World news

GUEST COMMENT

CHET THOMPSON PRESIDENT & CEO, AMERICAN FUEL & PETROCHEMICAL MANUFACTURERS (AFPM)

Cars and trucks today are twice as efficient as vehicles from the 1970s. They are 99% cleaner for common pollutants, emit half the carbon, and are 75% more powerful. This record is a testament to the ingenuity of auto makers, fuel producers, and petrochemical manufacturers who have used lightweight advanced plastics, low-viscosity lubricants, and other technologies to advance us leaps and bounds in the direction of better vehicle efficiency. This progress should be celebrated and furthered. Like our customers, the men and women who work in refining and petrochemical manufacturing want even better performance from our cars. For years now, AFPM and our members have been advocating for reforms to the Renewable Fuel Standard programme, coupled with a nationwide 95 RON high-octane fuel standard. The value proposition of this policy for drivers and the environment is what makes the 95 RON approach so exceptional. In the first year of implementation, the use of a new high-octane gasoline in vehicles designed with higher compression engines would reduce vehicle CO2 emissions by 1.23 million t – the equivalent reduction of nearly a million electric vehicles (EVs), but at a fraction of the cost. For drivers, this would mean no compromising on comfort or convenience for the sake of better vehicle performance. A range of family-sized cars and trucks designed to run on 95 RON high-octane fuel will fit within their budgets, and they’ll be able to travel farther and cleaner on each gallon of gas. For farmers and biofuel producers, a 95 RON standard will create opportunity for American-grown ethanol since it is so often the most affordable source of octane in the market. 95 RON creates a rare opportunity for refiners and

biofuel producers to come together. The policy’s neutrality toward octane sources means it can work for all 50 US states, including those with the toughest fuel and air quality standards. It’s critically important that we have a long-term liquid fuel strategy to reduce vehicle emissions. More than 85% of drivers in the US want their next vehicle to be one that runs on gasoline or diesel fuel (69% want a pure internal combustion The best and brightest engine vehicle and 17% note a preference for hybrids, from the refining and while 5% say they’d like to petrochemical industries purchase an EV).1 At the same time, we’ve noted drivers have their eyes set also want better mileage and on reducing emissions cleaner cars. Thankfully, from every facet of environmental progress is transportation, from our not at odds with consumer preference because 95 RON operations, and our end is a way to meet both needs. The policy will deliver products. essential carbon reduction at lower cost to consumers than technology-forcing alternatives. The best and brightest from the refining and petrochemical industries have their eyes set on reducing emissions from every facet of transportation, from our operations, and our end products. Along with the renewable diesel and sustainable aviation fuel that refiners are producing in record volumes, and the petrochemical body components reducing weight while keeping drivers and passengers safe, 95 RON is an affordable, fuel-based answer for family drivers and commuters around the US. There is no better approach for consumers, refiners, liquid fuel producers, our economy, and the environment. 1. '2022 Global Automative Consumer Study', Deloitte, (January 2022).

A Better Perspective

on Hydroprocessing Solutions

In the refining industry, market conditions are always evolving with new regulatory requirements, global demand shifts, and the use of heavier feedstocks among other factors. ART Hydroprocessing can help you take a better perspective on these challenges based on our deep understanding of refinery operations and a full spectrum of hydroprocessing catalysts solutions that maximize profits by balancing run length, severity, feed flexibility, contaminants, and operating constraints.

ART is a joint venture of Chevron and W. R. Grace & Co., created to bring you state-of-the-art hydroprocessing catalyst solutions for petroleum refining applications worldwide. We collaborate with the industry’s leading licensor, CLG, to provide complete solutions to address your needs to extract more value from every barrel of oil. Combined with our unparalleled technical customer service, we deliver results for you.

WORLD NEWS

Worldwide | Optimism surging as global energy industry focuses on transition

Energy industry leaders say the energy transition is accelerating faster than ever, and that 2022 is set to be a strong year for industry growth, according to a new global report from DNV analysing the views of more than 1000 senior energy professionals.

Industry players from across power, renewables, and oil and gas believe the huge commercial opportunities presented by the transition outweigh the risks to their businesses, according to ‘The Power of Optimism: Managing scale and complexity as the energy transition accelerates’.

Energy leaders are finding most confidence from their own company’s strategies within renewables and low-carbon gas, followed by expectations for supportive policy changes and reforms. Confidence for growth is highest among power and renewables companies, and while it is lower in oil and gas, the sector has bounced back from a crash in confidence going into 2021.

UK | Essar to build refinery-based hydrogen furnace

Essar Oil UK (EOUK) has announced plans to install a new £45 million furnace at Stanlow that’s capable of using hydrogen as its fuel source.

This is a first in the UK, and marks a significant milestone in Essar’s commitment to becoming the UK’s first low-carbon refinery. It follows the launch of Vertex Hydrogen last month, a new Essar-led joint venture, in which the company will invest £1 billion over the next five years to drive down emissions, including the development of new hydrogen production plants at Stanlow, forming a central part of the HyNet North West decarbonisation cluster.

The scheme will provide a number of improvements that will lead to benefits for Stanlow and the surrounding area, including lower carbon emissions due to gas-only firing and new burners that emit lower levels of nitrogen oxide (NOx) and futureproofing to enable the use of sustainable fuel types, such as hydrogen, in the future.

Set to be installed in 2022, the furnace will become fully operational in 2023.

Worldwide | LNG industry rebounded in 2021

Global trade in LNG increased 6% to 380 million t during 2021, as many countries rebounded from the economic impact of the COVID-19 pandemic, according to Shell’s latest annual ‘LNG Outlook’.

Rising LNG demand, combined with supply constraints, caused gas and LNG prices to remain volatile throughout the year. Prices reached record levels in October 2021 as Europe, with historically low storage levels, struggled to secure LNG cargoes to meet expected winter gas demand.

The volatility emphasises the need for a more strategic approach to secure reliable and flexible gas supply in the future to avoid exposure to price spikes. An LNG supply-demand gap is forecast to emerge in the mid-2020s and focuses attention on the need for more investment to increase supply and meet rising LNG demand, especially in Asia.

Overall, global LNG demand is expected to cross 700 million tpy by 2040, a 90% increase on 2021 demand. Asia is expected to consume the majority of this growth as domestic gas production declines, regional economies grow, and LNG replaces higher-emissions energy sources.

The Netherlands | Global Energy Storage closes investment in the Port of Rotterdam with Gunvor Group

Following the signing of a binding agreement in November 2021, Global Energy Storage (GES) has announced that it has successfully closed the transaction to acquire part of the Stargate Terminal from Gunvor Group in Europoort, Port of Rotterdam, the Netherlands.

Consequently, GES now owns four Class 1 product tanks totalling over 212 000 m3 with long-term offtake from Gunvor. In addition, GES has acquired the rights to develop approximately 20 ha. of vacant land. Furthermore, it is pursuing expansion projects to support the energy transition, such as import facilities for ammonia, storage for biofuels and feedstock, chemicals, gases, and waste-to-fuel production.

Peter Vucins, CEO of GES, commented: “This is an important milestone for GES. The location of this first investment in the heart of the Port of Rotterdam positions us perfectly to significantly contribute to our client’s needs to develop the new storage and logistics infrastructure to facilitate the energy transition which is upon us and accelerating.”