Saudi Aramco secures several deals valued at USD6 bn

Aramco, a prominent player in the global energy and chemicals landscape, has taken a significant stride towards advancing its strategic localization initiatives by finalizing a series of 40 corporate procurement agreements valued at a staggering $6 billion with suppliers operating within the Kingdom of Saudi Arabia, said Chemanalyst.

These agreements signify a monumental leap towards reinforcing Aramco's domestic supply chain ecosystem, a pivotal component in bolstering the company's resilience, dependability, and agility to effectively cater to the dynamic demands of its customer base. Furthermore, these arrangements provide suppliers with invaluable long-term visibility into demand patterns, empowering them to capitalize on forthcoming growth prospects and spearhead localization endeavors.

Moreover, these agreements seamlessly align with the overarching objectives of Saudi Aramco's iktva program, a cornerstone initiative aimed at nurturing a vibrant economic landscape and fostering fresh avenues for Saudi nationals. The recent conclusion of 40 such agreements is anticipated to inject vigor into the domestic value chain, thereby amplifying the ecosystem that Aramco is actively nurturing. This strategic maneuver catapults us towards a more prosperous, diversified, and resilient supply chain, pivotal for ensuring uninterrupted business operations. Additionally, these accords signify a significant milestone in our ongoing iktva journey, providing our partners with a gateway to harness opportunities in an increasingly dynamic and diversified operational milieu.

Spanning across a myriad of sectors, the recently sealed corporate procurement agreements encompass a diverse spectrum of product categories, including indispensable commodities such as instrumentation, electrical equipment, and drilling equipment. Furthermore, Aramco has entered into two strategic Memoranda of Understanding with key partners, aimed at fostering collaboration in localization efforts and driving the development of the supply chain ecosystem.

These initiatives underscore Saudi Aramco's steadfast commitment to bolstering the domestic economy, enhancing the capabilities of local suppliers, and fostering sustainable growth within the Kingdom of Saudi Arabia. Through these strategic alliances and localization endeavors, Saudi Aramco continues to play an instrumental role in steering economic diversification and creating opportunities for the nation's workforce.

Saudi Aramco, officially known as the Saudi Arabian Oil Group or Aramco (previously Arabian-American Oil Company), stands as a state-owned entity specializing in petroleum and natural gas. It serves as the national oil company of Saudi Arabia. Renowned for its vast reserves, Saudi Aramco boasts the world's second-largest proven crude oil reserves, exceeding 270 billion barrels (43 billion cubic meters). Additionally, it holds the distinction of having the highest daily oil production among all oil-producing companies.

We remind, Saudi Arabia's government ordered state oil company Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12 MM bpd, 1 MM bpd below a target announced in 2020. Saudi Arabia for decades has been the main holder of the world's only significant spare oil capacity, providing a safety cushion for global supplies in case of major disruptions caused by conflict or natural disasters. In recent years, fellow member of the Organization of the Petroleum Exporting Countries the United Arab Emirates has also built-up spare capacity.

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Royal Dutch Shell, the Anglo-Dutch oil and gas giant, has officially lifted the force majeure on the supply of phenol and acetone to Deer Park, Texas, USA, said Chemanalyst.

According to market sources, the line, boasting a substantial capacity of 363,000 tonnes of phenol and 225,000 tonnes of acetone annually, has resumed full operational status. The declaration of force majeure, made in mid-October the previous year, had stemmed from a technical malfunction that temporarily disrupted the supply chain.

This recent development marks the resolution of the issue, signifying that the supply of phenol and acetone to Deer Park, Texas, has returned to normalcy. The reinstatement of operations is expected to have a positive impact on the downstream users and industries reliant on these chemical components.

It's worth noting that this is not the only instance where Shell has faced force majeure challenges. In early February, Shell had previously declared force majeure for the supply of butadiene to Norco, located in Louisiana, USA. For this specific line, with an annual capacity of 265,000 tonnes of butadiene, operations were suspended, and the force majeure status was expected to persist at least until the end of February. The exact cause of the outage remains undisclosed at this time. As a consequence, clients of the site faced force majeure implications and supply restrictions.

Royal Dutch Shell, headquartered in The Hague, Netherlands, operates globally and is actively involved in the exploration and production of oil and gas across more than 80 countries. The company has ownership stakes in over 30 refineries and boasts a substantial presence in the chemical industry. In addition to its core oil and gas operations, Shell has diversified interests, including ownership of numerous chemical enterprises and engagement in the production of solar panels and other alternative energy sources.

The resolution of the force majeure on phenol and acetone supply to Deer Park signifies a positive step forward for both Shell and its downstream customers. The timely restoration of operations is crucial for maintaining a steady supply chain and meeting the demands of various industries dependent on these chemical products.

However, the force majeure situation with butadiene supply to Norco raises questions about the challenges and uncertainties that can impact the operations of major players in the oil and gas industry. The undisclosed cause of the butadiene supply disruption underscores the complexity of managing unforeseen technical issues and their ripple effects on downstream users.

As Shell navigates these challenges, its ability to efficiently address force majeure situations and ensure the reliability of its supply chains will continue to be closely monitored by industry observers. The broader implications of such disruptions on global markets and the downstream industries highlight the interconnectedness of the energy and chemical sectors and the importance of swift and effective resolution strategies.

