Saudi Aramco-Shandong Energy sign MoU on possible integrated complex

Saudi Aramco-Shandong Energy sign MoU on possible integrated complex

MOSCOW (MRC) -- Saudi Aramco and Shandong Energy signed a Memorandum of Understanding to collaborate on downstream projects, including the construction of a refining and petrochemicals integrated complex, said Hydrocarbonprocessing.

The deal, which includes the potential for a crude oil supply agreement and chemicals products offtake agreement, helps support Saudi Aramco's goal of building downstream assets in Shandong, China.

The JV will also explore cooperation across hydrogen, renewables and carbon capture technologies.

We remind, Saudi Aramco has signed 59 corporate procurement agreements (CPAs) worth a potential total of USD11 billion with up to 51 domestic and international manufacturers, as a part of its coveted in-kingdom total value add (IKTVA) localisation programme.

Borealis Invests in Solar Power for Austria

Borealis Invests in Solar Power for Austria

MOSCOW (MRC) -- Olefins and polyolefins producer Borealis has joined forces with Austrian energy utility company Verbund to supply solar energy to its production site at Schwechat, Austria, said Chemanager-online.

As part of a new photovoltaics (PV) park being created on a brownfield plot at the Schwechat complex, the companies are currently installing erecting a solar array that would supply power to the chemical group’s plastics producer’s facilities, potentially from the end of 2022.

The array covering a surface area of around 75,000 m2 will have 10,220 individual PV modules, each with a nominal power (peak power) of 460 watt-peak (Wp). Ultimately, the park’s total installed solar power is projected to reach around 4.7 megawatt-peak (MWp), with an annual energy yield of around 5.6 gigawatt hours (GWh).

When the installation is complete, Borealis said it hopes to move closer to its goal of drawing 100% of the energy used in its own operations from renewable sources by 2030. CEO Thomas Gangl said the use of renewable energy generated at Schwechat, where the company can produce 1 million t/y of polyolefins, will reduce annual CO2 emissions by nearly 1,200 t.

The PV park will be the second Austrian solar project for Borealis and Verbund, complementing an earlier installation at the plastics producer’s site in Linz. In a broader partnership, the two firms intend to continue their collaboration to promote the use of renewable energy across Austria.

We remind, Borealis is designing a first-of-its-kind commercial-scale advanced mechanical recycling plant to be located in Schwechat, Austria. The plant will be based on Borealis’ own Borcycle™ M technology, which transforms polyolefin-based post-consumer waste into high-performance polymers suitable for demanding applications. This represents another tangible step forward on Borealis’ path to net zero.

BP to explore potential for green hydrogen production in Egypt

BP to explore potential for green hydrogen production in Egypt

MOSCOW (MRC) -- BP has signed a memorandum of understanding with the Egyptian government with the aim of establishing a large-scale renewable hydrogen production facility in the North African country, it said in a statement Dec. 8, said the company.

BP is to evaluate the technical and commercial feasibility of developing an export hub in Egypt, exploring high-potential locations across the country for renewables.

"Egypt has world-class renewable energy resources, and we look forward to working with the government to explore how we can support its ambitious low-carbon strategy," BP executive vice president of gas and low carbon energy Anja-Isabel Dotzenrath said in the statement.

The MOU was signed by BP, Egypt's New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, the General Authority for Suez Canal Economic Zone and the Sovereign Fund of Egypt for Investment and Development (TSFE).

TSFE CEO Ayman Soliman said the MOU builds on the fund's green hydrogen portfolio and its "mandate to transform Egypt into a regional hub for green energy."

Hydrogen was a prominent theme at the UN Climate Change Conference hosted by Egypt in Sharm el-Sheikh in November, with several deals and projects launched on the sidelines.

BP CEO Bernard Looney attended COP27 as a delegate of Mauritania, with which the company signed a separate MOU on green hydrogen production at the conference.

The EU signed strategic hydrogen partnerships with Kazakhstan, Namibia and Egypt, seeking a diverse range of suppliers to meet its planned 10 million mt/year of imports by 2030. And Fertiglobe led a consortium commissioning a first phase of the 100-MW Egypt Green hydrogen plant for ammonia production, also supported by Egypt's Sovereign Fund.

BP is developing a portfolio of renewable and low-carbon hydrogen projects globally, including in the UK, Netherlands, Germany, Spain, the Middle East, the US and Australia, it said. Europe and Asia-Pacific are seen as becoming major importers of hydrogen and its derivatives, drawing supplies from potential producing regions such as the Middle East, Australia and Latin America.

We remind, BP Plc will market Guyana's share of crude oil produced over the next year from two offshore production platforms, the South American country's Ministry of Natural Resources said. Guyana is home to one of the largest oil discoveries in the last decade, with about 11 B barrels found to date. A consortium that controls the country's crude output expects to pump 1.2 MM barrels per day (bpd) by 2027, up from an expected 380,000 bpd at year-end.

