Eni and Sonatrach sign strategic agreements to accelerate emissions reduction and strengthen energy security

Eni CEO, Claudio Descalzi, and the CEO of Sonatrach, Toufik Hakkar, signed in Algiers two agreements which outline future joint projects on energy supply, energy transition and decarbonisation, said the company.

The agreements were signed in the presence of the Prime Minister of Italy, Giorgia Meloni, and the President of the People's Democratic Republic of Algeria, Abdelmadjid Tebboune.

Through these agreements, Eni and Sonatrach will identify opportunities for the reduction of greenhouse gas and methane gas emissions and will define energy efficiency initiatives, renewable energy developments, green hydrogen projects and carbon dioxide capture and storage projects, to support energy security and at the same time a sustainable energy transition. In addition, the companies will conduct studies to identify possible measures to improve Algeria's energy export capacity to Europe.

Eni CEO Claudio Descalzi commented: “These agreements bear witness to our commitment to ensuring Italy's security of supply while at the same time pursuing our decarbonisation objectives. The partnership between Italy and Algeria gets stronger today, and Algeria's key role as one of Europe's main energy suppliers is confirmed”.

Eni has been present in Algeria since 1981. With an equity production of 100,000 barrels of oil equivalent per day, Eni is the main international company in the country.

We remind, Eni believes it will be able to completely replace Russian gas imports by 2025 as uncertainty over Moscow's energy supplies to Europe forces countries to seek alternative sources. After signing new gas supply agreements with Algeria, Egypt and Congo earlier this year, Eni sees additional opportunities arising in other countries including Libya, Angola, Mozambique, and Indonesia, as well as in its home country.

mrchub.com

Silleno LLP, a joint venture between Russia's SIBUR Holding and Kazakhstan's national oil and gas company KazMunayGas, will soon start Front End Engineering Design for a polyethylene plant in Kazakhstan, Sergei Komyshan, SIBUR's executive director of marketing and sales, told Interfax.

"FEED usually takes a year or so," he said. Commenting on SIBUR's plans in Russia in 2023, Komyshan said the company has considered various scenarios for oil production and refining in Russia and was preparing for any options in terms of feedstock supply.

"We have had to significantly expand the scope of variability for which we are preparing the company, and one of the factors is the level of production and oil refining in Russia. We looked at a fairly wide range of scenarios for both a small increase and a decrease in oil production and refining, and we believe that we can prepare for this. This will require some flexibility from the company, but we have begun to make preparations and do not expect that the drop will be significant," he said.

National Wealth Fund Samruk-Kazyna, KazMunayGas, SIBUR and the stakeholders of operating companies in November 2022 signed heads of agreement to create joint ventures based on Kazakhstan Petrochemical Industries Inc. LLP and Silleno LLP. They agreed on terms and conditions for their partnership in the joint ventures based in the National Industrial Petrochemical Technical Park, a special economic zone in Atyrau. This includes investment in the construction of the polyethylene plant with annual production capacity of 1.25 million tonnes, as well as sales of polypropylene to be produced by the plant with design capacity of 500,000 tonnes a year.

SIBUR's stake in each joint venture is 40%. Kazakhstan Petrochemical Industries Inc. LLP started to produce polypropylene in early November 2022.

We remind, KazMunayGas (KMG) and Chevron Philips Chemical representatives signed a license and engineering agreement for the second phase of the construction of an integrated gas and chemical complex in the Atyrau region. The contract outlines the development of a polyethylene plant to produce polyethylene using MarTECH® ADL technology, and a license to produce 625,000 tons of polyethylene a year.

mrchub.com

Technip Energies – as part of its long-term agreement with Aramco – has been awarded a contract to upgrade sulfur recovery facilities at Aramco’s Riyadh Refinery, said Hydrocarbonprocessing.

This contract covers the implementation of three new tail gas treatment (TGT) units, improving the performance of the existing three sulfur recovery units (SRU) to comply with more stringent regulations for sulfur dioxide emissions, with recovery efficiency at more than 99.9%.

The project will be executed locally, leveraging Saudi economic resources and infrastructure. The existing sulfur recovery units in the Riyadh refinery were designed and built by Technip Energies in the early 2000s.

Bhaskar Patel, SVP Sustainable Fuels, Chemicals & Circularity of Technip Energies, commented: “We are pleased to be entrusted by Aramco to work on the upgrading program of their refinery in Riyadh. By leveraging our long-standing relationship, which has been in place since the mid-1990s, we are committed to make this project another success, while utilizing local resources and supply chain.”

