Communicator

Screenshot showing Indian crude oil refineries from the Portfolio Planning PLUS Refinery Module.

Saudi Aramco, the world’s top oil company, is close to sealing a major deal in India that could change the energy landscape for both countries. The company is in advanced talks to buy a 20% stake in two brand-new oil refineries being planned by Indian state-run firms ONGC and BPCL. These massive projects, set for Gurajat and Andhra Pradesh, will each process 12 million tonnes of crude oil every year. The total investment for both refineries is expected to reach around $24 billion, with Aramco’s share estimated at up to $5 billion.

This isn’t just about buying into a couple of refineries. For Aramco, it’s a smart way to make sure its oil has a steady home in India, which is one of the world’s fastest-growing energy markets. As global oil demand slows in other regions, India’s appetite for fuel is still rising. By owning a slice of these refineries, Aramco can lock in sales for its crude oil for years to come. For India, the deal is a win in several ways. It brings in foreign investment, creates new jobs, and helps guarantee a reliable supply of oil. The partnership also means India can tap into Aramco’s technology and expertise, which could help the country strengthen its position as a major refining and petrochemical hub.

This potential partnership is no coincidence as it follows a high-level meeting in April between Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman. The two leaders discussed ways to deepen their countries’ energy ties, and this deal is a clear sign of that growing relationship. Aramco’s interest in India comes after some earlier attempts to invest in the country’s refining sector didn’t work out. But this time, the talks are progressing well, and both sides seem eager to make it happen.

Aramco isn’t the only Gulf oil giant looking to strengthen its ties with India. The United Arab Emirates’ ADNOC recently signed a long-term deal to supply liquefied natural gas (LNG) to Indian Oil, and QatarEnergy is investing heavily in India while also signing a major supply agreement with Shell. Oman’s OQ is also moving forward with a big petrochemical project. All of this shows how important India has become for Gulf energy companies as they look for new markets.

If the deal goes through, Aramco will become a key player in India’s energy sector. It’s a move that could help shape how oil flows into and out of Asia for years to come. For India, it means more investment, jobs, and energy security. For Aramco, it’s a way to stay ahead in a changing world where energy demand is shifting. In short, this isn’t just a business deal-it’s a sign of how the energy world is changing, with India and the Gulf states building stronger ties and planning for the future together.

#aramco  #saudiarabia  #india  #ongc  #bpcl  #refining  #refinery  #crudeoil  #oilrefining  #adnoc  #qatarenergy  #shell  #oq 

HOUSTON, June 20, 2024 -- Bharat Petroleum Corporation Ltd. ("BPCL") has selected Univation's UNIPOL™ PE Process Technology for two world-scale production lines to be located at BPCL's Bina Refinery site in Madhya Pradesh, India, Univation reports.

The two units are designed to achieve a combined nameplate production capacity of 1,150,000 tons per annum of polyethylene (PE).

The process designs for the two BPCL's reactor lines are engineered with full production back-fill capabilities to maximize manufacturing flexibility, increase PE resin supply continuity, and enable enhanced responsiveness to emerging marketplace needs.

The two BPCL reactor lines will enable production of both high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) products allowing BPCL to meet their customer demands across a wide range of PE applications essential for Indian markets.


#univation  #unipolpe  #india  #bpcl  #binarefinery 

Picture: Indian subcontinent refineries, via ppPLUS

India’s dependence on imports to meet its requirements of basic petrochemicals, including polymers, is only expected to rise, despite projects – under implementation and on the drawing boards. This is partly because the historical baggage of poor capacity builds will take time to catch up with rising demand.

In the last few years, however, India’s public sector refiners have climbed on the petrochemicals bandwagon, seeking value-added outlets for refinery streams. They have invested in aromatics (for feeding the polyester value chain), propylene (for polypropylene, PP, and some other chemicals notably, oxo-alcohols and acrylate monomers), linear alkyl benzene (LAB), a key detergent raw material, and a few other projects. And more are to come in the near-term.

There are several commonalities amongst the firm projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated.

There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. Much will hinge on the commercials of the olefin supply arrangement, but such business models are widely followed, including here in India, let alone in other countries.

Importantly, the government needs to recognise that the chemical industry as a key enabler of modern living, and not a nuisance to be constrained through regulation and red-tape. The priority must be on developing well-developed clusters where not just the petrochemical industry, but also the broad chemical industry – including the fine and specialty chemical industries, wherein India’s competitiveness is well recognised – can locate and start operations in double-quick time. Clusters are efficient and safe locales where the industry can thrive, as several countries have amply shown.
 
India needs a much larger and more diversified chemical industry than it has now. The former it seems is happening. Not so sure of the latter. The herd mentality to investments needs to change. Those who have dared to do so – and there are a few examples – have been amply rewarded. More need to emulate, not imitate, them!

Ravi Raghavan, 12 Nov 2024, Linkedin post.

#india  #petrochemicals  #chemicals  #valuechains  #propylene  #fcc  #refinery  #polyester  #aromatics  #olefins  #polypropylene  #acrylics  #lab  #chemicalindustry  #indianchemicals  #IOCL  #BPCL  #HPCL  #RelianceIndustries  #investment  #specialitychemicals  #finechemicals  #oilrefining  #polymers  #ethylene  #competitiveness