Saudi Aramco acquiring 10% stake in China's Rongsheng

Saudi Aramco is acquiring a 10% stake in Chinese producer Rongsheng Petrochemical Co for yuan (CNY) 24.6bn (USD3.6bn), the energy giant said.

As part of the deal, Aramco will supply 480,000 bbl/day of Arabian crude to Rongsheng affiliate Zhejiang Petroleum and Chemical Co (ZPC), under a long-term sales agreement, the company said in a statement.

Rongsheng owns a 51% equity interest in ZPC, which in turn owns and operates the largest integrated refining and chemicals complex in China with a capacity to process 800,000 bbl/day of crude oil and to produce 4.2m tonnes/year of ethylene.

Aramco Overseas Co, a wholly-owned subsidiary of Aramco, will acquire the interest in Rongsheng. “The transaction involves an off-market secondary sale of Rongsheng shares by majority shareholder Zhejiang Rongsheng Holding Group, with potential for future collaboration between the parties in trading, refining, chemicals production and technology licensing,” Aramco said.

Aramco earlier on Sunday announced that its joint venture firm Huajin Aramco Petrochemical Company (HAPCO) plans to start construction of refinery and petrochemical complex in China’s northeastern Liaoning province in the second quarter, with full operations expected in 2026.

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ADNOC announced today that it will explore opportunities to support the climate-neutral transformation of industry through the creation of a low-carbon ammonia value chain with state government and industry representatives in Germany’s North Rhine-Westphalia, said Hydrocarbonprocessing.

The announcement was made following the signing of a memorandum of understanding (MoU) between the Government of North Rhine-Westphalia, ADNOC and Currenta GmbH & Co. OHG (Currenta), a chemical industry services provider that manages and operates one of the largest chemical sites in Europe, Chempark, with locations in Leverkusen, Dormargen and Krefeld-Uerdingen, in North Rhine-Westphalia. Ammonia, a compound of nitrogen and hydrogen, can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation, and industries including steel, cement and fertilizer production.

The agreement was signed in Dusseldorf, Germany, by Her Excellency, Mona Neubaur, Deputy Prime Minister of North Rhine-Westphalia and State Minister for Economics, Industry, Climate Protection and Energy, Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth Directorate at ADNOC and Frank Hyldmar, CEO of Currenta.

Her Excellency, Mona Neubaur said: “We will do our utmost to expand the capacities for the generation of renewable energies and for the production of other climate-neutral energy carriers such as green hydrogen in this country as much as possible. However, it is also clear that we will have to import various green energy sources in large quantities in order to cover our needs and to achieve our climate protection goals. We are now building partnerships and a broad import infrastructure to supply our industry. The basis for our cooperations is diversification with many countries."

The primary focus of the agreement will be the production and transportation of low-carbon ammonia and its application as a fuel in energy generation, including industrial-scale testing at Currenta’s site in Dormagen, Germany.

We remind, Eni and ADNOC will explore potential opportunities in the areas of renewable energy, blue and green hydrogen, carbon dioxide capture and storage (CCS), in the reduction of greenhouse gas and methane gas emissions, energy efficiency, routine gas flaring reduction and the Global Methane Pledge, to support global energy security and a sustainable energy transition. In addition, they will evaluate areas of cooperation for sustainable development and promoting the spread of a culture of sustainability within the energy industry and its stakeholders.

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Domo Chemicals has broken ground for a new plant to produce Technyl polyamide (PA)-based grades in Haiyan, Jiaxing, Zhejiang, China, said the company.

The EUR 14 M PA facility, which will be based on the latest technology and equipment, will gradually be expanded to reach a total capacity of 50,000 tonnes/y. Full operation is expected by the end of 1Q 2024. The project is strategically located and will play a key role in the company's strategy to expand its presence in the Asian market.

Domo said it plans to eventually expand the plant’s initial capacity of 35,000 t/y to 50,000 t/y, with a company spokesperson telling Plasteurope.com in 2022 that the increase is expected in five to eight years.

Beyond adding to the German firm’s competitiveness in the growing Asian polyamide market, the plant is expected to create job opportunities and contribute to the development of the local economy, said Fabrizio Cochi, Domo’s general manager for Asia.

As the development zone is to host manufacturers of electronics, new energy products, new materials, and high-end equipment, Domo said it expects the investment to place it close to customers while playing a key role in expanding its Asian presence. Among other things, the sub-district also aims to become a “hydrogen valley."