We remind, Technip Energies has been awarded a large contract for Project Management Consultancy (PMC) by Kuwait Oil Company (KOC). The five-year framework agreement contract covers front-end engineering design (FEED), project management, and associated services for KOC’s major projects. This contract represents a renewal of the first five-year framework agreement that was awarded to Technip Energies by KOC in 2014.

mrchub.com

Emerson will provide automation technologies, software and analytics for the Ras Laffan Petrochemical Complex in Qatar as part of a consortium with Viasat Energy Services, a division of global communications company Viasat, said Hydrocarbonprocessing.

The USD6 B integrated polymers project, a joint venture between QatarEnergy and Chevron Phillips Chemical, is currently under construction and scheduled to go online in late 2026. The project is QatarEnergy's largest investment ever in the country’s petrochemical sector.

The complex will include an ethane cracker with a capacity of 2.1 MMt of ethylene per year, making it the largest ethane cracker in the Middle East and one of the largest in the world, as well as two high-density polyethylene derivative units with a total capacity of 1.7 MMt per year.

"We are honored to have been selected as the lead automation contractor for such an important undertaking," said Vidya Ramnath, president of Emerson's Middle East & Africa business. "Emerson has been working with QatarEnergy for several years and we are proud to support the company's long-term vision. Our advanced automation and analytics solutions will play a key role in the safe and efficient operation of this world-class facility."

“Viasat Energy has a long history of supporting world-class energy projects in Qatar,” added Lee Ahlstrom, president of Viasat Energy Services. “We look forward to working with Emerson and our end customers to enable the network infrastructure for one of the largest and most technically advanced petrochemical facilities in the world.”

Emerson will deliver integrated process control and safety systems that leverage advanced predictive technologies to reduce operational complexity and minimize project risk through its DeltaV distributed control system and Rosemount gas analyzer solutions. Viasat will design and provide an integrated telecommunications infrastructure for the entire Ras Laffan facility.

We remind, Emerson announced a strategic partnership with Braskem Idesa to provide digital automation technologies and engineering services across its operations to meet business performance metrics and achieve its sustainability goals. Braskem Idesa is a joint venture between Brazil-based Braskem, the largest producer of thermoplastic resins in the Americas, and Grupo Idesa, one of the biggest petrochemical companies in Mexico.
mrchub.com

The refinery arm of Indonesian state energy firm Pertamina is redesigning its refinery expansion plans to meet shifting demands from a transition towards renewable energy, said Reuters, citing its chief executive.

Under Pertamina's 2015 refinery development plan, the company aims to upgrade four of its biggest refineries and build two new ones, which would nearly double its processing capacity to more than 1.5 MMbpd.

PT Kilang Pertamina Internasional, or KPI, Pertamina's refinery subholding, is readjusting the scope, product mix and timeline of its investment for Plaju, Dumai and Cilacap refineries, its chief executive Taufik Adityawarman told Reuters in an interview.

"Previously, we had a long list to increase capacity and we were emphasizing volume," he said of the 2015 plan. "Now, with a new business environment, adoption of electric vehicles and our own commitment to energy transition, we have to be adaptive."

Indonesia last year pledged a more ambitious carbon emission cut of 31.89% on its own, or 43.2% with international support by 2030. It is also targeting net-zero emissions by 2060. According to a 2021 presentation by Pertamina, upgrades of Dumai, Plaju and Cilacap would require a combined USD6.2 billion, with expected completion in 2027.

The new investment plan might result in bigger production of fuel made of renewable sources, such as diesel fuel and jet fuel made from vegetable oil, Taufik added. The Cilacap plant already has 3,000 bpd capacity to produce fuel made from palm oil - of which Indonesia is the world's biggest producer - and is expected to double that capacity by 2026.

Taufik said KPI aims to finalize their new investment plan in the first half of this year. Pertamina completed the first phase of its Balongan refinery upgrade in 2022, expanding its capacity to 150,000 bpd from 125,000 bpd.

It is aiming to finish the first phase of its Balikpapan refinery upgrade in 2024 to raise processing capacity to 360,000 bpd from 260,000 bpd. KPI would spend $1.5 B in capital expenditure this year, mostly for the Balikpapan refinery. Taufik said KPI hopes to reach a final investment decision on the Tuban refinery in the second half of the year.

We remind, ExxonMobil and Pertamina advance regional carbon capture and storage project in Indonesia. The Heads of Agreement builds upon a joint study and memorandum of understanding that was signed at COP26 in Glasgow, Scotland to assess carbon capture and storage technologies, low-carbon hydrogen and geologic data.

mrchub.com