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SAMREF Refiney. Credit: Samref

Aramco and ExxonMobil Plan Major Upgrade to Transform SAMREF Refinery into Integrated Petrochemicals Complex

Saudi Aramco has recently taken significant steps toward upgrading the SAMREF refinery, a 50:50 joint venture between Saudi Aramco and ExxonMobil, located in Yanbu, on Saudi Arabia’s Red Sea coast.

It is one of the Middle East’s leading and most sophisticated refineries, processing over 400,000 barrels per day (b/d) of Arabian Light crude oil. It is one of the oldest and largest refineries in the Kingdom, exporting products to Europe, North America, and Asia. The refinery previously underwent a clean fuels upgrade in 2014 to reduce sulfur content in its products. The refinery is notable for its high yield of gasoline and distillate products, exceeding 80% per barrel—higher than many comparable refineries. Its product mix can be adjusted to meet seasonal or market-specific demands, reflecting its processing flexibility.

Key Developments:

• MoU with ExxonMobil: In May 2025, Aramco and ExxonMobil signed a memorandum of understanding (MoU) to evaluate a significant upgrade of the SAMREF refinery. The planned upgrade aims to transform the facility from a conventional oil refinery into a world-class integrated petrochemicals complex. This move is part of Aramco’s broader strategy to increase the value derived from its crude oil by expanding into high-value petrochemicals.
• Strategic Objectives: The SAMREF upgrade is a core component of Aramco’s $100 billion liquids-to-chemicals program, which seeks to convert up to 4 million barrels per day of crude oil into petrochemicals and chemical feedstocks by 2030. This initiative is central to Saudi Arabia’s ambition to maximize economic returns from its hydrocarbon resources and diversify its downstream portfolio.
• Scope of Upgrade: The envisioned project involves adding a mixed-feed cracker to the existing refinery, enabling the production of a broader range of petrochemical products. This would align SAMREF with other major Aramco projects, such as the planned expansions at the SASREF and Yasref refineries, which are also being converted into integrated refining and petrochemical complexes

Recent Announcements:

• The MoU was signed during the Saudi-US Investment Forum in Riyadh in May 2025, underscoring the importance of international partnerships in Aramco’s downstream expansion plans.
• Aramco’s CEO Amin Nasser reported that, as of the end of 2024, the company had achieved 45% of its liquids-to-chemicals program target, with ongoing progress at SAMREF and other key sites.

A Word of Caution:

This latest development comes on the heels of Aramco’s recent announcements of other mega-project transformations, including the $10 billion expansion of the SASREF refinery (to add 400,000 b/d of petrochemicals capacity) and the $7 billion upgrade of the Yasref refinery (to integrate a 2.5 million-ton-per-year ethylene cracker). These projects are part of Aramco’s broader $100 billion liquids-to-chemicals program, which aims to shift its downstream focus from fuels to high-value chemicals.

Mohammed Al-Qahtani, Aramco’s downstream president, previously explicitly affirmed the 4 million b/d target in a 2024 statement:

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”

However, as industry analysts, while recognizing the impressive scale of the recently announced petrochemical transformation projects, we must caution this ambitious 4 million b/d target faces significant hurdles:

• To put things in perspective, 4 million b/d of crude oil—corresponding to approximately 200 million tonnes/year—is equivalent to about half of today’s global plastics market, which would require unprecedented speed and scale in petrochemical conversion project execution.
• Critically, full-barrel conversion technology—which would enable near-total transformation of crude oil into chemicals without producing fuels—does not yet exist at commercial scale. Current state-of-the-art refineries convert only 15–20% of each barrel to chemicals, with the rest yielding fuels.
•  S-Oil's Shaheen project employing TC2C technology developed by Saudi Aramco Technology Company (SATC) is presently about half-way complete and has a scheduled oil uptake capacity of 2.3 million tonnes of Arab Light, corresponding to 1.15% of the stated objective.
• Aramco’s timeline (less than six years to 2030) would also require parallel delivery of many more mega-projects than those recently announced, each typically requiring 5–7 years to complete, to reach this upper target.
   

