ITP MEDIA GROUP / BUSINESS NOVEMBER 2021 • VOL. 14, ISSUE 11 A SUSTAINABLE FUTURE Emerging technologies in petrochemicals could enable the sector to withstand tougher regulations and increase profi tability by increasing effi ciencyKuwait National Petroleum Company (KNPC) is proud to announce the commissioning of its Clean Fuels Project, being the largest Project in the history of the Kuwaiti oil sector to expand and modernize Mina Al-Ahmadi & Mina Abdullah Refineries. KNPC Refineries are currently possess high conversion capabilities allowing us to re-refine and convert low-value heavy fuels and residual oil into high- value products, compatible with the highest international environmental standards and requirements, thus maximizing the value of Kuwait’s Hydrocarbon resources. 2 Million & 400,000 Square Meters Covering a approximated area of Scan the QR Code to inquire more on CFP Clean Fuels... Achievements Continue RPME magazine A4.indd 110/24/21 12:39 PMNEWS 06 Check out all of the major action that took place in the downstream sector regionally and globally COMMENT 08 Euro Petroleum Consultants comments on global decarbonisation initiatives and their likely impact November 2021 VOLUME 14 / ISSUE 11 LOCALISATION 30 As a part of localisation editorial series, we analyse the various programs launched by leading companies in GCC region to promote local industry INDUSTRY OUTLOOK 24 Analysis of how refinery margins have improved with the rise in consumer demands following the eas- ing Covid-19 situation OPINION 32 India’s adoption of trade protectionist measures against GCC MEG imports are damaging to its domestic market. PROJECT FOCUS 36 Everything you need to know about the Kuwait Oil Company (KOC )- Installation of New Desalter PROJECT LISTINGS 38 The major down- stream projects taking place across the region REGULARS FEATURES 20 34 06 12 3231 12 Cover Story A brief look at emerging technologies in the petrochemical industries sector that have the potential to completly revolutionise the sector while ensuring profitability as in future 22 Awards Update Due to record nominations and overwhelming industry response, the Middle East Energy Award has been postpone to March 2022. Check out for more details 03 Refi ning & Petrochemicals Middle East November 2021www.refi ningandpetrochemicalsme.com ContentsSigns of positive growth Published by and © 2021 ITP MEDIA GROUP FZ-LLC. PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London & Mumbai ITP Media Group CEO Ali Akawi Managing Director Alex Reeve Editorial Editor: Deepak Sharma Tel: +971 4 444 3617 email: deepak.sharma@itp.com Advertising Group Sales Manager Mark Grennell Tel: +971 4 444 3202 email: mark.grennell@itp.com ITP Live General Manager Ahmad Bashour Tel: +971 4 444 3549 email: ahmad.bashour@itp.com Photography Senior Photographers: Efraim Evidor, Adel Rashid Staff Photographers: Ajith Narendra, Fritz John Asuro, Yuliya Petrovich, Jessica Samson Production & Distribution Group Production & Distribution Director Kyle Smith Production Manager Denny Kollannoor Production Coordinator Manoj Mahadevan Circulation Distribution and Circulation Manager Evijin Pathrose Circulation Executive Rajesh Pillai Distribution Coordinator Avinash Pereira Marketing Director of Awards & Marketing Daniel Fewtrell ITP Group CEO Ali Akawi CFO Toby Jay Spencer-Davies Subscribe online at www.itp.net/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Deepak Sharma Editor As we have already entered the last quarter of 2021, it looks that things are fi nally returning to normalcy and we may again see higher growth era. Various global parameters are indicating that the worst is fi nally behind us. Globally, the number of active Covid-19 infections are on the decline in most parts of the world, vaccination drive against coronavirus has gathered momentum, and air travel is started to pick up. Global crude prices, which are considered as a benchmark for economic activities, are also refl ecting optimism in the economy. The prices of crude oil, natural gas, coal and some key refi ned product prices have risen sharply in the past one or two months, and are now trading at multi-year highs. It seems that the world economy is emerging from the impact of Covid-19, which has crippled the global energy and other markets for more than one and a half years, the refi ning and petrochemical industry has also been witnessing some