Communicator

Bukom Refinery | Business Today, May 2024

Aster Chemicals and Energy has swiftly become a transformative force in Singapore’s energy and chemicals sector, capitalizing on a historic wave of Western divestments from the city-state. The company’s landmark acquisition of Shell’s integrated refining and petrochemical assets on Bukom and Jurong Islands in 2025—one of the largest such transactions in the region’s history—signals a decisive shift in Singapore’s industrial landscape.

Strategic Expansion Amid Western Disengagement

Aster’s rise is directly linked to the broader strategic retreat of Western energy and chemical majors from Singapore, driven primarily by economic imperatives. Shell’s decision to sell its entire Energy and Chemicals Park—including the 237,000-barrel-per-day Bukom refinery and 1.1 million tonne-per-year naphtha cracker—was largely the result of persistent negative margins, regional oversupply, and the need to reallocate capital to more profitable ventures. Similarly, Chevron Phillips Chemical (CPChem) and its partners exited their Singapore HDPE joint venture (CPSC), selling the 400,000-tonne-per-year plant to Aster in 2025 as part of a broader portfolio optimization strategy. These divestments reflect a wider trend of Western companies withdrawing from mature Asian assets due to challenging market conditions, competitive pressures, and a focus on financial performance.

Building a Regional Powerhouse

Aster, backed by Indonesia’s Chandra Asri (80%) and global commodities giant Glencore (20%), has rapidly consolidated these assets into the Aster Energy and Chemicals Park. The company further expanded its portfolio by acquiring the remaining 50% stake in the Bukom Condensate Splitter Unit from Petrochemical Corporation of Singapore (Private) Limited (PCS), giving it full control over a key feedstock processing facility and boosting its Singapore refining capacity to over 300,000 barrels per day.

This integrated platform, spanning refining, petrochemicals, and advanced polymer production, positions Aster as a new regional leader—able to optimize supply chains, reduce reliance on imports, and support Southeast Asia’s growing demand for fuels and chemicals. The company’s strategy is also expected to deliver economic benefits to Indonesia through improved supply security and repatriation of profits.

A New Chapter for Singapore’s Industry

Aster’s bold moves underscore a pivotal moment for Singapore’s energy and chemicals hub. As Western majors pivot away from local manufacturing, Aster is leveraging these strategic exits to build a vertically integrated, regionally focused powerhouse. The company’s leadership has emphasized its commitment to operational excellence, workforce continuity, and innovation, ensuring Singapore remains a critical node in the global energy and chemicals value chain—even as the ownership and strategic direction shift decisively toward Asian and emerging market players.

#singapore #spc #asterchemicals #shell #chevronphillips #cpchem #exxonmobil #jurong #bukom

SRC refinery aerial view | Credit: SRC Facebook page, 23rd Dec 2022

Chevron's move to divest its 50% stake in the Singapore Refining Company (SRC) signals a pivotal strategic recalibration, driven by evolving pressures in Asia's refining landscape. This decision, confirmed in a June 19, 2025 report from Reuters, aligns with a broader industry trend where Western energy giants are streamlining portfolios amid challenging regional economics. The SRC refinery—a 290,000 bpd joint venture with PetroChina—confronts intensifying structural headwinds, including feedstock cost volatility, regional oversupply, and competition from China's integrated refining-petrochemical complexes. These factors, coupled with shrinking margins across Asian refineries, render Chevron's exit both a targeted portfolio optimization and a response to systemic market shifts.

SRC's operational context underscores systemic headwinds.

SRC’s operational context underscores the depth of structural challenges now facing independent refiners in Asia. While the Jurong Island-based SRC refinery is equipped with advanced units such as residue catalytic crackers and hydrocrackers, it must contend with the formidable scale and integration of China’s new mega-refineries. The economics of feedstock procurement have become increasingly unfavorable: Singapore is wholly reliant on imported crude, while Chinese refiners have gained a significant cost advantage by securing discounted Russian oil in the wake of shifting global trade flows. At the same time, China’s aggressive expansion in petrochemical capacity—evidenced by a 25% surge in ethylene output since 2023—has saturated regional markets with olefins, driving down margins for less-integrated players like SRC. These pressures mirror the earlier exit of CPChem—a Chevron group's subsidiary—from its Singapore HDPE joint venture, sold to Aster in 2024 amid similar margin erosion.

