Communicator

Dakar, Senegal - February 10, 2025

The Société Africaine de Raffinage (SAR), Senegal's leading oil refinery, has successfully received and begun processing its first shipment of crude oil from the Sangomar field. This milestone marks a significant step towards Senegal's energy independence, as the facility will now refine locally produced crude oil into essential petroleum products including gasoline, diesel, kerosene, and low sulfur fuel oil (LSFO).

The operation commenced under the supervision of SAR's Loading Master, with the safe unloading of the inaugural vessel carrying Sangomar crude. This development comes after recent renovations that increased the refinery's capacity to 1.5 million tons per annum, enabling it to meet 70-75% of Senegal's domestic market needs.

The facility, which has been operational since 1961, is jointly owned by several stakeholders, including Petrosen (46%), Locafrique (34%), Sahara Energy Resources (8.18%), TotalEnergies (6.82%), and ITOC (5%). SAR has announced plans for further expansion, targeting a capacity of 2.5 million tons per annum by 2028, which would fully satisfy Senegal's domestic demand of 1.6 million tons while supporting regional market growth.

#societeafricainederaffinage  #totalenergies  #petrosen  #senegal  #dakkar  #crudeoil  #refining  #sangomar 

Dutch TTF Gas March 25 (TGH25) Price Chart (€/MWh)

Yara's Hull Plant Mothballing Highlights Europe's Ongoing Energy Challenges

The recent announcement (on 7 February 2025) of Yara International's decision to mothball its Hull ammonia plant in the UK, which has an annual capacity of 300,000 metric tons represents a striking example of how Europe's energy crisis continues to impact industrial production.

This decision is part of a broader strategy to reduce European ammonia production by 1 million metric tons due to high natural gas feedstock costs and the impact of European carbon policies.

The Hull plant closure, likely permanent, reflects the challenges faced by energy-intensive industries in Europe, where elevated energy prices and regulatory pressures have significantly eroded competitiveness.

The Natural Gas-Fertilizer Connection

Fertilizer production, particularly nitrogen-based fertilizers, is
inextricably linked to natural gas prices. Natural gas serves not only as an energy source but also as a key raw material in the production process. Through the Haber-Bosch process, natural gas (methane) is converted into hydrogen, which then combines with nitrogen from the air to produce ammonia – the building block of nitrogen fertilizers.

When natural gas prices surge, fertilizer production costs increase dramatically, as gas can represent up to 80% of the production costs for nitrogen fertilizers. This direct relationship makes fertilizer plants particularly vulnerable to gas price volatility.

The Chain of Events: Europe's Energy Market Transformation

The current situation stems from a series of significant changes in Europe's energy landscape:

Europe took the decisive step of sanctioning gas imports from Russia altogether, forcing a dramatic restructuring of its energy supply chains. This led to a rushed transition toward liquefied natural gas (LNG) from distant suppliers like the United States and Qatar. However, LNG proves significantly more expensive than pipeline gas due to the complex processes of liquefaction, oceanic transport, storage and regasification.

Germany's decision to accelerate the dismantling of its nuclear power plants set an early precedent for increased gas dependency in Europe's largest economy. This shift put additional pressure on the continent's gas supplies and grid stability.

The situation intensified when the Baltic states decided to cut
themselves off from the Russian power grid on 9 February 2025, leading to significant spikes in regional electricity prices. This was preceded by Ukraine's decision to halt gas transit through its territory on 1 January 2025, which had been a crucial pipeline route for Russian gas reaching European markets.

New U.K. Tax Rates Are Hammering North Sea Oil And Gas Drilling

In the UK, the situation intensified in October when the UK government raised the Energy Profits Levy (EPL), commonly known as the windfall tax, from 35% to 38%. The United Kingdom currently imposes one of the world's highest tax burdens on offshore oil and gas production, with operators in the North Sea facing a total tax rate of 78% resulting from the combination of standard taxation and the EPL.

The policy has created a challenging environment for the UK's domestic energy production, Britain now paying the highest electricity prices in the World.

Norway's Gas Threat: A New Risk to Europe's Energy Security

Norway, a critical supplier of natural gas to Europe, has recently hinted at potential disruptions to its energy exports due to domestic and geopolitical pressures. Currently providing nearly half of Germany's gas supply, Norway has become indispensable for European energy security following the decline of Russian gas imports.

However, soaring electricity prices in Norway—six times the EU average—have sparked domestic backlash, with political parties advocating for reduced energy exports to prioritize national affordability. Additionally, technical failures, such as the January 2025 shutdown of Norway's Hammerfest LNG plant, have already tightened Europe's strained energy supply.

These developments highlight Europe’s vulnerability to disruptions in Norwegian gas flows, further exacerbating its ongoing energy crisis.

European Decarbonization Policies

Both the EU and the UK are undergoing significant transformations in their energy landscapes as part of ambitious decarbonization policies aimed at achieving net zero emissions by 2050. The EU’s European Green Deal and legally binding Climate Law, alongside the UK’s Clean Power 2030 Action Plan and Emissions Trading Scheme (ETS), have driven renewable energy adoption and reduced reliance on fossil fuels.

The measures have significantly impacted energy prices across Europe. Investments in green technologies, carbon pricing, and restrictions on fossil fuel use have increased costs for industries and households alike.

In the UK, phasing out coal power and limiting new oil and gas licenses have heightened dependency on renewables and imported energy, raising concerns about energy security.

Deindustrialization in Europe: The Impact of Surging Energy and Gas Prices

These rising costs are placing heavy financial pressure on energy-intensive industries across Europe and the UK, accelerating trends of deindustrialization, exacerbated by geopolitical tensions, net zero energy policy decisions, and the reduction of Russian gas supplies.

Energy-intensive industries, such as chemicals, steel, and aluminum, have been particularly affected, with many companies curbing production or relocating to regions with lower energy costs like the U.S. or Asia. Yara's decision to close its Hull ammonia plant is only the latest in a long list of industrial failures across Europe.

