World news

Finland | Neste announces plans to transition Porvoo refinery

Neste has launched a strategic study on transitioning its refinery in Porvoo, Finland, to non-crude oil refining, and into a leading renewable and circular solutions site.

Through co-processing and retrofitting of units, and benefiting from available refining assets, experience and know-how, Neste is aiming to significantly grow its renewables and circular production in Porvoo long-term.

The transformation under study would start with the co-processing of both renewable and circular feedstock, and could continue with retrofits of existing units at a later stage, with a long-term capacity potential of 2 – 4 million tpy. The targeted transformation would lead to a discontinuation of crude oil refining in Porvoo in the mid-2030s. Neste will also continue to actively study green hydrogen opportunities at the site.

Europe | Woodside and Uniper ink LNG supply deal

Woodside Energy Trading Singapore Pte Ltd has entered into a flexible long-term sale and purchase agreement (SPA) with Uniper Global Commodities SE. Woodside will supply LNG from its global portfolio into Europe, including Germany, for a term of up to 2039, commencing in January 2023.

The quantity of LNG to be supplied under the new SPA is up to 12 cargoes per year (equivalent to more than 0.8 million tpy or 1 billion m3 of natural gas). Supply from September 2031 is conditional upon Uniper finalising its long-term strategic capacity bookings in Northwest Europe, expected by March 2023.

Woodside Energy CEO, Meg O’Neill, said: “Woodside is pleased that this latest agreement with Uniper will provide a new source of LNG for consumers in Europe who are seeking alternatives to Russian gas.”

Worldwide | Stretched oil refining sector fuels market volatility

According to a new report by the International Energy Forum (IEF) and S&P Global, global oil refining capacity dropped for the first time in 20 years in 2020, and again in 2021, exacerbating tight markets and volatile prices for fuels such as gasoline and diesel.

The ‘Oil Refining Industry Insights’ report finds that global fuel markets are expected to stay tight for years, as new capacity takes time to ramp up, and investments are muted by demand outlooks that show global petroleum demand plateauing.

“I am concerned that investors are holding back from new refinery investments based on decarbonisation forecasts that may not be borne out in reality,” said IEF Secretary General, Joseph McMonigle.

In both the short-term and medium-term, the balance for global fuel markets will be fragile, underscoring the need to maintain robust inventories and contingency plans to deal with supply disruptions, the report finds.

Qatar | TotalEnergies selected as partner in the North Field South LNG project

Following its selection as the first partner for the 32 million tpy North Field East (NFE) LNG project, TotalEnergies has again been selected as the first international partner in the 16 million tpy North Field South (NFS) LNG project.

Pursuant to the agreement, the company will obtain a 9.375% participating interest in the NFS project – out of a total 25% interest available for international partners – while the national company, QatarEnergy, will hold the remaining 75%.

Through its combined participating interests in NFE (6.25%) and NFS, TotalEnergies will add 3.5 million tpy of LNG production to its growing worldwide LNG portfolio by 2028, in line with the company’s objective to increase the share of natural gas in its sales mix to 50% by 2030.

Together, NFE and NFS form the wider North Field Expansion project to increase LNG production from the North Field, adding 48 million tpy to Qatar’s export capacity and bringing it to 126 million tpy by 2028.

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USA | Exports of petroleum products reached their highest average in 1H22

In 1H22, US exports of petroleum products averaged nearly 6 million bpd, according to the US Energy Information Administration (EIA). This is the highest first-half-of-year exports in the EIA’s Petroleum Supply Monthly data since 1981. Nearly all petroleum products contributed to more exports, with the largest increases coming from distillate fuel oil and hydrocarbon gas liquids (HGLs).

Changes in Europe’s supply sources contributed to shifts in trade patterns for some, but not all, US exports. In the EIA’s September 2022 ‘Short-Term Energy Outlook’, it is forecast that petroleum product net exports (gross exports minus gross imports) will remain above the five-year (2017 – 2021) average through the end of 2023, suggesting gross exports will remain higher than previous years.

China | Lummus technology selected for polypropylene plant

Lummus Technology has announced that Lihuayi Weiyuan Chemical Co. Ltd has selected its Novolen polypropylene (PP) technology for a new unit in Shandong Province, China.

Lummus’ scope includes the technology license for the PP unit, as well as basic design engineering, training and services.

“We are grateful for Lihuayi Weiyuan’s selection of Novolen, and proud to support our customer across the full value stream, from propane feedstock to high-value PP product,” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology.

In addition to PP technology, Lummus also licensed its CATOFIN® technology to Lihuayi Weiyuan. In 2021, Lihuayi Weiyuan selected Lummus as the licensor for its CATOFIN propane dehydrogenation technology for a 600 000 tpy unit in China.

Singapore | CCUS solutions explored

Air Liquide, Chevron, Keppel Infrastructure and PetroChina have signed a Memorandum of Understanding (MoU) to form a consortium which will aim to evaluate and advance the development of large-scale carbon capture, utilisation and sequestration (CCUS) solutions and integrated infrastructure in Singapore.

The consortium intends to research, test and develop technological, logistical and operational solutions for CCUS in Singapore.

In doing so, it will look to provide industry-wide CCUS-integrated infrastructure, primarily to support the energy and chemicals sector, by capturing and aggregating carbon dioxide (CO2) from large industrial emitters at a centralised collection facility.

The CO2 could then be utilised to make useful products, such as plastics, fuels and cement, and/or transported either through pipelines or by ships to suitable reservoirs in the Asia Pacific region, for sequestration.

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