Shell to build ships to carry more CO2 over longer distances for CCS hubs

Shell is building larger vessels that can carry more carbon dioxide over longer distances as part of the company's plans to expand its carbon capture storage (CCS) business globally, said Reuters.

The ability to ship large volumes of CO2 from industrial sites to offshore CCS hubs is critical in improving the economies of scale for these projects. CCS is aimed at decarbonising heavy industries such as refining, cement and steel.

As part of the Northern Lights project in Norway, Shell's joint venture with Equinor and TotalEnergies, the companies will build two ships capable of carrying 7,500 cubic metres of CO2.

Shell is leading the design and construction of the vessels, which will be powered by liquefied natural gas, the company said. Steel-cutting will take place in the third quarter, while the ships will be ready for delivery in 2024.

The company said it is also making larger vessels that can travel over longer distances, as well as finalizing the design for a 12,000-cubic meters ship.

Designs for vessels with capacities of 36,000, 40,000 and 70,000 cubic meters are in progress, according to the company.

Shell operates the Quest CCS facility near Edmonton, Alberta, and is a partner in the Gorgon CCS in Australia. It is also working on several similar projects across Canada, Europe and the Asia Pacific.

As per MRC, Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij, subsidiaries of Shell plc, have completed the sale of Shell Neft LLC, Shell’s retail stations and lubricants business in Russia, to PJSC LUKOIL.
This follows the receipt of all necessary regulatory approvals. The sale agreement was announced on May 12, 2022. All people currently working for Shell Neft, more than 350 in total, will remain employed by Shell Neft, which is now owned by LUKOIL.

In addition, Shell in its reporting for the first quarter of 2022 recognized the cost of leaving Russian assets at USD 3.9 billion after taxes. Earlier, she informed that the losses could amount to USD 4-5 billion.

Shell is a British-Dutch oil and gas concern engaged in the extraction, processing and marketing of hydrocarbons in more than 70 countries.
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Europe’s strict regulations and challenging targets for the decarbonization of transports are driving a rapidly growing demand for bio and low carbon fuels, with bioethanol alone expected to show a CAGR of over 4% during the 2022-2027 period, said Hydrocarbonprocessing.

As part of its green acceleration roadmap, Maire Tecnimont Group’s NextChem partnered up with Brazil-based GranBio in 2020 to co-develop and co-license the 2G ethanol technology which converts non-food lignocellulosic biomass into low-carbon second generation biofuels.

The European patent for GranBio’s 2G ethanol production technology (GP3+) has now been officially granted in 31 countries including those rich in feedstocks such as Bulgaria, Czech Republic, Hungary, Macedonia, Poland, Romania, Serbia and Slovakia.

Such technology is a flexible and profitable solution to produce second generation bio-ethanol, a globally used fuel with enormous potential as feedstock for green chemistry processes. GranBio has been successfully producing 2G ethanol since 2014 at its plant located in Sao Miguel dos Campos, in Alagoas (Brazil), the first and only one of this kind currently operating on an industrial scale.

The partnership between NextChem and GranBio combines exclusive Technology development and Co-Licensing for the conversion of agricultural waste and residues in second generation bioethanol, leveraging on NextChem's engineering and technology competences and the Group’s EPC (engineering, procurement and construction) expertise, its global presence and vast offering of integrated services.

Validated technologies like GP3+ will play a significant role in the development of a new industrial infrastructure for sustainable mobility needed to meet EU targets by 2035. NextChem and GranBio will keep contributing to the process of decarbonizing the fuel sector in an efficient, profitable, and carbon-neutral way.

As per MRC, Maire Tecnimont S.p.A. announces that its main subsidiaries Tecnimont S.p.A. and Tecnimont USA has been awarded a new urea diesel exhaust fluid (DEF) project in the US, by the same leading global chemicals producer that recently awarded to Tecnimont a blue ammonia project. The contract value is approximately $185 MM. The urea DEF plant, which will be based on Stamicarbon’s proprietary technology (part of Maire Tecnimont Group), entails a 1,500 tpd urea production unit plus the necessary utilities and facilities, including a CO2 purification plant.
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Thailand's economic teams agreed to extend some support measures to reduce living costs for another three months, and sought cooperation from refineries to help boost the country's depleted oil fund amid rising energy prices, said Reuters.

The measures, decided at an urgent economic meeting called by Prime Minister Prayuth Chan-ocha, came after Thai headline inflation hit a nearly 14-year high of 7.1% in May, driven by high oil prices, while Southeast Asia's second-largest economy is in recovery.