#naturalgas  #deindustrialization  #europe  #fertilizer  #ammonia  #lng #ttf

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 

A generic butadiene extraction process has been created to be selected for site's model when technology provider / licensor is unknown.


#butadieneextraction  #solventextraction  #crudec4  #mixedc4  #raffinate 

The description of the butadiene extraction process has been updated.


#butadiene  #solventextraction  #raffinate  #crudec4  #mixedc4 

BP Gelsenkirchen Refinery

GELSENKIRCHEN, Germany | February 6, 2025

BP has announced its intention to sell its Ruhr Oel GmbH operations in Gelsenkirchen, Germany, including the refinery and associated petrochemical assets19. The marketing process begins immediately, with BP targeting to complete the sale agreement within 2025, subject to regulatory approvals.

The Gelsenkirchen facility, Germany's third-largest refinery, currently processes approximately 12 million tons of crude oil annually and employs around 2,000 workers and 160 apprentices. The sale package includes the BP refinery in Gelsenkirchen and DHC Solvent Chemie GmbH in Mülheim an der Ruhr.

The decision comes amid challenging conditions for European refiners, who face increasing competition from Middle Eastern and Asian facilities, along with pressure from vehicle electrification and high operating costs. BP had already planned to reduce the refinery's capacity from 260,000 barrels per day of crude oil to 155,000 barrels per day in 2025.

Emma Delaney, BP's Executive Vice President for customers and products, explained that the decision aligns with BP's strategy to become a simpler, more focused, higher-value company. The company has recently modernized the facility's infrastructure, including power grid renewal and establishing independent steam supply, making it attractive for potential buyers.

The Gelsenkirchen site plays a crucial role in North Rhine-Westphalia's chemical industry, producing not only conventional fuels but also having the potential to manufacture biofuels and process recycled plastics. The refinery will continue normal operations throughout the sales process.

This move is part of a broader trend in Germany's refining sector, with other major players like Shell and ExxonMobil also seeking to divest their refining assets in the country. Industry analysts expect German crude refining capacity to decrease from 2.1 million barrels per day in 2020 to 1.8 million barrels per day by 2026.

#crudeoil  #refining  #refinery  #bp  #shell  #exxon  #germany  #gelsenkirchen 

Vitol's ATB Terminal in Malaysia.

In a recent report, Vitol, the world's largest independent oil trader, has projected that global oil demand will remain at current levels until at least 2040. This forecast challenges earlier predictions of a peak in oil demand followed by a sharp decline due to the rise of electric vehicles and renewable energy sources.

Vitol's analysis suggests that while demand for oil in developed nations may decrease, this will be offset by rising demand in developing economies. The company cites population growth, economic expansion, and urbanization as key factors driving this continued demand.

The report also highlights the role of the petrochemicals industry, which is expected to see increased oil demand for the production of plastics and other materials. This growth, coupled with demand from developing nations, is anticipated to keep global oil consumption steady.

While acknowledging the global push for cleaner energy, Vitol's forecast indicates that oil will continue to play a significant role in the global energy mix for the foreseeable future. The company's analysis underscores the complex challenges of balancing economic development with the transition to a more sustainable energy future.

China: Vitol's global head of research, Giovanni Serio, has highlighted that China will continue to play a critical role in global oil demand, particularly in the petrochemical sector. Despite the rise of electric vehicles and the energy transition, China's focus on petrochemicals is expected to drive oil demand.

Long-Term Forecast: Vitol has pushed back its peak oil demand forecast globally to the 2030s, citing a slower uptake of electric vehicles and lower commitments to environmental targets. The company also anticipates that jet fuel and petrochemical feedstocks will drive global oil demand growth in the next five years.

These insights reflect Vitol's evolving views on the future of oil demand, emphasizing the role of emerging markets and the ongoing energy transition.

#vitol  #energy  #energytrannsition  #oildemand  #crudeoil  #petrochemicals 

Reliance Patalganga Manufacturing Division (PMD) has been added.

#reliance #ril  #pmd  #patalganga  #CrudeToChemicals
 

Japanese refiner Taiyo Oil Co., Ltd has been created.

#japan #taiyooil  #refining  #refinery  #crudeoil  #naphtha 

Arzew Crude Oil Refinery has been created and Mass Balance has been initialized with crude oil imports.


#arzew  #algeria  #refinery  #crudeoil  #saharancrude 

Hassi Messaoud Refinery

Hassi Messaoud Refinery: Técnicas Reunidas confirms relaunch of the $4 billion project

28^th Nov 2024, ALGERIE ECO

Sonatrach Group, Spanish company Técnicas Reunidas, and Chinese group Sinopec have agreed to relaunch the Hassi Messaoud refinery construction project in southern Algeria. This announcement was made on November 27 by Técnicas Reunidas in a communication to Spain's National Securities Market Commission (CNMV), as reported by Spanish newspaper Cinco Dias (El Pais).

Initially awarded by Sonatrach in late 2019 to a consortium including Técnicas Reunidas and Samsung Engineering (South Korea), the project has undergone a change in partners. Samsung Engineering has been replaced by Sinopec, a strategic partner of Técnicas Reunidas since their agreement signed in September 2023.

The project will be implemented through a joint venture. Técnicas Reunidas will hold 51% of the shares, while Sinopec will own 49%. The total contract amount is approximately $4 billion (3.8 billion euros). Of this budget, more than $2 billion (1.9 billion euros) will be allocated to Técnicas Reunidas.

This project is considered a strategic priority for Algeria. It aims to strengthen local production of energy products to meet growing domestic demand. The refinery, with a processing capacity of five million tons, is expected to be completed in 65 months, with the first refining units scheduled to begin operations by the end of 2027, according to details provided by Técnicas Reunidas to the CNMV.

