Friday, 28 March 2025

Petrobras expands RNEST's processing capacity with completion of Train 1 works

Petróleo Brasileiro S.A. – Petrobras reports that it has completed the modernization work on Train 1 of the Abreu e Lima Refinery (RNEST), located in the city of Ipojuca, in the state of Pernambuco. The renovation and expansion process (Revamp) received investments of approximately R$ 93 million and will expand the unit's processing capacity from 115,000 to 130,000 barrels of oil per day. 

This important milestone represents the completion of the production capacity expansions planned for the current Refining Train in operation, seeking better flow of light products and greater processing capacity for pre-salt oil. 

Among all Brazilian refineries, RNEST has the highest rate of conversion of crude oil into diesel (70%). With the completion of RNEST's scope (SNOX, Revamp Train 1 and Train 2), the refinery will have the capacity to process 260,000 barrels of oil per day, with an increase in national production of S-10 diesel of around 13 million liters per day. 

In December 2024, RNEST started up the SNOX unit, the first of its kind in Brazilian refining, responsible for reducing sulphur oxide (SOx) and nitrogen oxide (NOx) emissions, producing sulphuric acid, a new product marketed by the refinery, which contributes to preserving the environment. The acid produced, among other uses, is an important input for the treatment and generation of drinking water. 

The contracting process is underway for the completion of works on Train 2, which will add 130,000 bpd of capacity to RNEST

Thursday, 13 March 2025

BP Europa SE to seek potential buyers for Ruhr Oel GmbH – BP Gelsenkirchen

BP Europa SE today announced its intention to market its Ruhr Oel GmbH – BP Gelsenkirchen operation in Germany for potential sale. Its assets include the bp refinery in Gelsenkirchen and DHC Solvent Chemie GmbH in Mülheim an der Ruhr.

The marketing process for a suitable buyer will begin immediately with sales agreements targeted for 2025. Assuming this is successful, timing for the completion of the sale and transfer of the company to a new owner will be subject to regulatory and governmental approvals. During the sales process, the refinery will continue to operate as usual.

Emma Delaney, EVP, customers & products said, “bp needs to continually manage its global portfolio as we position to grow as a simpler, more focused, higher-value company. After a thorough review, we have concluded that a new owner would be better suited for the site to take it forward. We are convinced that the refinery can unlock its full potential under new ownership.”

In recent years, bp has implemented numerous projects to modernize the infrastructure of the refinery in Gelsenkirchen. This includes, for example, renewing the power grid and establishing an independent steam supply. With initiatives like these, the site can meet the demands of modern refinery operations. The continued transformation of the site, initiated in 2024, aims to reduce the refinery’s complexity and processing capacity. Today, the refinery can process crude oils from around the world, produce high-quality fuels and also has the potential to manufacture biofuels and process recycled plastics.

Patrick Wendeler, chief executive of BP Europa SE, said, “With significant investments, we have been able to substantially modernize our site in recent years. Due to its current production capabilities and its location – in the heart of Europe and particularly within the chemical cluster of North Rhine-Westphalia – it offers significant potential to a new owner supported by a highly qualified team.”

Notes to editors
  • With a current workforce of around 2,000 employees and 160 apprentices, Ruhr Oel GmbH – BP Gelsenkirchen (ROG) operates the two plants in Horst and Scholven in Gelsenkirchen as an integrated refining and petrochemical site, as well as the Bottrop tank farm. The refinery has a processing capacity of around twelve million tonnes of crude oil per year. This is used to produce petrol, diesel, jet fuel and heating oil, as well as more than 50 other products, primarily for the chemical industry. In addition to its major importance for the domestic fuel and energy supply, the Gelsenkirchen site also plays a key role in the North Rhine-Westphalia chemical industry.

  • In addition, ROG is the sole owner of DHC Solvent Chemie GmbH and has a share in the Maatschap Europort Terminal (MET) in the Netherlands. It also holds shares in the N.V. Rotterdam-Rijn-Pijplining (RRP) crude oil and product pipeline and Nord-West Oelleitung GmbH (NWO) with its pipelines, crude oil tanks, tank farms and unloading points.

