The company’s downstream operating model will include four commercial business units: Fuels (includes Refining, Trading, Retail and Lubes); Chemicals; Power; and Pipelines, Distribution & Terminals. These business units will be supported by three corporate functions: Manufacturing, Strategy & Marketing and Affiliates Affairs.

This reorganisation is designed to enhance the effectiveness and efficiency of Aramco's existing downstream assets, but does not represent a fundamental change in the overall business structure.

Abdulaziz M. Al Gudaimi, Senior Vice President of Aramco Downstream, said: “I am excited that we are launching a new operating model that we believe will help streamline our operations and reinforce our position as a major global energy and petrochemicals player. This reorganisation is yet another step in Aramco’s strategy to develop a global integrated downstream business that enhances our competitiveness by maximising our value capture across the hydrocarbon value chain.”

Aramco has a large, strategically integrated global downstream business that leverages the company’s competitive upstream position. The company’s downstream strategy focuses on creating growth opportunities across the hydrocarbon chain in order to expand the company’s sources of earnings, providing resilience to oil price volatility and capitalising on rising demand for petrochemical products.

17 Jul 2020

Source: www.hydrocarbonengineering.com 

The COVID-19 outbreak has disrupted regional supply chains and impacted workforce availability. Iran has a large number of upcoming petrochemical projects in the region, however, US sanctions in addition to low oil prices due to the coronavirus will determine the progress of these projects in the country going forward. Upcoming projects that are under construction/commissioning and are scheduled for start-up this year are expected to be impacted the most, as the current developments could have direct implications on these projects.

John Paul Somavarapu, Oil & Gas Analyst at GlobalData, comments: “The regional oil and gas majors are reducing their spend in response to low oil prices and disruptions caused by the pandemic. The majority of the planned projects are expected to face delays because of local workforce disruption and delays in the selection of contractors and partners.

“Companies have undertaken contingency plans to minimise risks related to the outbreak on their operations and ensure business continuity and operations. Despite cost-control measures, only a small number of the companies in the region intend to look for opportunities to invest in projects around the world, especially where tough market conditions have reduced investment costs. However, producers remain confident that the demand for petrochemicals will rebound in the medium-longer term as global economies are expected to recover.”

16 Jul 2020

Source: www.hydrocarbonengineering.com

Stefan Heuser, Senior Vice President and General Manager at Clariant Catalysts, stated, “We are honoured to have been selected by DGR for this second propylene project. Continuous catalyst innovation, together with ongoing advancements in Lummus Technology’s process, demonstrate why CATOFIN is one of the most productive and reliable solutions on the market.”

“We are very proud of the fast execution of our project,” commented Hanchu Li, General Manager of Dongguan Grand Resource Technology. “Mechanical completion for the first phase was achieved in just two and a half years, followed by a quick and smooth start up. The results speak for themselves, and we thank Clariant and Lummus for their expertise and support. We expect the same favourable results upon commissioning the second phase in 2022.”

16 Jul 2020

Source: www.hydrocarbonengineering.com

Last week, butadiene prices climbed sharply higher in Asia.

The sharp price rise was triggered by a lift in buying sentiments coupled with limited product availability in the region.

On Friday, CFR South East Asia prices were assessed higher at the USD 350/mt levels, a surge of USD 60/mt from the previous week.

CFR China prices of butadiene were assessed up at the USD 405/mt levels, a week on week increase of USD 15/mt.

FOB Korea prices of butadiene were also assessed higher at the USD 375/mt, a rise of USD 20/mt from the previous week.

20 Jul 2020

Source: www.polymerupdate.com 

“We are very pleased about this cooperation which combines BASF’s expertise as a world-leading catalyst manufacturer with our plant engineering competence,” says Uwe Boltersdorf, Chief Sales Officer of the business unit Chemical & Process Technologies at thyssenkrupp. “With our combined know-how we can further reduce consumption of energy and resources. New catalyst shapes will enable a smaller reformer design, which also lowers the investment costs of dehydrogenation plants.”