Market intelligence signals deeper regional strains.

Recent ppPLUS analyses (Communications #3754, #3812, #3854, , #3879, #3881 and #3885, ) highlight Asia's refining overcapacity, where utilization rates remain below 75% despite regional demand growth. China's export-oriented model exacerbates this; its chemical exports surged 18% year-on-year in Q1 2025, undercutting Singapore-based producers. Meanwhile, SRC's niche—producing ultra-low-sulfur diesel and high-octane gasoline—faces competition from China's integrated refining-chemical complexes, which achieve cost synergies unavailable to smaller players. Chevron's retreat thus exemplifies a strategic pivot away from assets vulnerable to state-subsidized competition.


SRC Refinery Assets | Market Intelligence by ppPLUS

Potential buyers face complex calculus.

PetroChina, as JV partner, holds first-right options but may resist full ownership given SRC's exposure to Chinese oversupply. Private equity firms could pursue carve-outs of SRC's infrastructure (e.g., cogeneration plants or VLCC-capable berths), though regulatory hurdles loom. Alternatively, regional players like Thailand's PTTEP may leverage SRC for feedstock diversification, albeit amid persistent margin uncertainties. The divestment process will test appetite for assets requiring capital-intensive decarbonization upgrades to remain competitive beyond 2030.

This move underscores a broader industry inflection point.

As Chevron joins ExxonMobil and Shell in scaling back Asian downstream exposure, the region's refining model increasingly favors integrated national champions over international operators. SRC's fate will signal whether niche capabilities can offset structural disadvantages against China's cost-advantaged giants.

#chevron #chevronphillips #exxonmobil #shell #src #singapore #refinery #refining #petrochina #pttep #china #thailand

Ras Laffan and Golden Triangle complexes' mass balances, technologies and flow charts | Sites' models by Portfolio Planning PLUS

Qatar Energy is embarking on a major expansion of its petrochemicals business, signaling a transformative phase for the country’s industrial sector and its global energy ambitions. The state-owned company has announced plans to more than double its petrochemical production capacity, with significant investments in both Qatar and the United States. This expansion is centered around the construction of world-scale ethane-based crackers, designed to meet the anticipated surge in global demand for plastics and chemical products as the industry shifts toward cleaner and more efficient energy sources.

At the heart of this strategy is the $6 billion Ras Laffan Petrochemical Complex, currently under construction in Ras Laffan Industrial City, about 80 kilometers north of Doha. This facility will house an ethane cracker with an ethylene production capacity of 2.1 million metric tons per year (MMtpy), making it the largest in the Middle East and one of the largest globally. The complex will also feature two polyethylene trains capable of producing a combined 1.7 MMtpy of high-density polyethylene (HDPE), raising Qatar’s overall HDPE output by about 50% and increasing ethylene production capacity by more than 40%. The project is a joint venture between Qatar Energy, which holds a 70% stake, and Chevron Phillips Chemical (CPChem), which owns the remaining 30%.

The Ras Laffan complex is expected to be operational by the end of 2026, at which point it will propel Qatar’s total petrochemical production capacity to approximately 14 million tons per year. This marks the largest single investment in Qatar Energy’s downstream sector and is a cornerstone of the company’s broader strategy to reinforce its position as a leading global energy player. The project is also notable for its focus on sustainability, with energy-saving technologies and emissions-reduction measures designed to lower the facility’s environmental footprint compared to similar plants worldwide.

Parallel to its domestic expansion, Qatar Energy is also investing heavily in the United States. In partnership with CPChem, the company is developing the Golden Triangle Polymers Plant in Orange, Texas. With a planned ethylene capacity of 2.1 MMtpy and two polyethylene units totaling 2.0 MMtpy, this $8.5 billion facility is expected to be one of the largest of its kind globally. Production is scheduled to commence in 2026, and the bulk of its output will be aimed at export markets, supporting the growing global demand for polyethylene products used in packaging, consumer goods, and industrial applications.

