Shell aims to stop crude oil processing in Wesseling

The conversion of the former Shell Rheinland refinery into the Energy and Chemicals Park Rheinland (Shell Rheinland) is progressing. As a next step, Shell Deutschland GmbH plans to make the Wesseling site free of crude oil. The raw material crude oil is to be replaced in future with new or reallocated plants. For more CO 2 -free or low-carbon products, hydrogen, circular waste materials and biogenic input materials are increasingly being used. For this purpose, existing systems are to be dismantled, new ones created and existing ones converted or rededicated. The plans for the cessation of crude oil processing are still at the beginning. A final investment decision is still pending.

The employees were informed today about the plans to stop crude oil processing at the Wesseling site from 2025. The crude oil distillations in Cologne-Godorf remain in operation. The Shell Verbund in North-West Europe will ensure the security of supply with fuels and other mineral oil products in the coming years.

Shell aims to become a net zero emissions company by 2050 at the latest, in line with society. With the renovations in Wesseling, Shell Rheinland will directly save one million tons of direct CO 2 emissions annually.

In July, Europe's largest PEM hydrogen electrolysis plant for the production of green hydrogen, REFHYNE, was officially inaugurated in Wesseling. Shell is already planning to build a 100 MW electrolysis plant. In addition, a Bio-PTL plant is planned, in which synthetic aviation fuels and petroleum are produced from green electricity and biomass. Both projects are at an advanced planning stage, but a final investment decision is still to be made. The final investment decision has already been made for a plant for the production of bio-LNG for heavy goods vehicles.

"The transformation from the hitherto energy-intensive industries to climate-neutral companies is an important contribution to reducing the emission of climate-damaging gases as quickly as possible, curbing climate change and actively protecting resources," said the North Rhine-Westphalian Environment Minister Ursula Heinen- Eater. “We therefore welcome the conversion announced by Shell and the associated CO 2 -neutrality of the refinery site and most of the products produced there. The plans presented today for the 'crude oil-free' part of the refinery by the year 2025 are an impressive signal in this context and also an important step towards the desired goal of a climate-neutral energy system. "

“As a refinery, we have played an important role in the fossil energy market over the past few decades. We want to take over this in the future with a completely changed product portfolio as Energy and Chemicals Park Rheinland ”, explains Dr. Marco Richrath, General Manager of the Energy and Chemicals Park Rheinland. "Especially in the course of the energy transition, we want to be a reliable partner for society, business and politics."

Notes for editors:
Completion of redundancies for operational reasons should be avoided as far as possible and those affected should be transferred to other workplaces, retraining and further training.
The crude oil distillation in Wesseling has an annual capacity of almost 8 million tons.
In the medium term, crude oil is only to be used for the production of special products such as petrochemicals, lubricants and bitumen.

Big West Oil Proceeds with Honeywell To Revamp Alkylation Unit To ISOALKY™ Technology

Honeywell UOP announced today that Big West Oil has selected ISOALKY™ technology to produce high-quality alkylate used to make clean-burning motor fuels at its Salt Lake City refinery. The refiner is the second in North America to revamp its existing hydrofluoric acid (HF) unit to ISOALKY. This announcement follows the commercialization of the technology by neighboring Chevron at its Salt Lake City Refinery earlier this year.

"We are pleased to announce that Big West Oil has selected the ISOALKY technology for our North Salt Lake refinery," said Mike Swanson, President – Refining Division of Big West Oil. "We chose ISOALKY after assessing its key advantages over conventional alkylation technologies. The project will improve operational efficiency at the refinery and represents a key component of our Tier III solution in delivering lower sulfur gasoline to the Utah market."


The ISOALKY™ technology is designed to meet the refining industry’s needs for a cost-effective alternative to conventional liquid acid systems that offers process safety advantages. Using a non-aqueous liquid salt, or ionic liquid, the revolutionary new catalytic process is handled with standard personal protective equipment and produces a valuable high-octane blending component that helps lower the environmental impact of gasoline.


“ISOALKY technology is quickly becoming the preferred solution to meet the rising demand for cleaner-burning fuels, without the complex handling requirements and environmental risks of conventional liquid acid technologies,” said Laura Leonard, vice president and general manager, Honeywell UOP Process Technologies. “Big West Oil chose ISOALKY because they saw the benefits of this groundbreaking technology, which marries Chevron’s operational experience with UOP’s decades of experience in licensing and designing over 200 alkylation process units.”


ISOALKY™ technology can be used in new refineries as well as in existing facilities undergoing capital expansion or retrofit applications. ISOALKY™ technology has wider and improved feed flexibility relative to conventional alkylation technologies. Ionic liquids are regenerated on-site with a simple process, eliminating the need for road or marine transportation for offsite regeneration and polymer byproduct handling. More information about ISOALKY™ technology can be found here.
Based in North Salt Lake, Utah, Big West Oil operates a medium complexity refinery with a total crude capacity of 33,000 barrels per day. The company purchases and transports crude oil in parts of Utah, Wyoming and Colorado and refines the crude into high-quality motor fuels supplying the Rocky Mountain west.

