Categories:





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

By Portfolio Planning PLUS, 6th 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




EcoCeres manufactures green and renewable HVO using patented technology at a facility located in Jiangsu Province / Ecoceres

Under China's 14th Five-Year Plan (2021-2025), the government has set a target of consuming 50,000 tonnes of Sustainable Aviation Fuel (SAF) annually by 2025. Additionally, policymakers are exploring the implementation of a blending mandate for the aviation industry, which could require blending SAF at rates of 2% to 5%.

According to several sources, China's SAF industry is on track for significant growth, with total announced production capacity projected to reach 3.63 million tonnes per annum (mtpa) by the end of the decade. This expansion aligns with broader regional trends, as the Asia-Pacific region's SAF production capacity is expected to hit 3.5 million metric tons annually by the end of 2025.

Review of SAF Key Players and Capacities

Below is a list of some SAF operating production plants and projects in China:

OPERATING

Sinopec Zhenhai Refining & Chemical Company

  • Plant Location: Zhenhai District, Ningbo City, Zhejiang Province
  • Capacity: Currently produces 100,000 tpy HEFA-based SAF and renewable diesel at its Zhenhai refinery. Plans for expansion are underway.
  • Technology: Uses Sinopec's proprietary SRJET biofuel production technology. The plant is Asia's first RSB-certified SAF production unit.
  • Details: The biofuel plant been operational since May 2022; most of its output is exported internationally. It has also received airworthiness certification to supply biojet fuel to China's aviation market.

Junheng Industry Group Biotech

  • Plant Location: Puyang Industrial Park, Henan Province
  • Capacity: the company started producing SAF in December 2023 at a new 400,000 tpy plant, costing 1.3 billion yuan ($180 million).
  • Production: the company expects to produce 150,000 tonnes of SAF in 2024.
  • Feedstock: UCO and waste oils from municipal, agricultural, and forestry sources
  • Achievements: First private enterprise in China to receive SAF airworthiness approval from the Civil Aviation Administration of China (CAAC). Conducted successful engine tests using 100% SAF. SAF product obtained the EU ISCC bioenergy certification and is sold to European countries.

EcoCeres

  • Plant Location: Zhangjiagang , Jiangsu Province
  • Technology: Proprietary technology.
  • Capacity: 100,000 tpy SAF / 200,000 tonnes renewable disel
  • Details: Operational since 2022; primarily exports its production to international markets.

PROJECTS

Sinopec and TotalEnergies Joint Venture

  • Plant Location: Sinopec refinery in China (specific location not disclosed)
  • Capacity: Planned capacity of 230,000 tpy SAF
  • Feedstock: Local waste or residues from the circular economy (e.g., UCO and animal fats)
  • Technology & Partners: Will utilize Sinopec's SRJET technology combined with TotalEnergies' expertise in technical operations and distribution.
  • Timeline & Details: This collaboration aligns with Sinopec's strategy for low-carbon solutions and TotalEnergies' goal of producing 1.5 million tons of SAF annually by 2030.

Tianzhou New Energy

  • Plant Location: Weiyuan, Sichuan Province
  • Capacity: 200,000 tonnes per year (tpy) SAF facility, with plans to expand to 500,000 tpy
  • Feedstock: Used cooking oil (UCO)
  • Timeline: Initially targeted late 2024 for start-up, now delayed to late 2025
  • The facility will process 200,000 tpy of UCO into SAF, equivalent to about 4,300 barrels per day.

Zhejiang Jiaao Enprotech

  • Plant Location: Lianyungang City, Jiangsu Province
  • Capacity: 500,000 tpy SAF facility under construction
  • BP acquired a 15% stake in the project for $49.56 million (354 million yuan)
  • Feedstock: Waste cooking oil and other renewable resources processed using HEFA technology
  • Details: One of the largest SAF plants in the region; expected to play a significant role in China's green aviation sector.