Qatari energy minister and Qatar Energy CEO Saad al-Kaabi said gas will be the world's energy "backbone"

These projects are underpinned by Qatar’s abundant natural gas resources, particularly from the North Field, the world’s largest non-associated natural gas field. The North Field Expansion project, which will increase Qatar’s liquefied natural gas (LNG) production capacity from 77 million to 110 million tons per year, is closely linked to the supply of feedstock for the new petrochemical facilities. Qatar Energy’s integrated approach, leveraging both upstream and downstream assets, is designed to maximize the value of its natural gas reserves and ensure long-term competitiveness in the global energy market.

Qatar Energy’s CEO, Saad Sherida Al-Kaabi, has emphasized that gas will remain a backbone for industry, power, chemicals, and food production for decades to come. He notes that the company’s investments in petrochemicals are a natural extension of its LNG leadership, enabling it to diversify revenues and support the country’s economic development. The projects also reflect a broader industry trend, with petrochemical producers worldwide investing in ethane crackers to capitalize on the availability of low-cost feedstock and to adapt to evolving market dynamics.

In summary, Qatar Energy’s aggressive expansion in the petrochemicals sector—both at home and abroad—signals a new era for the company and the country. By doubling its capacity and investing in state-of-the-art, environmentally conscious facilities, Qatar is positioning itself as a major global hub for petrochemical production, poised to benefit from the long-term growth in demand for plastics and chemical products worldwide.

#qatarenergy #chevronphillips #cpchem #qatar #naturalgas #lng #steamcracking #worldscale #goldentriangle #raslaffan

Scaling New Heights: How Univation and Industry Rivals Are Redefining Polyethylene Production Capacity and Flexibility

The polyethylene (PE) production industry is experiencing a remarkable transformation, driven by advances in process technology and a relentless pursuit of scale and efficiency. At the center of this evolution is Univation Technologies, which recently announced a new UNIPOL™ PE Process design capable of producing 800,000 tonnes per year. This announcement marks a significant leap forward in the scale of single-line PE production, underscoring the company’s commitment to pushing technological boundaries while maintaining the flexibility to meet diverse market needs.

Univation’s journey toward ever-greater production capacities is a testament to decades of innovation. The company’s first UNIPOL™ PE plant, built in 1989, had a capacity of 225,000 tonnes per year, which at the time was a world record for a single-reactor PE facility. By 2016, the landscape had changed dramatically, with more than twenty operating lines each producing at least 400,000 tonnes per year, and single-line capacities reaching today 650,000 tonnes. The latest 800,000 tonnes per year design represents a substantial 23 percent increase over the previous benchmark, and the scale of this expansion is even more striking when considering that a 150,000-tonne increase is equivalent to the entire output of a typical reactor from the 1970s, highlighting the extraordinary progress that has been made in reactor engineering and process optimization.

A key differentiator for the UNIPOL™ PE Process is its product flexibility, enabled by a sophisticated portfolio of catalysts. By selecting from a dedicated line of catalysts, producers can seamlessly switch between a full spectrum of PE products, including metallocene-based resins, bimodal and unimodal HDPE, and LLDPE, all within the same reactor. This versatility allows manufacturers to respond rapidly to changing market demands without the need for costly and time-consuming reactor modifications, setting UNIPOL™ PE apart from many competing technologies, which often require dedicated lines for each product type.

The race for the world’s highest-capacity PE plant is intensifying, with Univation’s latest announcement coming on the heels of significant developments from Chevron Phillips Chemical (CP Chem). CP Chem’s MarTech™ single-loop slurry process is now being deployed at a massive scale, with the Golden Triangle project in Texas featuring two HDPE lines, each with a capacity of 1,000,000 tonnes (1 million tonnes) per year, and a similar scale project with two HDPE lines, each with a capacity of 850,000 tonnes per year at the Ras Laffan Petrochemical Complex in Qatar. While CPChem has focused on maximizing HDPE production through specialized lines, Univation’s approach emphasizes both scale and product diversity, offering producers a compelling combination of flexibility and efficiency.

