LyondellBasell Announces Plans to Exit Refining Business

LyondellBasell today announced its decision to cease operation of its Houston Refinery no later than December 31, 2023. In the interim, the Company will continue serving the fuels market, which is expected to remain strong in the near-term, and consider potential transactions and alternatives for the site.

"After thoroughly analyzing our options, we have determined that exiting the refining business by the end of next year is the best strategic and financial path forward for the Company," said Ken Lane, interim CEO of LyondellBasell. "These decisions are never easy and we understand this has a very real impact on our refinery employees, their families and the community. We are committed to supporting our people through this transition."

Lane added, "While this was a difficult decision, our exit of the refining business advances the Company's decarbonization goals, and the site's prime location gives us more options for advancing our future strategic objectives, including circularity."

LyondellBasell's Houston Refinery has a rated capacity to transform 268,000 barrels per day of crude oil into transportation fuels and other products including lubricants, chemical intermediates and petroleum coke.

Fuhaichuang Petrochemical Selects Axens Ebullated-Bed Residue Hydrocracking Technology (H-Oil®) to Boost the Profitability of its Assets

Fuhaichuang Petrochemical Co., Ltd, one of the main private Chinese refiner, has selected Axens’ Ebullated-bed residue hydrocracking technology (H-Oil®) for a capacity of 1.5 MTA as the key unit of its residue upgrading plan in its petrochemical complex located in the port of Gulei, Fujian Province, China.

The project aims at producing Very Low Sulfur Fuel Oil (VLSFO) meeting RMG 380 specification from Vacuum Residue feedstock along with Middle Distillates (naphtha and diesel) that will be further upgraded within the existing assets of the refinery.

Axens scope of work includes the supply of process design package, and full services from plant personnel training to unit start-up.

The H-Oil® solution proposed by Axens and tailored for Fuhaichuang Petrochemical is unique in a sense that it will allow to cope with challenging targets of VLSFO production, with one single train unit without importing low sulfur cutterstock. The use of specific operating conditions, latest yet industrially proven design, and a new generation of supported catalyst from Shell Catalysts & Technologies are the main contributors for this achievement.
Wang Xiaojun
Technical Manager of Refining

This project demonstrates the competitiveness of Axens to support existing refineries in improving their economic resilience by offering efficient, flexible and sustainable technology solutions.
Yu Chunyu
Director of Feed Adaptability and Debottlenecking project


About H-Oil® Technology

Axens is the leader in the market of the ebullated-bed technologies with more than 25 references all around the world. With its extensive operating experience, H-Oil® is the most mature and reliable solution for residue upgrading. H-Oil® meets the challenge of converting heavy feedstock residues into essentially distillate products, ranging from vacuum gasoil (VGO) to naphtha. Since 2014, the Axens’ ebullated-bed residue hydrocracking H-Oil® technology has been adopted by several Chinese refineries, public as well as private, demonstrating the H-Oil® ability to cope with several refining objectives and to be an energy efficient and cost effective solution.

About Fuhaichuang Petrochemical Co., Ltd Fujian

Fuhaichuang Petrochemical Co., Ltd. established in 2017 in Zhangzhou, Fujian Province, is jointly invested and established by Fuhua Petrochemical Group Co., Ltd. and Dragon group, of which Fuhua Petrochemical Group Co., Ltd. holds 90%. The company is a large petrochemical enterprise specializing in the operation of chemical products, investment and development of petrochemical projects, and maintenance of petrochemical equipment. The company's Px, PTA and supporting devices are an important part of Fuhua Petrochemical Group in building Gulei petrochemical industry group.

About Fuhua Petrochemical Group Company

Established in 1998, Fuhua Petrochemical Group Co., Ltd. is a leading enterprise in Fujian Petrochemical Industry. It has 33 first-class wholly-owned, holding and participating subsidiaries and is mainly engaged in investment and trade in oil refining and chemical industry, production, operation, scientific research and design of chemical products, and produces and operates more than 50 products, such as Ethylene, PX, PTA, caustic soda, polyether, propylene oxide, and other chemical intermediates.

 

Aramco and Sinopec strengthen ties with potential downstream collaboration in China

Saudi Arabian Oil Company (“Aramco”) through its Saudi Aramco Asia Company Limited (“SAAC”) subsidiary today signed a Memorandum of Understanding (MoU) with China Petroleum & Chemical Corporation (“Sinopec”) for potential downstream collaboration in China.

SAAC and Sinopec also aim to support Fujian Refining and Petrochemical Company, Ltd. (“FREP”) in conducting a feasibility study into the optimization and expansion of capacity.

