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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

Gas-fired power station has been added and a generic gas power plant technology created.

#gaspowerplant #gaspowerstation  #naturalgas  #steamcycle  #combinedcycle  #gasturbine 

Gas-fired power station has been added and a generic gas power plant technology created.

#gaspowerplant #gaspowerstation  #naturalgas  #steamcycle  #combinedcycle  #gasturbine 

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 

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 

Source: PipeChina | Time: 2024-12-02 | China-Russia East Line Natural Gas Pipeline Completed

On December 2, the China-Russia East Line Natural Gas Pipeline, the largest single-pipe gas transmission pipeline in  China, was fully connected, with an annual gas transmission capacity of 38 billion cubic meters, reaching the highest level. Natural gas is transported from Heihe, Heilongjiang, all the way south to the eastern part of China, and finally reaches Shanghai.

The China-Russia East Line is the third cross-border natural gas pipeline supplying gas to China after the Central Asia Pipeline and the China-Myanmar Pipeline. It is an important part of the Northeast Corridor among China's four major energy strategic channels.
 
The China-Russia East Line starts from Heihe, Heilongjiang Province in the north and ends in Shanghai, passing through 9 provinces, autonomous regions and municipalities. It is 5,111
kilometers long and is divided into three sections: the northern section (Heihe, Heilongjiang Province - Changling, Jilin Province), the middle section (Changling, Jilin Province - Yongqing, Hebei Province), and the southern section (Yongqing, Hebei Province - Shanghai).

Since the northern section was put into operation on December 2, 2019, the sections from Changling, Jilin to Taixing, Jiangsu have been put into operation one after another, and the natural gas transported has increased year by year from 5 billion cubic meters in the first year to more than 30 billion cubic meters in 2024. The Nantong to Luzhi section put into operation this time is the last section of the newly built pipeline in the southern section of the China-Russia East Line, which realizes the full connection of the China-Russia East Line, and the "north gas goes south" directly to Shanghai, and is connected with the West-East Gas Pipeline System to further cover Zhejiang, Anhui and other places.

With the full line connected, the annual gas transmission capacity of the China-Russia East Line reached 38 billion cubic meters, and it was interconnected with the Northeast Pipeline Network, the Shaanxi-Beijing Pipeline System, the West-East Gas Pipeline System, and multiple coastal liquefied natural gas receiving stations and gas storage facilities, effectively enhancing the natural gas supply capacity and emergency peak-shaving guarantee capabilities in China's eastern region. It is estimated that by 2025, the natural gas entering the Yangtze River Delta region through the China-Russia East Line will further increase by nearly 5 billion cubic meters, accounting for about one-fifth of the total gas transmission of the National Pipeline Network Group to the Yangtze River Delta region, effectively improving the regional natural gas supply capacity.

#pipechina  #naturalgas  #naturalgaspipelinegroup  #pipeline  #gaspipeline  #china  #russia  #gasnetwork  #chinarussiaeastline 

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

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 

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 

Petrochemicals producer and distributor Sidi Kerir Petrochemicals Co. (Sidpec) has announced the formation of a consortium to import US shale gas to 🇪🇬 Egypt. SIDPEC will hold a 25% stake in the $663-million consortium, set to be established later this year.

According to the announcement, 40% of the initiative's financing will come from shareholders within the consortium, while 60% will be secured through bank loans. The consortium includes The Egyptian Ethylene & Derivatives Company (ETHYDCO) (25%), construction contractor Gama Construction Company (25%), refining company Egyptian Petrochemicals Holding Company (ECHEM) (15%), and Egypt's state-owned Egyptian Natural Gas Company (GASCO) (10%).

This initiative responds to Egypt's dwindling natural gas supplies, with estimates indicating the country needs approximately $1.18 billion worth of natural gas imports.

#sidpec  #ethydco  #egypt  #naturalgas  #shalegas  #gasco  #echem 

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 

Prime Minister Narendra Modi announced that India is poised to invest approximately $67 billion in the development of its oil and gas industry in the upcoming years. Modi stated that the aim is to elevate the share of natural gas in the energy mix from 6% to 15%. He highlighted the necessity of this investment, estimating it will be executed over the next 5-6 years.




Modi further underscored India's significant position as the third-largest global consumer of energy, oil, and LPG, and the fourth-largest importer and processor of LNG. He projected that India's hydrocarbon demand would escalate from the current 19 million barrels of oil equivalent to 38 million boe by 2025.

Emphasizing India's achievements in renewable energy, Modi noted that the country ranks fourth globally in installed renewable energy capacity. He added that approximately 40% of the nation's installed capacity is derived from non-fossil fuel sources.

Considering this trajectory, Modi expressed confidence that, with appropriate strategies, India could potentially serve as a quality alternative to Europe in the coming years, thus hinting at significant geopolitical implications.

#naturalgas  #oilandgas  #investment  #enrgy  #india