Communicator

#shell #netherlands #chemicals #pernis #rotterdam

#gasification #syngas #airproducts #shell #sgp #syngascooled #bottomquench #dryfeed

Bukom Refinery | Business Today, May 2024

Aster Chemicals and Energy has swiftly become a transformative force in Singapore’s energy and chemicals sector, capitalizing on a historic wave of Western divestments from the city-state. The company’s landmark acquisition of Shell’s integrated refining and petrochemical assets on Bukom and Jurong Islands in 2025—one of the largest such transactions in the region’s history—signals a decisive shift in Singapore’s industrial landscape.

Strategic Expansion Amid Western Disengagement

Aster’s rise is directly linked to the broader strategic retreat of Western energy and chemical majors from Singapore, driven primarily by economic imperatives. Shell’s decision to sell its entire Energy and Chemicals Park—including the 237,000-barrel-per-day Bukom refinery and 1.1 million tonne-per-year naphtha cracker—was largely the result of persistent negative margins, regional oversupply, and the need to reallocate capital to more profitable ventures. Similarly, Chevron Phillips Chemical (CPChem) and its partners exited their Singapore HDPE joint venture (CPSC), selling the 400,000-tonne-per-year plant to Aster in 2025 as part of a broader portfolio optimization strategy. These divestments reflect a wider trend of Western companies withdrawing from mature Asian assets due to challenging market conditions, competitive pressures, and a focus on financial performance.

Building a Regional Powerhouse

Aster, backed by Indonesia’s Chandra Asri (80%) and global commodities giant Glencore (20%), has rapidly consolidated these assets into the Aster Energy and Chemicals Park. The company further expanded its portfolio by acquiring the remaining 50% stake in the Bukom Condensate Splitter Unit from Petrochemical Corporation of Singapore (Private) Limited (PCS), giving it full control over a key feedstock processing facility and boosting its Singapore refining capacity to over 300,000 barrels per day.

This integrated platform, spanning refining, petrochemicals, and advanced polymer production, positions Aster as a new regional leader—able to optimize supply chains, reduce reliance on imports, and support Southeast Asia’s growing demand for fuels and chemicals. The company’s strategy is also expected to deliver economic benefits to Indonesia through improved supply security and repatriation of profits.

A New Chapter for Singapore’s Industry

Aster’s bold moves underscore a pivotal moment for Singapore’s energy and chemicals hub. As Western majors pivot away from local manufacturing, Aster is leveraging these strategic exits to build a vertically integrated, regionally focused powerhouse. The company’s leadership has emphasized its commitment to operational excellence, workforce continuity, and innovation, ensuring Singapore remains a critical node in the global energy and chemicals value chain—even as the ownership and strategic direction shift decisively toward Asian and emerging market players.

#singapore #spc #asterchemicals #shell #chevronphillips #cpchem #exxonmobil #jurong #bukom

#aster #shell #bukom #singapore #condensate #splitter

#aster #singapore #petrochemicals #shell #jurong

#aster #singapore #refinery #shell #bukom

SRC refinery aerial view | Credit: SRC Facebook page, 23rd Dec 2022

Chevron's move to divest its 50% stake in the Singapore Refining Company (SRC) signals a pivotal strategic recalibration, driven by evolving pressures in Asia's refining landscape. This decision, confirmed in a June 19, 2025 report from Reuters, aligns with a broader industry trend where Western energy giants are streamlining portfolios amid challenging regional economics. The SRC refinery—a 290,000 bpd joint venture with PetroChina—confronts intensifying structural headwinds, including feedstock cost volatility, regional oversupply, and competition from China's integrated refining-petrochemical complexes. These factors, coupled with shrinking margins across Asian refineries, render Chevron's exit both a targeted portfolio optimization and a response to systemic market shifts.

SRC's operational context underscores systemic headwinds.

