- $45
billion in capital expenditure 2004-2006 anticipated
- Focus on more Upstream gas and oil
- Extend LNG leadership
position
- Focus on profitability and cash flow from Downstream
businesses
- $10-12 billion in divestments planned 2004-2006
- Higher energy price environment
Group
Strategy and Priorities
In his opening remarks, Mr. Van
der Veer commented, “We have delivered sound financial
results through the first half of this year, through some
very tough times for Shell.
“Our strategy and
priorities for the way forward are:
more upstream and
profitable downstream
raising the
performance bar
focus on an ‘enterprise first’
culture
Delivering Downstream Profits
The Downstream businesses
generate significant cash and earnings for the Group.
To extend this success the
Group will:
Fully
integrate Oil Products and Chemicals under a
single leadership team and further implement
global standardised processes.
Continue to
strengthen the portfolio by shedding
non-strategic and underperforming assets and to focus operations
in selected profitable markets and businesses.
In 1833 Marcus Samuel opened a small shop in
London, selling sea shells to Victorian natural history
enthusiasts. It soon became a thriving import-export
business.
On a visit to the Caspian Sea coast, Marcus’s
son recognised a huge opportunity to export oil for lamps and
cooking to the Far East. He commissioned the first special
oil tanker in 1892, and subsequently delivered 4,000 tonnes
of Russian kerosene to Singapore and Bangkok.
Meanwhile, the company Royal Dutch had been formed in the Netherlands to
develop oil fields in Asia. By 1896 it had its own tanker
fleet to compete with the British.
In time, it became obvious that the competing Dutch and
British companies would do better working together. In 1907,
the Royal Dutch/Shell Group of companies was created to
incorporate their operations worldwide.
Throughout the early twentieth century, the Group expanded
with acquisitions in Europe, Africa and the Americas. These
were exciting times for the oil industry, as the mass
production of cars had opened up a vast new market.
The First World War years saw many of Shell’s
operations closed down or confiscated; but others were added
or expanded, particularly in North America.
In 1919, Alcock and Brown made the first non-stop flight
across the Atlantic - powered by Shell fuel. Shell Aviation
Services was established that same year. The 1920s and 1930s
were expansion years, with Shell businesses in new regions
and new industry sectors; Shell’s first foray into chemicals
began in 1929.
During the Second World War, Shell once again lost
businesses, tankers and properties, but supported the Allied
Governments with fuel supplies and chemical production.
2006/2/10 CNOOC and Shell
Petrochemicals Company
Successful start up of
CSPCL complex, Daya Bay
CNOOC and Shell Petrochemicals Company Limited (CSPCL) today
announced it successfully produced on-specification ethylene and
propylene on 29th January, 2006 at its petrochemicals complex in
Daya Bay in Huizhou, Guangdong Province in China, following the
completion of start-up and commissioning activities.
This marks another major milestone in the start-up phase of the
world-scale cracker project, jointly owned by CNOOC
Petrochemicals Investment Company Limited and Royal Dutch Shell
(Shell) since the project final investment decision was taken in
November 2002.
"We are all very excited and pleased with the quick progress
to on-specification ethylene and propylene production since our
previous announcement of construction completion on December
30," Mr Simon Lam, Chief Executive Officer of CSPCL said.
"This is testimony to the capability of the people of CSPCL
and our contractors who have worked in excellent partnership to
achieve this." he added.
With the successful production of C2/C3, the start up of
downstream units will follow.
Shell Chemicals to restructure North America MEG business
Shell Chemicals plans to restructure its North American mono
ethylene glycol business beginning with the mothballing of its No
1 MEG unit in Geismar, Louisiana, by the end of 2006, a company
source said Tuesday. The No 1 unit can produce 90,000 mt/year of
MEG and overall produces 160,000 mt/year of ethylene oxide
equivalences. Shell would still have the capacity to produce a
total of about 375,000 mt/year of MEG from another two units at
the Geismar complex.
Shell would further restructure its North American business once
Shell Eastern Petroleum in Singapore, a 100% owned subsidiary of
Shell Chemicals, completes its planned 750,000 mt/year MEG plant
on Singapore's Bukom Island.
The plant was scheduled for completion by 2009-2010.
AMERICAN CYANAMID TO BUY
SHELL CROP PROTECTION UNITS
The American Cyanamid Company announced that it has agreed to
purchase Shell Petroleum Inc.'s crop protection businesses. Terms
were not disclosed. The sale would make American Cyanamid, based
in Wayne, N.J., the world's sixth-largest crop protection
company, moving up from 10th, the company said yesterday. Shell's
sales of crop protection products were approximately $700 million
in 1992
Shell And Dow Prepare $2.1 Billion Iraqi Petro Plan
Anglo-Dutch oil company Royal Dutch Shell is reportedly in
talks with Dow Chemical to develop an Iraqi
petrochemical plant for $2.1 billion, in a likely attempt to gain a
strong foothold prior to the hoped-for opening up of the
country's broken oil industry. But analysts believe the project
itself has little hope of being profitable.
The plant is to be based in the southern city of Basra, and would therefore rely on the
city's 120,000 barrels-a-day refinery for its feedstock.
awzi Hariri, who told Reuters on Wednesday that the upgrade would
help "the local market and beyond."
"The Iraqi government has repeatedly been saying that they want
investments in petrochemicals," said Global Insight's
Ciszuk.
Shell is in talks
with the Iraqi Government about restoring and
expanding a chemical plant near Basra in a $2.1 billion (£1.1 billion) project. Fawzi
Hariri, the Iraqi Industry Minister, revealed that the terms
of an agreement with Shell and Dow Chemical, of the United
States, could be concluded by the end of the year. “We are looking to upgrade this
[PLANT] and evaluate what type of products and facilities we
need for the local market and beyond,”
it said. It is
the latest sign that the world’s biggest energy companies are
poised to begin the long-expected rush into Iraq after months
of speculation.
Shell and
Iogen announce extended alliance to accelerate a next generation
biofuel
Royal Dutch
Shell plc and its subsidiaries (“Shell”) and Iogen Corporation today announced an extended
commercial alliance to accelerate development and deployment of
cellulosic ethanol.
The terms of the
agreement include a significant investment by Shell in technology
development with Iogen Energy Corporation, a jointly owned development
company dedicated to advancing cellulosic
ethanol.The arrangement will also see
Shell increasing its shareholding in Iogen Energy
Corporation from 26.3% to 50%.Shell first took an equity stake
in 2002.