Sichuan Jinshang Environmental Protection Tech

  • Plant Location: Suining, Jintang County, Sichuan Province
  • Planned capacity of 400,000 tpy SAF
  • Timeline: Construction expected to begin by July 2025 and complete by the end of 2025
  • Details: Partnering with Honeywell UOP to use Ecofining technology.
  • Feedstock: The plant will process renewable feedstocks like UCO and animal fats into SAF.

Shandong Haike Chemical

  • Plant Location: Dongying City, Shandong Province
  • Capacity: Retrofitting an existing refining unit to produce 500,000 tpy SAF using AxensVegan technology
  • Timeline: Expected completion by late 2025
  • Details: The first application of Axens’ Vegan technology in Asia. The retrofit aims to produce high-quality SAF for domestic and international markets.

We will continue to update this list of SAF production plants in China and globally.

#biofuels #saf #sustainability #renewablefuels #renewablediesel #hefa #sustainableaviationfuel #hydrotreating #usedcookingoil #uco




Axens' Vegan® technology to produce renewable diesel (RD) and sustainable aviation fuel (SAF) through the hydrotreatment of a wide range of vegetable oils and animal fats, including used cooking oil (UCO), has been added.


#vegan #saf #sustainableaviationfuel #renewablediesel #usedcookingoil #uso #axens #sustainability




CSPCL Huizhou Petrochemical Plant / Shell

Beijing, China, February 22, 2016 -- CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd., has officially announced the third phase of expansion for its petrochemical complex in Daya Bay, Huizhou, Guangdong Province. This ambitious project, valued at $6.7 billion, represents a significant step forward in meeting China's growing demand for petrochemical products.

The expansion will include the construction of a third ethane cracker with a planned capacity of 1.6 million tonnes per year (tpy) of ethylene, boosting the complex's total ethylene production capacity to 3.8 million tpy. Ethylene serves as a key building block for plastics and other essential chemical products. Alongside the cracker, the project will add 16 downstream derivatives units producing specialty chemicals including linear alpha olefins, Bisphenol-A (240,000 topy), polycarbonates (260,000 tpy), and diphenyl carbonate (220,000 tpy).

Linear alpha olefins are vital for manufacturing detergent alcohol and synthetic lubricants, while polycarbonates are used in impact-resistant plastics that can replace carbon-intensive steel. Carbonate solvents play a critical role in lithium-ion batteries, supporting the electric vehicle sector and energy storage solutions.

The new facilities aim to meet domestic demand across various industries, including agriculture, construction, healthcare, and consumer goods.

Scheduled for completion by 2028, the project incorporates innovative technologies to reduce environmental impact. CSPC plans to electrify compressor units and increase renewable energy usage to achieve a 20% reduction in carbon dioxide emissions, aligning with China's carbon neutrality goals.

#sustainabilitygoals #steamcracker #ethanecracker #ethylene #cnooc #cspc #shell #china #huizhou #guangdong #sustainability #linearalphaolefins #lao #polycarbonate #electrification #renewableenergy #carbonemissions #neutralitygoals





Troll C


Date: February 9, 2025

Norwegian energy giant Equinor has announced a significant shift in its energy strategy, halving its planned investments in renewable energy over the next two years while ramping up oil and gas production.

The company will reduce its renewable energy spending to $5 billion, down from the $10 billion it previously committed, citing rising costs and slower-than-expected progress in low-carbon projects.

Equinor has also revised its 2030 renewable capacity target to 10-12 GW, a reduction from the earlier goal of 12-16 GW. This adjustment comes as the company focuses on "value creation" and shareholder returns.

CEO Anders Opedal emphasized that the decision aligns with market realities, noting that profitability in renewables has not met expectations. Despite these changes, Equinor maintains its commitment to achieving net-zero emissions by 2050.

It plans to continue investing in carbon capture and storage (CCS) and hydrogen technologies while reducing emissions from its oil and gas operations. However, the company will now prioritize increasing oil and gas output by 10% through 2027, leveraging its assets on the Norwegian continental shelf and other key projects like the Johan Sverdrup oil field to produce 2.2mn barrels of oil equivalent per day by 2030.