SRC’s operational context underscores the depth of structural challenges now facing independent refiners in Asia. While the Jurong Island-based SRC refinery is equipped with advanced units such as residue catalytic crackers and hydrocrackers, it must contend with the formidable scale and integration of China’s new mega-refineries. The economics of feedstock procurement have become increasingly unfavorable: Singapore is wholly reliant on imported crude, while Chinese refiners have gained a significant cost advantage by securing discounted Russian oil in the wake of shifting global trade flows. At the same time, China’s aggressive expansion in petrochemical capacity—evidenced by a 25% surge in ethylene output since 2023—has saturated regional markets with olefins, driving down margins for less-integrated players like SRC. These pressures mirror the earlier exit of CPChem—a Chevron group's subsidiary—from its Singapore HDPE joint venture, sold to Aster in 2024 amid similar margin erosion.

Market intelligence signals deeper regional strains.

Recent ppPLUS analyses (Communications #3754, #3812, #3854, , #3879, #3881 and #3885, ) highlight Asia's refining overcapacity, where utilization rates remain below 75% despite regional demand growth. China's export-oriented model exacerbates this; its chemical exports surged 18% year-on-year in Q1 2025, undercutting Singapore-based producers. Meanwhile, SRC's niche—producing ultra-low-sulfur diesel and high-octane gasoline—faces competition from China's integrated refining-chemical complexes, which achieve cost synergies unavailable to smaller players. Chevron's retreat thus exemplifies a strategic pivot away from assets vulnerable to state-subsidized competition.


SRC Refinery Assets | Market Intelligence by ppPLUS

Potential buyers face complex calculus.

PetroChina, as JV partner, holds first-right options but may resist full ownership given SRC's exposure to Chinese oversupply. Private equity firms could pursue carve-outs of SRC's infrastructure (e.g., cogeneration plants or VLCC-capable berths), though regulatory hurdles loom. Alternatively, regional players like Thailand's PTTEP may leverage SRC for feedstock diversification, albeit amid persistent margin uncertainties. The divestment process will test appetite for assets requiring capital-intensive decarbonization upgrades to remain competitive beyond 2030.

This move underscores a broader industry inflection point.

As Chevron joins ExxonMobil and Shell in scaling back Asian downstream exposure, the region's refining model increasingly favors integrated national champions over international operators. SRC's fate will signal whether niche capabilities can offset structural disadvantages against China's cost-advantaged giants.

#chevron #chevronphillips #exxonmobil #shell #src #singapore #refinery #refining #petrochina #pttep #china #thailand

Chevron Phillips Chemical's Singapore HDPE complex | Credit: Chevron Phillips Chemical Co.

Chevron Phillips Chemical (CPChem) has agreed to sell its entire stake in Chevron Phillips Singapore Chemicals (CPSC), a high-density polyethylene (HDPE) manufacturing joint venture located on Jurong Island, Singapore. The buyer, Aster Chemicals and Energy—a joint venture between Indonesia’s Chandra Asri and global commodities trader Glencore—will acquire CPChem’s 50% interest, alongside stakes held by Singapore’s EDB Investments and Japan’s Sumitomo Chemical. The financial details of the transaction have not been disclosed, and the deal is subject to customary closing conditions.

CPSC’s facility, with an annual capacity of 400,000 metric tons of HDPE, is a significant supplier to regional markets, sourcing ethylene feedstock from local partners. The plant employs around 150 people, who are expected to be offered positions with Aster to support a smooth transition and maintain operational continuity.

This divestment aligns with CPChem’s broader strategy to streamline its global asset base and focus on more integrated, higher-margin operations. Despite the sale, CPChem will maintain its Asia-Pacific headquarters in Singapore, ensuring continued engagement with the region’s markets.

For Aster, this acquisition expands its manufacturing presence in Southeast Asia, complementing its recent purchase of Shell’s refinery and petrochemical assets in Singapore. The addition of CPSC’s HDPE plant is expected to strengthen Aster’s product portfolio and support its regional growth ambitions.

