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From ebullated bed reactor fundamentals to integrated process variants with hydrotreating and coking - this comprehensive technical analysis covers the complete technology platform.

#lummustechnology #lummus #chevron #chevronlummusglobal #clg #resid #residue #vaccumresid #hydrotreating #hydrocracking #cleanfuels #diesel #gasoline




PRefChem Refinery Complex. Credit:
prefchem.com

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

Operational Challenges and Market Impact

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

Strategic Context

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

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

Market Positioning

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

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

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

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













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



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, 28th 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






The European Parliament and EU countries reached an agreement last year to implement an EU CO2 levy covering gasoline, diesel, natural gas, heating oil, and other hydrocarbons. With current CO2 emission prices at €45 per ton, this agreement is poised to result in an approximate surcharge of 10 cents per liter of gasoline or diesel fuel. However, experts foresee a significant escalation in emission prices to €100-300 per ton of CO2.

Yasmin Fahimi, president of the Confederation of German Trade Unions (DGB), has expressed deep concerns regarding the extension of emissions trading to encompass all hydrocarbons, citing potential irreparable impacts on industrial competitiveness.

Fahimi emphasized the need for reconsideration, stating, "Such decisions are not irrevocable. It is urgent to discuss once more the ramifications for economic and industrial policy stemming from this CO2 emissions pathway."

Notably, concerns about the repercussions of increased gas station prices have also been acknowledged within the Green Party. The removal of diesel subsidies for agriculture could exacerbate their vulnerability to financial strain, potentially leading to immediate bankruptcies.

#diesel #gasoline #carboncredits #carbonemissions #germany