Repsol posts YOY increase in Q3 chemical margins

Repsol SA said that its chemical margin indicator increased 31% year over year in the third quarter to €213 per metric ton, said Chemweek.

However, the figure was down from €269 per metric ton in the previous quarter. The mixed performance reflects an “ongoing challenging scenario driven by weak domestic demand and low prices” for chemicals, said Repsol CEO Josu Jon Imaz.

The company does not report separate chemical earnings and sales figures, but its industrial division, made up of refining and chemicals, posted a 66% year-over-year drop in adjusted income in the third quarter, to €185 million. The figure was also down from €288 million in the previous quarter.

Repsol sold 503,000 metric tons of petrochemical products in the third quarter, the company said.

We remind, Repsol Quimica closed its propylene oxide and styrene production in Tarragona, Spain, for scheduled maintenance in mid-January 2024 due to a fire. The lines, with a capacity of 200,000 tons of propylene oxide and 450,000 tons of styrene per year, were closed for scheduled maintenance until March.

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TotalEnergies will study plans for a renewable energy project to produce hydrogen and ammonia in Morocco for delivery to Europe, which is seeking to increase use of the fuels as part of its energy transition, said Hydrocarbonprocessing.

The agreement was announced late on Monday during French President Emmanuel Macron's visit to Morocco, as part of a package of deals worth more than 10 B euros ($10.81 B) for both countries.

The Chbika project would build 1 gigawatt of onshore wind and solar farms near the Atlantic coast in Morocco's Guelmim-Oued Noun region - close to the disputed Western Sahara territory that Morocco claims, with France's support.

The Moroccan government agreed to the reservation of land to allow the companies to launch preliminary engineering and design (pre-FEED) studies.

Once operational, renewable electricity would be used to extract hydrogen from desalinated seawater, and then to produce 200,000 metric tons of ammonia annually for export to Europe.

"This project will constitute the first phase of a development program aimed at creating a world-scale green hydrogen production hub," Total's statement reads.

Renewable ammonia can be used to reduce the greenhouse gas footprint of producing fertilizer and has potential as a low-emissions marine fuel.

It is also being studied as a chemical carrier to allow the marine shipment of hydrogen because it can be more easily liquefied than hydrogen gas.

The European Union's Green Deal to reduce the bloc's carbon emissions callsfor the import of 10 MMtpy of renewable hydrogen by 2030.

TotalEnergies CEO Patrick Pouyanne said the deal was in line with the company strategy to "develop production in countries with the most competitive renewable resources". "Thanks to its geographical proximity ... Morocco indeed has the best assets to become a major partner for Europe in achieving the goals of the Green Deal," Pouyanne added in the statement.

TE H2, Total's joint venture with Eren Groupe, alongside Copenhagen Infrastructure Partners (CIP), will produce the renewable energy for the project and Denmark's A.P. Moller Capital will develop the associated port and infrastructure.

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Kazakhstan plans to export 1.2 million tonnes of oil to Germany in 2025, Energy Minister Almasadam Satkaliyev said, as per Interfax.

"At this point we're planning the same level as this year, 1.2 million tonnes," Satkaliyev told reporters in Astana on Thursday.

Whether exports increase will depend largely on orders from the Schwedt refinery in Germany and to what extent Kazakhstan is able to transport oil through Russia, he said.

"In general, we're prepared to increase these volumes on our part, there are suppliers who are interested in shipping oil in this direction. We will work it through with all parties. There was an announced intention from Germany to increase volumes. Concrete volumes will be determined only after we receive orders from the refinery and clear it with the Russian side," Satkaliyev said.

We remind, Kazakhstan plans to reduce oil production to "more than 88 million tonnes" this year from the previously planned 90.5 million tonnes.

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Kazakhstan's KazMunayGas (KMG) and Italian oil and gas company Eni have discussed join projects, KMG said in a press release.

"Askhat Khassenov, CEO of KazMunayGas, held a meeting with Luca Vignati, Eni Upstream Director. During the discussion, the main areas of cooperation were considered, including joint projects and prospects for further cooperation aimed at attracting investment in the energy sector of Kazakhstan," the statement issued on Wednesday said.

In particular, they discussed the current status of the Kashagan field expansion projects and the construction of a gas processing plant at the Karachaganak field to supply commercial gas to the domestic market.

The companies also discussed the hybrid power plant project in Mangystau region. In July 2024, KMG and Eni started the construction of a 247 MW hybrid power plant in Zhanaozen, which will run on solar, wind and gas energy. The hybrid power plant will ensure a stable, sustainable and reliable supply of electricity to KMG's subsidiaries in the region, including JSC Ozenmunaigas and KazGPZ LLP, according to the report.

The parties also discussed the prospects for cooperation in the design of oil and gas fields. The head of KMG mentioned the need to increase the Kazakh content in major projects.

KazMunayGas is Kazakhstan's national operator for exploration, production, processing and transportation of hydrocarbons and represents the state's interests in the oil and gas industry.

We remind, Kazakhstan intends to increase the volume of petrochemical production to 1.8 million tons by 2030, increasing the current figures from 357.8 thousand tons in 2023. To achieve this goal, it is planned to attract investments in the amount of 14.7 billion.

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Kazakhstan plans to reduce oil production to "more than 88 million tonnes" this year from the previously planned 90.5 million tonnes, Energy Minister Almasadam Satkaliyev said, as per Interfax.

"The amount will be more than 88 million tonnes, but less than the 90.5 million tonnes we planned earlier," Satkaliyev told reporters on Thursday.

He said the final production figure will depend on weather conditions and the early completion of an overhaul at the Kashagan field.

We remind, Kazakhstan's KazMunayGas (KMG) and Italian oil and gas company Eni have discussed join projects. In particular, they discussed the current status of the Kashagan field expansion projects and the construction of a gas processing plant at the Karachaganak field to supply commercial gas to the domestic market.

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