Detlef Ruff, Senior Vice President Process Catalysts at BASF, says: “The cooperation between BASF and thyssenkrupp is another example of our successful approach to collaboration with engineering companies and technology providers. We contribute our unique know-how as a world-leading catalyst manufacturer, and together with our partners, drive the implementation of new processes and innovative future technologies.”

“This project is a good example of how technology development can be accelerated through cross-sector collaboration,” says Adrian Steinmetz, Vice President Global Chemical Catalysts & Adsorbents at BASF. “We will specifically address topics like reducing precious metal content. This lowers catalyst costs and additionally reduces feedstock and energy consumption through increased selectivity. This will contribute significantly to a reduction of the CO₂ footprint.”

15 Jul 2020

Source: www.hydrocarbonengineering.com

“The Ohio petrochemical facility continues to be a top priority for PTTGC America. We are in the process of seeking a new partner whilst working toward a final investment decision. We look forward to making an announcement by the end of this year or early next year on this transformative project for the Ohio Valley Region. We wish Daelim well and appreciate its contributions to our effort.”

The following is a joint statement from PTTGCA and Daelim Chemical USA:

The COVID-19 pandemic and recent oil price volatility have caused significant impacts on businesses around the world. As a result of these factors, the Ohio Petrochemical Complex Project being developed by PTTGC America LLC (PTTGCA) and Daelim Chemical USA LLC (DCA) is expected to encounter a delay of about six to nine months compared to the previously announced timeline. PTTGCA and DCA continue to take necessary actions to safeguard the health and safety of employees and to ensure business continuity.

Under this market situation, PTTGCA and DCA have been assessing the impact for major investment projects to ensure that our portfolio is well positioned for the future of [the] petrochemical industry. While we continue to believe in the long-term strategic importance of this project, DCA has taken the difficult but necessary decision to withdraw as equity partner from the project.

Despite DCA’s withdrawal, PTTGCA intends to continue to [develop] the project and is currently in the process of seeking new potential partners with DCA’s support during the transition.

PTTGCA sincerely appreciates DCA’s contributions to the project over the past two years, and the parties intend to continue working together, both on successfully transitioning DCA’s stake in the project, as well as on other business opportunities.

15 Jul 2020

Source: www.hydrocarbonengineering.com

Established in 1979, CDI has more than 40 years of experience in supporting transactional and short-term planning decisions in the US petrochemical sector. Petrochemicals are a critical part of the global supply chain and are present in 96% of all manufactured goods. The chemicals industry itself adds US$1.1 trillion to the world’s GDP. The combination of the two businesses will deliver global price benchmark data, market analysis, forecasts, and thought leadership capabilities that are trusted and differentiated. This will enable customers to make better-informed and timely decisions, which is of increasing importance in periods of extreme volatility when consumer demands and market dynamics shift rapidly.

Dean Curtis, CEO & President of ICIS, said: “We are focused on providing our customers in the global chemical industry with the highest quality data, analytics and insight. This will connect the market and enable smarter decisions that ultimately optimise the use of the world’s valuable resources. CDI is widely recognised as a leader in the US petrochemical segment. By joining CDI’s expertise with ICIS’ leading presence in Europe and Asia, we can provide customers with an extensive, robust and comprehensive view of key global petrochemical markets.”

“We are delighted to welcome CDI to the RELX family. It is a world-class team which brings market relationships and deep understanding of the US petrochemical and plastics sector. Combining CDI with ICIS brings us closer to delivering our goal of empowering our customers’ decision making with the most timely, relevant information across the chemical industry,” Curtis said.

Jason Brown, CDI President, said: “It is a perfect fit. ICIS is an established provider of price benchmarks in several European and Asian petrochemicals segments and CDI has equivalent positions in the US. For decades, both companies have been the backbone of thousands of transactions around the world, and our strategies and beliefs in the future of this critical market are closely aligned. Combining our deep expertise in our respective regions will bring significant benefits to our customers around the world as well as the broader industry.”

14 Jul 2020

Source: www.hydrocarbonengineering.com