This MoU provides a basis for continued downstream collaboration between Aramco and Sinopec, capitalizing on each company’s strengths and their long-term relationship through existing joint ventures, namely FREP and Sinopec Senmei (Fujian) Petroleum Company (SSPC) in China, and Yanbu Aramco Sinopec Refining Company in Saudi Arabia.

Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream, said: “This MoU represents an exciting new chapter in our long-standing relationship with Sinopec. Such collaborations promote our downstream integration and expansion strategy in Asia and support our broader objectives of becoming a global leader in liquids-to-chemicals and a resilient and reliable supplier of one of the lowest upstream carbon intensity oils to meet China’s growing demand.”

Yu Baocai, President of Sinopec Corporation, said: “Sinopec and Aramco enjoy a long history bookmarked by numerous examples of successful cooperation which continues to strengthen our strategic relationship. Both companies cooperate in mutually beneficial crude trading, refining and chemical joint ventures, engineering services as well as science and technology research and development. Together such collaboration represents a model of energy cooperation between China and Saudi Arabia. The signing of this MOU will support our refinery feedstock optimization and downstream petrochemical development, while offering new opportunities to deepen and expand activity amid an accelerating global energy transition.”

Tupras Selects Isoalky™ Technology for Its Refineries to Produce High Octane Alkylate

Honeywell UOP announced today that Tüpras has selected ISOALKY™ technology to produce high-quality alkylate at Tüpraş refineries, making the Turkish company the latest to convert to the new liquid alkylation process to meet the demands for cleaner-burning fuels. The announcement the ISOALKY units by Tüpras follows the announcement that Big West Oil will revamp its existing HF unit with ISOALKY technology.

“We are pleased to have selected UOP’s breakthrough alkylation technology for our refineries.” said İhsan Serdar Kemaloğlu, Assistant General Manager at Tüpraş, “We chose ISOALKY over other alkylation technologies due to key advantages. This project will enable Tupras to produce high quality gasoline which is a key component in delivering cleaner gasoline product to the market. The new technology is part of our Sustainable Refining initiative in line with our goal of providing clean energy solutions on our path to become carbon neutral by 2050 as we focus on new sustainable, core business areas.”.


ISOALKY is a cost-effective solution that offers both safety and performance advantages over other alkylation process technologies. Honeywell UOP and Chevron U.S.A. received the 2017 Platts Breakthrough Solution of the Year award in recognition for the development of the ISOALKY™ process.


ISOALKY technology produces high octane alkylate, low in sulfur with zero aromatics which all help lower emissions and tailpipe pollution[1]. Standardizing on high octane fuels like alkylate for light-duty, gasoline-powered vehicles can make a vast difference for the environment and will help drivers go further on each gallon of gasoline[2].


In the US alone, it is estimated that standardization of 95 octane gasoline would reduce carbon emissions from light duty cars and SUVs by 2.69 million metric tons and by another 1.11 million metric tons for pickup trucks[3]. This is expected to play a significant role in decarbonizing of transportation fuels, unlocking cleaner, fuel-efficient transportation options.


“Cleaner-burning fuels are going to continue to be key in achieving decarbonization of the transportation industry. ISOALKY technology is becoming the preferred solution for our customers to meet that rising demand,” said Laura Leonard, Vice President and General Manager, Honeywell UOP Process Technologies. “Honeywell has provided refining technology and process automation to Tüpras refineries for several decades, helping to build Turkey’s domestic oil industry.”


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.
Based in Izmir, Izmit, Kirikkale and Batman, Tupras refines and produces crude oil into high-quality motor fuels and other specialty chemicals. Tüpraş is the first producer in Turkey’s refining sector and the largest industrial enterprise of the country, operating four oil refineries with a total of 30 million tons annual crude oil processing capacity.

SOCAR's Heydar Aliyev Oil Refinery Signs License And Design Agreements With Axens For The Fluid Catalytic Cracking Unit

On January 17, SOCAR HQ held a ceremony to sign licensing and design agreements for the Fluid Catalytic Cracking (FCC) unit between the Heydar Aliyev Oil Refinery (HAOR) and the French company Axens as part of the HAOR Modernization and Reconstruction Project. The ceremony was attended by SOCAR President Rovnag Abdullayev, Axens CEO Jean Sentenac and other officials.

A signing ceremony was eventually held with the parties participating. The documents were signed by Bakhtiyar Mammadov, SOCAR HAOR Director and Fabien Lundy, Axens Process Licensing Global Commercial Director. It is worth noting that SOCAR and Axens have a long-term co-operation. At present, the Diesel Hydrotreatment, Gasoline Hydrotreatment and C4 (butane-butylene) hydrogenation units as part of the Heydar Aliyev Oil Refinery Reconstruction Project, as well as the C3 (propane-propylene) hydrogenation unit as part of the reconstruction works carried out at Azerkimya PU, the naphtha hydrotreatment, diesel hydrotreatment and kerosene hydrotreatment units at the STAR refinery built in Turkey are licensed by Axens.