The collaboration with
Iogen is a key part of Shell’s strategic investment and
development programme in biofuels, particularly in 'next
generation' biofuels using non-food feedstocks.The fuel is made from raw
materials such as wheat straw and promises to reduce CO2
production by up to 90% compared to conventional gasoline.
2010/2/1
Shell and
Cosan sign MOU to form joint venture in Brazil
Shell International
Petroleum Company Limited (Shell) and Cosan S.A. (Cosan) announced today they
have signed a non-binding memorandum of understanding (MoU), with
the intention to form a circa $12 billion joint
venture (JV) in Brazil for the production of
ethanol, sugar and power, and the supply,
distribution and retail of transportation fuels.
Under the terms of the
MoU, both companies would contribute certain existing Brazilian
assets to the JV (see notes to editors).In addition, Shell
would contribute a total of $1.625 billion in cash, payable over
two years.
The JV would enable Shell
and Cosan to establish a scalable and profitable position in
sustainable biofuels - one of the most realistic commercial
solutions to take carbon out of the transport fuels sector over
the next twenty years - by building a market-leading position in
the most efficient ethanol producing country in the world.With annual production
capacity of about 2 billion litres and significant growth
aspirations, the JV would be one of the world’s largest ethanol producers.In addition, the
inclusion of Shell’s equity interests in Iogen and
Codexis would potentially enable the JV to deploy next generation
biofuels technologies in the future.
The deal would also
enhance both companies’ growth prospects and market
position in the retail and commercial fuels businesses in Brazil.With a network of
about 4,500 retail sites and a total annual throughput of about 17 billion
litres, the
JV would have a leading position in the fuels retailingmarket in Brazil,
with strong potential for synergy capture and future growth.
Mark Williams, Royal
Dutch Shell’s Downstream Director, said: “Today’s announcement demonstrates the
continued importance of Brazil to Shell.We're looking
forward to joining with a leading company in Brazil to meet the
needs of retail and commercial fuels customers in that growing
market.
“We
see joining with Cosan as a way to grow the role of low-carbon,
sustainable biofuels in the global transportation fuel mix.The joint venture
would also enable Shell to set up a material and profitable
bio-fuels business, with the potential to deploy next generation
technologies.”
Rubens Ometto Silveira
Mello, Cosan’s Chairman of the Board, said: “Cosan’s vision is to become a global
leader in clean and renewable energy.Our size, degree of
sophistication and stage of development means we need a partner
that not only shares our vision, but also has access to
international markets to help us deliver our growth potential.
“We
believe this JV would play an impactful role for the
sustainability of our planet by increasing the worldwide supply
and distribution of ethanol-based biofuels.It would also
consolidate Brazil’s leading position in a world
looking for sustainable, efficient and reliable alternatives to
satisfy energy demand.”
The two parties will now
maintain exclusive negotiations towards a binding joint venture
agreement, which shall be subject to final transactional
documentation, due diligence, agreement between the two parties
on important sustainability issues, regulatory approvals and
respective corporate approvals.
Notes
to editors
Cosan and Shell would
contribute the following to the joint venture:
Cosan
Shell
Sugar cane
crushing capacity: currently ~60 million tonnes
per annum from 23 mills
Ethanol
production capacity:currently
~2 billion litres per annum
Co-generation:seven
existing plants, two under construction and a
further three to be built in the next
three-to-four years.
Brazilian
downstream assets, including ~1,730 retail sites
and supply and distribution assets.
Ethanol
logistics assets
Controlling
share in ethanol trading company
Net debt of
approximately $2.5billion
Lubricants
activities would not beincluded
in this JV.
Brazilian
downstream assets, including ~2,740 branded
retail sites, supply and distribution assets, and
the aviation fuel business, including the one
recently acquired from Cosan.
Its 50%
share interest in Iogen Energy*
Its 14.7%
share interest in Codexis**
$1.625
billion in cash, paid over two
years.
Lubricants
activities would not be included in this JV.
Royal Dutch Shell plc is
incorporated in England and Wales, has its headquarters in The
Hague and is listed on the London, Amsterdam, and New York stock
exchanges. Shell companies have operations in more than 100
countries with businesses including oil and gas exploration and
production; production and marketing of Liquefied Natural Gas and
Gas to Liquids; manufacturing, marketing and shipping of oil
products and chemicals and renewable energy projects including
wind and solar power. For further information, visit www.shell.com.
The primary activity of Cosan S.A. Indústria e Comércio is the manufacturing and trading
of sugar,
ethanol and co-generation of electricity from sugarcane, as well as fuels distribution
and production and distribution of lubricants. The Company has 23 producing
units, with a nominal milling capacity of 60 million tons of
sugarcane per year, producing varied qualities of raw and refined
sugar and ethanol. The Company operates the export logistics for
sugar and the distribution in the domestic market through the União and DaBarra brands which,
together, hold approximately 50% of the retail market. The
Company ranks as one of the four biggest fuel distributors in
Brazil, with a distribution network of more than 1,700 service
stations, visit www.cosan.com.br
- opens in new window. *Iogen Energy is a world leading biotechnology
firm specializing in cellulosic ethanol - a fully renewable, cellulosic
biofuel that can be used in today's cars. Iogen built and
operates a demonstration scale facility to convert biomass to
cellulosic ethanol using enzyme technology.
**Codexis is a leading developer of clean biocatalytic
process technologies that
can substantially reduce the cost of manufacturing across a broad
range of industries. Codexis’s proprietary directed evolution
technologies enable novel solutions for efficient, cost-effective
and environmentally friendly processes for pharmaceutical, energy
and industrial chemical applications.
2010/12/21
Qatar
Petroleum and Shell sign MoU to jointly develop major
petrochemicals project in Qatar
Qatar Petroleum and Shell
have signed a Memorandum of Understanding to jointly study the
development of a major petrochemicals complex in Ras Laffan
Industrial City, Qatar.
The agreement was signed
in Doha by His Excellency Abdulla bin Hamad Al-Attiyah, Deputy
Prime Minister and Minister of Energy and Industry of the State
of Qatar, and Peter Voser, Chief Executive Officer of Shell.
