QatarEnergy enters 20-year naphtha supply agreement with Shell

QatarEnergy has announced entering into a long-term naphtha supply agreement with Singapore-based Shell International Eastern Trading Company (Shell).
The 20-year agreement stipulates the supply of up to 18 million tons of naphtha to be delivered to Shell starting in April 2025.

In remarks on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy said: “We are delighted to sign QatarEnergy’s first 20-year naphtha sales agreement, the largest and longest to date. This is our second such agreement with Shell since 2019 and builds on our strategy of stronger relations with established end-users and partners.”

His Excellency Minister Al-Kaabi added: “Today’s signing further strengthens QatarEnergy’s relationship with Shell, which is not only a reliable naphtha off-taker but also a major counterpart and strategic partner. We look forward to building on our longstanding relationship with Shell and achieving greater mutual successes along the way.”

On his part, Mr. Wael Sawan, the CEO of Shell, said, “We are honored to enter into this long-term agreement with our esteemed partner, QatarEnergy. This deal will support Shell as we deliver more value for our customers worldwide. Today’s signing marks another significant milestone in our long-established partnership.”

QatarEnergy and Shell have a long-standing strategic partnership through several shared investments in the energy industry in Qatar and globally, including QatarEnergy LNG projects, the Pearl GTL Plant, and several other joint investments. 

The Naphtha will be supplied from the Ras Laffan Refinery

Phillips 66 provides notice of its plan to cease operations at Los Angeles-area refinery

Phillips 66 (NYSE: PSX) announced plans to cease operations at its Los Angeles-area refinery in the fourth quarter of 2025 and will work with the state of California to supply fuel markets and meet ongoing consumer demand.

“We understand this decision has an impact on our employees, contractors and the broader community,” said Mark Lashier, chairman and CEO of Phillips 66. “We will work to help and support them through this transition.” Approximately 600 employees and 300 contractors currently operate the Los Angeles-area refinery.

“With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” said Lashier. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”

As the California Energy Commission’s analysis has indicated, expanding supply capabilities will be critical. Phillips 66 supports these efforts and will work with California to maintain current levels and potentially increase supplies to meet consumer needs. The company will supply gasoline from sources inside and outside its refining network as well as renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay area.

Phillips 66 has engaged Catellus Development Corporation and Deca Companies, two leading real estate development firms, to evaluate the future use of the 650-acre sites in Wilmington, California, and Carson, California. The firms bring strong track records of solving complex redevelopment challenges and will collaborate with Phillips 66 in an advisory role to advance potential commercial development options that support the regional economy and other key stakeholder objectives.

“These sites offer an opportunity to create a transformational project that can support the environment, generate economic development, create jobs and improve the region’s critical infrastructure,” Lashier said.

Wood to support cleaner, increased fuel production in Vietnam

Wood, a global leader in consulting and engineering, has been awarded a Front-End Engineering Design (FEED) contract for cleaner, increased fuel production at the Dung Quat Oil Refinery in Quang Ngai Province, Central Vietnam.

Under this contract with Binh Son Refining and Petrochemical Joint Stock Company (BSR), Wood will upgrade and expand the state-owned refinery to increase throughput and ensure fuels comply with Euro V specifications. This will ultimately reduce emissions, meeting environmental regulations, enhancing Vietnam’s energy security and protecting air quality.

The expansion and upgrade of Dung Quat, due to be completed by 2028, is part of Vietnam’s long-term strategy to become fully self-sufficient in industrial and transport fuels, reduce fuel imports and ensure the country’s future security of supply.

Henry Ling, Senior Vice President, Projects at Wood, commented: “Wood has supported BSR for over 30 years and we are honoured to be trusted to deliver this important project. Once expansion is complete, this refinery will help bridge the gap between supply and demand for refined products in the domestic market.

“This award is testament to our proven track record of delivering complex refinery expansions and the capabilities of our global process specialists. Wood’s team in Thailand will deliver the FEED scope with specialist support from Singapore and Reading on technology selection, licensing, processing and advisory.