Tuesday, 31 December 2024

Chevron upgrades pasadena refinery to increase capacity, feedstock and product flexibility

Chevron U.S.A., Inc. (CUSA), a wholly owned subsidiary of Chevron Corporation (NYSE: CVX), has completed a retrofit of its refinery in Pasadena, Texas, which is expected to increase product flexibility and expand the processing capacity of lighter crudes by nearly 15 percent to 125,000 barrels per day.

Chevron acquired the Pasadena Refinery in 2019 with the strategic intent to expand its Gulf Coast refining system. This project is expected to allow the company to process more equity crude from the Permian Basin, supply more products to customers in the U.S. Gulf Coast and realize synergies with the company’s Pascagoula refinery.

The Light Tight Oil (LTO) Project aims to enhance facility reliability and safety and will ultimately result in an increase in the supply of refined products domestically. The refinery will also begin producing jet fuel and exporting gas oil.

“The Pasadena Refinery is on a journey to maximize value for Chevron and the community it serves by driving progress in safety and reliability,” said Chevron Manufacturing President Chris Cavote. “This refinery now firmly integrates our upstream and downstream businesses as we aim to optimize the value chain.”

Planning for the LTO Project began in 2019 with work beginning in early 2020.

“I’m extremely proud of our employee and contractor workforce, which logged over 4 million hours to complete this complex project in an operating refinery. Our safety program reinforced the focus on working safely throughout the project,” said Refinery General Manager Tifanie Steele. “We are investing in the refinery to help it be successful in the long-term, which we hope will support continuing positive economic impact to our community.”

The phased start-up of the asset is expected to last through Q1 of 2025 as project team members work to confirm all plants are operating as planned and products are developed to specification.

Saturday, 28 December 2024

Innovative Baker Hughes Emissions Abatement Solution Chosen to Reduce Routine Flaring at SOCAR’s Baku Oil Refinery

Baker Hughes (NASDAQ: BKR), an energy technology company, and SOCAR announced Thursday the signing of a contract for an integrated gas recovery and hydrogen sulfide (H2S) removal system that will significantly reduce downstream flaring at SOCAR’s Heydar Aliyev Oil Refinery in Baku, Azerbaijan. The contract was signed at COP29 in Baku, in the presence of Baker Hughes Chairman and CEO Lorenzo Simonelli and SOCAR President Rovshan Najaf.

Building on the pledges formalized by Azerbaijan’s entry into the Global Methane Pledge and the COP28 presidency’s Oil & Gas Decarbonization Charter (OGDC), the project is a tangible step toward ending routine flaring by 2030 at SOCAR’s site, using innovative applications of Baker Hughes' existing and field-proven emissions abatement technologies. The project is expected to recover flare gas equivalent up to 7 million Nm3 of methane per year, and further reduce CO2 emissions by up to 11,000 tons per year.

Baker Hughes will integrate its innovative gas recovery and H2S removal system into the refinery’s existing infrastructure to help abate methane and sulfur – two of the most potent greenhouse gas emissions – and remove hazardous H2S from the site. The system will also enable SOCAR to use the recovered gas, which would have previously been flared, as fuel for the refinery. This will reduce overall fuel gas consumption and operating costs at the refinery, creating new opportunities for value enhancement and efficiency gains.

“We must reduce emissions by 45% this decade to put us on the right path to reach net zero by 2050. The industry has an imperative to act now, and we can do it with existing technology solutions that can be deployed today,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “This award is a testament to our companies’ shared commitment to act on emissions abatement and represents another significant milestone in Baker Hughes’ journey to help customers drive more sustainable and efficient operations.”

“Our collaboration with Baker Hughes reflects SOCAR’s commitment to advancing sustainable operations and reducing emissions across our sites,” said Rovshan Najaf, president of SOCAR. “By launching this project, we are making a tangible impact on emissions abatement and setting a benchmark for environmental responsibility. This initiative aligns with our vision for a cleaner, more efficient energy future, supporting our commitment to climate goals.”

The project's rapid progression from concept to contract in only nine months demonstrates the two companies’ commitment to driving action and highlights the value achieved through close collaboration and early engagement. Project execution will begin immediately, with full commissioning targeted within 24 months.

This integrated gas recovery and H2S removal system is part of Baker Hughes’ broad portfolio of emissions abatement solutions capable of improving productivity, efficiency and delivering increased value at scale across customer operations.

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.