Thursday, 31 October 2024

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.

Monday, 30 September 2024

Yulong Island Refining and Chemical Integration Project, Shandong's Biggest Single Investment Project, Officially Launched

In the morning of September 25,the second batch of equipment for Phase I of the Yulong Island Refining and Chemical Integration Project commenced commissioning, marking a significant milestone in the structural adjustment, transformation, and upgrading of Shandong’s petrochemical industry.

As a major national productivity layout project and the industrial initiative with the biggest investment in Shandong Province in recent years, the Yulong Island Refining and Chemical Integration Project is a key component of China's"14th Five-Year Plan". Phase I includes two production lines with capacities of 20 million t/a oil refining, three million t/a ethylene, and three million t/a mixed xylenes. Launched in October 2020 with a total investment of RMB 116.8 billion, the project consolidates 26.96 million tons of decentralized refining capacity in Shandong, reducing coal consumption by 750,000 tons and carbon dioxide emissions by four to five million tons annually. This project builds a complete industrial chain of oil refining and chemical industries to achieve whole-process high-value utilization of crude oil, with the objective of establishing a"domestically leading,world-class",high-end, green, and smart petrochemical industry base.

Since the project commenced in October 2020,Nanshan Group has shouldered the responsibility of project implementation, under the directives and deployments of the CPC Shandong Provincial Committee,the Shandong Provincial People's Government,and the CPC Yantai Municipal Committee, and Yantai Municipal People's Government. The company has actively fulfilled the responsibilities and obligations of a major shareholder,built consensus, acted in unison, strictly toed the red line of "work safety" and the bottom line of "ecological and environmental protection ",and adhered to the principles of" quality first, efficiency foremost, and standardized management", achieving significant progress in Phase I.

As a landmark project for the province's replacement of old growth drivers with new ones, the Yulong Island Refining and Chemical Integration Project has many characteristics and advantages, including reduced capacity replacement, flexible process design, independent equipment innovation, the production of high-end and low-carbon products, and the implementation of a mixed ownership system. The project serves as a shining role model for the transformation and upgrading of the petrochemical industry. To date, Phase I has seen an investment of RMB 115.95 billion, with an expected annual sales revenue of RMB 116.6 billion upon designed capacity.

Moving forward,the Yulong Island Refining and Chemical Integration Project will adhere to the highest standards in planning,positioning,construction quality,technical products,advancement speed,support,and guarantees.The project will set high benchmarks, implement scientific planning,develop in a staggered manner with the seven major domestic petrochemical industrial bases,aspire to international prominence,enhance investment attraction in the industrial chain,develop downstream products such as new chemical materials, and establish a "domestically leading, world-class", high-end, green,and smart petrochemical industry base.

Wednesday, 14 August 2024

Gunvor acquires TotalEnergies shares in Total Parco in Pakistan

Gunvor Group, a leading global commodities trading company, has signed an agreement to purchase TotalEnergies’ 50% stake in Total PARCO Pakistan Limited (TPPL).

TPPL is a 50/50 joint venture between TotalEnergies Marketing and Services and Pak-Arab Refinery Limited (PARCO) in Pakistan with a retail network of more than 800 service stations, fuel logistics, and lubricants activities.

The new entity will continue its retail business under the existing “Total Parco” brand, and its lubricants business under the “Total” brand in Pakistan, continuing to serve its customers.

The acquisition remains subject to authorization by the relevant authorities and related agreements.

Tuesday, 30 April 2024

Renewable Fuels Project in Canada Begins Production



A Fluor Corporation (NYSE: FLR) project reached a major milestone recently with the production startup of the Braya Renewable Fuels facility in Come by Chance, Newfoundland and Labrador, Canada. Fluor provided engineering and procurement (EP) services to convert the idled petroleum refinery into a modern facility that produces renewable diesel fuel from soybean oil and other low carbon intensity feedstocks.




“The transformation of this facility into a sustainable asset improves Canada’s global climate impact by supporting the decarbonization of hard-to-abate sectors such as heavy-duty transportation and aviation,” said Jason Kraynek, President of Fluor’s Production & Fuels business. “Fluor was proud to be part of this exciting renewable fuels project and I commend the Braya team for its safe startup.”

In addition to EP services, Fluor provided construction support services through startup.

Friday, 12 April 2024

Rhône Energies has entered into exclusive negotiations for the acquisition of the Esso Fos-sur-Mer refinery in southern France

Rhône Energies, a consortium of Entara LLC (“Entara”) and Trafigura Pte Ltd (“Trafigura”), has entered into exclusive negotiations to acquire the Fos-sur-Mer refinery and the Toulouse and Villette de Vienne terminals from Esso. The proposed acquisition is subject to a formal information and consultation procedure with employee representative bodies. Its completion is subject to regulatory approvals and is expected by the end of 2024. The financial terms of the proposed transaction are confidential.

Rhône Energies was formed by Entara and Trafigura to combine the strengths of a proven refinery operator with a global market leader in energy and commodities. Entara was established by former executives of Crossbridge Energy who have a track record of managing and optimising refinery assets, including at the Fredericia refinery in Denmark. Entara will manage the Fos-sur-Mer asset, overseeing operations, maintenance, asset integrity, commercial, health, safety and environmental performance.

Trafigura is one of the world’s largest suppliers of energy and commodities, operating in over 150 countries and trading over 5.5 million barrels of oil and petroleum products every day. Trafigura has a 30-year history of working with refineries through direct investment, capacity utilization and supply and offtake.

“We would be delighted to acquire and assume stewardship of the Esso’s Fos-sur-Mer refinery operations and look forward to engaging with the operational management, employee representatives and government stakeholders over the coming weeks and months to confirm our commitment to the operation and our plans for the future,” said Entara’s CEO, Nicholas Myerson. “We are committed to upholding the operation’s high standards of environmental responsibility, safety, and operational excellence.”

“The Fos-sur-Mer refinery is an efficient, flexible, well-run operation strategically located on France’s Mediterranean coast,” said Ben Luckock, Global Head of Oil for Trafigura. “The refinery will continue to be an important contributor to energy security in the region and would benefit from Trafigura’s global trading and logistics network. Oil and petroleum products will continue to play an important role in supporting growing global energy demand during the transition currently underway to a low-carbon economy.”

Rhône Energies intends to maintain the current workforce with approximately 310 members of staff who will transfer to Rhône Energies on completion of the proposed transaction. The company would also aim to maintain a competitive compensation and benefits programme for the workforce as well as learning and development opportunities.

Under the terms of the proposed acquisition, Trafigura would enter into a minimum 10-year exclusive crude oil supply and product offtake agreement, including ownership of crude oil and product stocks in tank. These agreements would ensure the refinery has a secure supply of on-demand feedstock at competitive costs, and a reliable off-taker of refined products destined to the domestic market. Rhône Energies would agree to continue to supply Esso SAF in the region.

With this proposed acquisition, Rhône Energies plans to capitalize on the refinery’s existing skilled teams and strong manufacturing performance. The company aims to further improve margin capture, crude flexibility, process utilization and to maximize high value products, while investing in personnel and process safety.

Rhône Energies intends to invest in the sustainability of the site to reduce its carbon intensity footprint while also investing in growth projects enabling further co-processing of biogenic feedstocks to produce renewable fuels.

With a crude oil processing capacity of 140 thousand barrels per day, Fos-sur-Mer benefits from direct access to a major port, competitive operating costs and the ability to process a wide range of crude oil feedstocks.