LyondellBasell and Grenergy sign five 15-year solar power purchase agreements

MOSCOW (MRC) -- LyondellBasell and Grenergy signed five long-term solar power purchase agreements (PPAs). Under the 15-year contracts, the Spanish renewable energy producer will supply solar energy from the La Cereal solar farm project, which is expected to be operational at the end of 2025, said the company.

The agreements represent about 329,000 megawatt-hours (MWh) of solar power annually, equivalent to the annual electricity consumption of more than 90,000 European homes.

"With these agreements, LyondellBasell has now achieved 70% of our target to procure at least half of our electricity from renewable sources by 2030,” said Willemien Terpstra, LyondellBasell vice president, Decarbonization. "In total, our PPA portfolio will generate over 2.9 million megawatt hours of renewable electricity and reduce our company’s scope 2 greenhouse gas emissions by more than one million tons."

"This PPA will help to optimize the financing of Grenergy's largest project to date in Spain," said David Ruiz de Andres, CEO of Grenergy. "Its development also strengthens the weight of our European portfolio, which we expect to double from the current 25% to 45% by 2025. A proven structure and ability to close PPAs is key to keeping up the pace of connections and achieving our strategic targets."

The 259 megawatts (MW) La Cereal solar farm project is part of the Clara Campoamor photovoltaic solar energy project, which Grenergy is developing between the Madrid and Castilla La Mancha region. The total installed electricity capacity will be approximately 575 MW, and it will become one of the largest photovoltaic parks in Europe.

These agreements demonstrate LyondellBasell continued progress towards the company’s goal to reduce its scope 1 and 2 greenhouse gas emissions by 42% by 2030 and achieve net zero by 2050.

We remind, LyondellBasell announced that PetroChina Jilin Petrochemical Company will again license LyondellBasell’s polyethylene technology at their facility located in Jilin City, Jilin Province, P.R. of China. The newly licensed technology will comprise of LyondellBasell’s leading high-pressure Lupotech process technology which will be used for both a 100 kiloton per year (KTA) Autoclave and a 300 KTA Tubular line. Both production trains will produce mainly low-density polyethylene (LDPE) with ethylene vinyl acetate copolymers (EVA). Furthermore, an additional 400 KTA Hostalen “Advanced Cascade Process” (ACP) line for the production of high density polyethylene (HDPE) will be built at the same time.

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MOSCOW (MRC) -- Refiner Citgo Petroleum Corp on Thursday reported record net profit of USD2.8 billion for 2022 on strong motor fuel demand, high margins and refining output that exceeded its plants' listed capacity, said Hydrocarbonprocessing.

Rebounding from a loss of USD160 million in 2021 and two straight years of losses, the results for last year also exceeded the Houston-based company's earlier forecast. Earnings across the U.S. refining sector jumped last year as fuel prices climbed sharply on the post-COVID 19 pandemic economic recovery and on global fuel shortages caused by Russia's invasion of Ukraine.

Fourth quarter net profit was USD806 million, compared with USD21 million in the same period a year ago. Earnings before interest, taxes and depreciation for the final quarter was USD1.2 billion, versus USD139 million a year ago.

Last year's strong profits allow it to pay down Citgo debt by USD1.1 billion and pay dividends to its parent company, Citgo Holding, that were used to reduce its debt by USD489 million, the company said. Citgo, controlled by Venezuela's state company PDVSA , but which in 2019 cut ties with the administration of President Nicolas Maduro after the U.S. imposed strict sanctions on the South American country.

Results reflect "a strong foundation of operational and commercial excellence, asset stewardship and safety,” Chief Executive Carlos Jorda said in a statement.

Citgo's three refineries operated at record production levels in the fourth quarter. The trio processed a combined 797,000 barrels per day (bpd) of crude oil in the final quarter, a 104% utilization rate.

For the full year, the company's total refining throughput was 811,000 bpd, compared with 730,000 bpd in 2021.

Exports for the year rose 35% over the prior year, to 182,000 bpd from 134,000 bpd. Higher product sales volumes contributed to strong gasoline and diesel margins, Citgo said.

We remind, Citgo Petroleum reported third quarter earnings of USD477 MM on strong margins and higher throughput at its three U.S. oil processing plants. Results for the Venezuelan-owned company and other U.S. refiners have touch records this year as prices for motor fuels climbed sharply on the U.S. economic recovery and on global shortages caused by Russia's invasion of Ukraine. That demand is expected to keep profits flowing.

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MOSCOW (MRC) -- S-OIL held the groundbreaking ceremony at S-OIL Ulsan Refinery in the presence of President Yoon Suk Yeol for the 9.258 trillion Won Shaheen Project, Korea’s biggest ever petrochemical project, said Hydrocarbonprocessing.

The ceremony was attended by some 300 guests including Chang-Yang Lee, Minister of MOTIE (Ministry of Trade, Industry and Energy), Doo-kyum Kim, mayor of Ulsan City, Amin H. Nasser, President & CEO of Aramco, members from the central and local government, and construction companies. The ceremony celebrated the start of a new chapter in the Company’s history.