The scope under
consideration would include a mono-ethylene
glycol plant of up to 1.5 million tonnes per annum using Shell’s proprietary OMEGA (Only MEG
Advantaged) technology and other olefin
derivatives
to yield over 2 million tonnes of finished products.
OMEGA is based on the
successful integration and development of Shell’s EO process with Mitsubishi’s catalytic
stand-alone MEG process.
the first commercial
plant to use the OMEGA technology - Lotte Petrochemicals
Company in Daesan, Korea
Another plant owned by PetroRabigh started up as expected in
early 2009.
Production will begin at Shell’s own OMEGA-based 750,000
tonnes per annum facility at the Shell Eastern Petrochemicals
HE Minister Al-Attiyah
said: “This agreement represents an
important step towards implementing the vision of His Highness
the Emir, Sheikh Hamad Bin Khalifa Al-Thani, regarding the
optimal utilisation of the country’s natural gas resources and to
expand the downstream industries in Qatar. Together with Shell we
aim to study and develop a major petrochemical complex which
aligns with our plans of increased petrochemical production and
diversification of our product portfolio.”
Peter Voser said: “I am delighted that we have the
opportunity to further expand our partnership with Qatar
Petroleum in petrochemicals. Shell has over 80 years of
experience in the global chemicals industry, playing a major part
in its growth worldwide and developing some of its key
manufacturing processes. This new project will combine Shell’s experience and technology with
the ambition of the State of Qatar to create further value from
its natural gas resources.”
In Qatar, Qatar Petroleum
and Shell are together building Pearl Gas to
Liquids (GTL) and Qatargas 4 LNG, two of the largest projects in
the world in Ras Laffan Industrial City.
Jun 07, 2011 (Datamonitor
via COMTEX)
Shell plans to
build ethylene cracker in Appalachian region of US
Shell has announced that
it is planning to build a ethylene cracker with integrated
derivative units in the Appalachian region of the US.
The cracker would process ethane from Marcellus natural gas
to produce ethylene,
one of the primary building blocks for petrochemicals. Shell is
evaluating derivative choices and the leading option is
Polyethylene (PE), an important raw material for everyday items,
from packaging and adhesives to automotive components and pipe.
Most of the PE production would be used by northeastern US
industries.
Demand for PE in North America is expected to grow, so the
economic and efficiency benefits of a regional cracker make this
configuration attractive. Shell has an array of long-term options
to monetize natural gas. Extracting ethane and other natural gas
liquids for petrochemicals production is one of these options
that also include developing shipping solutions for LNG
(liquefied natural gas); proprietary gas-to-liquids technology to
produce fuels, lubricants and chemicals; and gas-for-transport in
markets focusing on heavy duty vehicles, marine and rail
transportation, said Shell.
"US natural gas is abundant and affordable. Shell has the
expertise and technology to responsibly develop this vital energy
resource, including associated products such as polyethylene for
the domestic market," said Marvin Odum, President, Shell Oil
Company. "With this investment, we would use feedstock from
Marcellus to locally produce chemicals for the region and create
more American jobs. As an integrated oil and gas company, we are
best-placed in the area to do this."
Selection of the site for the cracker and derivative units would
be determined in the next phase of the project. Building the
facility would be subject to receiving all applicable permits.
West Virginia
officials have been scrambling to get a cracker in hopes it
could rejuvenate the state's ailing chemical industry.
Crackers produce valuable byproducts from chemicals in
natural gas that aren't needed to heat homes, including
ethane, a key ingredient in plastics.
West Virginia and
Pennsylvania are both home to large amounts of gas waiting to
be extracted from the Marcellus shale.
------
June 10, 2011 PLASTICS
NEWS
Appalachia’s shale to fuel Shell cracker
In a move that would have
been extremely unlikely even five years ago, Shell Oil Co. has
announced plans to develop a cracker making the plastic feedstock
ethylene - and possibly downstream polyethylene units - at an
undisclosed location in Appalachia, which includes parts of
Pennsylvania, West Virginia and Ohio.
The decision is being
prompted by discoveries of massive amounts of natural gas in a
geological formation known as Marcellus Shale. Natural gas can be used to make
ethane, which is then converted into ethylene. The new
discoveries are leading the industry’s top firms to reconsider their
approach to ethylene and related plastic products in the region.
In a June 6 news release,
officials with Houston-based Shell said PE is “the leading option”
for downstream
derivative choices. They described PE as “an important raw material for
countless everyday items” and added that most of the
resulting PE production will be used by Northeastern industries.
Officials added that
North American PE demand is expected to grow, so the economic and
efficiency benefits of a regional cracker “make this configuration
attractive.”
“U.S.
natural gas is abundant and affordable,”
Shell Oil President
Marvin Odum said in the release. “With this investment, we would use
feedstock from Marcellus to locally produce chemicals for the
region and create more American jobs.
“As an
integrated oil and gas company, we are best-placed in the area to
do this.”
Shell spokesperson Kayla
Macke declined to provide a timetable for the project, but said
via e-mail that a cracker and derivatives complex “typically takes at least five
years to build, from the early definition of the project to being
on-stream.”
Regarding size, Macke
declined to provide specifics but confirmed that world-scale
crackers generally produce more than 2 billion pounds of ethylene
per year. “The precise size and scope of the
proposed ethylene cracker and derivative units, including number
of employees, will be determined as part of the study phase,”
she said.
From a PE standpoint,
Macke said that if Shell does pursue that material, officials “will be discussing with potential
customers the advantages of our meeting their needs with a local
source of supply and exploring whether or not to partner with an
existing PE player.”
“We
are looking at different options, from doing it ourselves to
working with others,” she said.
Market watchers said that
it’s possible Shell would want to
work with international firms that have been eyeing the North
American market ? such as Saudi Basic Industries Corp. of Saudi
Arabia or Brazil’s Braskem SA ? to develop new PE
sites.
Industry insiders also
said it’s a bit ironic that Shell is
taking this step, since the firm began exiting commodity
petrochemical markets in the early 1990s. Shell did retain
ownership in some PE and polypropylene assets through its stake
in former joint ventures Montell and Basell before selling them
off in 2005. Shell produces ethylene and related feedstocks at
U.S. plants in Deer Park, Texas, and Norco, La.