positive developments. With the improvement in economic sentiments, the demand for various products from end-users has returned to the market. As a result of increased demand, the refi ning and petrochemical industry has been witnessing improvements in margins and some of them reported much higher profi ts in the third quarter of 2021 compared to the corresponding period in 2020. As per industry analysts, the sharp run-up in crude oil and natural gas prices owing to the opening up of economic activities post the pandemic’s second wave has improved demand prospects for the oil and gas sector, and also for downstream and other allied industries. We have also seen a fl urry of announcements from various governments as well as large petrochemical and upstream companies showing commitment towards achieving net-zero emission by 2050. This is a clear sign that the momentum is growing around the world to achieve net- zero greenhouse gas emissions. Governments in the Gulf Cooperation Council have also made net-zero commitments, as have national oil companies (NOCs) and international oil companies (IOCs). As national custodians of hydrocarbon resources and major contributors to their economies, petrochemicals, refi ning and oil companies in the Gulf Cooperation Council have an added impetus to act as catalysts of national decarbonisation plans. 04 www.refi ningandpetrochemicalsme.com Editor’s Comment Refi ning & Petrochemicals Middle East November 2021For all the latest refining and petrochemical news from the Middle East, visit our website: www.refiningandpetrochemicalsme.com Qatar Energy and Shell have signed an agreement to pursue joint investments in blue and green hydrogen projects in the UK, the Qatar’s state-run company said. “The partners will target integrated and scalable opportunities in key sectors where hydrogen could help decarbonise, especially around industrial cluster development and also for the transport sector, with a focus on the London metropolitan area,” Qatar Energy said. “The collaboration will exploit both companies’ expertise in delivering large and technically complex energy projects. The agreement was signed on the side lines of the UK Global Investment Summit. This is the fi rst agreement on hydrogen between QatarEnergy and Shell. Qatar Energy and Shell to jointly pursue investments in hydrogen The agreement was signed on the side lines of the UK Global Investment Summit, hosted by HM The Queen and the Prime Minister, and attended by the world’s leading businesses and investors in the UK. Commenting on the agreement, His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Aff airs, the President and CEO of Qatar Energy said, “This agreement does not only reinforce the long lasting and strategic partnership between QatarEnergy and Shell, but also creates a viable path for innovation and investments in low carbon fuels and technologies across the UK’s energy sector, a key area of investment for QatarEnergy. This is the fi rst agreement on hydrogen between QatarEnergy and Shell. It establishes an important framework for collaboration and joint investment to develop hydrogen solutions in the United Kingdom. “This agreement also builds on QatarEnergy’s commitment to provide reliable access to cleaner energy globally.” Ben Van Beurden, CEO of Royal Dutch Shell plc, also commented, “I am delighted to deepen an already strong relationship with Qatar Energy. Hydrogen will play an important role in helping society reach net zero and momentum is growing. Qatar Energy’s expertise, in collaboration with Shell’s, will support the UK’s energy transition and help propel this fast-growing sector. Petrochemicals giant Saudi Basic Industries Corp (SABIC) has reported a fi vefold increase in its net profi t for the quarter ended on SP third-quarter profi t helped by higher average selling prices. 