ExxonMobil announces corporate plan

ExxonMobil announces corporate plan

MOSCOW (MRC) -- ExxonMobil expects to double earnings and cash flow potential by 2027, and will increase investments in lower-emissions efforts, the company said on Thursday in news release detailing plans for the next five years, said the company.

The corporate plan through 2027 maintains annual capital expenditures at USD20bn-USD25bn, while growing lower-emissions investments to approximately USD17bn. ExxonMobil said the approach prioritises high-return, low-cost-of-supply assets in the Upstream and Product Solutions businesses and supports efforts to reduce greenhouse gas emissions intensity from operated assets.

Investments in 2023 are expected to be in the range of USD23bn to USD25bn to help increase supply to meet global demand. The company also remains on track to deliver a total of approximately $9bn in structural cost reductions by year end 2023 versus 2019.

Upstream earnings potential is expected to double by 2027 versus 2019, resulting from investments in high-return, low-cost-of-supply projects. More than 70% of capital investments will be deployed in strategic developments in the US Permian Basin, Guyana, Brazil and LNG projects around the world.

By 2027, Upstream production is expected to grow by 500,000 barrels of oil-equivalent (boe)/day to 4.2m boe/day with more than 50% of the total to come from these key growth areas.

Approximately 90% of Upstream investments that bring on new oil and flowing gas production are expected to have returns greater than 10% at prices less than or equal to USD35/bbl, while also reducing Upstream operated greenhouse gas emissions intensity by 40-50% through 2030, compared to 2016 levels, ExxonMobil said.

Near-term Upstream investments are projected to keep production at approximately 3.7m boe/day in 2023 assuming a USD60/bbl Brent price, offsetting the impact of strategic portfolio divestments and the expropriation of Sakhalin-1 in Russia.

We remind, ExxonMobil today announced the successful startup of its new polypropylene production unit at the Polyolefins Plant in Baton Rouge, Louisiana. The unit increases polypropylene production capacity along the Gulf Coast by 450,000 metric tons per year, meeting growing demand for high-performance, lightweight and durable plastics, particularly for automotive parts that can improve fuel efficiency and reduce vehicle emissions. Polypropylene, a polymer with several applications, is also used to improve the safety and efficiency of everyday products like medical masks and food packaging.

Rohm agrees to acquire Functional Forms business from SABIC

Rohm agrees to acquire Functional Forms business from SABIC

MOSCOW (MRC) -- Rohm, one of the leading manufacturers in the methacrylate business, has agreed to acquire the Functional Forms business of SABIC, subject to customary consultation with the respective works councils and approval of the antitrust authorities, said the company.

Rohm thereby adds Polycarbonate sheets and films to its existing range of PMMA sheets and films, further expanding its leading positions as a value-added partner for its customers across a wide range of applications.

“We are very excited to have found a strong partner with whom we can grow together,” explains Rohm’s CEO Michael Pack. “By adding the Polycarbonate Resin extrusion business to our portfolio, we will sustainably strengthen our competitiveness in our sheets and films business. With the combined competencies – in sales and in the development of materials, products and applications – we will become a better business partner for our customers."

Ronald Ayles, Managing Partner at Advent International, adds: “This is a unique opportunity for Rohm to build a global leader in this attractive segment and we are very happy to be able to back our portfolio company in executing this transformative acquisition”.

The Functional Forms business is a leading global manufacturer offering a broad portfolio of high-quality polycarbonate film and sheet products, predominantly marketed through the strong LEXAN™ brand which is globally recognized as one of the leading brands in its segment. Functional Forms has an extensive global presence with about 700 employees, operations in 19 countries and through various production sites strategically located across all continents.

The new combined business will have sales of more than € 700m, command a strong operational global footprint across 14 production sites and benefit from its complementary activities in similar but distinct markets: both, Rohm and SABIC’s Functional Forms business, manufacture high-quality sheet and film products that are used across a wide variety of industries, ranging from building and construction, consumer electronics, medicine to aviation. The acquisition is a key cornerstone of Rohm’s strategy to develop its transparent semi-finished products business into a leading global multi-polymer company. The strong brand LEXAN™ is an ideal complement to the acrylic glass brand PLEXIGLAS® (in the Americas under the registered trademark ACRYLITE).

Consultation with applicable works councils and unions in Europe is expected to be finalized in the upcoming months. Subject to regulatory approvals, and completion of the carve-out of the business from the rest of SABIC’s operations, the transaction is expected to close in the first half of 2024.

We remind, Roehm has disclosed the successful commissioning of its 20% methyl methacrylate (MMA) capacity expansion project in Shanghai, China. The initiative will support its methacrylates Verbund in Shanghai where the German methacrylates company is boosting capacity of polymethyl methacrylate (PMMA), sold under the Plexiglas brand. The new Meracryl MMA capacity will back the fast growth in Asia and improv supply dependability of bulk monomer.