This is the fourth major project carried out by Técnicas Reunidas and Sinopec since their strategic alliance. Additionally, in June, Sonatrach signed a memorandum of understanding with Sinopec. This agreement aims to expand their cooperation, particularly in exploration, renewable energy, petrochemicals, and petroleum engineering.

For its part, South Korean company Samsung Engineers & AHEAD (Samsung E&A) announced on Thursday that it had been notified of the cancellation of a 1.9 trillion won ($1.36 billion) order placed by Algeria in 2020, according to South Korean news agency Yonhap Agency. Samsung E&A indicated that it had failed to reach a compromise with Sonatrach on modifications to the contract terms, according to the same source. The Korean company emphasized that there were no financial losses resulting from the order cancellation.

In July, Sonatrach's Vice President of Refining and Petrochemicals, Slimane Slimani, indicated on Radio Channel 3 that the Hassi Messaoud refinery project had been relaunched. President of the Republic, Abdelmadjid Tebboune, had also insisted on relaunching this project, which was on the agenda of two Council of Ministers meetings in December 2023 and January 2024.

#sonatrach  #algeria  #hassimessaoud  #refinery  #sinopec  #crudeoil   

Hassi Messaoud Crude Oil has been added.

#algeria #sonatrach  #hassimessaoud  #crudeoil  #oilfield 

Crude oil imports have been updated.

#skikda  #sonatrach  #refinery  #saharancrude #crudeoil 

RA1G Algier Refinery has been added and its mass balance with crude oil import initialized.
 

#refinery #algier  #algeria  #crudeoil  #saharancrude  #sonatrach 

Saharan Crude Oil has been added.
 

#saharancrude #crudeoil  #saharancrudeoil  #saharanblend  #algeria  #lightcrude 

BPLC Bina Refinery

India's Bharat Petroleum Corp. (BPLC) plans to expand its refining capacity to 45 MMtpy by 2028 from the current 35.3 MMtpy, its head of refining, Sanjay Khanna, said on Dec 17, 2024 at an industry event, as reported by Hydrocarbon Processing.

As part of the plan, BPCL—the country's second-biggest fuel retailer—will increase the capacity of its 15.5-MMtpy Kochi refinery, situated in the southern state of Kerala, to 18 MMtpy.

It will also boost the capacity of its 12-MMtpy Mumbai refinery to 16 MM tpy, Khanna said.

The state-run company additionally expects to expand its 7.8-MMtpy Bina refinery in central India to 11.3 MMtpy by May 2028, he added.

The refiner, which is always on the scout for cheaper oil grades to maximize its profit margins, is also keen to test low-sulfur grades from South America including those from Argentina, Khanna said.

#crudeoil  #lowsulfur  #refining  #refinery  #bplc  #bharat  #bina  #kochi  #mumbai  #india  #capacityexpansion 

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook, December 2024.

India has emerged as the leading source of growth in global oil consumption in 2024 and 2025, overtaking China this year, EIA reports.

China’s oil consumption grew by more than India’s in almost every year from 1998 through 2023, with China’s oil consumption regularly growing more than any other country during those years.

Over 2024 and 2025, India accounts for 25% of total oil consumption growth globally. EIA expects an increase of 0.9 million barrels per day (b/d) in global consumption of liquid fuels in 2024 and even more growth in 2025, with global oil consumption increasing by 1.3 million b/d.

Driven by rising demand for transportation fuels and fuels for home cooking, consumption of liquid fuels in India is forecast to increase by 220,000 b/d in 2024 and by 330,000 b/d in 2025. That growth is the most of any country in each of the years.

China’s liquid fuels consumption is expected to grow by 90,000 b/d in 2024 before increasing by 250,000 b/d in 2025. In China, rapidly expanding electric vehicle ownership, rising use of liquefied natural gas for trucking goods, a declining population, and decelerating economic growth have limited consumption growth for transportation fuels. Most of the growth in China is the result of increasing oil use for manufacturing petrochemicals.

Although India’s growth in percentage and volume terms exceeds China’s growth in the forecast, China still consumes significantly more oil. Total consumption of liquid fuels in India was 5.3 million b/d in 2023, while China consumed more than triple that amount at 16.4 million b/d in 2023, based on December estimates.

Read our oil demand forecast to 2050.

#fuels  #petrochemicals  #electricvehicles  #crudeoil  #naturalgas  #lng  #liquidfuels  #china  #india 

IRPC integrated complex mass balance has been initialized.
 

#irpc #refinery  #rayong  #crudeoil  #olefins  #aromatics  #petrochemicals  #petroleum  #fuels  

Shandong Tianhong Chemical has been added and its mass balance initialized.

#shandong #tianhong  #petrochemical  #refinery  #crudeoil  #wandaggroup 

Photo: Russian crude oil tanker. Credit: Defense.in

13^th Dec2024 | News aggregation
 
Russian state oil company Rosneft has signed a landmark 10-year agreement to supply 500,000 barrels of crude oil per day to India's Reliance Industries (RIL), marking the largest energy deal ever between the two countries. The agreement, valued at approximately $13 billion annually at current prices, represents 0.5% of global oil supply.

Under the terms of the deal, Rosneft will deliver 20-21 Aframax-sized cargoes of various Russian crude grades and three cargoes of fuel oil monthly to Reliance's Jamnagar refining complex, the world's largest, in Gujarat. The supplies are scheduled to begin in January, with an option to extend the agreement for an additional 10 years.

The pricing structure includes differentials to Dubai crude prices, with Russian Urals crude, which makes up the majority of the supply, to be priced at a $3 per barrel discount. Light sweet grades like ESPO, Sokol, and Siberian Light will carry premiums ranging from $1 to $2 per barrel.

This agreement significantly expands the existing relationship between the two companies. From January to October, Reliance had been importing an average of 405,000 barrels per day of Russian oil, an increase from 388,500 barrels per day during the same period last year. The new arrangement will account for approximately half of Rosneft's seaborne oil exports from Russian ports.