6Update Refi ning & Petrochemicals Middle East November 2021www.refi ningandpetrochemicalsme.comAramco Chairman to be inducted on Reliance Industries board Duqm Refi nery project 87% ready; on track for completion Reliance Industries Ltd’s shareholders have passed the resolution to appoint Saudi Aramco Chairman Yasir Al-Rumayyan as an independent director to the conglomerate’s board for three years. “The company had sought approval of the members of the company for the appointment of Yasir Othman H. Al-Rumayyan as an Independent Director of the Company. The said resolution is passed with the requisite majority on October 19, 2021 (the last date fore-voting),” RIL said in regulatory fi ling. Yasir Al Rummayyan is an accomplished global business leader. He is the Non- Executive Chairman of Saudi Aramco (SA). His experience encompasses over 25 years working in some of Saudi Arabia’s prominent fi nancial institutions, including as the Governor of the Public Investment Fund of Saudi Arabia, the oil-to-telecom company had stated. The Indian oil to internet major has issued a clarifi cation for the appointment of Rummayyan as the California State Teachers’ Retirement Fund, a shareholder of the Indian conglomerate, has decided to vote against the move based on U.S. proxy advisory research fi rm Glass Lewis’ recommendation. Al-Rumayyan’s inclusion was earlier widely seen as part of a process to formalise Oman’s ambitious Duqm Refi nery project has achieved a project completion rate of 87 per cent until the end of September 2021 and is expected to be fully ready in the fi rst quarter of 2023, according to Duqm Refi nery and Petrochemical Industries Company (OQ8). In a statement Yousef bin Mohammad al Jahdami, general manager of Duqm Refi nery, said that until the end of September 2021, around 477,452 cubic metres of concrete and 70,788 tonnes of steel bases were used in the Duqm Refi nery project. The project so far, he said, has recorded 138.1mn working hours with a total workforce of 17,954 workers. Duqm Refi nery, also known as OQ8, is the largest joint venture project between two Gulf countries in the fi eld of refi neries and petrochemicals. OQ8 is a 50:50 joint venture between Oman’s OQ and Kuwait Reliance’s agreement to sell a 20% stake in its oil-to-chemical business to Aramco for $15 billion. The Indian conglomerate, however, said last month that his appointment has no connection to the deal. Al-Rumayyan has been the governor of the Public Investment Fund of Saudi Arabia since 2015. Al-Rumayyan satisfi es all “stringent Petroleum International. The project enjoys a strategic location on the global trade route on the Arabian Sea and the Indian Ocean. The project will transform Duqm area into one of the largest industrial and economic centres in the region and the world, Jahdami said while explaining that the refi nery, with its vital location in the Special Economic Zone at Duqm, will act as the main engine for Duqm region’s growth by providing investment opportunities for new projects. Occupying an allocated 900 hectares of land, the refi nery will have the capacity to produce 230,000 barrels per day to become the largest oil refi nery in Oman. Jahdami pointed out that the heavy crude oil refi nery is designed to be able to process a range of blended crude oils and confi gured as a full-conversion hydrocracker/coking facility that will utilise advanced technology. OQ8 includes more than 30 main processing units that are able to produce criteria” laid down in the law for appointment as independent directors of a listed company, Reliance said in its disclosure to stock exchanges and a communication to proxy advisory fi rms. The board’s human resources, nomination and remuneration committee, comprising four independent directors of a total strength of fi ve, had recommended the appointment unanimously”. Reliance also aims to achieve net carbon zero target. more than 20 petroleum and petrochemical products required for the production of various consumer and specialty goods, in addition to the raw materials needed in various chemical industries. The primary products of the refi nery include naphtha, pet coke, sulphur, and diesel and jet fuel. 7Update Refi ning & Petrochemicals Middle East November 2021www.refi ningandpetrochemicalsme.comADNOC and EWEC launches landmark clean energy partnership Abu Dhabi National Oil Company (ADNOC) and EWEC (Emirates Water and Electricity Company) has launched a clean landmark energy partnership between two countries. The strategic partnership, which is the largest of its kind in the oil and gas industry, will see up to 100 per cent of ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources, making ADNOC the fi rst major oil and gas company to decarbonise its power at scale through a clean power agreement and strengthening the company’s position as one of the world’s least carbon-intensive oil and gas producers. Simultaneously, EWEC will benefi t from long-term electricity