Shaheen reflects S-OIL’s ambitious plan to solidify its position as a clean energy and petrochemicals company that supports broader carbon neutrality ambitions. The project is located at the Onsan Industrial Complex of Ulsan City, with completion expected in 2026.

Major units include the world’s largest steam cracker (production capacity: 1,800 KTA of ethylene), a TC2C facility which converts crude directly into petrochemical feedstock (LPG, Naphtha), a polymer facility that produces high value petrochemical feedstock for plastics and other synthetic resins, and other facilities including storage tanks.

After completion of the project, S-OIL’s petrochemical production will more than double to 25% from the current 12% of total production, playing a pivotal role in diversifying its fuel-weighted business. S-OIL to diversify its business portfolio from “crude to chemicals” for innovative growth.

Shaheen represents the largest-ever investment into South Korea by Aramco, one of the world’s preeminent integrated energy and chemicals companies. Total investment including the 4.8 trillion Won first phase completed in 2018, amounts to 14 trillion Won.

“We are embarking on a great journey in the belief that this is the right time to invest in the future,” said Hussain A. Al Qahtani, the CEO of S-OIL. “Support from all of our stakeholders and our outstanding employees will no doubt deliver another major investment. Shaheen will not only expand the Company’s business portfolio into petrochemicals but also advance our efforts to drive innovative growth across the entire value chain of our business.”

The project is not only benefitting the economy of Ulsan, but also the country’s wider manufacturing industry. It will generate as many as 17,000 jobs during peak construction. After start-up it will support more than 400 jobs and provide 3 trillion Won in added value to the economy.

Shaheen will significantly improve the stable supply of petrochemical feedstock and more than double ethylene production capacity in Ulsan. It will also supply monomer products through a pipeline to adjacent downstream olefin-processing businesses.

We remind, Saudi Aramco’s majority owned S-Oil Corp. has let a contract to Lummus Technology LLC to deliver the first commercial deployment of a new crude-to-chemicals process technology for a massive petrochemical expansion at the operator’s 669,000-b/d integrated refining complex in Ulsan, South Korea.

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MOSCOW (MRC) -- Energy group Eni has signed a two-year contract with Italy's Spinelli to power the trucks of the logistic group with a diesel fuel produced from 100% renewable raw materials, said Hydrocarbonprocessing.

The biofuel is produced from waste raw materials, vegetable residue and oils processed in Eni's bio refineries in the Sicilian town of Gela and in Venice, the group said on Wednesday.

The contract is part of Eni's strategy to develop sustainable transport services through its new dedicated company dubbed Eni Sustainable Mobility.

The setting up of Eni Sustainable Mobility in January follows the creation of Plenitude, the group's unit dedicated to renewable energies, in 2021.

We remind, Eni has signed a two-year contract with logistics firm the Spinelli Group to provide diesel produced by 100% renewable raw materials to help power its fleet. The hydrotreated vegetable oil (HVO) is available at 57 service stations, will be available at 150 sales points in Italy by the end of the month and will be used by 150 vehicles in the Spinelli Group fleet. Eni Sustainable Mobility has been operating since January, combining biomethane and sale of mobility-related products across more than 5,000 service stations in Italy and abroad.

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MOSCOW (MRC) -- India's fuel demand hit its highest level in at least 24 years in February, data showed on Thursday, with industrial activity in Asia's third biggest economy boosted by cheap Russian oil, said Hydrocarbonprocessing.

Consumption of fuel, a proxy for oil demand, rose by more than 5% to 4.82 million barrels per day (18.5 MMt) in February, its 15th consecutive year-on-year rise, data showed. Demand was the highest recorded in data compiled by the Indian Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) going back to 1998.

The strength highlights a combination of profitable refining from record Russian crude imports in February, total utilization for primary distillation across India and still-robust domestic consumption, said Viktor Katona, lead crude analyst at Kpler.

Katona forecasts demand in March at 5.17 MMbpd and then the seasonal monsoon-driven slowdown will lead to it to drop to 5 MMbpd in April-May. Sales of gasoline, or petrol, rose 8.9% year-on-year to 2.8 million tonnes in February, while diesel consumption climbed 7.5% to 6.98 million tonnes.

Sales of jet fuel jumped more than 43% to 0.62 MMt, the data showed. "For 2023, the strongest demand growth rate is projected to be in jet fuel, followed by gasoline and then diesel/gas oil," said Alan Gelder, VP Refining, Chemicals and Oil Markets at Wood Mackenzie.

While fuel sales data showed total volumes of both gasoline (motor spirit) and diesel (HSD) fell in February relative to January, they grew strongly on a daily consumption basis as February is a short month, Gelder noted.

Cooking gas, or liquefied petroleum gas (LPG), sales slipped by 0.1% to 2.39 MMt. Sales of bitumen, which is used for building roads, jumped 21.5% month-on-month, while fuel oil use declined slightly more than 5% in February, compared with January.

We remind, BASF has commenced production of its first bio-based polyol, Sovermol®, in Mangalore, India, said the company. This is the company’s first bio-based polyol production facility in Asia Pacific, serving the region’s fast-growing demand of eco-friendly products for new energy vehicles (NEV), windmills, flooring and protective industrial coatings, it said.

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