The cooperation between SOCAR and Axens encompasses the training of engineers either in IFP School or in Axens in order to contribute to the successful implementation of the Heydar Aliyev Oil Refinery modernization projects including the operation of the licensed process units. These trainings aims also at developing skills in energy efficiency and sustainability. Some time ago, the AR-GE Research Centre of SOCAR Turkey, Axens and IFPEN started jointly to expand AR-GE Research capabilities, and identify subjects of common interest.

 

Optimization of Petroleum Product Manufacturing and Supply Network

ENEOS Corporation (President: Ota Katsuyuki; “ENEOS”) announces that it has made a decision to
terminate the operation of the refinery, plant, and logistics functions at the Wakayama refinery
(Refinery manager: Teshima Masayoshi) located in Arida City, Wakayama Prefecture. The
termination is expected to take place in October 2023.

As one of the envisioned goals in the ENEOS Group Long-Term Vision to 2040, ENEOS aims to
“Become one of the most prominent and internationally competitive energy and materials company
groups in Asia”. To achieve the goal, ENEOS is striving to strengthen the competitiveness of the
entire supply chain in petroleum refining and marketing as one of its base businesses, with safe
operations and a stable supply of energy as the major premises.

The various circumstances in the environment surrounding the petroleum refining and marketing
businesses—which include the rapid reduction in demand due to the recent spread of COVID-19
besides structural domestic demand decline for petroleum products and severe international
competition mainly in Asia—were considered comprehensively. As a result, it was determined that
there was a pressing need to optimize the manufacturing of refineries and plants as well as the
supply network for petroleum products. ENEOS therefore decided to terminate all functions of the
Wakayama refinery

Until the termination of all functions of Wakayama Refinery in October 2023, the Refinery will
continue to contribute to a stable supply of energy, putting a high priority on safe operations.

Overview of the Wakayama refinery

• Location : 1000 Hatsushima-cho Hama, Arida City, Wakayama Prefecture
• Start-up of operation : 1941
• Refinery manager : Teshima Masayoshi
• Number of employees : 447 (as of January 1, 2022)
• Site area : 2.48 million square meters
• Crude process capacity : 127,500 barrels per day 

Shell completes sale of interest in Deer Park refinery to partner Pemex

Shell Oil Company, a subsidiary of Royal Dutch Shell plc, has completed the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and P.M.I. Norteamerica, S.A. De C.V. (a subsidiary of Petroleos Mexicanos, or Pemex) for $596 million, a combination of cash and debt.

The agreement covers the sale of Shell’s 50.005% interest in the partnership, and therefore transfers full ownership of the refinery to Pemex. Shell Chemical L.P. will continue to operate its 100% owned Deer Park Chemicals facility located adjacent to the site.

“The completion of this sale marks the start of a new chapter of our history in Deer Park as we’ve worked closely with Pemex over the past few months to ensure a safe and responsible handover of operations for the refinery,” said Huibert Vigeveno, Shell’s Downstream Director. “The team at Deer Park has been instrumental not only in preparing the asset for Pemex operations, but also in continuing a legacy of safety and performance that dates back 92 years. We look forward to remaining a neighbour in the Deer Park community and growing our chemicals business to best meet the needs of our customers while advancing our global energy and chemicals park strategy.”

As part of its Powering Progress strategy, Shell plans to consolidate its refinery footprint to five core energy and chemicals parks. These locations will maximize the integration benefits of conventional fuels and chemicals production while also offering new low carbon fuels and performance chemicals. They also offer future potential hubs for sequestration. 

Notes to editors

• On May 24, 2021, Shell and Pemex announced that they had signed a sales agreement for Pemex to acquire Shell’s 50.005% interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell and Pemex.
• A further amount of $325 million was received for the value attributed to the hydrocarbon inventory at the time of closing. The final amount for the hydrocarbon inventory will depend on volume measurements and average market prices for the month of January, which is expected to range between $300 to $350 million.
• Employees assigned to the refinery assets were offered employment by Pemex with effect upon closing in accordance with the transaction.
• Shell has entered into certain product offtake and crude supply agreements with Pemex for Deer Park Refinery.
• To mark this new chapter and highlight Shell’s continued support for the Deer Park community, Shell has provided approximately $2 million in funding for projects benefitting the community.
• Shell is one of America’s leading energy companies with interests in 50 states employing more than 12,000 people. Shell’s U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, gasoline, lubricants, and other refined products along with renewables such as wind, solar, and mobility options like electric vehicle charging and hydrogen. In the U.S. Shell is also investing in an integrated power business that will provide electricity to millions of homes and businesses.