#aramco #tc2c  #oiltochemicals  #liquidstochemicals  #fullbarrelconversion  #saudiaramco  #exxonmobil  #samref  #yasref  #sinopec  #sasref 

Sabic European Head Office in Sittard, The Netherlands

Sabic, the Saudi chemicals giant majority-owned by Aramco, is preparing to exit its European petrochemicals business—a move that underscores the mounting pressures facing the region’s manufacturing sector. The company’s plants and operations, spanning Germany, Spain, and the UK, are now up for sale, with investment banks Lazard and Goldman Sachs overseeing the process. These assets, which generate billions in annual sales, are among the largest of their kind in Europe.

Why Is Sabic Leaving Europe?

Sabic’s planned departure is not simply a business reshuffle but a reflection of deep-rooted challenges in Europe’s chemicals industry. Over the past several years, European producers have been squeezed by a combination of macroeconomic headwinds, persistent overcapacity, and intensifying global competition. The sector has faced years of oversupply and falling prices, with demand for petrochemicals closely tied to sluggish GDP growth. Sabic itself recently cut its 2025 GDP forecast, citing weaker prospects for the industry as a whole.

The economic backdrop is further complicated by Europe’s high energy prices and strict environmental regulations. European producers pay significantly more for natural gas than their US counterparts, and the cost of emitting carbon dioxide continues to rise under the EU’s ambitious climate policies. While American and Middle Eastern producers benefit from cheaper feedstocks and less stringent emissions rules, European plants—many of them older and reliant on naphtha—struggle to compete. The result is a cost gap of up to $300 per tonne for key products like ethylene and propylene, putting relentless pressure on margins.

Industry Consolidation and Rationalization

These structural disadvantages have triggered a wave of rationalization across the continent. Sabic is not alone: ExxonMobil, Dow, and other multinationals are also closing or idling European assets, as high costs and weak demand make it difficult to justify continued investment in aging facilities. In 2024 alone, nearly 1 million tonnes of ethylene capacity is being permanently phased out, with more closures likely as the industry adapts to the “new normal” of lower profitability and higher sustainability standards.

The European Union’s push for emissions reductions-targeting at least a 55% cut from 1990 levels by 2030-adds another layer of complexity. Modernizing old plants to meet these goals is often more expensive than closing them, and the introduction of mechanisms like the carbon border adjustment tax could further deter outside investment.

Who Might Buy Sabic’s Assets?

With Sabic’s portfolio now on the market, potential buyers are weighing both risks and opportunities. European rivals such as BASF and INEOS may see value in expanding their networks, while Middle Eastern energy firms could be interested but wary of Europe’s carbon costs. Private equity investors, particularly those focused on green technology, are also watching closely, drawn by the chance to modernize facilities and tap into EU subsidies for hydrogen and recycling projects.

Global Shifts and the Road Ahead

Sabic’s strategic pivot comes as the global chemicals market is being reshaped by geopolitics and shifting trade flows. Ongoing trade tensions between the US and China, along with the prospect of increased supply from Iran, are pushing more business toward the Middle East and Asia, further eroding Europe’s traditional advantages. Meanwhile, Sabic and Aramco are doubling down on investments in high-growth Asian markets, including a $6.4 billion petrochemical complex in China, betting on robust demand for plastics and chemicals in the region.

#sabic #aramco  #ineos #basf  #dow  #exxonmobil  #recycling  #carbontax

The Badger Ethylbenzene Technology has been added.

#badgerr #badgerlicensing  #ethylbenzene  #exxonmobil 

ExxonMobil's ethylene plant n°3 in Baytown, Texas (Credit: ExxonMobil)

February 7, 2025 | Point Comfort, Texas, USA (ExxonMobil Corp.)

ExxonMobil is evaluating the construction of an $8.6 billion polyethylene plant in Point Comfort, Texas, as part of its global growth strategy. The proposed facility, which would include a large-scale ethane cracker, aims to produce ethylene and polyethylene—key components in plastic manufacturing.

The project is under review following Exxon's application for tax abatements under Texas' Jobs, Energy, Technology, and Innovation Act (JETI). If approved, construction could begin as early as 2026, with operations expected to start in 2031.