Active in PA resin manufacturing as well as compounding, Domo is also expanding a nearby plant. An initial stage of the company’s plans to raise Chinese output was completed in March 2022 when capacity was pushed to 14,000 t/y from 6,000 t/y.

We remind, Domo Caproleuna GmbH, an offshoot of Domo Chemicals, has produced 5 M tonnes of caprolactam at its 176,000 tonnes/y caprolactam and polyamide (PA) facility in Leuna, Germany. This volume is equal to around 225,000 truckloads. Domo Caproleuna intends to neutral CO2 emissions growth by 2030 by decreasing the carbon content of its energy mix by 15% and lessening industrial waste by 7%. Caprolactam is mainly used to manufacture PA 6 such as Domamid and Technyl.

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ExxonMobil will demonstrate its industry leadership by presenting its broad portfolio of products that enable innovative solutions with sustainability benefits for hygiene and personal care applications at INDEX™23, said the company.

This extensive portfolio includes ExxonMobil™ PP, Achieve™ Advanced PP (polypropylene) and Vistamaxx™ performance polymers that can be used to create differentiated hygiene and personal care products.

“INDEX™23 is the perfect platform to demonstrate that not all hygiene solutions are created equal,” said market development manager, Gertrud Masure. “Our broad product portfolio and a collaborative approach is creating differentiated solutions that help unlock business opportunities across the value chain. This is an ideal opportunity for customers to discuss their challenges and new product ideas with our polymer and application experts."

A major innovation being presented will be the model baby diaper of which the chassis is made exclusively with ExxonMobil’s extensive portfolio of products. “This innovation allows us to demonstrate the broad capability of our portfolio, combined with our hygiene application expertise, as we look to unlock business opportunities with interested parties committed to collaborative new developments,” said Masure.

We remind, ExxonMobil Corp has started up its long-planned project to expand light crude oil processing capacity by 250,000 b/d at ExxonMobil Product Solutions Co's integrated refining and petrochemicals complex along the US Gulf Coast in Beaumont, TX, US.

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MOL Group is transporting crude oil produced at its co-owned oilfield, the Azeri–Chirag–Gunashli in Azerbaijan, to Slovnaft Refinery in Bratislava, said Hydrocarbonprocessing.

This is a major step for the company’s efforts to increase its crude sourcing flexibility. In addition, the arrival of the Seavelvet tanker from the Port of Ceyhan in Turkey to Omisalj in Croatia, and then transporting the 90,000 tons of crude oil to Bratislava through the Adria pipeline is a success story for MOL Group: it constitutes well-to-wheel integration of its value chain as it will process and sell petroleum products refined at one of its own refineries using crude oil produced at a field it co-owns. The shipment is transported from the Sangachal oil terminal near Baku to Ceyhan via the BTC pipeline, also co-owned by MOL Group.

Test production of petroleum products using the Azeri Light produced at the Azeri–Chirag–Gunashli oil field – of which MOL Group owns 9.57% - will begin in April. This comes after successful testing at Slovnaft Refinery of several types of oils from Middle East and Caspian region. This is another important milestone in MOL Group’s journey toward greater crude sourcing flexibility amid European sanctions prohibiting the export of petroleum products from EU member states.

"The arrival of this shipment of Azeri Light crude oil is an extraordinary event for us, as it further demonstrates our flexibility in crude oil sourcing. It also marks a new opportunity for us to cover the entirety of the value chain in our production, from well to wheel, which is always a major accomplishment. MOL Group has a regional security supply mindset, therefore we are especially delighted to contribute to supplying the CEE region with our own crude", pointed out Gabriel SZABO, Executive Vice President of Downstream at MOL Group.

MOL Group is keen to become an increasingly important economic link between Azerbaijan and Central and Eastern Europe. In 2020, the company acquired 9.57% stake in the ACG oilfield, one of the flagship fields of the Azerbaijani economy, and 8.9 % in the BTC (Baku-Tbilisi-Ceyhan) pipeline.

We remind, MOL Group announced its financial results for 4Q 2022 and full year 2022. Despite the unprecedentedly turbulent external environment, MOL Group generated $1074 M in 4Q 2022, bringing full-year EBITDA to $4702 M. Upstream and Downstream together provided 95% of this result in half-half proportion, supported by the overall positive oil macro environment.

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