MOL Group opens new biofuel plant in Hungary

MOL Group opens new biofuel plant in Hungary

MOSCOW (MRC) -- MOL Group (Budapest, Hungary) has announced that Rossi Biofuel (a joint venture wherein MOL Group and Envien Group are the 25-75% owners) inaugurated a new plant in Komarom, Hungary, which will significantly increase the biofuel production volume in the country. With this investment, MOL Group and Envien Group launched a technology in Europe that can boost greenhouse gas savings by more than 85%, according to Chemical Engineering.

With a capacity of 50,000 tons per year, the plant is the first in Europe to use the RepCat technology offered by Austrian firm BDI-BioEnergy International GmbH, which is highly flexible in terms of raw materials - it allows the processing of greasy wastes of different types and origins, such as used cooking oils, trap grease, animal fats or residues from vegetable oil production. Biodiesel produced in this way is one of the most climate-friendly fuels.

“We have brought a unique technology to Europe that allows us to produce biofuel from almost any type of fats. This is a huge success for all of us, as circular economy is one of the cornerstones of MOL Group’s updated strategy. We have made a commitment to recycle waste in an efficient way, and to meet the world’s growing energy needs with increasingly sustainable solutions. Energy transition is a long and complex process, but this investment clearly shows that conventional fuels can be turned into more environmentally friendly with the right technology and by using waste” – said Oszkar Vilagi, Deputy Chief Executive Officer of MOL Group.

With the construction of the plant, the MOL Group and Envien Group are aiming to respond to both consumer and regulatory demands: the aim is for Rossi Biofuel to comply with EU rules on renewable transportation fuels. Rossi Biofuel’s product is used as a bio-component in the production of diesel at Danube Refinery and Slovnaft refinery.

“This new modern plant is the Envien Group’s first major investment in the production of advanced biofuels, where waste is processed into useful products. In our opinion, a plant that uses waste and mainly domestic raw materials, contributes to the greenhouse gas savings of transport and at the same time boosts and stimulates the local economy and employment, a way forward and a priority for the group. Due to the Hungarian subsidies, we decided to locate the plant in our production base in Komarom, Hungary, and we are confident that this is not our last project of this kind” – said Ing. Robert Spisak, PhD., Chairman of the Board of Rossi Biofuel.

As MRC reported earlier, The MOL transformation story began in 2016 when it was one of the first within the oil and gas sector to admit that there were gloomy days ahead and that it was essential to begin the transformation. To plot out the path to a low-carbon future, the company published MOL Group 2030+. Five years after the launch of that transformation plan, the Hungarian energy company has revised its goals with an updated strategy.

We remind that in March 2021, MOL became a biofuel producer through the realization of an investment in the Danube Refinery. Bio feedstock will be co-processed together with fossil materials increasing the renewable share of fuels and reducing up to 200,000 tons /year CO2 emission without negatively affecting fuel quality.

MOL is the largest Hungarian oil, gas and petrochemical group, engaged in exploration and production, transportation of hydrocarbons, as well as the operation of a network of trunk gas pipelines. TVK is a 100% subsidiary of MOL. TVK manufactures HDPE, LDPE, and PP.
MRC

Oil India Board of Directors approves USD861 mln investment in new petrochemical project in Assam

Oil India Board of Directors approves USD861 mln investment in new petrochemical project in Assam

MOSCOW (MRC) -- Oil India Limited announced that the Board of Directors at its meeting held on March 16, 2022, has approved Rs 65.55 billion (USD861 million) investment by subsidiary company Numaligarh Refinery Limited (NRL) for implementation of petrochemical project at Numaligarh, Assam, according to Kemicalinfo.

The board also approved the formation of a joint venture company between Assam Gas Company (AGCL) and Oil India (OIL) for the three geographical areas offered by Petroleum and Natural Gas Regulatory Board (PNGRB).

NRL is executing a major expansion project of capacity augmentation from present 3.0 MMTPA to 9.0 MMTPA by installing a 6 MMTPA capacity refinery and associated crude oil terminals & pipeline considering processing of Arab Light (AL) and Arab Heavy (AH) crude oil (AL:AH=30:70).

The required additional quantity of crude oil is planned to be imported through Paradip Port in Odisha. A cross country pipeline of around 1640 Km shall be laid from Paradip Port to Numaligarh for transporting 9 MMTPA of imported crude.

Part of the Government of India’s Hydrocarbon Vision 2030 initiative to help meet growing demand of petroleum products in northeastern India, NRL’s refinery expansion will increase overall crude oil processing capacity and it is scheduled to be completed by 2024. Environmental clearance was obtained for the project on 27th July 2020. Approved budget for the project is Rs 280.26 billion.

We remind, as MRC informed before, Indian Oil Corp, the country's top refiner, bought 3 mln bbl of Russian Urals from trader Vitol for May delivery, trade sources said, its first purchase of the grade since Russia invaded Ukraine.
Western sanctions against Russia have led many companies and countries to shun its oil, depressing Russian crude to record discount levels. IOC said in late February it would buy Russian oil on delivered basis to avoid any complication relating to fixing vessels and insurance.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC''s ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC

Indian refiners raise February crude processing to meet stronger demand

Indian refiners raise February crude processing to meet stronger demand

MOSCOW (MRC) -- Crude oil processing by Indian refiners rose about 10% year-on-year in February, provisional government data showed, as demand in the world's third biggest oil importer and consumer grew, reported Reuters.

