ADNOC allocates USD15 bn to low-carbon solutions, new energies and decarbonization technologies

ADNOC allocates USD15 bn to low-carbon solutions, new energies and decarbonization technologies

MOSCOW (MRC) -- ADNOC announced a bold new strategy to progress the world-scale decarbonization of its operations, said Hydrocarbonprocessing.

The announcement follows the guidance by ADNOC’s Board of Directors in November 2022 to accelerate delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050 ambition. This builds on ADNOC’s strong track record as a leading lower-carbon intensity energy producer, which includes its use of zero carbon grid power, a commitment to zero flaring as part of routine operations and deployment of the region’s first carbon capture project at-scale.

Acting on the Board’s guidance, ADNOC has allocated USD15 B to advance an array of projects across its diversified value chain by 2030. These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency and new measures to build on ADNOC's long-standing policy of zero routine gas flaring. ADNOC will apply a rigorous commercial and sustainability assessment to ensure that each project delivers lasting tangible impact.

Throughout 2023, a suite of new projects and initiatives will be announced, including a first-of-its-kind CCS project, innovative carbon removal technologies, investment in new, cleaner energy solutions and strengthening of international partnerships. Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “Under the directives of the UAE’s wise leadership and the ADNOC Board of Directors, ADNOC continues to take significant steps to make today’s energy cleaner while investing in the clean energies and new technologies of tomorrow. Now, more than ever, the world needs a practical and responsible approach to the energy transition that is both pro-growth and pro-climate, and ADNOC is delivering tangible actions in support of both these goals.

"Cementing our strong track record of responsible and reliable energy production, ADNOC will fast-track significant investments into landmark clean energy, low-carbon and decarbonization technology projects. As we continue to future-proof our business, we invite technology and industry leaders to partner with us, to collectively drive real and meaningful action that embraces the energy transition. This strategic, multi-billion-dollar initiative underscores ADNOC’s industry leadership as a leading global provider of lower-carbon energy."

Building on ADNOC’s Al Reyadah facility, which has the capacity to capture up to 800,000 tons of CO2 per year, the company will announce plans to deploy technologies to capture, store and absorb CO2 by leveraging the UAE’s geological properties while preparing for its next major investment to capture emissions from its Habshan gas processing facility. Combined with ADNOC’s planned expansion of its carbon capture capacity to 5 MMtpy by 2030, the UAE will be firmly established as a worldwide hub for carbon capture expertise and innovation.

ADNOC’s expansion of CCS is planned to support the significant scale-up of hydrogen and lower-carbon ammonia production capabilities in Abu Dhabi as ADNOC advances a world-scale 1 MMtpy blue ammonia production facility at TA’ZIZ, the industrial services and logistics ecosystem that is enabling the expansion of the Al Ruways Industrial City, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors. To-date, ADNOC has already delivered test cargoes of low-carbon ammonia to Europe and Asia.

ADNOC’s expansion of its new energy portfolio will largely be delivered through its stake in Masdar, the UAE’s clean energy powerhouse with over 20 gigawatts (GW) of clean energy today and plans to increase its capacity to 100 GW by 2030. Masdar is also spearheading the UAE’s drive to develop a leading position in green hydrogen.

Since January 2022, ADNOC has received 100% of its grid power supply from Emirates Water and Electricity Company’s (EWEC) nuclear and solar energy sources, making it the first major company in the industry to decarbonize its power at scale through a clean power agreement of this kind. ADNOC also concluded a $3.8 B deal to build a first-of-its-kind, sub-sea transmission network in the MENA region, connecting ADNOC’s offshore operations to the onshore power network, with the potential to reduce ADNOC’s offshore carbon footprint by up to 50%.

Building on the multi-billion capital investment in decarbonization projects, ADNOC is working closely with its international partners and stakeholders across the energy value chain to collaborate on technology, best practices and policy to support and drive global decarbonization efforts.

We remind, Abu Dhabi National Oil Company (ADNOC) and Mubadala announced a transaction involving OMV, a global energy and chemicals group, headquartered and listed in Vienna, Austria. Under the agreement, ADNOC will acquire a 24.9% shareholding in OMV from Mubadala. Financial details of the transaction are not being disclosed. Upon completion of the transaction, which is subject to certain closing conditions and regulatory approvals, ADNOC will own 24.9% of OMV, Osterreichische Beteiligungs AG (OBAG), an Austrian independent holding company, holding 31.5%, with the remaining share capital in free float.
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Chevron to send 500,000-barrel cargo of Venezuelan oil to its Pascagoula refinery

Chevron to send 500,000-barrel cargo of Venezuelan oil to its Pascagoula refinery

MOSCOW (MRC) -- U.S. oil producer Chevron Corp plans to export this month its first cargo of Venezuelan crude to its Pascagoula, Mississippi refinery following a U.S. license granted last year, according to shipping documents seen by Reuters.

The 500,000-barrel cargo of Hamaca heavy crude, to be loaded at state-run PDVSA's Jose port, comes from the Petropiar oil joint venture operated by both companies.

As of Tuesday, the tanker scheduled to carry the shipment, the Bahamas-flagged Caribbean Voyager, was waiting to load near Jose, Refinitiv Eikon data showed.

Another Chevron-chartered vessel, the UACC Eagle, arrived on Tuesday in Venezuelan waters, the Eikon data also showed, carrying some 500,000 barrels of heavy naphtha that will be used to operate Petropiar's crude upgrader.

Chevron declined to comment on Tuesday and PDVSA did not immediately reply to a request for comment. The U.S. Treasury Department in November gave Chevron a 6-month license to reanimate and expand operations in Venezuela as a way to encourage talks between the government of Nicolas Maduro and the country's political opposition towards a presidential election this year.