Petrobras completes sale of the Landulpho Alves Refinery (RLAM)

Petrobras, following up on the release disclosed on 03/24/2021, informs that today it has completed the sale of the Landulpho Alves Refinery (RLAM) and its associated logistical assets, located in the state of Bahia, for MC Brazil Downstream Participações, a company of the Mubadala Capital group.

After the fulfillment of all the conditions precedent, the operation was concluded with the payment of US$ 1.8 billion to Petrobras, an amount that reflects the purchase price of US$ 1.65 billion, preliminarily adjusted for monetary correction and variations in working capital, net debt and investments until the closing of the transaction. The contract also provides for a final adjustment to the purchase price, which is expected to be determined in the coming months.

This sale is in line with Resolution No. 9/2019 of the National Energy Policy Council, which established guidelines for the promotion of free competition in the refining activity in Brazil and is part of the commitment signed by Petrobras with the Administrative Council for Economic Defense (CADE) for the opening of the refining sector in the country.

According to Petrobras’ CEO, Joaquim Silva e Luna, the conclusion of the sale reflects the importance of the portfolio management and strengthens the company's strategy. “This sale is an important milestone for Petrobras and the fuel sector in the country. We believe that, with new companies operating in refining, the market will be more competitive and we will have more investments, which tends to strengthen the economy and generate benefits for society. It is also part of the commitment signed by Petrobras with CADE to open up the refining market. From the company's point of view, it is a step forward in its resource reallocation strategy. In the refining segment, Petrobras will focus on five refineries in the Southeast, with investment plans that will place it among the best refiners in the world in terms of efficiency and operational performance.”

Acelen, a company created by Mubadala Capital for the operation, will take over the management of RLAM as of 12/01/2021, which will be renamed Mataripe Refinery. Petrobras will continue to support Acelen in the refinery operations during a transition period. This will happen under a service provision agreement, avoiding any operational interruption. Petrobras and Mubadala Capital reaffirm their strict commitment to operational safety at the refinery in all phases of the operation.

This disclosure to the market is in accordance with Petrobras' internal rules and with the special regime for divestment of assets by federal mixed capital companies, provided for in Decree 9,188/2017.

This operation is in line with the company's portfolio management strategy and capital allocation improvement, aiming at maximizing value and greater return to society.

About RLAM

RLAM, located in São Francisco do Conde in the state of Bahia, has a processing capacity of 333,000 barrels/day (14% of Brazil's total oil refining capacity), and its assets include four storage terminals and a set of pipelines connecting the refinery and terminals totaling 669 km in length.

Rosneft acquires 37.5% share in German PCK refinery

Rosneft exercised the pre-emption right for 37.5% share of the PCK (Schwedt) refinery from Shell. Relevant notifications have been shared with the partner. The transaction is subject to government and regulatory approvals.

As result of the purchase, Rosneft will increase its shareholding in PCK from 54.17% to 91.67%.

Rosneft Chief Executive Officer Igor Sechin noted: “Increasing the share of PCK refinery is testament to the strategic importance of the German market for Rosneft. The Company builds long-term relationships with its German partners, provides timely and uninterrupted crude supplies, and modernizes key refinery units.

PCK is one of the most technologically complex refineries in Germany, with a Nelson index of 9.8. Rosneft plans to strengthen the technological leadership of the refinery, including through the implementation of low-carbon projects, considering the current environmental agenda of the EU. The company is already developing projects aimed at the production of cleaner fuels, such as "green" hydrogen and sustainable aviation fuel. Work in this direction will continue”.


Notes for editors:

Rosneft is the third largest player in the German oil refining market. Operating activities are carried out by Rosneft Deutschland GmbH, a subsidiary of the Company. This company manages both the supply of crude oil to the refineries, the shares of which belong to Rosneft (PCK Raffinerie GmbH, MiRO refinery, Bayernoil refinery), and sales of petroleum products.

The PCK Raffinerie GmbH refinery is located in Schwedt, Brandenburg. The location of the refinery makes it possible to supply Urals crude through the Druzhba pipeline. The capacity of the refinery is 11.6 million tons per year (Rosneft's current share in the capacity is 6.3 million tons per year), the Nelson complexity index is 9.8. Current shareholders: Rosneft - 54.17%, Shell - 37.5%, Eni - 8.33%

Axens Selected for Byco’s Refinery Upgrading Project Phases I, II & III to Support in Producing Euro V Gasoline and Diesel, Pakistan

Byco and Axens are pleased to announce that Axens has been selected to support Byco’s Refinery upgrading Project Phases I, II, III with providing advanced technical solutions in order to achieve Euro V gasoline and diesel specifications in Pakistan.