We remind, in early February, Royal Dutch Shell, a prominent Anglo-Dutch oil and gas company, declared force majeure concerning the supply of butadiene to its facility in Norco, Louisiana, USA, said Chemanalyst.
Market reports have confirmed the shutdown of a line with a substantial capacity of 265,000 tonnes of butadiene annually. This operational halt is anticipated to persist at least until the conclusion of February, with the precise cause of the disruption remaining undisclosed.

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Yokogawa Electric Corporation announced the development and release of OpreX Carbon Footprint Tracer, a solution in the OpreX Transformation lineup that targets the carbon footprint management needs of companies in the process manufacturing industries, said Hydrocarbonprocessing.

OpreX Carbon Footprint Tracer is a cloud service that calculates CO2 emissions based on measurement data and other types of primary information collected from instrumentation systems, power monitors, and other systems, and a consultation service that aids in the formulation of strategies for calculating and reducing CO2 emissions. This is a total solution for the process manufacturing industries that enables the visualization and reduction of CO2 emissions.

For the calculation of CO2 emissions, this service realizes seamless integration with the SAP® Sustainability Footprint Management service and ERP solutions offered by SAP, enabling the visualization and management of product carbon footprint (PCF) based on European standards. The support for European standards and linkage with the SAP Sustainability Footprint Management service is a world first, giving companies in the process manufacturing industries the ability to both visualize and manage their PCF.

We remind, Russia ordered a six-month ban on gasoline exports from March 1 to keep prices stable amid rising demand from consumers and farmers and to allow for maintenance of refineries in the world's second largest oil exporter. The ban, first reported by Russia's RBC, was confirmed by a spokeswoman for Deputy Prime Minister Alexander Novak, President Vladimir Putin's point man for Russia's vast energy sector.

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Russia ordered a six-month ban on gasoline exports from March 1 to keep prices stable amid rising demand from consumers and farmers and to allow for maintenance of refineries in the world's second largest oil exporter, said Reuters.

The ban, first reported by Russia's RBC, was confirmed by a spokeswoman for Deputy Prime Minister Alexander Novak, President Vladimir Putin's point man for Russia's vast energy sector.

RBC, citing an unidentified source, said Prime Minister Mikhail Mishustin had approved the ban after Novak proposed it in a letter dated Feb. 21. A second source told Reuters that the decision had been made but the decree had not yet been issued.

"In order to offset excessive demand for petroleum products, it is necessary to take measures to help stabilize prices in the domestic market," Novak was quoted as saying in his proposal by RBC.

Domestic gasoline prices are sensitive for motorists and farmers in the world's biggest wheat exporter ahead of a March 15-17 presidential election, while some Russian refineries have been hit by Ukrainian drone attacks in recent months.

Russia and Ukraine have targeted each other's energy infrastructure in a bid to disrupt supply lines and logistics and demoralise their opponents, as they seek the edge in a nearly two-year-old conflict that shows no sign of ending.

Exports of oil, oil products and gas are by far Russia's biggest export, a major source of foreign currency revenue for Russia's $1.9 trillion economy, and ensure that Moscow has a place at the top table of global energy politics.

The Kremlin has been working with Saudi Arabia, the world's biggest oil exporter, to keep prices high as part of the broader OPEC+ grouping which includes the Organization of the Petroleum Exporting Countries and key allies.

Russia is already voluntarily cutting its oil and fuel exports by 500,000 barrels per day in the first quarter as part of OPEC+ efforts to support prices.

We remind, SIBUR began construction of a research and technology scaling center in Kazan, which will provide for a full cycle of creating new synthetic materials for key sectors of the Russian economy, the company's press service said in a statement. The key areas of operation for SIBUR's R&D center will be the development and scaling of new polyolefin and heterogeneous catalysts, synthesis and piloting of new products for the development of the company's existing chains and creation of fundamentally new materials, process modeling and engineering, development of new technologies, implementation of projects aimed at decarbonization, a closed cycle economy and digital initiatives.

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Linde plc announced that its Board of Directors has elected Paula Rosput Reynolds as a new director of Linde plc, effective February 27, 2024. Rosput Reynolds will serve on the Audit and Sustainability committees, said the company.

Rosput Reynolds is a seasoned energy executive who brings substantial knowledge and global experience to the Linde plc Board of Directors. Over the course of her career, she has held several senior roles including CEO of Duke Energy Power Services, Chair, President & CEO of AGL Resources, Chair & CEO of Safeco Corporation, and Vice Chair & Chief Restructuring Officer at AIG. She is currently President and CEO of PreferWest LLC, a business advisory firm.

Rosput Reynolds is currently Chair of National Grid plc and serves as a director at General Electric Company and senior independent director at BP plc. She has previously served on a number of Boards including at BAE Systems, CBRE, TransCanada and Delta Air Lines, among others.

"Paula has a distinguished track record of executive leadership and board service,” said Steve Angel, Chairman of Linde plc. "Her in-depth knowledge of the energy sector, strategic insights and international experience will be an asset to the company and further strengthen our Board."

We remind, Linde announced it has signed two new long-term power purchase agreements for the supply of renewable energy in China. Linde has signed separate 25-year agreements with Guangdong Energy Group (GEG) and China Three Gorges Corporation (CTG) to secure a total of 320 gigawatt hours per year of renewable energy. The renewable power will be generated by solar projects located in the provinces of Guangdong and Jiangsu, and supply is due to start in the first quarter of 2024.

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