World news

Thailand | Aramco and PTT sign MoU

Saudi Arabian Oil Co. (Aramco) is exploring further collaboration with Thailand’s national oil company, PTT, as it expands its downstream presence in Asia. The two companies signed a Memorandum of Understanding (MoU) at a ceremony in Bangkok, Thailand, on 11 May 2022.

The companies are aiming to strengthen cooperation across crude oil sourcing and the marketing of both refining and petrochemical products, and LNG. Other potential areas of activity include blue and green hydrogen, and various clean energy initiatives.

Disathat Panyarachun, PTT Senior Executive Vice President, International Trading Business Unit, said: “PTT and Aramco have built strong ties around the supply and trading of crude oil and other products. Extending our collaboration across the value chain to include emerging decarbonisation initiatives is a great opportunity to strengthen our relationship and foster further business growth. This also aligns with our ‘green and clean’ strategy.”

Worldwide | Rio Tinto and BP to trial marine biofuels

Rio Tinto and BP have agreed to work together on a one year biofuel trial to help reduce carbon emissions from Rio Tinto’s marine fleet.

Under the trial, BP is supplying Rio Tinto with marine biofuel for approximately 12 months. The fuel will be trialled on Rio Tinto’s RTM Tasman vessel, in one of the longest-duration marine biofuel trials to date. The results of the trial will help Rio Tinto to study ways to reduce carbon emissions from its marine fleet, and inform its future biofuel strategy.

The trial is using a BP-manufactured B30 biofuel blend composed of 30% fatty acid methyl esters (FAME) blended with very-low-sulfur fuel oil (VLSFO). This B30 biofuel blend can reduce life cycle carbon dioxide (CO2) emissions by up to 26% compared to standard marine fuel oil.

The extended trial agreement follows a successful journey on the RTM Tasman after it refuelled with biofuel in Rotterdam, the Netherlands, in March 2022.

Asia | Crude distillation unit capacity additions continue to rise

According to GlobalData, Asia is expected to witness the most crude distillation unit (CDU) capacity additions globally, contributing approximately 47% of the total CDU capacity additions by 2026. The region is likely to witness a total CDU capacity addition of 7.1 million bpd by 2026. Of this, new-build capacity would be 4.3 million bpd, while the rest would come from the expansion of existing refineries.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “China and India primarily drive refinery CDU capacity additions in Asia by 2026. Yulong and Jieyang, both in China, are the largest upcoming new-build projects in Asia during the 2022 – 2026 outlook period, each with a capacity of 400 000 bpd. Among the expansion projects, Vadinar in India is expected to witness the highest capacity additions of 515 000 bpd by 2026.”

GlobalData suggests that Africa will be the second highest contributor, with the Middle East ranking third globally.

USA | TotalEnergies and New Hope Energy partner on advanced recycling project

TotalEnergies and New Hope Energy have announced a commercial agreement under which New Hope Energy will build an advanced recycling plant in Texas, US, to transform end-of-life plastic waste into a recycled feedstock that TotalEnergies will partly purchase and convert into virgin-quality polymers, which can be used for food-grade packaging.

The New Hope Energy plant is expected to start production in 2025, and will use a patented pyrolysis technology that was developed in partnership with Lummus Technology to process and convert more than 310 000 tpy of mixed plastic waste that would otherwise be destined for landfill or incineration.

TotalEnergies will use 100 000 t of recycled polymer feedstock (RPF) in its production units to manufacture high-quality polymers suitable for food-grade applications such as flexible and rigid food packaging containers.

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UAE | TA’ZIZ and Reliance partner up with Shaheen

Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) has announced that Shaheen Chem Holdings Investment LLC (Shaheen) will join the proposed TA’ZIZ ethylene dichloride (EDC) and polyvinyl chloride (PVC) joint venture (JV), aimed at the construction and operation of a world-scale chlor-alkali, EDC, and PVC facility, at the TA’ZIZ Industrial Chemicals Zone, in Ruwais, Abu Dhabi, UAE.

With an investment of more than US$2 billion (AED 7.34 billion), the project will provide new opportunities for local manufacturers, supporting the growth of their knowledge and capabilities, and catalysing local industrial development.

The chemicals to be produced by the project have a wide range of industrial applications and will create opportunities for export, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time.

Investment in the production of chemicals is a priority for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology.

USA | Phillips 66 to convert San Francisco refinery to renewable fuels facility

Phillips 66 has made a Final Investment Decision (FID) to move forward with Rodeo Renewed, the project to convert its San Francisco refinery in Rodeo, California, US, into one of the world’s largest renewable fuels facilities.

The project, which recently received approval from Contra Costa County, is expected to cost approximately US$850 million and begin commercial operations in 1Q24.

Upon completion, the converted facility will no longer process crude oil and will instead use waste oils, fats, greases and vegetable oils to produce an initial 800 million gal./yr of renewable transportation fuels, including renewable diesel, renewable gasoline, and sustainable aviation fuel (SAF).

Production of these fuels is projected to reduce life cycle carbon emissions by approximately 65%.

Lithuania | PGNiG Group receives first delivery of LNG for the Klaipeda terminal

The PGNiG Group recently received its first cargo of LNG to be delivered to the LNG terminal in Klaipeda, Lithuania.

The delivery of almost 65 000 t of LNG from the US is a step towards further integration of gas markets in this part of Europe, strengthening the region’s energy security. The gas came from a liquefaction plant in Freeport, Texas, US. The LNG terminal, operated by KN (Klaipedos Nafta, AB), is one of the key elements of Lithuania’s energy infrastructure. Its launch in 2014 paved the way for the emergence of a natural gas market in the country, diversification of gas supply sources, and improvement of energy security in the area. Gas from the first cargo received by the PGNiG Group in Klaipeda will be supplied not only to the Polish market, but also to the Baltic states. Elenger, one of the major energy companies in the Finnish-Baltic region, has bought part of the LNG delivery for its customers.