Achieving such immense reactor capacities is a feat of engineering that cannot be overstated. Scaling up polymerization reactors to handle up to 1 million tonnes per year and beyond requires overcoming significant technical challenges. Advanced cooling systems, real-time temperature controls, and innovative designs are essential to manage the intense heat and mixing requirements of high-throughput polymerization, as well as enhancing operational reliability and efficiency, ensuring that these mega-plants can run safely and consistently at peak performance.

In this rapidly evolving landscape, access to accurate and up-to-date technical information is more important than ever. Platforms like portfolio planning PLUS (ppPLUS) have emerged as invaluable resources for industry professionals, offering open-access, collaborative tools for tracking global PE plant deployments. Through ppPLUS, users can explore detailed information on PE plants worldwide, visualize production clusters, and contribute data on plant capacities, technology choices, and mass balances. This level of transparency and collaboration supports better decision-making and accelerates the adoption of best practices across the industry.

In summary, the latest advances in PE production technology, exemplified by Univation’s 800,000 tonnes per year UNIPOL™ PE Process and CP Chem’s MarTech mega-projects, are redefining the limits of scale and flexibility in polymer manufacturing. These achievements are not only a testament to the ingenuity of process engineers but also a harbinger of a more efficient, responsive, and interconnected global PE industry. As collaborative platforms like ppPLUS continue to democratize access to technical knowledge, the pace of innovation is likely to accelerate, shaping the future of plastics production for decades to come.

#hdpe #lldpe #bimodal #metallocene #univation #unipol #martech #slurryloop #gasphase #massbalance #cpchem #chevronphillips

Oil Majors Market Capitalization. By: Aniekpong D. Effiong. Data source: CompaniesMarketCap.

By Portfolio Planning PLUS, 6^th May 2025

BP, the British energy giant, has become a focal point of merger speculation as rivals Shell and Abu Dhabi’s ADNOC weigh strategic moves to acquire the company. The developments highlight BP’s vulnerability amid lagging stock performance and shifting energy priorities, with potential bids reflecting divergent visions for the future of the oil sector.

Shell’s Calculated Interest

Shell is actively evaluating a takeover of BP, according to Bloomberg and Reuters sources, with advisers assessing regulatory, financial, and operational implications. The rationale centers on BP’s discounted valuation-its shares have fallen nearly 30% over 12 months-and the strategic appeal of combining Shell’s $197 billion market cap with BP’s assets to rival U.S. giants ExxonMobil and Chevron.

A merger would create a $320 billion behemoth, dominate LNG and deepwater drilling portfolios, and unlock an estimated $5–7 billion in annual synergies. However, Shell CEO Wael Sawan has emphasized caution, telling the Financial Times that share buybacks and smaller acquisitions remain priorities. Regulatory scrutiny in the EU and U.S., particularly over overlapping downstream assets, could also complicate a deal.

ADNOC’s Earlier Overtures

ADNOC, the UAE’s state-owned energy leader, previously explored acquiring BP in 2024 but abandoned the idea after deeming the company a poor strategic fit. Sources cited BP’s renewable energy pivot and political sensitivities as key deterrents. Instead, ADNOC has focused on gas and chemical ventures, including a $3.6 billion Fertiglobe acquisition and a joint venture with BP in Egypt.

The UAE giant’s decision underscores BP’s challenging position: criticized by investors for its energy transition strategy yet still seen as insufficiently green by some state-backed players. ADNOC’s pivot toward partnerships rather than outright acquisitions suggests BP’s mixed appeal in a sector prioritizing either scale or decarbonization.

BP’s Crossroads

BP’s struggles are multifaceted. Its market capitalization of $110 billion trails Shell’s by nearly half, and its revised transition plan-scaling back renewables investment to focus on oil and gas-has yet to reassure markets. Activist investor Elliott Management acquired a 5% stake in late 2024, intensifying pressure to improve returns.

CEO Murray Auchincloss, who took the helm in 2024, has pledged $20 billion in asset sales by 2027 to streamline operations. However, these efforts have done little to lift its stock, leaving BP exposed to takeover interest.

