 supplementary economic modelling guidelines for rigorous validation and scenario testing.

Explore ppPLUS’s asset-specific insights:

• Berre, France
• Münchsmünster, Germany
• Carrington, UK
• Tarragona, Spain

Contact ppPLUS to leverage its expertise in petrochemical asset valuation, strategic due diligence, and regulatory risk assessment for informed decision-making in this transformative transaction.

#portfolioplanningplus  #ppplus  #transactions  #divestment  #marginanalysis  #economicmodelling  #capacityutilization  #opex  #capex  #lyondellbasell  #sabic  #indorama  #ineos  #exxonmobil  #aequita #aramco 

The description of the PRefChem Pengerang Petrochemical Complex configuration has been updated.

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

The description of the PRefChem Pengerang Refinery Complex configuration has been updated.

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

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 

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

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 

At the signing ceremony, standing from left, are YASREF Director Lian Mingxiang, Sinopec Group Assistant President and MD of HR Qin Du, Sinopec Group President Zhao Dong, Aramco President & CEO Amin H. Nasser, Aramco Downstream President Mohammed Y. Al Qahtani, and Aramco Executive Vice President of Products & Customers and YASREF Chairman Yasser M. Mufti. Sitting, from left, are Sinopec Overseas Investment Holding Limited President Zou Wenzhi, YASREF President & CEO Saad Bin Matlig, and Aramco Vice President of Liquid-to-Chemical Program Development Fahad Alsahali. Photo Credit: Saudi Aramco

DHAHRAN | April 09, 2025

Saudi Aramco and China Petroleum & Chemical Corporation (Sinopec) have taken a decisive step to elevate their joint venture, the Yanbu Aramco Sinopec Refining Company (YASREF), into a new era of petrochemical innovation and integration. Marking YASREF’s 10^th anniversary, the two energy giants have signed a Venture Framework Agreement (VFA) to advance a major expansion of the YASREF complex, strategically located on Saudi Arabia’s west coast in Yanbu.

A Strategic Leap in Downstream Integration

The expansion project is designed to transform YASREF into a fully integrated refining and petrochemical powerhouse. Central to the plan is the construction of a state-of-the-art mixed-feed steam cracker with an annual ethylene capacity of 1.8 million tons, complemented by a 1.5 million tons per year aromatics complex and associated downstream derivatives.

These new facilities will be woven into the existing YASREF infrastructure, maximizing operational synergies and enabling the production of high-value petrochemical products to meet rising global demand.

The YASREF expansion is part of Aramco’s broader $100 billion liquids-to-chemicals program, which includes the development of multiple mixed-feed crackers both within Saudi Arabia and internationally

A Decade of Progress, A Future of Opportunity

YASREF, a joint venture owned 62.5% by Aramco and 37.5% by Sinopec, has been a symbol of dynamic China–Saudi energy cooperation since its inception.

Since commencing operations in 2015 with a crude refining capacity of 400,000 barrels of crude oil per day—expanded to 430,000 b/d in 2020—YASREF has played a key role in Saudi Arabia’s industrial landscape.

The planned expansion is expected to further enhance YASREF’s ability to deliver high-quality petrochemical products, support the energy transition, and foster long-term industrial partnerships between Saudi Arabia and China.


#sinopec  #aramco  #yasref  #yanbu  #saudiarabia  #refining  #petrochemicals  #refineryexpansion 

Description about YASREF company and refinery have been updated. Some plant technologies and capacities have been added.


#yasref  #aramco  #sinopec  #refinery  #yanbu  #saudiarabia 

SASREF Refinery in Jubail, Saudi Arabia © Saudi Aramco Media Gallery

Saudi Aramco is preparing to initiate the main tendering phase for a major expansion of its Saudi Aramco Jubail Refinery Company (Sasref) in Jubail Industrial City, with the solicitation of interest (SoI) round expected in the second quarter of 2025. This project is a key component of Aramco’s $100 billion liquids-to-chemicals program, designed to transform the Sasref refinery into an integrated refinery and petrochemicals complex through the addition of a mixed-feed and of an ethane cracker, that will draw ethane from an adjacent refinery.

South Korea’s Samsung E&A is currently executing pre-FEED and FEED work under an 18-month contract awarded by Aramco in March 2024 and the project is expected to move into the EPC tendering phase following completion of the engineering studies.