The finance ministry also proposed a tax break measure to boost recovery in the key tourism sector, government spokesman Thanakorn Wangboonkongchana said in a statement. The support measures included help for taxi drivers and low-income groups.

The government would also ask oil refineries to deliver some profits to the state's oil fund for three months until September to help stabilise oil prices, he said. The fund, which Thailand uses the fund to support subsidies and manage prices, is expected to be more than 90 B baht (USD2.56 B) in the red by the end of this month.

A monthly contribution from diesel and benzene refining together was expected at 6 B to 7 B baht (USD171.1 MM to $199.7 MM), Thanakorn said. The government would also ask gas separation plants to help support the oil fund for three months, estimated at 1.5 billion baht a month, he said.

As per MRC, Aramco is exploring further collaboration with Thailand’s national oil company PTT, as it expands its downstream presence in Asia. The two companies signed a memorandum of understanding at a ceremony in Bangkok on May 11. The companies aim to strengthen cooperation across crude oil sourcing and the marketing of refining and petrochemical products and LNG. Other potential areas of activity include blue and green hydrogen and various clean energy initiatives.
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South Korean synthetic rubber giant Kumho Petrochemical reported on Wednesday a 22% year-on-year decline in first-quarter net profit despite a double-digit sales growth, said the company.

Notwithstanding the weaker Q1 earnings, Kumho Petrochemical’s shares gained 2.27% to close at Korean won (W) 158,000 (USD125) on Wednesday, but down by almost 10% from this year's peak on 10 January.

Like other petrochemical companies, the group’s March-quarter earnings were squeezed by high feedstock costs as naphtha prices had surged along with crude from late February when Russia started invading Ukraine.

For the whole of 2021, the company generated W8.5tr in total revenues. The company has 13 subsidiaries.

As per MRC, Kumho Petrochemical has recently agreed to purchase the 50% stake of Kumho Polychem held by its joint venture partner, JSR, making Kumho Petrochemical the sole owner from July 2021 onward. Kumho Polychem, established in 1985, has a production capacity of 220,000 t/y of ethylene propylene diene monomer (EPDM). It also produces thermoplastic vulcanizate, and other materials used in automotive and other industries.

As MRC wrote before, in April 2021, Kumho Mitsui Chemicals Inc. said it will invest about 400 billion won (USD358.1 million) to expand its chemical manufacturing factory in South Korea's southwestern region. The joint venture between Korean synthetic rubber maker Kumho Petrochemical and Mitsui Chemicals of Japan said its shareholders approved the investment plan to scale up a methylene diphenyl diisocyanate (MDI) factory in Yeosu, 455 kilometers southwest of Seoul. MDI is a core material of polyurethane, which is used in various products, including refrigerators, building materials, car interior and exterior materials, and LNG vessels.
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Wood, the global consulting and engineering company, has entered into a 10-year global master services agreement for engineering and project related services with Chevron, said Hydrocarbonprocessing.

The agreement can be used by all of Chevron’s business units and covers both offshore and onshore assets within the upstream, midstream and downstream markets.

The deal enables the formation of a global strategic relationship, strengthening the overall quality of engineering and providing predictable outcomes for project delivery worldwide. To further enhance predictable performance, Wood will work with Chevron’s digital enablement specialists to collaborate, optimize, and pursue efficiencies.

Jennifer Richmond, Executive President of Strategy & Development at Wood, said: “With Chevron, we share the same strategic sentiment, growth mindset and alignment on key sustainability and performance goals. Our strong market proposition enables us to provide solutions right across the energy spectrum on a global scale, and our commitment to digitalization and adoption of best-in-industry practices ensures we are continuously seeking performance and project efficiencies."

Jim Shaughnessy, President of Conventional Energy at Wood, added: “Transparency, ingenuity, collaboration, and predictable performance have all been key to building our more than 20-year relationship with Chevron."

As per MRC, Chevron Corporation completed its previously announced acquisition of Renewable Energy Group, Inc. following approval by REG stockholders.

As per MRC, QatarEnergy and Chevron Phillips Chemical Company (CPChem) have awarded the early site works contract for the Ras Laffan Petrochemical Project (RLPP) to Consolidated Contractors Company (CCC). The contract award marks the commencement of execution of the RLPP. CCC has secured a lump-sum contract to prepare the site for the new facility within Ras Laffan Industrial City. Early works on the project will begin in June, at the conclusion of which the EPC contract for the project is expected to be awarded.
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