Industry Implications

A Shell-BP merger would accelerate consolidation among European majors, mirroring U.S. deals like Exxon-Pioneer and Chevron-Hess. For ADNOC, BP’s appeal lies in LNG and trading capabilities, but its renewables portfolio clashes with the UAE’s oil-focused growth strategy.

Analysts note that BP’s future hinges on whether it can stabilize operations independently or becomes a target for firms seeking to bolster reserves and market share. “BP is caught between competing visions: too green for some, not green enough for others,” said energy strategist Kathleen Brooks. “That paradox makes it a compelling but risky target.”

What’s Next?

Shell’s next steps depend on BP’s stock trajectory and oil price stability. ADNOC, while out of the running for now, could re-engage if geopolitical or market conditions shift. For BP, the path forward involves either executing its turnaround plan or succumbing to the pressures of an industry increasingly defined by scale.

As the energy transition reshapes priorities, BP’s fate may well determine whether European majors can compete globally-or become acquisition targets themselves.

#energytransition #renewableenergy #oilmajors #oilandgas #shell #adnoc #bp #exxonmobil #chevron #fertiglobe #lng #naturalgas #crudeoil #merger #acquisition

Details about existing plants and refinery capacity have been updated. Absent more detailed information about plant capacities, mass balance can not be generated.

Isoalky Alkylation and Flexicoking units have been added.

#isoalky #flexicoking #exxonmobil #uop #chevron #hongrun #china #petrochemical

*Excludes non-cash finance leases of $43 MM in Refining, $30 MM in Midstream and $2 MM in Corporate and Other.
** Our share of joint ventures’ capital spending.

December 16, 2024 | Phillips 66 News Release

Phillips 66 announced a 2025 capital budget of $2.1 billion, including $998 million for sustaining capital and $1.1 billion for growth capital. The budget underscores Phillips 66 dedication to delivering value to shareholders by funding growth in the NGL wellhead-to-market value chain and further enhancing refining competitiveness.

▪️ In Midstream, the capital budget of $975 million comprises $429 million for sustaining projects and $546 million for growth projects. ▪️ The budget advances the integrated NGL wellhead-to-market value chain by strengthening the company’s position in key basins, including increasing gas processing capacity.
▪️ In Refining, Phillips 66 plans to invest $822 million, including $414 million for sustaining capital. Refining growth capital of $408 million supports the company’s commitment to high-return, low-capital projects.
▪️ The Marketing and Specialties capital budget reflects the continued enhancement of the company’s branded network.
The Renewable Fuels capital budget reflects investments at the Rodeo Renewable Energy Complex toward the optimization of feedstocks and logistics for renewable diesel and sustainable aviation fuel production.
Corporate and Other capital will primarily fund information technology projects.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB) is expected to total $877 million and be self-funded. Including Phillips 66’s proportionate share of capital spending associated with joint ventures CPChem and WRB, the company’s total 2025 capital program is projected to be $3 billion.

▪️ CPChem’s growth capital will continue to fund the construction of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, through joint ventures. The facilities are expected to start up in 2026.
▪️ WRB’s capital spending will primarily be directed to sustaining projects.

#phillips #chevron #wrb #refining #renewablediesel #saf #aviationfuel #ngl #cpchem #raslaffan #quatar #usgc #goldentriangle #rodeo

Dec 16, 2024 | Phillips 66 News Release

Two world-scale joint venture projects being developed by Chevron Phillips Chemical Company (CPChem) and QatarEnergy remain on track to start operations in 2026, Phillips 66 said on Monday. Phillips 66 and Chevron hold equal stakes in Chevron Phillips Chemical.

The US project is Golden Triangle Polymers, an integrated polyethylene (PE) complex in Orange, Texas. Chevron Phillips holds a 51% stake, and construction started in 2023.

The Qatari project in Ras Laffan is another integrated PE project. It is a 70:30 joint venture between QatarEnergy and CP Chem. Construction on this project started in 2024.