Other firms such as Dow
Chemical Co. and Westlake Chemical Corp. have announced ethylene
expansions to take advantage of the new natural gas, but Shell is
the first to place such a project in the Northeast. The Shell
project would be the first new ethylene cracker to be built in
North America since 2001, according to Chemical Market Associates
Inc. in Houston. In that year, Formosa Plastics Corp. USA and a
partnership between BASF Corp. and Total Petrochemicals each
opened new crackers in Texas,
Shell owns or leases the
natural gas rights for 700,000 gross acres in the Marcellus. Most
of that acreage is in Pennsylvania, which makes it likely the new
cracker would be located there. The firm operates an office in
Warrendale, Pa., about 30 miles north of Pittsburgh, and employs
almost 250 in natural-gas-related businesses across Pennsylvania.
In July, Shell acquired East Resources Inc., a Warrendale-based
oil and gas supplier.
Among those who follow
plastics and chemicals markets, reaction to Shell’s big news was mixed. One observer
who was less than thrilled with the announcement was Emily Wurth,
water policy director for Food & Water Watch, a non-profit
organization in Washington.
Wurth’s group and other environmental
organizations have questioned the hydraulic fracturing process ?
know as “fracking”
? used to access
shale gas because of the possibility of groundwater
contamination.
“We
have a lot of concerns about the new technologies around fracking
and the risk it poses,” Wurth said in a phone interview. “There’s a risk to public health and to
the environment.”
Fracking also can lead to
excessive methane production, she added. Safety also is an issue,
since some regions where shale gas has been found are densely
populated. Wurth also said that a recent report from the Energy
Information Administration indicates that U.S. shale gas levels
may be lower than previously believed, meaning that less gas is
available for development. Her own group released a report
criticizing shale gas development last July, and is set to
release a second such report June 13, one that will call for a
ban on fracking.
“The
prospect of a major petrochemicals player announcing a project in
the Marcellus Shale region was inevitable,”
said Howard
Rappaport, a CMAI market analyst. “There certainly are attractive
logistic elements to the project with the available ethane
production expected in the region and proximity to a large number
of downstream fabricators and converters in the northeast part of
the US and eastern Canada.”
He added that
infrastructure support “will play an important role in the
overall project as well as getting the necessary environmental
permitting from local and federal governments.”
Market analyst Nick
Vafiadis, also with CMAI, said that an ethylene project in the
Northeast “would appear to have access to
both feedstocks and derivative consumers …
[and] would also
likely target the domestic market.”
“It
will be interesting to see if all of the expansion announcements
that have been made [and have yet to be made] will actually
materialize,” he added.
Market analyst Mike Burns
with Resin Technologies Inc. in Fort Worth, Texas, said he was
doubtful that Shell’s ethylene expansion will result
in any new PE capacity for the region.
“North
America doesn’t need any more [PE] based on
current supply and demand,” he said.
Burns said high PE prices
are hurting plastics firms that might benefit from a new ethylene
cracker in the Appalachia region.
“There
are a lot of processors in that area, so there’s a good customer base already,”
he said. “But the way [PE makers] are
overpricing resin, I don’t know if that base will be there
when the new cracker opens.”
U.S./Canadian PE
consumption has had its ups and downs in the last five years. It
was roughly flat in 2006-07 before falling in 2008-09 as the
global economic crisis hit. Consumption recovered modestly in
2010, but even so, the 2010 total was almost 9 percent lower than
in 2006 ? falling to just over 29 billion.
At a CMAI-hosted
conference earlier this year, Vafiadis said North American PE
demand growth should average just under 3 percent annually
between 2010 and 2015.
2011/8/1 BASF
Ownership structure changes in
Sabina Petrochemicals joint venture between
BASF Corporation, Total Petrochemicals and Shell Chemical
BASF Corporation and Total Petrochemicals USA, Inc., today announced a
change in ownership of the Sabina Petrochemicals LLC joint venture that operates
one of the world’s largest C4 complexes, which is located in Port Arthur, Texas.
Shell Chemical LP, will exit the joint venture, effective Aug. 1, 2011. As of
this date, BASF and Total Petrochemicals will be the sole partners in Sabina
with 60:40 ownership shares. BASF will continue to operate the Sabina plants.
The terms of the agreement are confidential.
“The change in ownership of the Sabina joint venture marks a milestone in its
seven year history,” said Heidi Alderman, Senior Vice President, Petrochemicals,
BASF Corporation. “BASF and TPI remain firmly committed to the Port Arthur site
and plan to continue to invest in the site to optimize production capacity."
“This new structure provides a stronger partnership between TPI and BASF and
allows us to strengthen the synergies between the Total Port Arthur Refinery,
the BFLP (BASF FINA Petrochemicals Limited Partnership) and the C-4 Sabina
operation,” said Geoffroy Petit, Chief Executive Officer, TPI Petrochemicals
USA, Inc.
BASF FINA Petrochemicals Limited Partnership is a venture between BASF
Corporation and FINA, Inc.. The limited
partnership, in which BASF holds a 60 percent share and FINA holds a 40
percent share, was formed to manage the operations of the steam cracker
project and related facilities.
The steam cracker is being built adjacent to FINA's Port Arthur refinery
and will be operated by BASF on behalf of the partnership.
The cracker will convert naphtha and light hydrocarbons into mainly
ethylene and propylene.
The Sabina Petrochemicals LLC C4 complex, adjacent to the BASF FINA
Petrochemicals Limited Partnership’s steam cracker and Total Petrochemicals
USA’s Port Arthur refinery, began operating in 200 4. The facility consists of
two plants: the world’s largest single train butadiene extraction unit
and an
indirect alkylation unit. Butadiene is used in the production of rubber and
plastics. Alkylate is used as a fuel additive for high octane gasoline blending.
2011/12/4 Shell
Qatar Petroleum and Shell sign Heads of
Agreement for the development of a world-scale petrochemicals complex in Qatar
His Excellency Dr. Mohammed bin Saleh
Al-Sada, Minister of Energy and Industry of the State of Qatar, and Peter Voser,
Chief Executive Officer of Shell, signed today a Heads of Agreement that sets
the scope and commercial principles for the development of a
world-scale petrochemicals complex in Ras Laffan
Industrial City, Qatar. This agreement follows the conclusion of a joint
feasibility study conducted by the partners, Qatar Petroleum and Shell.