The deal was approved during Rosneft's board meeting in November and both companies will conduct annual reviews of pricing and volumes to account for market dynamics.

#russia  #india  #rosneft  #reliance  #jamnager  #refinery  #urals  #crudeoil  #espo  #sokol 

Picture: Chevron refining operations

Chevron newsroom, PASADENA, Texas (Dec. 10, 2024)

Chevron U.S.A., Inc., a wholly owned subsidiary of Chevron Corporation, has completed a retrofit of its refinery in Pasadena, Texas. The upgrade aims to increase product flexibility and expand the processing capacity of lighter crudes by nearly 15% to 125,000 barrels per day.

Key Benefits

▪️Increased Capacity: The refinery’s processing capacity for lighter crudes has increased by 15%, allowing it to handle more equity crude from the Permian Basin.
▪️Enhanced Gulf Coast Supply: The upgrade enables Chevron to supply more refined products to customers in the U.S. Gulf Coast region.
▪️Synergies with Pascagoula Refinery: The retrofit enhances synergies with Chevron’s Pascagoula refinery, improving overall refining system efficiency.
▪️Light Tight Oil (LTO) Project: The upgrade is part of Chevron’s LTO Project, which focuses on improving facility reliability and safety, boosting domestic refined product supply, and introducing jet fuel production and gas oil exports.

Strategic Intent

Chevron acquired the Pasadena Refinery in 2019 as part of its strategy to expand its Gulf Coast refining system. This upgrade supports the company’s goal of increasing its refining capacity and improving its ability to meet growing demand for refined products in the region.

Timeline

The upgrade was completed in December 2024, with the refinery now fully operational with its enhanced capabilities.

#chevron  #refinery  #capacityincrease  #crudeoil  #lightcrude  #permian  #pasadena 

ExxonMobil has unveiled an ambitious growth plan to increase its total production of oil and gas to 5.4 million oil-equivalent barrels per day by 2030, representing an 18% increase from current levels.

ExxonMobil News releases | Dec. 11, 2024

KEY PRODUCTION TARGETS

Permian Basin Operations

The company plans to roughly double its production in the Permian Basin to approximately 2.3 million oil-equivalent barrels per day by 20301. This expansion is supported by ExxonMobil's acquisition of Pioneer Natural Resources, which has given them the largest contiguous acreage position in the region1

Guyana Operations

In Guyana, ExxonMobil expects to reach a total production capacity of 1.7 million barrels per day, with gross production growing to 1.3 million barrels per day by 20301. The company plans to develop eight projects in the region by 2030.

FINANCIAL INVESTMENT

Capital Expenditure

▪️ 2025: $27-29 billion in cash capital expenditure1
▪️ 2026-2030: $28-33 billion annually1

Expected Returns

The company projects an additional $20 billion in earnings and $30 billion in cash flow over the next six years. These investments are expected to generate returns of more than 30% over their lifetime4

STRATEGIC FOCUS

By 2030, more than 60% of the company's production will come from advantaged assets (Permian, Guyana, and LNG), up from the current 50%. The company also plans to pursue up to $30 billion in lower emissions investment opportunities while targeting to lower its operated Upstream emissions intensity by 40-50% versus 2016 levels.

#naturalgas  #crudeoil  #exxonmobil  #oildemand  #demandgrowth 

7th Sep 2024 | Source: DT New Materials, via Sohu.com

On April 7, the environmental impact assessment for the Phase III C4 Value Chain Optimization Project of BASF-YPC Company Limited was publicly announced for the first time. Previously, on May 29, 2023, the environmental impact assessment for the Phase III C2 Value Chain Expansion Project was announced. This project mainly involves the construction of a new 300,000 tons/year photovoltaic-grade EVA facility. The earlier Phase 2.8 mainly expanded the production capacity of Propionic Acid (PA), Propionaldehyde (PALD), Ethylene Amines (EEA), Ethanolamines (EOA), and Purified Ethylene Oxide (PEO), and built a new Tert-Butyl Acrylate (TBA) unit, which was commissioned in November last year.

#basf  #ypc  #c4valuechain  #yangzi  #eva  #c4  #mixedc4  #crudeC4  #raf 

7th Sep 2024 | Source: DT New Materials, via Sohu.com

The project is located in Gulei Petrochemical Base, Zhangzhou, Fujian Province, and mainly builds 16 million tons/year oil refining project and 1.2 million tons/year ethylene project. The project is the leading project of Gulei Petrochemical Base, one of the seven major petrochemical industrial bases in China. The first phase of the project mainly includes 9 sets of chemical equipment such as ethylene cracking with an actual processing capacity of 1 million tons/year, with a total investment of 27.8 billion yuan and an annual output of one million tons of ethylene.

The second phase of the Gulei Refining and Chemical Project is jointly constructed by Sinopec Group and Fujian Province. It is planned to build more than 30 refining and chemical units, including 16 million tons/year of oil refining, 1.5 million tons/year of ethylene, 2 million tons/year of aromatics , as well as supporting facilities such as public works and berths at the Gulei Petrochemical Base. On July 16, the second phase of the project was approved by the Fujian Provincial Development and Reform Commission.

#gulei  #sinopec  #petrochemical  #refining  #ethylene  #steamcracking  #oilrefining  #crudeoil 

Changling Refinery information details have been updated and its crude oil processing capacity adjusted to 8 million tonnes per year.


#hunanpetrochemical  #sinopec  #hunan  #yueyang  #changling  #refinery  #china  #crudeoil  #refining  

PetroChina Jilin Petrochemicals, manufacturing site have been added and mass balance initialized.

#steamcracking #ethylene  #polyethylene  #abs  #rubber  #crudeoil  #petrochina  #cnpc  #jilinpetrochemical 

Information details about Petrochina Daqing Refining and Chemical Company have been updated.


#petrochina  #daqing  #refiningandchemical  #crudeoil  #Heilongjiang 

Petrochina Daqing Petrochemical has been created and its site's mass balance initialized.

