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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 

Shell Geismer Chemical Plant (credit: Shell)

Shell, the global energy giant, is reportedly considering a significant restructuring of its chemical business, potentially  divesting operations in the United States and Europe while simultaneously expanding its joint venture presence in China.

According to industry sources, Shell is in the early stages of evaluating strategic options for its chemical assets in Western markets. The potential sale would mark a major shift in the company's portfolio strategy, moving away from regions facing higher energy costs and stricter regulatory environments.

In the United States, Shell operates several major chemical manufacturing facilities, including its massive petrochemical complex in Deer Park, TX, and chemical complexes in Geismar and Norco, LA., and Monaca, PA., where it says it stabilized production in 2024.

These facilities produce ethylene, propylene, and various specialty chemicals that serve as building blocks for consumer goods ranging from automotive parts to household products. The company also maintains research and development centers in Houston that have been instrumental in developing new chemical technologies and processes.

The company's Pennsylvania petrochemical complex in Beaver County, known as the Shell Polymers Monaca plant, could be among the assets on the chopping block. This $6 billion facility, which began operations in November 2022 after years of construction, is one of the largest of its kind in North America. The plant converts ethane from the Marcellus and Utica shale formations into polyethylene pellets used in plastics manufacturing. If sold, it would represent a stunning reversal for a project that was heavily subsidized with an estimated $1.65 billion in state tax credits and had been heralded as a major economic development win for the region.

Shell's European chemical operations are equally substantial, with major production sites in the Netherlands, Germany, and the UK. The Moerdijk facility in the Netherlands stands as one of Shell's largest European chemical plants, producing base chemicals and intermediates. In Germany, the Rheinland complex integrates refining and chemical production. Shell also operates chemical plants in Rotterdam, NL.

While scaling back in traditional markets, Shell appears to be doubling down on its Chinese joint venture with CNOOC, known as CNOOC and Shell Petrochemicals Company Limited (CSPC). The company is reportedly planning to expand this partnership, reflecting Shell's growing focus on Asian markets where demand for petrochemical products continues to rise steadily. The existing CSPC complex in Huizhou, Guangdong Province, is one of China's largest petrochemical facilities and has been operating since 2006.

"This dual approach of divesting in mature markets while expanding in growth regions aligns with broader industry trends," said an industry analyst familiar with the matter. "Many Western chemical producers are reevaluating their global footprints in response to shifting economic realities."

Shell's chemical division manufactures a range of products including ethylene, propylene, and other base chemicals used in everything from packaging to automotive components. The business has faced challenges in recent years due to volatile feedstock prices, increasing competition from Middle Eastern and Asian producers, and growing pressure to reduce environmental impacts.

The company has not officially confirmed these plans, with a spokesperson stating only that "Shell regularly reviews its  portfolio of assets to ensure alignment with our strategy." If Shell proceeds with these changes, it would join several other major  chemical companies that have restructured their operations in  recent years to focus on specific regions or product segments  where they see the greatest competitive advantage.

Industry observers note that any divestment would likely attract interest from private equity firms or chemical companies looking to expand their presence in established markets. Meanwhile, the expansion in China underscores the continued  importance of the region as a growth driver for the global  chemical industry.

The timeline for any potential sale remains unclear, though sources suggest Shell may begin formal processes within the next several quarters if internal reviews confirm this direction.

#shell #chemicals #divestment #westernoperations #chemicalplants #china

BP Gelsenkirchen Refinery

GELSENKIRCHEN, Germany | February 6, 2025

BP has announced its intention to sell its Ruhr Oel GmbH operations in Gelsenkirchen, Germany, including the refinery and associated petrochemical assets19. The marketing process begins immediately, with BP targeting to complete the sale agreement within 2025, subject to regulatory approvals.

The Gelsenkirchen facility, Germany's third-largest refinery, currently processes approximately 12 million tons of crude oil annually and employs around 2,000 workers and 160 apprentices. The sale package includes the BP refinery in Gelsenkirchen and DHC Solvent Chemie GmbH in Mülheim an der Ruhr.

The decision comes amid challenging conditions for European refiners, who face increasing competition from Middle Eastern and Asian facilities, along with pressure from vehicle electrification and high operating costs. BP had already planned to reduce the refinery's capacity from 260,000 barrels per day of crude oil to 155,000 barrels per day in 2025.

Emma Delaney, BP's Executive Vice President for customers and products, explained that the decision aligns with BP's strategy to become a simpler, more focused, higher-value company. The company has recently modernized the facility's infrastructure, including power grid renewal and establishing independent steam supply, making it attractive for potential buyers.

