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

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

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

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

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

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

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

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

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

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

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

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


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

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


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

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


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

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

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


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

Figure 5 - GIE's Aggregate Gas Storage Inventory


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

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


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

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

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

By Portfolio Planning PLUS, 6^th May 2025

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

Shell’s Calculated Interest

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

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

ADNOC’s Earlier Overtures

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

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

BP’s Crossroads

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

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

Industry Implications

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

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

What’s Next?

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

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

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

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

BPCL Mumbai Refinery

Bharat Petroleum Corporation Limited (BPCL) has unveiled plans for an ambitious $11 billion integrated refinery and petrochemical complex in Andhra Pradesh, marking a significant expansion of India's refining capabilities. The announcement comes as India positions itself to become a major global refining hub amid Western companies' shift toward energy transition.

In a recent interview, BPCL Chairman G. Krishnakumar highlighted the strategic importance of the project, stating, "We feel there is a big opportunity in the refining sector. India's primary energy demand itself is also going to increase three to four times as its economy expands." This expansion aligns with India's vision to become a developed nation by 2047, targeting a GDP growth from $3.8 trillion to $30 trillion.

The proposed facility in Andhra Pradesh will include a 9-million-metric-tons-per-year refinery and an ethylene cracker, with an estimated cost between 900-950 billion rupees ($10.56-11.14 billion). The complex will feature a 35% petrochemical intensity, and pre-project work, including land acquisition, has already begun.

The strategic location in South India is particularly significant, as approximately 80% of the complex's output will serve the southern region's petrochemical developers and automobile manufacturers. This new facility will complement BPCL's existing operations, which currently include three refineries with a combined capacity of 35.3 million metric tons per year, plus fuel purchases from the 3-million-metric-ton Numaligarh refinery in the northeast.

Beyond this major project, BPCL is diversifying its portfolio with renewable energy initiatives. The company aims to achieve 10 gigawatts of clean energy projects by 2035 and has formed a joint venture with Sembcorp to expand its current 300-megawatt renewable energy portfolio.

Additionally, Krishnakumar expressed optimism about the $20 billion Mozambique LNG project, led by France's TotalEnergies, in which BPCL holds a stake alongside other Indian companies. Operations are expected to commence in the first quarter of 2025, with gas monetization projected for 2028-2029.

The investment in the Andhra Pradesh complex will help BPCL reduce its dependence on external fuel purchases, which currently account for one-fifth of the 50 million metric tons of refined fuels sold through its retail stations.

#bpcl  #india  #refinery  #lng  #totalenergies  #grassrootrefinery  #steamcracker  #renewableenergy 

China's largest petrochemical industrial base has been fully completed.

On December 19, the second phase of the capacity expansion and high-end new materials project of SINOPEC's Zhenhai Refining and Chemical (ZRCC), a key project of Zhejiang Province's "14th Five-Year Plan", was fully mechanically completed, setting a number of records in the construction of domestic projects of the same size, including the most extensive application of independent innovation, the highest degree of intelligence, and the best energy saving and consumption reduction. So far, the refining capacity of Zhenhai Refining and Chemical has been increased to 40 million tons, making the total refining capacity of the Zhejiang Ningbo Petrochemical Base where it is located exceed 50 million tons, making it the largest, most technologically advanced, and most competitive world-class petrochemical industrial base in the country.

The Ningbo Petrochemical Industrial Base in Zhejiang is located in the Yangtze River Delta region and is a consumption center for downstream petrochemical products. The total investment in the Phase II capacity expansion and high-end new materials project of Zhenhai Refining and Chemical is 41.6 billion yuan, covering 18 units such as atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation. The new production capacity is fully focused on chemical processes, which will give rise to a number of high-value-added characteristic industrial chains such as "refining-propane dehydrogenation-propylene-acrylonitrile-ABS/methionine, refining-liquefied gas-isononanol-environmentally friendly plasticizers", focusing on the development of high-end polyolefins, high-end new materials, high-end chemicals and other products, which can provide nearly 8 million tons of related products to the downstream each year, providing strong support for the integrity and competitiveness of the industrial chain of advantageous industries such as automobiles, home appliances, and textiles in the Yangtze River Delta region, and driving the trillion-level output value of the upstream and downstream industrial chains.

The project has set multiple records and established industry benchmarks. It successfully achieved domestic production of 10 core equipment pieces, including the world's largest vertical labyrinth compressor. The project extensively implemented smart technologies, achieving simultaneous delivery of digital and physical factories, and deployed a fully independent domestic industrial operating system. It utilized the independently developed "Petrochemical Smart Cloud" industrial internet ecosystem platform to effectively support operational decisions and management. Additionally, the project was the first to comprehensively implement energy-saving measures, reducing overall energy consumption by approximately 11.7%. During the construction period, the project accumulated over 90 million continuous safe work hours, with a 100% quality pass rate for unit projects, setting a new industry standard.

Source: Xinhuanet

#china #sinopec #zhenhai #ningbo #zrcc #zheijiang #pdh #adu #fcc #acrylonitrile #abs #lng #refining #petrochemicals

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 

A completed LNG heat exchanger manufactured at Air Products' Port Manatee facility is being loaded on a carrier at the Port of Manatee for shipment to the customer.

On 10 July 2024, Honeywell and Air Products jointly announced today that Honeywell has agreed to acquire Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction. This represents approximately 13x estimated 2024 EBITDA.

Air Products’ LNG Business has approximately 475 employees with headquarters in Allentown, Pennsylvania and a 390,000-square-foot manufacturing facility in Port Manatee, Florida, where all sizes of CWHEs are made.

Currently, Honeywell provides a pre-treatment solution serving LNG customers globally. Air Products’ complementary LNG process technology and equipment business consists of a comprehensive portfolio, including in-house design and manufacturing of coil-wound heat exchangers (CWHE) and related equipment. CWHEs provide the highest throughput of natural gas in a single exchanger with a small footprint and robust, reliable and safe operations both onshore and offshore.

Air Products continues to focus on its two-pillar strategy to grow and invest in its industrial gas business and drive the energy transition through clean hydrogen at scale.

#lng  #hydrogen  #greenhydrogen  #bluehydrogen  #liquifaction  #naturalgas  #airproducts  #honeywell 

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

#crudeoil  #lng  #refining  #Refinery