#daqing #petrochina  #petrochemical  #massbalance  #refining  #crudeoil  #ethylene  #steamcracking  #heilongjiang 

Credit: Gunvor, Rotterdam refinery

By Jack Wittels and Alex Longley, November 22, 2024, Bloomberg

Gunvor Group is temporarily halting its Rotterdam oil refinery because it’s not making enough money, the latest sign that the continent’s plants are struggling to compete with upstarts in other parts of the world.

Effective Nov. 25, the so-called economic halt is due to a lack of prompt availability of commercially viable feedstock, the company said in a statement. Gunvor said it will “continue to monitor the situation and assess future resupply for the refinery in due course.”

With a processing capacity of 75,000 barrels a day, the plant is relatively tiny. Still, it joins a growing list of European refineries with plans to either halt or downsize, including the Wesseling and Gelsenkirchen plants in Germany and the Grangemouth facility in Scotland.

Europe’s refineries are under pressure from large, new plants, including in the Middle East and Africa, such as Nigeria’s giant new Dangote refinery. The rival fuelmakers can send what they make to Europe, and also compete for market share elsewhere in the world.

#gunvor  #refinery  #europe  #rotterdam  #wesseling  #gelsenkirchen  #grangemounth  #petroineos  #lyondellbasell  #ineos  #nigeria  #dangote  #crudeoil  #bp 

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 
 

The definition of crude oil (main product) has been updated and significantly improved.


#crudeoil  #petroleum 



 

Details about crude processing capacity, alkylation and gasoline production added.

#alylate  #alkylation  #ionikylation  #adu  #cdu  #crudeoil  #gasoline  #dagang  #petrochemical  #petrochina  #china  

Petrochina Gomud refinery has been added and mass balance initialized.
 

#petrochina #godmud  # qinghqi #china  #crudeoil  #alkylation  #alkylate  #ionikylation 

Photo: Petrochina Dalian Refinery

7 Nov 2024

PetroChina, one of China’s major oil companies, plans to close its Dalian refinery in northeastern China by mid-2025, marking the first complete shutdown of a state-operated refinery in the country. The Dalian refinery, which dates back to 1993, has a crude processing capacity of 410,000 barrels per day (bpd) and a Nelson complexity index of approximately 6.1, reflecting its ability to handle various crude oil types and produce a range of refined products. It contributes around 3% of China’s total refining capacity and has been a significant part of PetroChina’s refinery network for decades.

The refinery plays a vital role in supplying refined products to the Chinese domestic market, including diesel, gasoline, and jet fuel. While its primary focus has been on meeting local demand, the Dalian refinery has also engaged in exports, supplying refined products to other regions in Asia, particularly  Japan and  South Korea. The facility primarily processes  Russian ESPO (East Siberia Pacific Ocean) crude, which is delivered via pipelines from Siberian fields through China’s northeastern region.

PetroChina’s decision to close the Dalian refinery stems from multiple factors, including overcapacity, weakened domestic fuel demand due to slower economic growth, and an increase in vehicle electrification across China. Environmental concerns have also played a role, as the refinery has been situated in a densely populated area, with incidents such as an oil spill in 2010 and fires in 2013 and 2017 highlighting the risks of operating a large facility in close proximity to urban areas.

The phased shutdown began in October 2023, with PetroChina closing a 210,000-bpd unit within the refinery. The remaining capacity is scheduled to be taken offline by 2025. Once the shutdown is complete, PetroChina intends to redirect crude oil supply to other refineries in northern China, including the WEPEC (West Pacific Petrochemical Company) refinery in Dalian and another facility in nearby Jinzhou.

In a bid to offset the reduction in refining capacity, PetroChina’s parent company, the China National Petroleum Corporation (CNPC), announced plans to develop a new, smaller refinery and chemical complex on Changxing Island, approximately two hours from Dalian. This project, valued at CNY70 billion (USD 9.6 billion), is expected to process around 200,000 bpd of crude oil and produce 1.2 million tonnes of ethylene annually. However, the new complex is still in the pre-feasibility stage, and a final investment decision has yet to be made.

The closure of the Dalian refinery underscores PetroChina’s efforts to modernise its infrastructure, reduce environmental risks, and adapt to changing energy demands. With China moving towards greener energy solutions and reduced reliance on fossil fuels, PetroChina’s shift reflects the country’s broader strategic push towards sustainability.

Source

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

Russian ESPO crude oil has been added.

#russia #espo  #crudeoil 

ADU, crude imports and ionikylation alkylation process added.
 

#crudeoil #oilimport  #processingcapacity  #china  #harbin  #petrochina  #alkylation  #adu  #cdu  #alkylate 

African Energy Week 2024 presents the vision of a diversified energy future

AFRICAN ENERGY WEEK: OIL & GAS DEMAND EXPECTED TO REMAIN STRONG THROUGH 2050

Global demand for oil and gas is expected to remain strong in the coming decades, according to Haitham al-Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC). Speaking at the  Africa Energy Week (AEW) in Cape Town,  South Africa, on 6 November, Haitham al-Ghais explained that this increase in energy demand would be driven by global population growth and a doubling of global GDP by 2050. “OPEC sees the outlook for global oil and gas consumption as very positive. By 2050, energy demand will increase by 24%,” he said.

The world population, currently 8 billion, is expected to reach 9.7 billion by 2050, with a significant share of this growth concentrated in developing countries, particularly in Africa. Al-Ghais stressed that this population increase and the economic growth of emerging megacities and cities of several million inhabitants would amplify the demand for energy, requiring the mobilization of all available resources, including fossil fuels.

The leading role of oil and gas

According to OPEC projections, oil and natural gas will still account for 55% of global energy supply in 2050, with oil alone accounting for 30% of this share. “The world will need all kinds of energy resources in the coming decades,” the OPEC Secretary General said, adding that renewables, although growing, will not be enough to meet this increased demand. In order to meet the growing needs and stabilize markets, OPEC estimates that massive investments will be needed in the oil sector. “Until 2050, the oil sector will require investments of $17.4 trillion,” al-Ghais said, adding that this funding will be mainly directed towards production programs to ensure stable supplies and prevent sudden fluctuations in fuel prices.