Washington had previously authorized Italy's Eni and Spain's Repsol to recoup pending debts in Venezuela by taking Venezuelan crude for refining in Europe. The authorized shipments are set to slightly boost Venezuela's crude exports, which last year remained almost unchanged compared with 2021.

We remind, Technip Energies has been awarded a contract for the supply of proprietary cracking furnaces for the 2,000,000 tpy ethane cracker for the Golden Triangle Polymers project, a joint venture between Chevron Phillips Chemical (CPChem) and QatarEnergy, along the Gulf Coast in Orange, Texas. This latest award is in line with our early engagement strategy with CPChem and QatarEnergy, which resulted in the selection of our proprietary ethylene technology and includes the successful completion of the ethylene license and Process Design Package (PDP).

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Vietnam largest refinery output to fall 20%-25% due to unit shutdown

Vietnam largest refinery output to fall 20%-25% due to unit shutdown

MOSCOW (MRC) -- Output from Vietnam's largest oil refinery is expected to fall by 20%-25% during the first 10 days of January as its residual fluid catalytic cracking (RFCC) unit has been shut down due to a technical problem, said Reuters.

The 200,000-bpd Nghi Son Refinery and Petrochemical has a leak at the RFCC unit, the government said in a statement.

Reuters first reported on the shutdown late last month.

The Ministry of Industry and Trade has asked fuel traders to increase their imports to compensate for the shortfall "to ensure sufficient fuels for the local market until the end of the first quarter," the government said.

Nghi Son refinery is 35.1% owned by Japan's Idemitsu Kosan Co, 35.1% by Kuwait Petroleum, 25.1% by Vietnam's state oil firm PetroVietnam and 4.7% by Mitsui Chemicals Inc.

We remind, Hyundai Engineering announced that it has completed the construction of Long Son Utility Plant in Vietnam. The company held an initial acceptance ceremony for the plant with the attendance of officials, including Hong Hyun-seong, CEO of Hyundai Engineering, and Thamasak Sethadom, executive vice president of Siam Cement Group, the client of the project.

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Vietnam largest refinery RFCC unit shut for troubleshooting

Vietnam largest refinery RFCC unit shut for troubleshooting

MOSCOW (MRC) -- Vietnam's largest refinery, Nghi Son Refinery and Petrochemical (NSRP), has shut a residual fluid catalytic cracking (RFCC) unit for "troubleshooting", two sources familiar with the matter said Reuters.

"The issue was detected earlier this week and the refinery has been fixing it," one of the sources said, adding that "the unit is expected to resume normal operations soon." Details of the problem were not immediately clear.

Calls to the refinery seeking comment were not immediately answered. The 200,000 barrels-per-day refinery is 35.1% owned by Japan's Idemitsu Kosan Co, 35.1% by Kuwait Petroleum, 25.1% by Vietnam's state oil firm PetroVietnam and 4.7% by Mitsui Chemicals Inc.

We remind, Hyundai Engineering announced that it has completed the construction of Long Son Utility Plant in Vietnam. The company held an initial acceptance ceremony for the plant with the attendance of officials, including Hong Hyun-seong, CEO of Hyundai Engineering, and Thamasak Sethadom, executive vice president of Siam Cement Group, the client of the project.

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Petrobras next CEO seen overseeing strategic shift with renewables focus

Petrobras next CEO seen overseeing strategic shift with renewables focus

MOSCOW (MRC) -- The nomination of a Brazilian senator and longtime energy consultant to lead Petrobras suggests President-elect Luiz Inacio Lula da Silva wants the state-run firm to pivot to more renewable energy projects, said Reuters.

Since 2019, Petroleo Brasileiro SA has doubled down on deep, and ultra deep-water exploration and production, while also selling off less productive assets to lower its debt load. But Jean Paul Prates, nominated on Friday to be chief executive, has been advocating for higher investments in renewables.

"Petrobras is a company for the long run and cannot just keep exploring sub-salt oil and paying dividends," Prates said in a press conference this month. Prates, a senator for the past four years, will become the first politician to hold a high-ranking office at Petrobras in several years. Still, his nomination may calm investors' fears that Lula would tap a meddlesome manager to run the oil company.

Last month, Prates, a prominent voice on energy policy within Lula's Workers Party, said the new administration would not have an interventionist stance on Petrobras, had no intention of causing a "breakdown" of the company and would discuss everything with market players.

"He was the best choice considering the upcoming scenario," said a current executive, speaking on condition of anonymity while working under outgoing President Jair Bolsonaro. Petrobras shares plunged as much as 25% after Lula defeated Bolsonaro in an October vote, but have pared losses since hitting a five-month low in mid-December.

A second Petrobras source said Prates, who holds a masters degree in energy planning from the University of Pennsylvania and another one in oil economics from the French Institute of Petroleum, "knows about the sector," adding they hoped he would take a "moderate stance".

Petrobras, Prates and the transition team's press officer did not immediately respond to requests for comment. The reservoir of industry knowledge boasted by Prates, who founded an energy consulting firm three decades ago, won unlikely praise from Bolsonaro's former mines and energy minister Bento Albuquerque.

We remind, Petrobras has started output at the Itapu pre-salt field in the Santos basin via the P-71 floating production, storage and offloading vessel. The P-71 FPSO, which features a processing capacity of 150,000 barrels per day of oil and 6 million cubic metres per day of natural gas, was deployed in water depths of 2010 metres. “We were able to anticipate production of the P-71 platform, which was originally scheduled for 2023,” said Petrobras production development director Joao Henrique Rittershaussen.

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