Strategic international collaboration is central to the expansion. In November 2024, Aramco signed a development framework agreement in Beijing with China’s Rongsheng Petrochemical, outlining joint planning and cooperation for the Sasref project. This builds on earlier agreements from April and September 2024, which set the stage for a potential joint venture, with Rongsheng considering the acquisition of a 50% stake in Sasref and Aramco potentially taking a 50% stake in Rongsheng’s Ningbo Zhongjin Petrochemical Company (ZJPC)

Aramco has been the sole owner of Sasref since acquiring Shell’s 50% stake in 2019. The Sasref expansion is part of Aramco’s broader strategy to maximize value from its crude production, expand its downstream footprint, and foster international partnerships in both Saudi Arabia and China.

#aramco  #rongsheng  #steamcracker  #sasref  #jubail  #saudiarabia  #refinery  #petrochemicals  #refineryexpansion 

Saudi Arabia, 27 Feb 2025 - Saudi International Petrochemical Company (Sipchem) and global chemical giant LyondellBasell have announced a significant partnership to explore the development of a world-scale mixed-feed cracker in Saudi Arabia, bolstered by their successful securing of feedstock allocation from the Saudi government.

The two companies have signed a memorandum of understanding (MoU) to conduct a joint feasibility study for the proposed facility, which would utilize both ethane and refinery off-gases as feedstock. This mixed-feed approach offers greater flexibility in raw material sourcing while potentially improving the economics of the operation.

The proposed cracker would be integrated with downstream units to produce a range of high-value petrochemical products, including polyethylene, polypropylene, and various specialty chemicals. Industry analysts estimate the total investment could exceed $5 billion, though the companies have not confirmed specific figures pending the feasibility study's completion.

For LyondellBasell, the partnership represents a strategic move to expand its presence in the Middle East, a region that offers competitive feedstock advantages and growing domestic markets. The company has been actively restructuring its global portfolio, seeking opportunities in regions with favorable economics while potentially divesting from higher-cost locations.

The Saudi government has strongly supported the development of domestic petrochemical capacity through initiatives like Vision 2030, which aims to reduce the country's dependence on crude oil exports by developing downstream industries, aligning with national priorities to capture more value from the country's natural resources.

If the feasibility study yields positive results, construction could begin as early as 2026, with production potentially starting by 2029. The facility would likely be located in Jubail Industrial City, where Sipchem already operates several petrochemical plants and where existing infrastructure could support the new development.

The project faces competition from similar large-scale petrochemical developments in the region, including those being pursued by Saudi Aramco and SABIC. However, industry experts believe growing global demand for petrochemical products, particularly in emerging Asian markets, provides room for multiple new facilities.

The announcement comes as part of a broader wave of petrochemical investments in Saudi Arabia and the wider Gulf region, as producers seek to capitalize on competitive feedstock costs while meeting growing global demand for plastics and other petrochemical derivatives.

#aramco  #sabic  #sipchem  #lyondellbasell  #steamcracker  #ethane  #rog  #polyethylene  #polypropylene  #saudirabia 

Construction is under way for S-Oil's $7 billion Shaheen petrochemical project in Ulsan (Credit: S-Oil)

Ulsan, South Korea – February 17, 2025 – S-Oil, a leading South Korean refiner, has announced that its $7 billion Shaheen petrochemical project in Ulsan has reached 55% completion in engineering, procurement, and construction. This major initiative, featuring one of the world’s largest integrated steam crackers, is on track for mechanical completion in the first half of 2026, with commercial operations starting in the second half. Utilizing thermal crude-to-chemicals (TC2C) technology developed with Saudi Aramco and Lummus Technology, the project will produce 1.8 million tons of ethylene annually, doubling S-Oil’s petrochemical output to 25% and boosting South Korea’s economy with up to 17,000 jobs during peak construction.

#soil  #aramco  #lummus  #southkorea  #korea  #shaheen  #tc2c  #crudeoiltochemicals  #oiltochemicals  #steamcracking  #ethylene  #ulsan 