A strategic event for the sector

The African Energy Week, which brings together over 1,000 participants, including officials from 22 African countries, industrialists, business people and analysts, continues until November 8. The event provides a platform to discuss energy challenges in Africa and how the continent can meet the growing global energy needs.

Source

#oilandgas #crudeoil #naturalgas #africa #refining #refinery #oildemand #energy #fossilfuels #fuelprices #oilsector

Sinochem Hongrun Oil Storage & Transportation Co., Ltd. has been added.

#sinochem #hongrun  #oilstorage  #crudeoilstorage  #weifang  #shandong  #china  #tankfarm 

Ethylbenzene and styrene technologies and production capacities have been added.

#xinjiang  #technology  #newsolar  #changzou  #china  #styrene  #ethylbenzene  #CrudeToChemicals ihua

ExxonMobil’s Esso division has completed the sale of the Fos-sur-Mer refinery, one of France’s major refineries, and two other oil terminals to Rhone Energies, a consortium formed by Trafigura with Entara LLC. The deal was announced on Friday, November 1, 2024.

The Fos-sur-Mer refinery has a crude oil processing capacity of 140,000 barrels per day. The transaction includes the Toulouse and Villette-de-Vienne terminals, operated by Exxon’s local unit Esso.

This sale marks a significant reduction in Exxon’s refining capacity in Europe, with its total refining capacity in the region decreasing to approximately 1.1 million barrels per day. However, Exxon remains the second-largest refining capacity holder in northwestern Europe, after TotalEnergies.

The sale is part of Exxon’s efforts to divest non-core assets and focus on its core business. The company is also close to selling its 25% stake in a German refinery, MiRO Mineraloelraffinerie Oberrhein GmbH.

#crudeoil  #refining  #refinery  #exxonmobil  #totalenergies  #france  #miro  #rhoneenergies 

Shandong Jincheng Petrochemical estimated crude oil consumption has been added.

#shandong #jincheng  #petrochemical  #crudeoil  #refining 

Francesco Sassi, 21 Oct 2024, eklipX Research

Spanish energy giant Repsol is freezing the development of all major hydrogen assets in the country, says the company.
After international companies cancelled their plans to export hydrogen from Norway to Germany, this is another alarming sign for the industry in the E.U.
According to Repsol, the world-renowned Oil & Gas Spanish giant, has halted all developments of green hydrogen projects in Spain with a large electrolysis capacity, namely over 350 MW. The company says that the existing regulations in Spain are at the root of this decision.
From Repsol's perspective, the current political discussion about possible windfall taxes on energy companies and banks to be confirmed in the long term makes these investments simply too risky.  Spain is one of the few E.U. countries to still apply a windfall profit tax to fund relief measures for consumers. In 2023, the levy granted Madrid additional €2.9 billion going into the State's coffers.
At the end of 2023, the same government extended the measure for 12 months, allowing companies to partially offset the levy on renewable energy projects. Now, the tensions between the State & Market stakeholders are rising due to the proposal of extending the windfall tax in the future.
Thus, we should understand Repsol's decision in the contexts of growing, domestic political frictions, and the instability of the hydrogen market in the E.U.

#oilandgas  #crudeoil  #naturalgas  #hydrogen  #greenhydrogen  #electrolysis  #repsol  #spain  #eu  #pipeline 

As of September 8, Guangdong Petrochemical has processed more than 30 million tons of crude oil since it was put into production in early 2023, Longchang Petrochemical reports. In the past year, it has helped Jieyang's GDP, industrial added value above designated size and other important economic indicators to grow first in Guangdong Province and become an important supply base for refined oil and chemical products in eastern Guangdong and even South China . The company guaranteed the "crude oil basket" according to the principle of optimal cost performance, and fully opened the "marine energy lifeline". In the past two years, it has received and unloaded 35.37 million tons of crude oil carried by 137 tankers, involving 36 varieties in 17 countries. The functional status of China Petroleum Offshore Import Crude Oil Optimization Center has been continuously strengthened and upgraded.

#petrochina  #longchang  #guangdong  #petrochemical  #crudeoil #refining  #china  #crudeoilimport 

Iranian Light Crude Oil has been added.


#iran  #iranian  #lightcrude  #crudeoil 

Petroineos, a Joint Venture between INEOS and PetroChina, has announced its intention to cease refinery operations at Grangemouth and transition to a finished fuels import terminal and distribution hub during the second quarter of 2025, subject to consultation with employees.

Situated on the Firth of Forth on Scotland’s east coast, Grangemouth Refinery is the oldest of the six remaining refineries in the  UK and the only refinery in Scotland. Grangemouth refining capacity stands at 150,000 barrels of crude oil per day.

A spokesman for Petroineos said that in the last week, the refinery has lost around 500,000 US dollars (£381,000) per day, and absorbed total losses of 775 million US dollars (£590 million): “it is hard to conceive that any owner would be able or willing to sustain losses on this scale indefinitely and in the face of competitive pressure from newer, more modern facilities across Europe and elsewhere in the world” the spokesperson added.

Other INEOS businesses at Grangemouth, namely INEOS O&P UK and INEOS FPS (Forties Pipeline System), will continue as normal delivering high quality services and products to customers and are largely unaffected by this change, Ineos stated.

#ineos  #petroineos  #refinery  #grangemouth  #crudeoil 

Sources: INEOS announcement, 12 Sep 2024 | The Westmorland Gazette, 13 Sep 2024

LAGOS, Sept 2 –  Nigeria’s Dangote Oil Refinery has commenced gasoline processing after recent crude shortages caused delays, according to a company executive on Monday. The $20 billion facility, built by Nigerian billionaire Aliko Dangote on the outskirts of Lagos, started operations in January, initially producing products like naphtha and jet fuel.