This strategic pivot reflects broader industry trends as major energy companies, including BP and Shell, scale back renewable ambitions amid economic pressures and geopolitical uncertainties.

While Equinor's move is expected to bolster cash flow and shareholder value, it raises questions about the pace of the global energy transition and the challenges of balancing profitability with sustainability goals.

#energytransition #renewableenergy #oilandgas #equinor #hydrogen #carbonecapture #ccs #greenhydrogen #Sustainability




BPCL Mumbai Refinery

Bharat Petroleum Corporation Limited (BPCL) has unveiled plans for an ambitious $11 billion integrated refinery and petrochemical complex in Andhra Pradesh, marking a significant expansion of India's refining capabilities. The announcement comes as India positions itself to become a major global refining hub amid Western companies' shift toward energy transition.

In a recent interview, BPCL Chairman G. Krishnakumar highlighted the strategic importance of the project, stating, "We feel there is a big opportunity in the refining sector. India's primary energy demand itself is also going to increase three to four times as its economy expands." This expansion aligns with India's vision to become a developed nation by 2047, targeting a GDP growth from $3.8 trillion to $30 trillion.

The proposed facility in Andhra Pradesh will include a 9-million-metric-tons-per-year refinery and an ethylene cracker, with an estimated cost between 900-950 billion rupees ($10.56-11.14 billion). The complex will feature a 35% petrochemical intensity, and pre-project work, including land acquisition, has already begun.

The strategic location in South India is particularly significant, as approximately 80% of the complex's output will serve the southern region's petrochemical developers and automobile manufacturers. This new facility will complement BPCL's existing operations, which currently include three refineries with a combined capacity of 35.3 million metric tons per year, plus fuel purchases from the 3-million-metric-ton Numaligarh refinery in the northeast.

Beyond this major project, BPCL is diversifying its portfolio with renewable energy initiatives. The company aims to achieve 10 gigawatts of clean energy projects by 2035 and has formed a joint venture with Sembcorp to expand its current 300-megawatt renewable energy portfolio.

Additionally, Krishnakumar expressed optimism about the $20 billion Mozambique LNG project, led by France's TotalEnergies, in which BPCL holds a stake alongside other Indian companies. Operations are expected to commence in the first quarter of 2025, with gas monetization projected for 2028-2029.

The investment in the Andhra Pradesh complex will help BPCL reduce its dependence on external fuel purchases, which currently account for one-fifth of the 50 million metric tons of refined fuels sold through its retail stations.

#bpcl #india #refinery #lng #totalenergies #grassrootrefinery #steamcracker #renewableenergy




*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.

β–ͺ️ In Midstream, the capital budget of $975 million comprises $429 million for sustaining projects and $546 million for growth projects. β–ͺ️ 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.
β–ͺ️ 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.
β–ͺ️ 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.

β–ͺ️ 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.
β–ͺ️ 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





Sunset on a refinery

"Oil refineries across Europe will be forced to shut as the West abandons fossil fuels in the race to net zero," – said BP CEO Murray Okincloss, commenting on the company's financial statements, The Telegraph reports.

He believes that older and smaller refineries in the EU will close or switch to biofuels as conventional oil refining becomes unprofitable due to a combination of soaring fuel taxes and falling demand from drivers switching to electric cars.

“So I would expect the least efficient refineries, which are the smallest, oldest around the world, to gradually close down as the world transitions over the next 10 to 30 years.”

BP has four refineries in Europe, three of which are already planned for conversion to produce biofuels including sustainable aviation fuel (SAF). Grangemouth Refinery in Scotland, which is owned by Ineos, employs 500 people but is scheduled to shut early next year.

Data from Fuels Europe shows that refining capacity in the EU, as well as in the UK, Switzerland and Norway, is already declining. Capacity has fallen from 781 million tonnes a year in 2009 to 677 million tonnes now. This means that Europe accounts for about 15% of the world's refining capacity - well behind the US with 21% or APAC with 36%.