Overall, the transaction reflects ongoing changes in the global petrochemical sector, with companies seeking greater integration and efficiency. For Singapore, it highlights the continued attractiveness of Jurong Island as a site for advanced chemical manufacturing.

#capcg #aster #cpchem #shell #singapore #refinery #petrochemicals #acquisition #martech #hdpe #cpchem #glencore

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

Screenshot showing Indian crude oil refineries from the Portfolio Planning PLUS Refinery Module.

Saudi Aramco, the world’s top oil company, is close to sealing a major deal in India that could change the energy landscape for both countries. The company is in advanced talks to buy a 20% stake in two brand-new oil refineries being planned by Indian state-run firms ONGC and BPCL. These massive projects, set for Gurajat and Andhra Pradesh, will each process 12 million tonnes of crude oil every year. The total investment for both refineries is expected to reach around $24 billion, with Aramco’s share estimated at up to $5 billion.

This isn’t just about buying into a couple of refineries. For Aramco, it’s a smart way to make sure its oil has a steady home in India, which is one of the world’s fastest-growing energy markets. As global oil demand slows in other regions, India’s appetite for fuel is still rising. By owning a slice of these refineries, Aramco can lock in sales for its crude oil for years to come. For India, the deal is a win in several ways. It brings in foreign investment, creates new jobs, and helps guarantee a reliable supply of oil. The partnership also means India can tap into Aramco’s technology and expertise, which could help the country strengthen its position as a major refining and petrochemical hub.

This potential partnership is no coincidence as it follows a high-level meeting in April between Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman. The two leaders discussed ways to deepen their countries’ energy ties, and this deal is a clear sign of that growing relationship. Aramco’s interest in India comes after some earlier attempts to invest in the country’s refining sector didn’t work out. But this time, the talks are progressing well, and both sides seem eager to make it happen.

Aramco isn’t the only Gulf oil giant looking to strengthen its ties with India. The United Arab Emirates’ ADNOC recently signed a long-term deal to supply liquefied natural gas (LNG) to Indian Oil, and QatarEnergy is investing heavily in India while also signing a major supply agreement with Shell. Oman’s OQ is also moving forward with a big petrochemical project. All of this shows how important India has become for Gulf energy companies as they look for new markets.

If the deal goes through, Aramco will become a key player in India’s energy sector. It’s a move that could help shape how oil flows into and out of Asia for years to come. For India, it means more investment, jobs, and energy security. For Aramco, it’s a way to stay ahead in a changing world where energy demand is shifting. In short, this isn’t just a business deal-it’s a sign of how the energy world is changing, with India and the Gulf states building stronger ties and planning for the future together.

#aramco #saudiarabia #india #ongc #bpcl #refining #refinery #crudeoil #oilrefining #adnoc #qatarenergy #shell #oq

CSPCL Huizhou Petrochemical Plant / Shell

Beijing, China, February 22, 2016 -- CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd., has officially announced the third phase of expansion for its petrochemical complex in Daya Bay, Huizhou, Guangdong Province. This ambitious project, valued at $6.7 billion, represents a significant step forward in meeting China's growing demand for petrochemical products.

The expansion will include the construction of a third ethane cracker with a planned capacity of 1.6 million tonnes per year (tpy) of ethylene, boosting the complex's total ethylene production capacity to 3.8 million tpy. Ethylene serves as a key building block for plastics and other essential chemical products. Alongside the cracker, the project will add 16 downstream derivatives units producing specialty chemicals including linear alpha olefins, Bisphenol-A (240,000 topy), polycarbonates (260,000 tpy), and diphenyl carbonate (220,000 tpy).

Linear alpha olefins are vital for manufacturing detergent alcohol and synthetic lubricants, while polycarbonates are used in impact-resistant plastics that can replace carbon-intensive steel. Carbonate solvents play a critical role in lithium-ion batteries, supporting the electric vehicle sector and energy storage solutions.