With a massive capacity of 650,000 barrels per day, the Dangote Refinery is Africa’s largest and aims to reduce Nigeria’s heavy dependence on imported oil products, a costly burden for the country despite being a major oil producer.

“We are currently testing gasoline, and soon it will begin flowing into our product tanks,” said Devakumar Edwin, Vice President of Dangote Industries Limited. Edwin did not specify when
 the gasoline would reach the local market but confirmed that state oil firm NNPC Ltd, Nigeria’s sole gasoline importer, would exclusively purchase the gasoline. “If there are no buyers locally, we will export it, as we have done with our jet fuel and diesel,” he added.

The introduction of gasoline from Dangote’s refinery could significantly ease NNPC’s ongoing struggles to meet local fuel demand. Since January, NNPC has accumulated $6 billion in debt to oil traders for supply, hampering its ability to adequately serve the Nigerian market, where long fuel queues have persisted since July. Fuel prices have surged by 45% from the official rate of 617 naira ($0.3942) following the removal of subsidies last year.

“The timing of Dangote’s gasoline production is critical, especially given NNPC’s current challenges in securing imported supply due to financial constraints,” noted Clementine Wallop, Director for Sub-Saharan Africa at Horizon Engage, a political risk consultancy. She emphasized the need for NNPC to demonstrate transparency in its financial dealings as it begins to purchase from Dangote.

Despite being Africa’s leading oil producer, Nigeria imports almost all of its fuel due to years of neglect and underinvestment in its national refineries.

naija247news

#diesel  #naphtha  #gasoline  #crude  #crudeoil  #refining  #Refinery #jetfuel  #kerosene  #africa  #nigeria 

Sunset on a refinery

"Oil refineries across Europe will be forced to shut as the West abandons fossil fuels in the race to net zero," – said BP CEO Murray Okincloss, commenting on the company's financial statements, The Telegraph reports.

He believes that older and smaller refineries in the EU will close or switch to biofuels as conventional oil refining becomes unprofitable due to a combination of soaring fuel taxes and falling demand from drivers switching to electric cars.

“So I would expect the least efficient refineries, which are the smallest, oldest around the world, to gradually close down as the world transitions over the next 10 to 30 years.”

BP has four refineries in Europe, three of which are already planned for conversion to produce biofuels including sustainable aviation fuel (SAF). Grangemouth Refinery in Scotland, which is owned by Ineos, employs 500 people but is scheduled to shut early next year.

Data from Fuels Europe shows that refining capacity in the EU, as well as in the UK, Switzerland and Norway, is already declining. Capacity has fallen from 781 million tonnes a year in 2009 to 677 million tonnes now. This means that Europe accounts for about 15% of the world's refining capacity - well behind the US with 21% or  APAC with 36%.

Contradicting the statements reported above, BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression, according to Oilprice.

“This is aligned with BP’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said.

In June, BP declared to continue investing in deepwater fields in the Gulf of Mexico, and made a statement saying it was "scaling back" new biofuels projects.

The company has tempered its enthusiasm for its low-carbon program, and with it cut its climate commitments, adapting to an operating model that assumes continued high oil demand into the 2040s and beyond.

“Labour policy says oil and gas production in the North Sea will be with us for decades to come ... They launched a consultation process with the sector last night and we’ll be engaged deeply with them on that,” Okincloss said.

The oil giant's net profit for the second quarter of this year was higher than expected ($2.76 billion). The company's low-carbon and natural gas division, on the other hand, performed poorly, posting a loss of $0.1 billion.

#refining  #refinery  #crudeoil  #naturalgas  #oilandgas  #europe  #saf  #sustainableaviationfuel  #renewablediesel  #biofuels 

The description of the crude oil dehydration and desalting process has been updated.

#dehydration  #desalting  #crudeoil 

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 

Mass Balance of SOCAR Türkiye Refinery initialized with crude oil imports.

#crudeoil #massbalance  #Refinery #refining 

Based on available information, naphtha production and cracking product volumes are not matching. 
· 540,000 BO/day / 25,000,000 tonnes/year of crude oil import (matching based on light crude oil API)
· Three CDU each with 160,000 BO/day capacity (8,333,333 tonnes/year)
· 3,750,000 tonnes of naphtha capacity as cracking feedstock (matching, corresponding to 15 weight-% of Crude Oil). 
· Three crackers with cumulative 2,930,000 tonnes capacity for ethylene production: NOT MATCHING, as three times as much naphtha would be needed compared with ethylene, or 8,800,000 tonnes, corresponding to a deficit of 5 million tonnes of naphtha. 

#naphtha #ethylene  #crackingyield  #adu  #crudedistillation 

Vienna, Austria, 13 June 2024--In a recent article published by Energy Aspects, HE Haitham Al Ghais, OPEC Secretary General, emphasized that oil is set to play a key role in human lives for years and decades to come. “Peak oil demand is not on the horizon,” he stated.

"The peak oil demand narrative was repeated when the IEA published its Oil 2024 report in which it once again stated that oil demand would peak before 2030. It is a dangerous commentary, especially for consumers, and will only lead to energy volatility on a potentially unprecedented scale".

"To the contrary, OPEC revise its oil demand expectations upwards to 116 mb/d by 2045, and there is potential for this level to be even higher. We do not foresee a peak in oil demand in our long-term forecast."

This is eerily aligned with the forecast ppPLUS has repeatedly issued for several years as summarized in this most recent publication.

Source: OPEC

@opec #crudeoil  #peakoil  #oildemand 

Al Zour refinery in 🇰🇼 Kuwait was officially commissionned on 29^th May 2024.