The Gelsenkirchen site plays a crucial role in North Rhine-Westphalia's chemical industry, producing not only conventional fuels but also having the potential to manufacture biofuels and process recycled plastics. The refinery will continue normal operations throughout the sales process.

This move is part of a broader trend in Germany's refining sector, with other major players like Shell and ExxonMobil also seeking to divest their refining assets in the country. Industry analysts expect German crude refining capacity to decrease from 2.1 million barrels per day in 2020 to 1.8 million barrels per day by 2026.

#crudeoil  #refining  #refinery  #bp  #shell  #exxon  #germany  #gelsenkirchen 

CNOOC Shell Huizhou Petrochemical Complex in Daha Bay, Huizhou, China

January 15, 2015 | BEIJING | Shell China

CNOOC Shell Petrochemicals Limited (CNOOC Shell), a joint venture between Shell Nanhai Private Limited and CNOOC Petrochemical Investment Co., Ltd., has made the final investment decision to expand its petrochemical complex at Daya Bay, Huizhou, southern China.

The project will include the construction of a third ethylene cracker with a planned annual capacity of 1.6 million tons, a key component in the production of plastics, as well as a series of downstream derivative units, including linear alpha olefins.

The investment will also build a new facility for the production of high-performance specialty chemicals such as polycarbonates and carbonate solvents that are essential to everyday life.

Linear alpha olefins can be used to produce detergent alcohols and synthetic lubricant base stocks. Polycarbonates can be used to make impact-resistant plastics, replacing carbon-intensive steel, while carbonate solvents are used in lithium batteries, which are crucial for the electric vehicle sector and energy storage.

Designed primarily to meet China’s domestic demand, the new facility will produce a wide range of chemicals used in the agriculture, industry, construction, healthcare and consumer goods sectors.

The investment will enhance CNOOC Shell’s competitiveness by expanding its product value chain, promoting its further integration with existing chemical plants, and promoting its development of stronger innovation capabilities to meet the rapidly growing customer needs in the Chinese market.

"For more than two decades, CNOOC Shell has been providing high-quality products to the Chinese market and has become one of the largest Sino-foreign petrochemical joint ventures in China," said Huibert Vigeveno, Director of Downstream and Renewables Business of Shell Group.

“This new investment is a key enabler for CNOOC Shell’s strategic transformation towards higher-end and differentiated chemicals. It is consistent with Shell Chemicals & Refining’s strategy of pursuing targeted business growth in strong regions. It is also a testament to our strong partnership with CNOOC.”

The expansion is expected to be completed in 2028.


#olefins  #ethylene  #propylene  #butenes  #steamcracking  #olefinplant  #linearalphaolefins  #lao  #polycarbonate  #shell  #cnooc  #jointventure  #china  #refining 

TOTH, GYULA 

Hi Gyula,

I saw the news you posted on Blue Hydrogen.
It appears only on top of page 6 in a Google search.




We generally are very well referenced on Google and news or articles we post typically appear as one of the first search results within hours of posting.

The trick here is to add some formating (like bold), hyperlinks to products, technologies, companies (e.g. KBR), insert an image in the communication, add some hashtags...

#blueammonia  #bluehydrogen  #kbr  #shell 

Thank you for your contribution.

Best regards,
Nicolas 

The description of the Shell EO Direct Hydrolysis Process has been updated.

#ethyleneoxide  #ethyleneglycol  #meg  #directhydrolysis  #shell 

After halting work on biofuel plant in Rotterdam, 🇳🇱 The Netherlands, and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned 🇸🇪 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, 8^th July 2024, SAF Investor

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, 🇳🇱 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 

Shell has declared the cessation of operations for all seven of its hydrogen refueling stations for passenger cars in California, effective February 6th. Citing "hydrogen supply issues and other external market factors," the company conveyed its decision through a statement on the Hydrogen Fuel Cell Partnership website. Despite these closures, Shell affirms its commitment to operating truck refueling stations.

Following the shutdown of Shell's stations, the count of operational open retail stations for passenger cars in California is expected to dwindle to 61, according to the California Energy Commission's latest data.

This announcement marks the first station closures of 2024, following a series of similar declarations throughout the preceding year. Notably, in October 2023, True Zero, California's largest hydrogen supplier, announced the closure of 10 stations. Furthermore, in November and December of the same year, Shell, Iwatani, and Messer shuttered several stations, citing supply constraints.

#refueling  #shell