The scope under consideration includes a
world-scale steam cracker, with feedstock coming
from natural gas projects in Qatar; a
mono-ethylene glycol plant of up to 1.5 million tonnes
per annum using Shell’s proprietary OMEGA (Only MEG Advantaged) technology;
300 kilotonnes per annum of linear alpha olefins
using Shell’s proprietary SHOP (Shell Higher Olefin Process); and another
olefin derivative. The complex will produce
cost-competitive petrochemicals products to be marketed primarily into Asian
growth markets. Qatar Petroleum will have an 80%
equity interest in the project and Shell 20%.
His Excellency Minister Al-Sada said: “This
critical petrochemicals project fits well with Qatar’s strategy to strengthen
and further diversify its growing chemicals industry and represents an important
milestone on our journey to become a significant global petrochemicals producer.
In line with directives of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al
Thani, this large petrochemicals complex will provide Qatar with another viable
option to extract optimal value from its natural gas resources.”
Peter Voser added: “This agreement marks the
beginning of another partnership with Qatar Petroleum for the development of a
world-scale petrochemicals project in Qatar. Coming on the heels of the
inauguration of Pearl GTL, this new venture demonstrates the commitment of both
parties to deepen our relationship even further. Shell values the opportunity to
bring to Qatar the expertise and technology necessary to deliver a
petrochemicals project of this scale and looks forward to its successful
delivery.”
Qatar Petroleum and Shell have delivered
Pearl Gas-to-Liquids (GTL) and Qatargas
4 this year; two of the world’s largest projects built in Ras Laffan
Industrial City.
SHOP (Shell Higher Olefin Process) is a
chemical process for the production of linear alpha olefins via ethylene
oligomerization and olefin metathesis invented and exploited by Royal Dutch
Shell. The olefin products are converted to fatty aldehydes and then to
fatty alcohols, which are precursors plasticizers and detergents.
OMEGA is based on the successful
integration and development of Shell’s EO process with Mitsubishi’s
catalytic stand-alone MEG process. Whereas MASTER technology uses an EO
catalyst to react ethylene with oxygen to produce EO and a thermal process
in which EO then reacts with water to form glycols, OMEGA is an entirely
catalytic process.
Pearl GTL will be the world’s largest source of
gas-to-liquids (GTL) products, producing 140,000 barrels of GTL products each
day. The plant will also produce 120,000 barrels of oil equivalent per day of
natural gas liquids and ethane.
Key
facts
Location:
Qatar, Ras Laffan Industrial
City
Category:
Integrated gas and gas-to-liquids project
Ownership:
Development and Production Sharing Agreement with Government
of the State Qatar, 100% Shell funding
Operator:
Shell
Development cost:
$18
billion-$19 billion
Peak:
Production:
320 kboe/d of gas resulting in:
- 140 kboe/d of gas-to-liquids products (2 trains)
- 120 kboe/d of natural gas liquids and ethane
Total production:
3 billion boe of natural gas
over the life of the project
Key contractors:
JGC/KBR joint venture
Qatargas 4 is Shell’s first entry into Qatar’s
liquefied natural gas (LNG) sector and brings to seven the number of countries
where Shell participates in LNG supply projects. The single LNG mega train
delivers approximately 7.8 million tonnes per annum of LNG.
Key
facts
Location:
Qatar, Ras Laffan
Industrial City
Category:
LNG
plant
Ownership:
Qatar
Petroleum, 70%, and Shell, 30%
Operator:
Qatargas Operating Company
Peak Production:
280 kboe/d
Plant capacity:
7.8
mtpa LNG (1 mega train)
and 70,000 b/d of natural gas liquids
Key contractors:
Chiyoda/Technip joint venture (onshore)
2012/6/2 MENAFN
Saudi Aramco, Shell complete expansion in
Motiva JV
Saudi Aramco and Royal Dutch Shell uncovered the completion of its USD10 billion
expansion plan for their joint-venture Motiva Enterprises
Texas Gulf Coast refinery, as it reached its full output capacity,
Reuters reported.
The plan includes building a new crude distillation unit (CDU) and associated
units, taking the refinery's total output to 600,000 bpd
capacity from 258,000 bpd output before the expansion, taking the crown
from Exxon Mobil Corp's 560,640 bpd Baytown, Texas, refinery, as the largest in
the country.
The expansion project also targets boosting fuel exports to 100,000 bpd once
pipeline infrastructure from the plant to its docks is completed, according to
Motiva president and CEO Bob Pease.
The Motiva project was launched in 2007, when US fuel demand was up and refinery
capacity was seen as inadequate. That changed when the global financial crisis
hit, slashing demand and prompting closures of several unprofitable refineries.
Al-Falih, president and CEO of Saudi Aramco said that Motiva postponed the
expansion plans for about a year in late 2008 to cut costs.
----
Motiva Enterprises, LLC, is a 50–50 joint venture between Shell Oil Company (the
wholly owned American subsidiary of Royal Dutch Shell) and Saudi Refining
(controlled by Saudi Aramco). The company is currently headquartered in Houston,
Texas.
In 1988 Texaco and Saudi Refining agreed to form a
joint venture known as Star Enterprise in which
Saudi Refining would own a 50 percent share of Texaco's refining and marketing
operations in the eastern United States and Gulf Coast.
In 1997 Shell
embarked on two joint ventures with Texaco where the companies merged
their marketing and refining operations. The operations in the western and
midwestern United States were merged into a company called
Equilon.
The Star Enterprise operation and Shell's eastern and southeastern operations
were merged into a company called Motiva.
After Texaco merged with Chevron in 2001, Shell and
Saudi Refining purchased Texaco's interests in the joint ventures. Equilon
became a fully owned subsidiary of Shell, while Saudi Aramco and Shell each
became equal owners of Motiva.
2014/1/2 Shell
Shell boosts its leadership in global LNG
with the completion of Repsol S.A. LNG deal
Royal Dutch Shell plc today announces the successful completion of the
acquisition of Repsol S.A.'s liquefied natural gas (LNG)
portfolio outside North America for a headline cash consideration of
$4.1 billion. As part of the transaction, Shell will also assume
$1.6 billion of balance sheet liabilities relating to existing leases for
LNG ship charters, substantially increasing the shipping capacity available to
Shell's world-class LNG marketing business.
The deal gives Shell an additional 7.2 million tonnes per annum (mtpa) of
directly managed LNG volumes. The company's already diverse and flexible
portfolio will be boosted with LNG supply in the Atlantic
from Trinidad & Tobago, and in the Pacific from
Peru. In addition, it immediately contributes additional cash flow, while
requiring limited on-going capital expenditure.