#crudeoil  #lng  #refining  #Refinery

SPRING and IRVING, Texas – Exxon Mobil Corporation (NYSE: XOM) and Pioneer Natural Resources (NYSE: PXD) jointly announced a definitive agreement for ExxonMobil to acquire Pioneer. The merger is an all-stock transaction valued at $59.5 billion, or $253 per share, based on ExxonMobil’s closing price on October 5, 2023. Under the terms of the agreement, Pioneer shareholders will receive 2.3234 shares of ExxonMobil for each Pioneer share at closing. The implied total enterprise value of the transaction, including net debt, is approximately $64.5 billion.

The merger combines Pioneer’s more than 850,000 net acres in the Midland Basin with ExxonMobil’s 570,000 net acres in the Delaware and Midland Basins, creating the industry’s leading high-quality undeveloped U.S. unconventional inventory position. Together, the companies will have an estimated 16 billion barrels of oil equivalent resource in the Permian. At close, ExxonMobil’s Permian production volume would more than double to 1.3 million barrels of oil equivalent per day (MOEBD), based on 2023 volumes, and is expected to increase to approximately 2 MOEBD in 2027. ExxonMobil believes the transaction represents an opportunity for even greater U.S. energy security by bringing the best technologies, operational excellence and financial capability to an important source of domestic supply, benefitting the American economy and its consumers.

• Transforms ExxonMobil’s upstream portfolio, more than doubling the company’s Permian footprint and creating an industry-leading, high-quality, high-return undeveloped U.S. unconventional inventory position

• Expect to generate double-digit returns by recovering more resource, more efficiently and with a lower environmental impact

• Combines Pioneer’s sizeable acreage, entrepreneurial culture and deep industry expertise with ExxonMobil’s balance-sheet strength, advanced technologies and industry-leading project development capabilities

• Plans to accelerate Pioneer’s net zero Permian ambition from 2050 to 2035

• Strengthens U.S. economy and energy security

#permian  #pioneer  #crudeoil 

Source: ExxonMobil News releases, 11^th Oct 2023

Aramco, one of the world’s leading integrated energy and chemicals companies, has entered into discussions with Hengli Group Co., Ltd. (“Hengli Group”) regarding the potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd. (“Hengli Petrochemical”), subject to due diligence and required regulatory clearances.

The companies signed a Memorandum of Understanding (MoU) regarding the proposed transaction, which aligns with Aramco’s strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements.

Hengli Petrochemical, a controlled subsidiary of Hengli Group, owns and operates a 400,000 barrel per day refinery and integrated chemicals complex in Liaoning Province, China, and several plants and production facilities in Jiangsu and Guangdong Provinces.

Source: SAUDI ARAMCO NEWS | DHAHRAN, SAUDI ARABIA | APRIL 22, 2024

#refining  #crudeoil  #petrochemicals  #China

Last year, global demand for loans in the oil sector decreased by 6%, but this doesn't imply a halt in investment. The debt-to-profit ratio of companies has shifted in favor of profits since 2020. Average oil and gas companies now generate more revenue than needed to cover capital expenditures through the end of the decade, potentially eliminating the need for loans. Major industry players like Chevron Corp. and Saudi Aramco are examples of this trend.

#crudeoil  #oilcompanies  #fossilfuels  #oil &gas
This financial autonomy also impacts environmental efforts. Previously, bank loans could be leveraged to pressure companies into reducing extraction and emissions. Now, without such financial dependencies, companies have more control over their production volumes, which could delay global goals aimed at curbing the growth of hydrocarbon energy.

Source: Tim Quinson, 29^th Apr 2024, Bloomberg

🇬🇾

ExxonMobil has finalized its decision to proceed with the development of the Whiptail oil field within the Stabroek block located offshore Guyana. The total financial commitment to this development project stands at $12.7 billion. Anticipated production from the field by the end of 2027 is estimated to reach approximately 250 thousand barrels per day (bpd). This significant addition will elevate Guyana's total oil production to 1.3 million bpd, placing the nation among the ranks of the world's leading oil producers. Exxon intends to drill a total of 48 wells within the field as part of its development strategy. Having been active in Guyana for five years, ExxonMobil has contributed over $4.2 billion to the country's economy during this period. Additionally, more than 6 thousand local residents are employed in Exxon's operations, with a production volume exceeding 600 thousand bpd. ExxonMobil Guyana Limited, a subsidiary of Exxon, serves as the operator of the Stabroek block and holds a 45% stake in the project. Hess Guyana Exploration Ltd. holds 30%, while CNOOC Petroleum Guyana Limited holds the remaining 25% ownership share.

#guyana #crudeoil 

BREAKING NEWS: In a move that's sent shockwaves through the global energy market, anonymous White House insiders have revealed a stunning deal - the US government has acquired a controlling stake in Saudi Aramco, the world's largest oil producer!

This unprecedented move comes amidst growing concerns about America's dwindling strategic oil reserves. With whispers of a "reconstitution emergency" swirling within the Department of Energy, the Biden administration felt compelled to take drastic action.

"This wasn't a decision we took lightly," a high-level source confided. "But ensuring the economic health of the nation sometimes requires bold steps."

Wall Street Erupts in Frenzy: News of the Aramco acquisition has sent the stock market into a tizzy. Oil giants across the board are experiencing a rollercoaster ride, with some analysts predicting a significant restructuring of the global energy landscape.

Saudi Crown Prince MBS Reacts: While official confirmation from the Saudi government is still pending, reports suggest Crown Prince Mohammed bin Salman (MBS) is "exploring all options" with his advisors. The long-standing strategic alliance between the US and Saudi Arabia is sure to face a period of intense negotiation.

Geopolitical Implications Abound: The ramifications of this deal extend far beyond the oil markets. Experts warn of potential friction within OPEC, while others speculate on the potential for a new era of US-Saudi energy cooperation.

Biden: "A Necessary Evil to Secure Our Future" President Biden, in a nationally televised address, is expected to address the nation later today. Early reports suggest he will frame the Aramco acquisition as a "necessary evil" to safeguard the US economy and its future energy independence.

#crudeoil  #strategicoilreserves