The Shahen TC2C Project Mass Balance has been completed. 
The TC2C Plant will import 46,000 bpd of Arab Light crude oil, corresponding to 2,300,000 tonnes annually.
However, in order to obtain the announced product quantities (1,800,000 tonnes of ethylene, 770,000 tonnes of propylene, 200,000 tonnes of butadiene, and 280,000 tonnes of benzene) our calculation based on typical cracking yields show that the feedstock needs to amount to almost 5 million tonnes.
The cracker will use ROG so that certainly some ethane will be additionally consumed by the cracker, but the feedstock balance reaquired for the precise product quantities is made of 150,000 tonnes of ethane, 1,300,000 tonnes of LPG (C3/C4 = 1:1 ratio) and 3,500,000 tonnes naphtha. Therefrom, 275,000 tonnes of LPG and 1,350,000 tonnes of nahptha  will be provided by the TC2C plant.
We assume that the supplemental feedstock will be imported, unless additional crude oil will be imported and processed with conventional distillation units.
As this is a TC2C demonstration project, it is assumed that only the theoretical quantities of pygas and pyoil originating from the TC2C provided feedstock to the cracker will be recirculated to the TC2C hydrocracking and hydroreating units (270,000 from 475,000 tonnes of pygas, and 65,000 from 113,000 tonnes of fuel oil).
In reality, the sizing of the various hydroprocessing/hydrotreatment units maybe different, but absent confirmation on units capacities, this is our best educated guess.


#tc2c  #shaheen  #massbalance  #crudetochemicals  #crudeoiltochemicals  #c2c  #tc2c  #cotc  #aramco  #soil  #southkorea 

A detailed description of the TC2C crude oil to chemical conversion process has been added.


#lummus  #aramco  #clg  #chevronlummusglobal  #crudeoiltochemicals  #oiltochemicals  #refineryintegration  #steamcracking  #lpg  #naphtha  #olefins  #aromatics  #ctc  #cotc  #coc  #tc2c  #c2c 

Saudi Arabian Oil Co., DHAHRAN, 17^th Nov 2022, Aramco affiliate S-OIL to build one of the world’s largest petrochemical crackers in South Korea

Aramco is making its biggest ever investment in South Korea to develop one of the world’s largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate, in line with the company’s strategy to maximize the crude to chemicals value chain.

The $7 billion Shaheen project aims to convert crude oil into petrochemical feedstock and would represent the first commercialization of Aramco and Lummus Technology’s TC2C thermal crude to chemicals technology, which increases chemical yield and reduces operating costs. It follows an earlier $4 billion investment into the first phase of the petrochemical expansion completed in 2018.

Located at S-Oil’s existing site in Ulsan, the new plant is planned to have the capacity to produce up to 3.2 million tons of petrochemicals annually and include a facility to produce high-value polymers. The project is expected to start in 2023 and be completed by 2026.

The steam cracker is expected to process by-products from crude processing, including naphtha and off-gas, to produce ethylene — a building block petrochemical used to make thousands of everyday items. The plant is also expected to produce propylene, butadiene and other basic chemicals.

#shaheen  #soil  #petrochemicals  #tc2c  #oiltochemicals  #crudeoiltochemicals  #southkorea  #aramco  #steamcracker  #ulsan  #thermalcrudetochemical  #naphtha 

Motiva Port Arthur Is Now the Largest US Refinery (Source: The Railroad Commission of Texas, Infographic credit: Bloomberg)

February 11, 2025 | Port Arthur, Texas, USA (Bloomberg)

Motiva Enterprises, a subsidiary of Saudi Aramco, has successfully expanded its refinery in Port Arthur, Texas, solidifying its position as the largest fuel-making facility in the United States. The refinery's capacity has grown to 654,000 barrels of oil per day (b/d), surpassing other major refineries in the country.

The Port Arthur refinery has been a key asset for Motiva since Saudi Aramco became its sole owner in 2017. This expansion aligns with Aramco's strategic goals to strengthen its global refining and petrochemical footprint. The upgraded facility is expected to enhance fuel production capabilities while contributing significantly to the local economy by creating jobs and boosting industrial activity in the region.

This development marks a significant achievement for Saudi Aramco and underscores its commitment to expanding its influence in North America's energy sector.

#motiva  #aramco  #portarthur  #refinery  #crudeoil 

Release time: 2023-09-15 15:21:50 Source: Saudi Arabia News (Reprinted by Business Department 3)

Saudi Basic Industries Corporation (SABIC, Riyadh, Saudi Arabia) and China Petrochemical Corporation (Sinopec) announced the commercial operation of a new polycarbonate (PC) plant built by the SSTPC joint venture. SSTPC is jointly funded by both parties in a 50:50 ratio. 

Founded in 2009, Sinopec (Tianjin) Petrochemical is a large petrochemical company with nine world-class chemical, polyethylene (PE) and polypropylene (PP) production plants. The new polycarbonate plant is designed to produce 260,000 tons per year and is an important part of Saudi Basic Industries Corporation's polycarbonate growth strategy in China, which will promote cooperation with international and local customers.