off take for its current and future renewable and clean power sources, which include solar and nuclear power, enabling continued investment in transformative innovations to decarbonise the energy sector. This progressive approach supports the United Arab Emirates (UAE) Net Zero by 2050 Strategic Initiative and enhances ADNOC’s pathway to decarbonisation while enabling sustainable future growth. It also underpins the UAE’s bold and strategic approach to enable a lower carbon future. Commenting on the agreement, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan emphasised the importance of capitalising on opportunities to achieve the UAE 2050 Net Zero Emissions Target. His Highness said: “The Clean Energy Partnership between ADNOC and EWEC brings together two major UAE entities to unlock mutual value as they harness the nation’s energy resources to drive economic progress, in support of the UAE’s ‘Principles of the 50’ outlined by the leadership to chart a strategic roadmap for the nation’s new era of economic and social growth over the next 50 years. NEWS IN BRIEF Royal Dutch Shell Plc’s storm-idled 230,611 barrel-per-day (bpd) Norco, Louisiana refinery plans to begin restarting the crude distillation unit (CDU), gasoline- and diesel-producing units as early as this weekend, according to a media. The restarts of the 240,000-bpd DU-5 CDU, 112,000-bpd gasoline-producing residual catalytic cracking unit (RCCU) and 40,000-bpd diesel-producing hydrocracker will continue into next week. The Norco refinery’s 25,000-bpd coker and 40,000-bpd reformer will also be restarting in the next week, Reuters said quoting sources. Shell Norco, Louisiana refi nery to restart crude, gasoline, diesel unit Belarusian oil refineries have lost $80 million due to European Union sanctions, Deputy Prime Minister Yuri Nazarov was quoted as saying this week. State news agency Belta also quoted him as telling parliament that despite the sanctions, local refineries would process 16.8 million tonnes of oil this year, an increase of 0.5 million tonnes compared with 2020. The European Union in June banned companies from doing business with Be- larusian oil products as a part of wide- ranging economic sanctions on Belarus, cutting one of the top fuel suppliers in Eastern Europe from the market. Belarusian refi neries lose $80 million due to EU sanctions Saudi Arabia’s SABIC to invest at Teesside plant in northeast England The British government has announced that said that Saudi petrochemical fi rm Saudi Basic In- dustries Corp (SABIC) would invest nearly $1.37 billion (1 billion pounds) at its Teesside facility in northeast England with the aim of decarbonisation. In the second phase, a carbon neutrality fea- sibility study will be undertaken with the use of hydrogen as a fuel source. “Fantastic to see nearly $1.37 billion (£1 bil- lion) invested in @SABIC’s Teesside facility, creating and safeguarding 1,000 jobs,” British Prime Minister Boris Johnson announced in a tweet. “It’s a huge vote of confi dence in the UK’s chemi- cals and processing industry, which is pioneering innovation in clean, green technology,” he added. 8Update Refi ning & Petrochemicals Middle East November 2021www.refi ningandpetrochemicalsme.comTHE PREMIER TECHNICAL DOWNSTREAM EVENT IN THE MIDDLE EAST IS RETURNING TO DUBAI! Meet face-to-face again in a safe environment! • Role of Downstream Sector in Energy Transition • Refining-Petrochemical Integration • Asset Configurations & Conversion Technologies • Boosting Production Flexibility, Diversification, Reliability & Efficiency • Petrochemical Production & Chemical Recycling • Feedstock Availability & Supply Chain Management • Case Studies: Project Implementation, Operation Strategies, Max. Energy Efficiency, Adapting to New Market Conditions • Adapting Technologies for New Refining & Petrochemical Landscape • Low Carbon and Emission Reduction Technologies – Reducing Carbon Footprint, IMO Regulations • Catalyst Technologies • Incorporating Renewables, Biofuels, Maximising Co-processing Strategies • Projects Financing post-COVID • Digital Tools & Technology Shaping Smart Refining & Petrochemicals Production KEY TOPICS SPONSORS & EXHIBITORS Submit your abstract NOW metech.europetro.com | events@europetro-me.com | +971 (0)4 421 4642 REGISTRATION NOW OPEN hosted by METECH_RPME_fulladvert.indd 1METECH RPME fulladvert indd 119/10/2021 09:4819/10/2021 09:48Next >