Throughput in February rose 9.8% to 5.35 MMbpd (20.44 MMt), the data showed on Tuesday.

But processing fell 5.8% from January, with a drop at Indian Oil Corp's Bongaigaon Refinery in Assam due to a power failure.

India's fuel consumption had its biggest year-on-year jump since August 2021, up 5.4% in February compared with the same month in 2021, although soaring oil prices due to Russia's invasion of Ukraine could slow the recovery.

"It was always expected that we'd quickly see demand recover once it became clear that the latest (coronavirus) variant wasn't nearly as threatening as those that preceded it," said Craig Erlam, senior analyst at OANDA.

The International Energy Agency (IEA) said last week that India was set to become the third largest refiner after its downward revision to Russia's throughput forecast amid the ongoing war in Ukraine.

Average 2022 oil deliveries from India will be 20,000 bpd above 2019 levels, the IEA added.

Crude output from drilling wells and the Oil and Natural Gas Corp was lower than expected, the government release said.

As MRC wrote before, Indian Oil Corp. (IOC), the country's top refiner, will increase crude purchases from Iraq by 11.5% in 2022 to 390,000 bpd, partly to make up for a shortfall from Mexico and a possible supply cut from Kuwait.
Iraq is the top supplier of oil to India and its market share there is set to rise as another refiner Hindustan Petroleum Corp. will also buy more crude from the Middle Eastern nation. Mexico's national oil company Pemex has agreed to supply 22,000 bpd (1.1 MM tons) of oil to IOC, the sources said.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC''s ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC

Saudi Aramco 2021 profit more than doubles on higher oil prices

Saudi Aramco 2021 profit more than doubles on higher oil prices

MOSCOW (MRC) -- Energy giant Saudi Aramco says its 2021 net profit soared by more than 120 percent due to higher crude oil prices, as global economic growth recovered from a pandemic induced downturn, said Aljazeera.

The announcement came on Sunday hours after Yemen’s Houthi rebels – against whom Saudi Arabia leads a military coalition – targeted several locations, including Aramco facilities, in cross-border armed drone attacks.
Aramco, Saudi Arabia’s cash cow, did not say if the attacks caused any damage.

“Aramco’s net income increased by 124 percent to USD110bn in 2021, compared to USD49bn in 2020,” the company said in a statement.

Aramco achieved a net income of USD88.2bn in 2019 before the coronavirus pandemic hit global markets, resulting in huge losses for the oil and aviation sectors, among others. A strong rebound last year saw oil prices recover from their 2020 lows, and they have soared to highs not seen since 2014 this year, amid global supply shortages and Russia’s invasion of Ukraine.

Aramco floated 1.7 percent of its shares on the Saudi bourse in December 2019, generating USD29.4bn in the world’s biggest initial public offering. "Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy,” Aramco President and CEO Amin Nasser said in a statement.

As MRC informed before, in June 2020, Aramco finalized its USD69 billion acquisition of a 70% stake in Saudi Basic Industries Corp., the Middle East's biggest petrochemical maker. SABIC reported more than a fivefold year-on-year increase in its Q3 net profit to USD1.49 billion thanks to higher average sales prices.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.

mrchub.com

Saudi Arabia hikes oil investments as it profits from price surge

Saudi Arabia hikes oil investments as it profits from price surge

MOSCOW (MRC) -- Saudi Arabia's state oil company Aramco, under pressure from the West to boost output amid soaring prices, pledged on Sunday to hike investments by around 50% this year as it reported a doubling in 2021 profits, said Reuters.

The capex guidance was 25-57% higher than the USD31.9bn spent in 2021, “with further growth expected until around the middle of the decade”, Saudi Aramco said on 20 March. It noted that “substantial new investment is required to meet demand growth, against a broader decline in upstream investment across the industry globally”.

Saudi Aramco is looking at raising its crude oil maximum sustainable capacity (MSC) to 13m bbl/day by 2027, up from 12m bbl/day currently, and boosting gas production by more than 50% by 2030. Heightened supply worries have sent crude prices soaring above USD100/bbl this year amid financial sanctions imposed on Russia - the world’s second biggest crude exporter after Saudi Arabia - following Moscow’s invasion of Ukraine on 24 February.

The company’s capex in 2021 was up 18% from the previous year due to “increased activities in relation to crude oil increments, Tanajib Gas Plant and development drilling programs”, Saudi Aramco said. The Saudi energy major more than doubled its 2021 net profit to riyal (SR) 412.4bn (USD110bn), with sales up by more than 75%, on the back of strong oil prices, and improved refining and chemical margins following incorporation of petrochemical major SABIC’s results.

Aramco’s free cash flow more than doubled to USD107.5bn in 2021, with gearing ratio reduced to 14.2% from 23.0% in the previous year. Full-year 2021 cash dividend totaled $75bn, with $18.8bn declared for the fourth quarter which will be paid out in the first quarter of 2022. Aramco’s board further recommended that $4bn in retained earnings be capitalized and bonus shares be distributed to shareholders, with one bonus share granted for every 10 shares held.

As MRC informed before, in June 2020, Aramco finalized its USD69 billion acquisition of a 70% stake in Saudi Basic Industries Corp., the Middle East's biggest petrochemical maker. SABIC reported more than a fivefold year-on-year increase in its Q3 net profit to USD1.49 billion thanks to higher average sales prices.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.

mrchub.com