Gazprom secures rights to Pribaikalsky hydrocarbon block near Kovykta

Gazprom secures rights to Pribaikalsky hydrocarbon block near Kovykta

Gazprom will receive the rights to use the subsoil resources of the Pribaikalsky hydrocarbon block in the northern part of Irkutsk Region, near the Russian gas giant's Kovykta gas condensate field, as per Interfax.

Gazprom submitted the only bid to participate in the auction for the block, so the auction was declared void and the resource rights were granted to the sole bidder, the website said.

Gazprom will pay 15.4 million rubles for the resource rights, which is equivalent to the starting price plus one bidding increment.

Pribaikalsky is located in the immediate vicinity of Gazprom's Kovykta field and Chikansky and Khandinsky blocks. The auction documentation stated that commercial gas and condensate flows have been struck at the latter.

The Pribaikalsky block had D1 category forecast resources of 2 million tonnes of oil, 44.1 billion cubic meters of gas and 5.7 million tonnes of condensate, and D2 category resources of 1.2 million tonnes, 37.1 bcm and 1 million tonnes, respectively, as of the beginning of 2017.

We remind, Gazprom is sticking to its goal of achieving 100% of the technically possible level of network gasification by 2030, and is actively working with the regions via five-year programs, Deputy Chairman of the Board of Gazprom Oleg Aksyutin said in an article in the company's corporate magazine. "It is expected that due to gasification and post-gasification alone, the increase in demand in the domestic market could reach nearly 20 bcm by 2030," the article says.

Sinopec, Total to build 230,000 ton SAF plant

Sinopec, Total to build 230,000 ton SAF plant

Chinese state-owned Sinopec and French oil major TotalEnergies have signed an agreement to produce SAF, said Hydrocarbonprocessing.

The companies will jointly build and operate a SAF unit at one of Sinopec's refineries in China, with an annual production capacity of 230,000 metric tons per year, the statement said.

Burning SAF can reduce CO2 emissions by around 80% versus traditional jet fuel, according to data cited by Airbus.

The European Union is set to introduce a blending mandate requiring airports to supply jet fuel at 2% SAF blends from 2025. In the U.S., the Biden administration has introduced tax credits for SAF production under the Inflation Reduction Act.

Total has announced a target of 1.5 million tons of annual SAF production by 2030. The SAF facility will run on used cooking oil (UCO) as feedstock. China is the world's largest producer of UCO, generating around 11.4 billion liters annually, according to data cited by the U.S. Department of Agriculture.

Sinopec currently operates a 100,000 ton per year SAF refinery in Zhenhai, in the eastern province of Zhejiang.

However, Beijing has not rolled out policies - such as subsidies or blending mandates - to support SAF consumption in its domestic aviation market, and most feedstock and biofuel products are exported.

Vietnam's largest refinery to boost operating capacity by 15%-20%

Vietnam's largest refinery to boost operating capacity by 15%-20%

Vietnam's largest refinery Nghi Son said it will boost its operating capacity by 15% to 20% in order to ensure stable supplies, said Hydrocarbonprocessing.

The 200,000-bpd Nghi Son Refinery and Petrochemical is currently operating at 100% of its designed capacity, it said.

The "planned increase of 15 to 20% in the refinery's capacity will further ensure a stable supply of petroleum products," it said in a statement.

Nghi Son is one of two oil refineries in Vietnam, which meet around 70% of the country's needs for refined petroleum products.

Nghi Son is 35.1% owned by Japan's Idemitsu Kosan Co 5019.T, 35.1% by Kuwait Petroleum, 25.1% by Vietnam's state oil firm PetroVietnam and 4.7% by Mitsui Chemicals Inc.

The company has delivered its first batch of 10ppm sulfur diesel oil cargo to the domestic market, it said, without elaborating.

Sabic, Pashupati Group exploring recycling opportunities in India

Sabic, Pashupati Group exploring recycling opportunities in India

Saudi chemical manufacturer Sabic signed a memorandum of understanding with Pashupati Group, an India-based mechanical and chemical recycler of PET and polyolefins, said the company.

The companies will explore, evaluate, and develop local business opportunities for recycling waste plastics in India, including the potential development of a pyrolysis plant to provide Sabic with feedstock for its circular polymers.

Pashupati operates waste management services under the Extended Producer Responsibility (EPR) legislation for plastics introduced in India in 2016. The company uses its Waste Circularity mobile app to collect plastic waste in challenging terrains, including mountains and coastal areas, in addition to serving urban and rural settings. It collects 12 million PET bottles and 2 million polyolefin bottles a day.

Through the new partnership, Sabic and Pashupati will share best practices and exchange knowledge about plastic recycling processes, including the mixing of virgin and recycled polyolefins in manufacturing new products. Pashupati will contribute its expertise in mechanical and chemical recycling, whilst Sabic will focus on the marketing and sales of recycled products.

“This is a crucial first step in our efforts to support and accelerate the transformation of India’s plastics economy towards circularity,” said Sanjay Mishra, general manager, engineering thermoplastics & performance polymers at Sabic. “At the same time, it expands our collaboration with experienced local recyclers in Asia as we are continuously sourcing valuable feedstock to meet the growing demand for our Trucircle portfolio of recycled, circular polymers.”

Sabic has committed to producing 1 million tonnes of circular materials by 2030. At the World Economic Forum 2023 Meeting in Davos, it revealed that it is exploring a new world-scale commercial chemical recycling investment. This new plant would potentially have a capacity of around 200 kilotons of per year.

Sinopec 2023 profit falls 13% on oil prices, refining record

Sinopec 2023 profit falls 13% on oil prices, refining record

Sinopec’s annual profits declined 13%, after oil prices fell and Chinese refiners posted a record year for processing and imports.

China’s largest fuel processor, officially known as China Petroleum & Chemical Corp., reported 58.3 billion yuan ($8 billion) net income for last year, it said in an exchange filing. That compared with 66.2 billion yuan in 2022.

Global oil prices were 17% lower in 2023 than the previous year, which reduced the value of Sinopec’s drilling output but also lowered its crude costs.

The results missed the average analyst estimate despite a rebound in its key refining margins, as upstream profits fell and its chemicals business continued to lose money. Chinese refiners ramped up fuel production last year to feed a populace eager to travel after Covid-19 restrictions were lifted. Still, the company had to grapple with a tepid economic recovery that created a glut of some chemicals like ethylene.

The increase in refining activity also boosted China’s oil imports to a record. The nation’s refiners benefited in particular from cheap Russian crude shunned by many nations after the country’s invasion of Ukraine.

Sinopec set its 2024 capital expenditure budget at 173 billion yuan, slightly below last year’s 176.8 billion yuan spending bill, mainly due to a scale-back in the chemical sector.

It plans to maintain modest growth in both output and processing in 2024, with targeted oil and gas production is 1% higher than 2023 levels and refining throughput to increase 0.8%. Domestic refined oil product sales, which jumped 16% last year, are only expected to rise 1.6% this year.

We remind, Sinopec Engineering (Group) Co. Ltd. has reported CNY/RMB 34.6 billion ($4.8 billion) in revenue from petrochemical contracts for 2023, up 9.5 percent against 2022. The company, majority-owned by the state’s China Petrochemical Corp. (Sinopec Group), attributed the growth to domestic projects including an ethylene production facility of Exxon Mobil Corp., an ethylene co-venture between Sinopec and Ineos, and the second phase of Sinopec’s Zhenhai Base refining and chemical complex.