The new facilities aim to meet domestic demand across various industries, including agriculture, construction, healthcare, and consumer goods.

Scheduled for completion by 2028, the project incorporates innovative technologies to reduce environmental impact. CSPC plans to electrify compressor units and increase renewable energy usage to achieve a 20% reduction in carbon dioxide emissions, aligning with China's carbon neutrality goals.

#sustainabilitygoals #steamcracker #ethanecracker #ethylene #cnooc #cspc #shell #china #huizhou #guangdong #sustainability #linearalphaolefins #lao #polycarbonate #electrification #renewableenergy #carbonemissions #neutralitygoals

Shell Geismer Chemical Plant (credit: Shell)

Shell, the global energy giant, is reportedly considering a significant restructuring of its chemical business, potentially divesting operations in the United States and Europe while simultaneously expanding its joint venture presence in China.

According to industry sources, Shell is in the early stages of evaluating strategic options for its chemical assets in Western markets. The potential sale would mark a major shift in the company's portfolio strategy, moving away from regions facing higher energy costs and stricter regulatory environments.

In the United States, Shell operates several major chemical manufacturing facilities, including its massive petrochemical complex in Deer Park, TX, and chemical complexes in Geismar and Norco, LA., and Monaca, PA., where it says it stabilized production in 2024.

These facilities produce ethylene, propylene, and various specialty chemicals that serve as building blocks for consumer goods ranging from automotive parts to household products. The company also maintains research and development centers in Houston that have been instrumental in developing new chemical technologies and processes.

The company's Pennsylvania petrochemical complex in Beaver County, known as the Shell Polymers Monaca plant, could be among the assets on the chopping block. This $6 billion facility, which began operations in November 2022 after years of construction, is one of the largest of its kind in North America. The plant converts ethane from the Marcellus and Utica shale formations into polyethylene pellets used in plastics manufacturing. If sold, it would represent a stunning reversal for a project that was heavily subsidized with an estimated $1.65 billion in state tax credits and had been heralded as a major economic development win for the region.

Shell's European chemical operations are equally substantial, with major production sites in the Netherlands, Germany, and the UK. The Moerdijk facility in the Netherlands stands as one of Shell's largest European chemical plants, producing base chemicals and intermediates. In Germany, the Rheinland complex integrates refining and chemical production. Shell also operates chemical plants in Rotterdam, NL.

While scaling back in traditional markets, Shell appears to be doubling down on its Chinese joint venture with CNOOC, known as CNOOC and Shell Petrochemicals Company Limited (CSPC). The company is reportedly planning to expand this partnership, reflecting Shell's growing focus on Asian markets where demand for petrochemical products continues to rise steadily. The existing CSPC complex in Huizhou, Guangdong Province, is one of China's largest petrochemical facilities and has been operating since 2006.

"This dual approach of divesting in mature markets while expanding in growth regions aligns with broader industry trends," said an industry analyst familiar with the matter. "Many Western chemical producers are reevaluating their global footprints in response to shifting economic realities."

Shell's chemical division manufactures a range of products including ethylene, propylene, and other base chemicals used in everything from packaging to automotive components. The business has faced challenges in recent years due to volatile feedstock prices, increasing competition from Middle Eastern and Asian producers, and growing pressure to reduce environmental impacts.

The company has not officially confirmed these plans, with a spokesperson stating only that "Shell regularly reviews its portfolio of assets to ensure alignment with our strategy." If Shell proceeds with these changes, it would join several other major chemical companies that have restructured their operations in recent years to focus on specific regions or product segments where they see the greatest competitive advantage.

Industry observers note that any divestment would likely attract interest from private equity firms or chemical companies looking to expand their presence in established markets. Meanwhile, the expansion in China underscores the continued importance of the region as a growth driver for the global chemical industry.

The timeline for any potential sale remains unclear, though sources suggest Shell may begin formal processes within the next several quarters if internal reviews confirm this direction.