Since the announcement of the transaction in February 2013, certain value
adjustments have been made in accordance with the terms of the sales and
purchase agreement. These are expected to lead to a net cash purchase price of
$3.8 billion (subject to post closing adjustments), compared to purchase price
of $4.4 billion announced in February 2013, and balance sheet liabilities of
$1.6 billion, compared to $1.8 billion at the initial announcement. This
includes the exercise of pre-emption rights of the BBE power plant in Spain by
an existing partner as well as other adjustments such as the financial
performance of the portfolio and working capital movements since the effective
date of 1st October 2012.
The deal closed in 2014. Shell's capital investment in Q4 2013 will reflect $3.4
billion for this transaction with the remainder of $2.0 billion booked in 2014
of which $1.6 billion is a non cash item relating to finance ship leases.
Additional information
The transaction will add:
a) Net 4.2 mtpa equity LNG plant capacity,
increasing the company’s equity LNG capacity by around 20%, from 22 to 26 mtpa.
Atlantic LNG trains 1-4; 14.8 mtpa capacity on a 100% basis (20-25%
equity per train); operated by Atlantic LNG Company of Trinidad and Tobago.
Peru LNG 4.45 mtpa capacity, on a 100% basis (acquisition: 20% equity:
100% offtake); operated by Peru LNG Company.
A fleet of LNG carriers, comprising both long term and short term time
charters.
b) 7.2 mtpa of LNG volumes through long term off-take agreements.
c) As part of this agreement, as previously disclosed, Shell has committed to
supply around 0.1 mtpa of LNG to Repsol’s Canaport LNG terminal in Canada over a
period of 10 years.
Royal Dutch Shell plc continues to expand its industry leadership in
Liquefied Natural Gas (“LNG”), today agreeing to acquire part of
Repsol S.A’s LNG portfolio outside of North America, including
supply positions in Peru and Trinidad & Tobago, for a cash
consideration of $4.4 billion. Shell will also assume and
consolidate balance sheet liabilities predominantly reflecting
leases for LNG ship charters of currently $1.8 billion. The balance
sheet impacts are subject to final assessment prior to completion of
the transaction.
Shell has agreed to
acquire from several Repsol subsidiaries which own key LNG
businesses of Repsol. Upon completion, after securing regulatory
approvals and meeting other conditions precedent, the transaction
will add:
a) Net 4.2 mtpa equity LNG plant capacity comprising:
• ALNG trains 1-4 14.6 mtpa capacity, on a 100% basis (20-25% equity
per train); operated by Atlantic LNG Company of Trinidad and Tobago
• Peru LNG 4.45 mtpa capacity, on a 100% basis (acquisition: 20%
equity; 100% offtake); operated by Peru LNG Company
• BBE power plant in Spain (25%, 800MW); operated by Bahía de
Bizkaia Electricidad S.L.
• A fleet of LNG carriers, comprising both long term and short term
time charters.
b) A material LNG marketing and trading operation, with 7.2 mtpa of
LNG volumes through long-term off-take agreements.
c) As part of this agreement, Shell has committed to supply around
0.1 mtpa of LNG to Repsol’s Canaport LNG terminal in Canada over a
period of 10 years.
-------
Atlantic LNG Company of
Trinidad and Tobago
出資
Train
1
Train
2, Train 3
Train
4
BP(AMOCO）
34%
34%
42.5%
37.8%
BG
26%
26%
32.5%
28.9%
Repsol
20%
20%
25%
22.2%
NGC
10%
10%
11.1%
Summer Soca LNG
Liquefaction
10%
10%
NGC=National Gas Company of Trinidad and
Tobago
Cabot →Suez→Summer Soca LNG Liquefaction（a subsidiary of the Chinese
Investment Corporation)
------
Peru LNG is a natural gas liquefaction
plant in Pampa Melchorita, Peru.
The company's operations also include a
408km gas pipeline and a maritime terminal, from which LNG will be shipped
overseas, and a pipeline connected to the existing TgP pipeline to transport
natural gas from the connection point in the mountains of Ayacucho to the
LNG Plant located on the coast at km. 170 of the South Pan American Highway.
Peru LNG is a consortium of Hunt
Oil Company (50%: operator), SK
Energy (20%), Repsol YPF (20%), and Marubeni (10%). LNG offtake has been contracted to Repsol.
2014/6/17 Shell
Shell further reduces its interest in
Woodside
Royal Dutch Shell plc (“Shell”) today announced the sale of a total of
approximately 156.5 million shares in Woodside Petroleum
Limited (“Woodside”) representing a total estimated value to Shell of
around US$5.0 billion on an after tax basis.
The sale, which represents 19.0% of Woodside’s
issued share capital, is through an underwritten sell-down to equity market
investors and a selective share buy-back by Woodside.
“Today’s announcement is part of our drive to improve Shell’s capital efficiency
and to focus our Australia growth in directly owned assets”, said Shell Chief
Executive Officer Ben van Beurden. “It doesn’t change our view of Australia as
an important player on the global energy stage, or Shell’s central role in the
country’s energy industry.”
Shell Australia’s Country Chair, Andrew Smith, added, “Woodside is an important
strategic partner for us, through our investments in established projects such
as the North West Shelf and growth opportunities such as Browse.
We are pleased we have been able to work with Woodside to find a solution that
allows us both to meet our strategic objectives. We continue to see Australia as
an important place for us to invest and grow our business.”
Shell’s subsidiary, Shell Energy Holding Australia Limited (“SEHAL”) has
mandated two investment banks to sell 78.27 million shares in Woodside, through
an underwritten sell-down at a price of A$41.35 per share.
This part of the sale represents around 9.5% of the issued capital in Woodside,
with the shares to be sold to a range of equity market investors. The sell-down
is expected to complete on 18 June 2014.
Under an agreement with SEHAL, Woodside will also buy-back 78.27 million of its
shares from SEHAL at a price of US$34.24 per share.
The buy-back price per share has been split into a dividend component of
US$26.29 per share and a capital component of US$7.95 per share, as agreed with
the Australian Taxation Office (ATO) in a private ruling. SEHAL will receive
franking (tax paid) credits on the dividend component with the effect that no
further tax is payable by SEHAL on the dividend component.