#sabic  #aramco  #saudiarabia  #china  #sinopec  #tianjin  #petrochemical  #binhai  #polycarbonate  #sstpc 

The product sutructure of the ZPC Zhoushan refining and chemical operations has been updated. 


#zpc  #zpcc  #zpczhoushan  #zheijiang  #zheijiangpetrochemical  #zheijiangpetroleumandchemicals  #zhoushan  #china  #rongsheng  #aramco  #saudiaramco  #crudeoil  #coaltochemical 
 

Credit: Petro Rabigh, Rabigh Phase 1

Saudi Aramco, has signed a definitive agreement to acquire an additional stake of approximately 22.5% in Rabigh Refining and Petrochemical Co. (“Petro Rabigh”), the refining and petrochemical complex located on the Kingdom of Saudi Arabia’s west coast, from Sumitomo Chemical for $702 million.

Aramco and Tokyo-headquartered Sumitomo Chemical currently each own 37.5% of shares in Petro Rabigh, which was listed on the Saudi Exchange in 2008. Upon completion of the transaction, which is priced at SAR7 per share, Aramco will become Petro Rabigh’s largest shareholder with an equity stake of approximately 60%, while Sumitomo Chemical will retain an equity stake of 15%. The transaction, which is subject to customary closing conditions including regulatory approvals and other third-party approvals, is part of a package of financial measures intended to reinforce Petro Rabigh’s financial position.

Under the terms of the share sale and purchase agreement, all proceeds received by Sumitomo Chemical from the sale will be injected into Petro Rabigh, through a mechanism to be agreed with Petro Rabigh. Aramco will also provide additional funds to Petro Rabigh, via a mechanism also to be agreed, matching the $702m from Sumitomo Chemical to improve Petro Rabigh’s financial position and support Petro Rabigh’s future strategy, bringing the aggregate injection amount to US$1.4 billion.

In addition, Aramco and Sumitomo Chemical have agreed to a phased waiver of shareholder loans of $750m each, which will result in a $1.5bn direct reduction in Petro Rabigh’s liabilities.

These measures are expected to improve Petro Rabigh’s balance sheet and cash liquidity as part of a remedial plan that Aramco and Sumitomo Chemical intend to explore with Petro Rabigh, which also includes initiatives to upgrade the refinery with the aim of helping improve the profitability of the business. The agreement also aligns with Aramco’s downstream expansion and Sumitomo Chemical’s move away from commodity chemicals toward specialty chemicals.

Source: Aramco news, 7^th Aug 2024

#refining  #refinery  #aramco  #sumitomo 

Saudi Aramco is betting that the internal combustion engine will be around for a "very, very long time" as the world's largest oil company sees a business opportunity in the growing popularity of electric vehicles.

The state-owned oil group, which generated $500 billion in revenue last
year mainly from the production and sale of crude oil, acquired a 10 percent stake in Horse Powertrain for €740 million in June 2024, a company that makes internal combustion engines.

The calculation by Saudi Aramco and Horse's other shareholders - Chinese automaker Geely and its French rival Renault - is that as the industry stops designing and developing its own internal combustion engines, it will start buying them from third parties, the Financial Times said.

"It will be incredibly expensive for the world to completely eradicate or do away with internal combustion engines," said Yasser Mufti, Saudi Aramco's executive vice president in charge of the deal. "If you look at
affordability and a lot of other factors, I think they will be around
for a very, very long time."

Asked if he thought internal combustion engines would exist forever, Mufti answered in the affirmative. Saudi Aramco has previously said it believes that even in 2050, more than half of all cars will still be running on some form of fuel.

Photo: Aramco News, 28^th June 2024
At the signing ceremony, front row, from left: Renault Group Senior Vice President of International Development & Partnerships Francois Provost, Aramco Senior Vice President of Technology Oversight & Coordination Ali A. Al Meshari, and Geely Head of Strategy & Partnership (Chairman’s Office) Fiona Fei. Back row, from left: Valvoline Global Operations CEO Jamal Muashsher, HORSE Powertrain Limited CEO Matias Giannini, Aramco Executive Vice President of Products & Customers Yasser M. Mufti, Geely General Counsel Tihua Huang, and Aramco Vice President of Downstream Growth & Development Andrew Katz.

#diesel  #gasoline  #aramco  #crudeoil  #refining  #fuels  #combustionengines