#shell #chemicals #divestment #westernoperations #chemicalplants #china

#shell #geismar #chemicals #chemicalplant

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

#polyethylene #polypropylene #ethyleneglycol #hpeo #meg #hdpe #lldpe #pp #ineos #lupotech #spheripol #spherizone #univation #unipolpe #master #lyondellbasell #shell #cnooc #china #cspc

CNOOC Shell Huizhou Petrochemical Complex in Daha Bay, Huizhou, China

January 15, 2015 | BEIJING | Shell China

CNOOC Shell Petrochemicals Limited (CNOOC Shell), a joint venture between Shell Nanhai Private Limited and CNOOC Petrochemical Investment Co., Ltd., has made the final investment decision to expand its petrochemical complex at Daya Bay, Huizhou, southern China.

The project will include the construction of a third ethylene cracker with a planned annual capacity of 1.6 million tons, a key component in the production of plastics, as well as a series of downstream derivative units, including linear alpha olefins.

The investment will also build a new facility for the production of high-performance specialty chemicals such as polycarbonates and carbonate solvents that are essential to everyday life.

Linear alpha olefins can be used to produce detergent alcohols and synthetic lubricant base stocks. Polycarbonates can be used to make impact-resistant plastics, replacing carbon-intensive steel, while carbonate solvents are used in lithium batteries, which are crucial for the electric vehicle sector and energy storage.

Designed primarily to meet China’s domestic demand, the new facility will produce a wide range of chemicals used in the agriculture, industry, construction, healthcare and consumer goods sectors.

The investment will enhance CNOOC Shell’s competitiveness by expanding its product value chain, promoting its further integration with existing chemical plants, and promoting its development of stronger innovation capabilities to meet the rapidly growing customer needs in the Chinese market.

"For more than two decades, CNOOC Shell has been providing high-quality products to the Chinese market and has become one of the largest Sino-foreign petrochemical joint ventures in China," said Huibert Vigeveno, Director of Downstream and Renewables Business of Shell Group.

“This new investment is a key enabler for CNOOC Shell’s strategic transformation towards higher-end and differentiated chemicals. It is consistent with Shell Chemicals & Refining’s strategy of pursuing targeted business growth in strong regions. It is also a testament to our strong partnership with CNOOC.”

The expansion is expected to be completed in 2028.


#olefins #ethylene #propylene #butenes #steamcracking #olefinplant #linearalphaolefins #lao #polycarbonate #shell #cnooc #jointventure #china #refining

Shell Nanhai description has been updated.


#shell #nanhai #china #cnoocshell #cnooc

#shell #omega #meg #ethyleneglycol

The description of the Shell EO Direct Hydrolysis Process has been updated.

#ethyleneoxide #ethyleneglycol #meg #directhydrolysis #shell

#shell #eo #ethyleneoxide #ethyleneoxidation

After halting work on biofuel plant in Rotterdam, 🇳🇱 The Netherlands, and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned 🇸🇪 Swedish power utility company Vattenfall.

“Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel project while Vattenfall continues the search for new partners,” said Vattenfall in a statement.

The joint project, with the planned capex of €780m ($845m), was launched in 2021 with initial plans to produce 82,000 tonnes of e-SAF and 9,000 tonnes of renewable diesel per annum. The project envisaged the use of hydrogen from 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol as feedstocks at the site.

It was due to begin operations in March of 2027.

On the other hand, the company said that it will also not avail financial support via the EU Innovation Fund, considering it is infeasible for the project to succeed within the framework of that agreement and aiming to free up funds for others to use in their ambitions to decarbonise.

Vattenfall-Shell e-SAF project was awarded €80.2mn ($87mn) grant in January 2023.