Completion of the buy-back will be subject to limited conditions, including
consent under a number of Woodside’s facility agreements, an independent expert
opinion and Woodside shareholder approval. Completion of the buy-back is
expected in early August 2014.
After the buy-back and the sell-down have been completed, including cancellation
of the buy-back shares by Woodside, SEHAL’s shareholding in Woodside will reduce
to below 5%. As part of this transaction, SEHAL has committed to retain its
remaining shares in Woodside for 90 days from completion of the sell-down, with
limited exceptions.
Notes for editors
Shell’s world-wide LNG equity liquefaction capacity is 26.1 mtpa (million tonnes
per annum), with interests in eleven LNG plants. The announced transaction will
reduce Shell’s equity liquefaction capacity to 25.5 mtpa after the sell-down and
to 24.9 mtpa after completion of the share buy-back.
Australia is set to underpin Shell’s next tranche of LNG growth, with the Gorgon
LNG project (~15 mtpa), where Shell has a 25% interest and the Shell-operated
Prelude Floating LNG project (3.6 mtpa LNG + 1.7 mtpa NGLs), in which Shell
holds a 67.5% interest.
Shell has further options for the next generation of LNG growth, in Australia,
North America and Indonesia.
Shell also continues with an active and successful exploration campaign adding
to further options for future development.
---
BBC
Energy giant Royal Dutch Shell is cutting its
stake in Australia's Woodside in a share sale that will net it some $5bn (£3bn).
Shell will sell around 156.5 million shares, which represents
19% of Woodside's issued share capital.
Upon completion, the European firm's stake in Woodside will be reduced from its
current 23.1% to 4.5%.
Shell has said in a statement it wants to
focus its "Australian growth in directly owned assets."
The company's chief executive Ben van Buerden added: "It doesn't change our view
of Australia as an important player on the global energy stage, or Shell's
central role in the country's energy industry.
We continue to see Australia as an important place for us to invest and grow our
business."
Earlier this year Shell reported a 44% drop in first-quarter profits after it
wrote down the value of refineries in Asia and Europe.
The cutting of its Woodside stake will take place over two
stages.
Shell will offload a 9.5% stake or 78.3 million Woodside shares to
institutional investors, at a price of $41.35 Australian dollars per share, by
Wednesday.
It will also be selling another 78.3 million shares
to Woodside in a buyback programme, at $36.49
Australian dollars per share.
The buyback is subjected to approval by Woodside's shareholders, as well as
independent expert opinion that the transaction is "fair and reasonable" to all
Woodside shareholders.
Chief executive of the Australian gas and oil firm, Peter Coleman, said in a
statement submitted to the Australian stock exchange: "This combined transaction
is an efficient and disciplined use of capital and creates value for all our
shareholders.
"The combined transaction will also increase our liquidity in the market and
resolve the uncertainty in relation to Shell's shareholding that has existed for
several years."
The firm had originally sold one-third of its Woodside
stake in November 2010, for $3.3bn.
June 18, 2014 CNOOC
CNOOC, Shell Ink Agreement on Global Strategic
Partnership
China National Offshore Oil Corporation (CNOOC) and Royal
Dutch Shell plc announced Tuesday that they have signed a Global
Strategic Alliance Agreement that reconfirms both parties'
commitment to the existing strategic partnership in China and
around the world.
Under the Agreement, the companies also commit to exploring
potential cooperation opportunities in upstream, midstream and
downstream. The Agreement was signed by CNOOC Chairman Wang
Yilin and Shell Chairman Jorma Ollila. Chinese Premier Li
Keqiang, who is on an official state visit to London, and
British Prime Minister David Cameron witnessed the signing of
the Agreement.
CNOOC Chairman Wang Yilin said: "We are delighted to see our
strategic partnership with Shell taking a step further under the
Agreement. It is another milestone for our already fruitful,
mutual-beneficial cooperation. I look forward to deeper and more
extensive cooperation with Shell."
CNOOC and Shell have enjoyed an excellent partnership in and
outside China in both upstream and downstream projects including
offshore Yinggehai off Hainan Island and a successful
petrochemicals joint venture in Huizhou, Guangdong province. The
parties are also working together in liquefied natural gas (LNG)
projects and upstream deepwater projects including in Gabon and
Brazil among others.
Ben van Beurden, Shell's CEO, said: "We are very happy to
reconfirm our commitment to the Shell-CNOOC strategic
partnership that has borne many fruits. We are committed to
growing business together with CNOOC and other Chinese partners
and cooperating with them internationally to bring more clean
energy to China."
- See more at: http://www.rigzone.com/news/oil_gas/a/133608/CNOOC_Shell_Ink_Agreement_on_Global_Strategic_Partnership#sthash.YSB4tV4T.dpuf
CNOOC, Shell Ink Agreement on Global
Strategic Partnership
China National Offshore Oil Corporation (CNOOC) and Royal Dutch Shell plc
announced Tuesday that they have signed a Global Strategic
Alliance Agreement that reconfirms both parties' commitment to the
existing strategic partnership in China and around the world.
Under the Agreement, the companies also commit to exploring potential
cooperation opportunities in upstream, midstream and downstream. The Agreement
was signed by CNOOC Chairman Wang Yilin and Shell Chairman Jorma Ollila. Chinese
Premier Li Keqiang, who is on an official state visit to London, and British
Prime Minister David Cameron witnessed the signing of the Agreement.
CNOOC Chairman Wang Yilin said: "We are delighted to see our strategic
partnership with Shell taking a step further under the Agreement. It is another
milestone for our already fruitful, mutual-beneficial cooperation. I look
forward to deeper and more extensive cooperation with Shell."
CNOOC and Shell have enjoyed an excellent partnership in and outside China in
both upstream and downstream projects including offshore Yinggehai off Hainan
Island and a successful petrochemicals joint venture in Huizhou, Guangdong
province. The parties are also working together in liquefied natural gas (LNG)
projects and upstream deepwater projects including in Gabon and Brazil among
others.
Ben van Beurden, Shell's CEO, said: "We are very happy to reconfirm our
commitment to the Shell-CNOOC strategic partnership that has borne many fruits.
We are committed to growing business together with CNOOC and other Chinese
partners and cooperating with them internationally to bring more clean energy to
China."
Shell to sell stake in Tongyi Lubricants to
Huo’s Group and The Carlyle Group
Shell has signed an agreement to sell its 75% stake in Tongyi Lubricants統一潤滑油
in China to Huo’s Group 霍氏集团 and The
Carlyle Group. The transaction is expected to
complete by late 2015 or early 2016, subject to regulatory approvals.