Remarquably, these two ethane crackers employing Technip tecnology will be the world's two largest, producing each above 2 Mt/a of ethylene when they are starting up, and each of the two CPChem MarTECH Single Loop polymerization plants also the world's largest with an output of 1 Mt/a of HDPE each at Golden Triangle and 850 Kt/a each at Ras Laffan.


#phillips #chevron #qatarenergy #cpchem #technip #martech #slurryloop #ethylene #polyethylene #raslaffan #goldentriangle #steamcracking

Picture: Chevron refining operations

Chevron newsroom, PASADENA, Texas (Dec. 10, 2024)

Chevron U.S.A., Inc., a wholly owned subsidiary of Chevron Corporation, has completed a retrofit of its refinery in Pasadena, Texas. The upgrade aims to increase product flexibility and expand the processing capacity of lighter crudes by nearly 15% to 125,000 barrels per day.

Key Benefits

▪️Increased Capacity: The refinery’s processing capacity for lighter crudes has increased by 15%, allowing it to handle more equity crude from the Permian Basin.
▪️Enhanced Gulf Coast Supply: The upgrade enables Chevron to supply more refined products to customers in the U.S. Gulf Coast region.
▪️Synergies with Pascagoula Refinery: The retrofit enhances synergies with Chevron’s Pascagoula refinery, improving overall refining system efficiency.
▪️Light Tight Oil (LTO) Project: The upgrade is part of Chevron’s LTO Project, which focuses on improving facility reliability and safety, boosting domestic refined product supply, and introducing jet fuel production and gas oil exports.

Strategic Intent

Chevron acquired the Pasadena Refinery in 2019 as part of its strategy to expand its Gulf Coast refining system. This upgrade supports the company’s goal of increasing its refining capacity and improving its ability to meet growing demand for refined products in the region.

Timeline

The upgrade was completed in December 2024, with the refinery now fully operational with its enhanced capabilities.

#chevron #refinery #capacityincrease #crudeoil #lightcrude #permian #pasadena

#chevron #isoalky #alkylation #alkylate #gasoline #fuelblending #uop #saltlakecity

Oil company Chevron is moving its headquarters from California to Houston after repeated warnings that the Golden State's regulatory environment makes it difficult to do business there. The move announced Friday will end the company's more than 140-year existence in the largest U.S. state.

Chevron has already scaled back new investment in California refining, citing "confrontational" government policies in a state with some of the strictest environmental rules in the US. In January, refining chief Andy Walz warned that the state was playing a "dangerous game" with climate rules that threaten to spike gasoline prices.

Chevron joins a long list of California emigrants that includes Oracle Corp., Hewlett Packard Enterprise Co., Tesla Inc. and Social Network X. The migration among former Silicon Valley tech giants has been driven largely by tax and cost-of-living considerations, according to Bloomberg.

However, according to Ilon Musk's view, it's not so much about taxes as it is about policies implemented by the state's leadership. And that includes the green agenda (with its taxes on conventional oil and gas) and drug liberalization and so on.

#usa #texas #california #chevron #oilandgas #refining #netzero #carbontax #greenagenda

Enverus Intelligence Research (EIR) analysts have provided an overview of merger and acquisition (M&A) activity within the U.S. upstream sector for both the fourth quarter and the entirety of 2023.

The final quarter of 2023 witnessed unprecedented activity, marking a historical high in observed M&A transactions within the U.S. oil and gas industry, totaling $144 billion. Over the course of the entire year, M&A deals amounted to $190 billion, also setting a new record.

Notably, two significant transactions significantly contributed to these figures: Exxon's acquisition of Pioneer Natural Resources for $65 billion and Chevron's purchase of Hess for $60 billion.

This surge in M&A activity is noteworthy considering the backdrop of a decade-long decline in investment in oil and gas exploration. Despite the identification of major shale oil fields in the U.S., investment in new wells has waned, with industry giants opting to acquire existing assets instead.

Analysts at Dittmar observed that the market is currently characterized by an imbalance, with more buyers than sellers, resulting in escalated prices.

#oil &gas #m &a #upstream #oilandgas #exxonm #chevron