#saf #hefa #hefa -spk #aviationfuel #renewablediesel #sustainableaviationfuel #shell #vattenfall #electrolysis #hydrogen #greenhydrogen #carboncapture #ccu #ethanol #bioethanol

Source: Fayaz Hussain, 8^th July 2024, SAF Investor

Shell announced that it will book an impairment charge of as much as $1.0bn on account of pausing the construction of Rotterdam biofuel plant as well as an additional $0.8bn from divestment of its chemical plant in 🇸🇬 Singapore, the company announced in its second quarter update note.

“Non-cash post tax impairments of $1.5-$2bn are expected, and mainly include the Singapore Chemicals & Products assets ($0.6-$0.8bn) as well as Rotterdam's HEFA ($0.6-$1.0bn), which is reported in the marketing segment,” the company said in a statement.

Earlier this week, Shell announced that it is pausing work on the development of Rotterdam biofuel plant in 🇳🇱 The Netherlands owing to weak market conditions. The site was planned to have a production capacity of 820,000 tonnes a year to produce SAF/HVO using waste feedstocks.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, renewable and energy solutions director. Shell.

“We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonise. And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”

To note, according to Shell’s 2023 annual filing the company had revised the capex requirement for the conversion of Rotterdam site to $2.1bn from $0.58bn in 2022 driven by business acquisition and construction.

Source: Fayaz Hussain, 5^th July 2024, SAF Investor

#shell #hefa #hvo #biofuel #aviationfuel #SAF#SAF

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, is to temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in Pernis, 🇳🇱 the Netherlands, to address project delivery and ensure future competitiveness given current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimise project sequencing.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

Shell took a final investment decision for the planned biofuels facility in September 2021. The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

Additional information regarding project status and timelines will be communicated in future updates.

Follow ppPLUS news

#biofuel #saf #sustainableaviationfuel #renewablediesel #biorefinery #shell

An aerial view of the Port of Sines. Photo: Port of Sines

H2Sines.Rdam, a proposed 400MW green hydrogen project in Portugal, aiming at shipping liquid hydrogen from Portugal to the Netherlands, has been cancelled despite being in line for a multi-million-euro grant from the E.U. Innovation Fund.

The cancellation is justified by a lack of market and clear regulations for the project. An assessment by Shell concluded that the project was no economically viable. One main deterrent is the lack of ships with sufficient liquid hydrogen carrying capacity.

The project partners Engie, Shell, storage tank company Vopak and shipping firm Anthony Veder decided to terminate the project in October 2023.

Source: Hydrogeninsights, 5^th Apr 2024

#shell #hydrogen #liquidhydrogen #greenhydrogen

Shell has declared the cessation of operations for all seven of its hydrogen refueling stations for passenger cars in California, effective February 6th. Citing "hydrogen supply issues and other external market factors," the company conveyed its decision through a statement on the Hydrogen Fuel Cell Partnership website. Despite these closures, Shell affirms its commitment to operating truck refueling stations.

Following the shutdown of Shell's stations, the count of operational open retail stations for passenger cars in California is expected to dwindle to 61, according to the California Energy Commission's latest data.

This announcement marks the first station closures of 2024, following a series of similar declarations throughout the preceding year. Notably, in October 2023, True Zero, California's largest hydrogen supplier, announced the closure of 10 stations. Furthermore, in November and December of the same year, Shell, Iwatani, and Messer shuttered several stations, citing supply constraints.

#refueling #shell

Africa Oil, a prominent oil and gas company, is set to enhance its footprint by acquiring a block in the Orange Basin, marking a strategic move to bolster its presence. Covering an expansive area exceeding 17,000 square kilometers, the block boasts depths ranging from 500 meters to 2.5 kilometers, with an estimated volume of 4 billion barrels of oil equivalent (boe). Notably, the location places the block in close proximity to TotalEnergies and Shell fields.

#shell #totalenergies #shell

Scheduled to commence in the first half of 2024, the drilling operation aims to tap into the substantial energy reserves within the Orange Basin. Additionally, there is speculation that TotalEnergies may express interest in acquiring the block or securing a stake in the project, further shaping the dynamic landscape of this strategic endeavor.