Prime-G+® Technology

The solution consists of a unique integration of three existing units into a Cracked Naphtha Desulfurization unit using best in the business Prime-G+® licensed technology. This technology plays a major role in meeting Euro V specifications with the best octane retention along its selective hydrodesulphurization process.



Virgin Mix Distillate Hydrotreater (DHT-2), Mixed Distillate Hydrotreater (DHT-3) and Sulfur Recovery Unit (SRU) Catalysts & Adsorbents combined with Proprietary DHT-3 Reactor Internals

Reactors will be loaded with Axens Catalysts & Adsorbents in order to meet stringent Euro-V specifications in the refineries.


The scope of Axens work includes the supply of process design package for integration of three existing units into FCC gasoline hydrotreating configuration using licensed Prime-G+® technology, catalysts & adsorbents for SRU & respective Hydrotreators, internals for DHT reactor, trainings and long term technical services.
The start-up date of the complete Phases I, II & III is expected in Q2 2024. This award reinforces the intense cooperation between Axens and Byco Petroleum Pakistan Limited, which started in 2019 when Byco awarded Axens with an adaptive study consisting in evaluating the configuration of units to be fitted into their existing refineries. Axens developed at that time a Linear Programming modelling solution that allowed Byco to define the basis of their future refineries configuration and operation when processing different crude oils

PKN ORLEN’s investment in deep crude conversion in Mažeikiai will enhance the refinery’s profitability

PKN ORLEN is investing to expand its refinery in Mažeikiai. By the end of this year construction will start on a project to build deep crude conversion units enabling production of larger volumes of high-margin products. According to the agreement signed between PKN ORLEN and ORLEN Lietuva on the financing of the project, the Company is to invest EUR 641m. This will be the largest capex project carried out by the ORLEN Group in Lithuania in its operating history. The project will enhance the profitability of the refinery, contributing to strengthening energy security of the region. The project is slated for completion by the end of 2024, and it will add as much as ca. EUR 68m to annual EBITDA.

‘This is a historic day for ORLEN Lietuva and the Lithuanian economy. As announced earlier, our investment in deep crude conversion in Lithuania is entering the execution phase. In the agreement signed today PKN ORLEN has declared its intent to fund the project, which will help us to significantly enhance the competitiveness of the refinery in Mažeikiai, which is key to ensuring energy security for our region. Increased yields of high-margin products will also improve the stability of fuel supplies in the Baltic states as well as in Poland. In a parallel effort, we are holding discussions with the Lithuanian government on possible forms of support for the project. This reflects the warming of Polish-Lithuanian relations at the governmental and business levels seen in recent years,’ said Daniel Obajtek, President of the PKN ORLEN Management Board.

Deep conversion units built at the Mažeikiai refinery will increase the yield of high-margin products by 12%, to over 84%, from less than 72% today. The project will reduce crude oil throughput but not fuel production volumes, also enabling the company to further expand its business into new products and extend its value chain. This in turn will reduce the company’s sensitivity to changes in the macro environment.

The deep crude conversion project will help eliminate production of high-sulphur heavy fuel oils, enhancing the refinery’s profitability given ever more stringent environmental regulations on heavy fuels. PKN ORLEN has already purchased a licence and procured front-end engineering design for the project.

In July 2021, ORLEN Lietuva, an ORLEN Group company, signed a letter of intent with the Lithuanian Energy Ministry to pursue a deep crude conversion project. Closer cooperation between the Company and Lithuania is a result of an earlier meeting of Daniel Obajtek, President of the PKN ORLEN Management Board, with the Lithuanian Prime Minister Ingrida Šimonytė.

ORLEN Lietuva is a key ORLEN Group company, operating the sole refinery in the region, guaranteeing its security. PKN ORLEN is consistently investing in expanding its assets in Lithuania. The Mažeikiai refinery is important to the Polish and Lithuanian economies. It is Lithuania’s largest company, with about 1,500 employees, of whom over 90% are residents of Mažeikiai and neighbouring towns. Another 4,500 people are employees of external service providers and subcontractors. ORLEN Lietuva is also one of the largest exporters and taxpayers in Lithuania having paid EUR 566,495,374 in taxes to the Lithuanian government in 2020 alone.

Phillips 66 to Convert Alliance Refinery to Terminal Facility

 Phillips 66 (NYSE: PSX) announced today it plans to convert its Alliance Refinery in Belle Chasse, La., to a terminal facility. The conversion is expected to take place in 2022.

“We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida,” said Greg Garland, Chairman and CEO of Phillips 66. “Alliance’s existing infrastructure and Gulf Coast location make it an attractive midstream asset. Phillips 66 will continue to be a major refiner with 12 facilities in the U.S. and Europe.”

The Alliance Refinery employs approximately 500 employees and 400 contractors.

“Our decision was a difficult one, and we understand it has a profound impact on our employees, contractors and the broader Belle Chasse community,” Garland said. “We will work to help them through this transition and support them as Alliance takes on a new role in our portfolio.”