Contradicting the statements reported above, BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression, according to Oilprice.

“This is aligned with BP’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said.

In June, BP declared to continue investing in deepwater fields in the Gulf of Mexico, and made a statement saying it was "scaling back" new biofuels projects.

The company has tempered its enthusiasm for its low-carbon program, and with it cut its climate commitments, adapting to an operating model that assumes continued high oil demand into the 2040s and beyond.

“Labour policy says oil and gas production in the North Sea will be with us for decades to come ... They launched a consultation process with the sector last night and we’ll be engaged deeply with them on that,” Okincloss said.

The oil giant's net profit for the second quarter of this year was higher than expected ($2.76 billion). The company's low-carbon and natural gas division, on the other hand, performed poorly, posting a loss of $0.1 billion.

#refining #refinery #crudeoil #naturalgas #oilandgas #europe #saf #sustainableaviationfuel #renewablediesel #biofuels






After halting work on biofuel plant in Rotterdam, πŸ‡³πŸ‡± The Netherlands, and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned πŸ‡ΈπŸ‡ͺ Swedish power utility company Vattenfall.

“Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel project while Vattenfall continues the search for new partners,” said Vattenfall in a statement.

The joint project, with the planned capex of €780m ($845m), was launched in 2021 with initial plans to produce 82,000 tonnes of e-SAF and 9,000 tonnes of renewable diesel per annum. The project envisaged the use of hydrogen from 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol as feedstocks at the site.

It was due to begin operations in March of 2027.

On the other hand, the company said that it will also not avail financial support via the EU Innovation Fund, considering it is infeasible for the project to succeed within the framework of that agreement and aiming to free up funds for others to use in their ambitions to decarbonise.

Vattenfall-Shell e-SAF project was awarded €80.2mn ($87mn) grant in January 2023.

#saf #hefa #hefa -spk #aviationfuel #renewablediesel #sustainableaviationfuel #shell #vattenfall #electrolysis #hydrogen #greenhydrogen #carboncapture #ccu #ethanol #bioethanol

Source: Fayaz Hussain, 8th July 2024, SAF Investor


Message has a thread

LONDON, UNITED KINGDOM, July 02, 2024:

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, is to temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in Pernis, πŸ‡³πŸ‡± the Netherlands, to address project delivery and ensure future competitiveness given current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimise project sequencing.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

Shell took a final investment decision for the planned biofuels facility in September 2021. The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

Additional information regarding project status and timelines will be communicated in future updates.

Follow ppPLUS news

#biofuel #saf #sustainableaviationfuel #renewablediesel #biorefinery #shell




British Petroleum (BP) appears poised to refocus on hydrocarbons, a move that could bolster the company's profitability. However, without a clear declaration of this shift, investors may not reap the benefits, potentially stagnating the share price, as indicated by active investor BP Bluebell Capital Partners, as reported by Bloomberg.

According to Bluebell Capital Partners co-founders Giuseppe Bivona and Marco Taricco, BP ought to ramp up investments in oil and gas while scaling back spending on costly renewable energy ventures to enhance returns for shareholders, as outlined in Bluebell's October communication.

The hedge fund observed indications of BP moving in this direction during its fourth-quarter presentation, the first since Murray Auchincloss assumed leadership of the company. Auchincloss emphasized a "pragmatic" and "flexible" approach to the energy transition, suggesting that BP's oil production could surpass the anticipated 2-3% target for 2027.

While holding only a minor stake in BP (the exact size undisclosed), activist investor Bluebell, through its co-founder Bivona, has engaged with numerous major shareholders, many of whom echo concerns about the company's underwhelming shareholder returns and endorse the fund's proposal for strategic change.

Bluebell's history of shareholder activism includes advocating for a leadership change at Danone in 2021, attempting to compel Glencore to divest its coal business that same year (though unsuccessfully), and calling for Bayer to divide its business into three segments in 2023.

#renewable #renewableenergy #oilandgas