The plant would generate approximately 600 permanent and contract jobs and employ over 3,000 workers during peak construction. Exxon projects the facility will contribute $3.6 billion annually to the state's economy once fully operational.

Exxon is also considering alternative locations for the project in the Middle East, Asia, and other parts of North America. The final decision will depend on market conditions and governmental support in competing regions.

#exxonmobil  #polyethylene  #ethylene  #steamcracker  #texas  #usgc  #gulfcoast  #ethanecracker  #gascracker 

ExxonMobil has unveiled an ambitious growth plan to increase its total production of oil and gas to 5.4 million oil-equivalent barrels per day by 2030, representing an 18% increase from current levels.

ExxonMobil News releases | Dec. 11, 2024

KEY PRODUCTION TARGETS

Permian Basin Operations

The company plans to roughly double its production in the Permian Basin to approximately 2.3 million oil-equivalent barrels per day by 20301. This expansion is supported by ExxonMobil's acquisition of Pioneer Natural Resources, which has given them the largest contiguous acreage position in the region1

Guyana Operations

In Guyana, ExxonMobil expects to reach a total production capacity of 1.7 million barrels per day, with gross production growing to 1.3 million barrels per day by 20301. The company plans to develop eight projects in the region by 2030.

FINANCIAL INVESTMENT

Capital Expenditure

▪️ 2025: $27-29 billion in cash capital expenditure1
▪️ 2026-2030: $28-33 billion annually1

Expected Returns

The company projects an additional $20 billion in earnings and $30 billion in cash flow over the next six years. These investments are expected to generate returns of more than 30% over their lifetime4

STRATEGIC FOCUS

By 2030, more than 60% of the company's production will come from advantaged assets (Permian, Guyana, and LNG), up from the current 50%. The company also plans to pursue up to $30 billion in lower emissions investment opportunities while targeting to lower its operated Upstream emissions intensity by 40-50% versus 2016 levels.

#naturalgas  #crudeoil  #exxonmobil  #oildemand  #demandgrowth 

ExxonMobil’s Esso division has completed the sale of the Fos-sur-Mer refinery, one of France’s major refineries, and two other oil terminals to Rhone Energies, a consortium formed by Trafigura with Entara LLC. The deal was announced on Friday, November 1, 2024.

The Fos-sur-Mer refinery has a crude oil processing capacity of 140,000 barrels per day. The transaction includes the Toulouse and Villette-de-Vienne terminals, operated by Exxon’s local unit Esso.

This sale marks a significant reduction in Exxon’s refining capacity in Europe, with its total refining capacity in the region decreasing to approximately 1.1 million barrels per day. However, Exxon remains the second-largest refining capacity holder in northwestern Europe, after TotalEnergies.

The sale is part of Exxon’s efforts to divest non-core assets and focus on its core business. The company is also close to selling its 25% stake in a German refinery, MiRO Mineraloelraffinerie Oberrhein GmbH.

#crudeoil  #refining  #refinery  #exxonmobil  #totalenergies  #france  #miro  #rhoneenergies 

Sipchem announced on July 4th on Linkedin to have "signed an Engineering and procurement Sign off of its Expanded Production Capacity for High-VA  Ethylene Vinyl Acetate ( EVA) production plant."

"This investment will enable Sipchem to produce innovative EVA grades designed to support downstream production of Solar Encapsulate Cells as well as certain Hot Melt Adhesives." the company stated. 

The production plant, based on ExxonMobil's tubular reactor technology, belongs to International Polymers Company, a subsidiary JV of Sipchem and Hanwha Solutions Corporation, and is installed in Al-Jubail, 🇸🇦 KSA. 

With a design capacity of 200,000 tpa, the plant is thought to be running at close to 220,000 tpa. Debottlenecking by an additional 70,000 tpa will bring the plant output close to 290,000 tpa.

The company declined to comment on the engineering solution that will be employed to increase the plant capacity.

#sipchem  #exxonmobil  #saharainternational  #hanwha  #tubularreactor  #ldpe  #eva  #highpressure  #vinylacetate  #saudiarabia  #solarpv