Tongyi, a joint venture between Shell and Huo’s Group,
is a prominent Chinese lubricant supplier with blending plants in Beijing, Xianyang of Shaanxi province山西省咸陽市（生产能力10万吨），
and Wuxi of Jiangsu province、江蘇省無錫.
Shell acquired its 75% stake from Huo’s Group in 2006.
The sale is consistent with Shell’s strategy to concentrate its Downstream
footprint on a smaller number of assets and markets where it can be most
competitive.
Shell is committed to growing its lubricants
business in China through strong relationships with distributors, collaboration
with key vehicle and equipment manufacturers, and the sale of premium products
across all sectors. In June 2015, Shell opened a new lubricants blending plant
in Tianjin with the capacity to produce 330 million litres of finished
lubricants per year, enough to fill more than 65 million cars.
Other recent Downstream divestments include the sale of Downstream businesses in
Australia and Italy; a number of retail sites in the UK, and the initial public
offering of, and further drop downs to, Shell Midstream Partners L.P. Shell has
also agreed the sale of its marketing business in Denmark and Norway and its LPG
businesses in France. In July 2015, Shell announced the sale of its shareholding
in Showa Shell in Japan to Idemitsu.
Huo’s Group, headquartered in Beijing and
established in 1983, is one of the large conglomerates in China. After 32
years’ of fast growth, Huo’s Group now operates three main businesses:
energy efficiency and renewable industry, modern warehouse and logistics,
and financial services. Huo’s Group values the development of human
resources and employs over 1,000 staff across China. The Group follows the
steps of modern corporation management and has achieved fast and sustainable
development. Huo’s Group’s purpose is to provide the China market with
leading, reliable and competitive products and services.
Huo Zhenxiang霍振祥,
Chairman of Huo’s Group 霍氏集团
Mr. Zhenxiang Huo serves as Managing
Director of Alliance Success Holding Group Limited. Mr. Huo founded Beijing
Monarch Lubricating Oil Co. Ltd in 1999 and in 2006, he sold the controlling
shares of Monarch Lubricating to Shell. He has been in petrochemical,
logistics, business management and investment industry for over 35 years.
Mr. Huo serves as Vice Chairman of Shell Tongyi (Beijing) Petrochemical Co.,
Ltd., Vice Chairman of China Chamber of Commerce for Petroleum
Industry. He has been a Director of Anterra Energy, Inc. since November
2009. He serves as a Member of Municipal People’s Congress in Beijing.
ーーー
Carlyle Group will own a majority stake in
Tongyi after the deal closes, a Carlyle spokeswoman said. The parties said the
transaction is expected to close by early next year.
ーーー
Dec. 11, 2014
Shell Looks to Sell Stake in China Lubricants
Business Tongyi
Royal Dutch Shell PLC is looking to sell its entire stake in a Chinese
oil-lubricants business in a deal that could fetch up to $500 million, as the
Anglo-Dutch energy firm sheds assets across the globe amid declining oil prices.
Shell has started a sale process for its 75% stake in the Tongyi oil lubricants
joint venture, with bids expected to come in between $350
million and $500 million, according to people familiar with the
situation, offering prospective buyers a rare majority stake in a Chinese
company.
Blackstone Group LP appears to be in a strong
position for first-round bids among the private-equity firms looking at the
Chinese operation, according to these people. The U.S. private-equity firm is
working with the founder of the Tongyi joint venture, Huo Zhenxiang, to craft a
joint bid, they said. Mr. Huo owns the remaining 25% stake in Tongyi.
Shell’s management is looking to raise cash and slim down to boost returns as
declining oil prices pressure results. When Shell Chief Executive Ben van
Beurden took the helm in January, he laid out plans to sell
$15 billion of assets by the end of 2015. Mr. van
Beurden has turned his focus away from increasing investments and toward
improving free cash flow and raising stock dividends to appease
investors.
The company’s shares have fallen more than 5% this year.
Shell hired China International Capital Corp. to sell its 75% stake in Shell’s
Tongyi brand of oil lubricants for cars, motorcycles, and other vehicles,
according to people familiar with the situation. The Beijing-based investment
bank is canvassing potential buyers for the business, and private-equity firms
and industry players are expected to participate in the first-round bidding,
these people said.
The business could be particularly interesting to deal makers because it is a
rare slice of China’s energy industry where foreigners can own controlling
stakes.
Shell unveiled the acquisition of the Tongyi stake in September 2006 for an
undisclosed price. Now, it is looking to sell the local lubricants business as
it focuses on expanding other brands. Shell operates the largest lubricant
business in China among international oil firms. It markets lubricants under its
own Shell Helix brand for standard gasoline vehicles and
the Shell Rimula brand for diesel vehicles.
If a sale is completed, Shell will continue to have substantial operations in
China. Among those are a network of around 1,000 retail fuel stations,
natural-gas exploration projects in western China’s Sichuan province, and an
investment in the Nanhai petrochemicals complex that is a joint venture between
Shell and China National Offshore Oil Corp., known as Cnooc.
2015/11/30 Shell
Shell takes final investment decision to
expand Alpha Olefins production at Geismar chemical plant in US Gulf Coast
Shell Chemical LP (Shell) today announces the final investment decision to
increase Alpha Olefins (AO) production at its
chemical manufacturing site in Geismar, Louisiana, making the site the largest
AO producer in the world. Shell will construct a fourth AO unit,
adding 425,000 tonnes of capacity. The chemical
site is used in the production of stronger and lighter polyethylene plastic for
packaging and bottles, as well as engine and industrial oils and drilling
fluids.
“This important investment demonstrates our ongoing commitment to the growth
potential in chemicals,” said Graham van’t Hoff, Executive Vice President for
Royal Dutch Shell plc’s global Chemicals business. “With the investment in new,
profitable facilities, Shell Chemicals is well placed to respond to increased
global customer demand for linear alpha olefins. We have strong technology,
advantaged ethylene feedstock from nearby Norco and Deer Park sites, and
operational flexibility to allow us to respond to market conditions.”
Construction of the new unit will begin in the first quarter of 2016. The new
capacity brings the total AO production at Shell’s Geismar
site to more than 1.3 million tonnes per annum; the site, with a strong
track record of reliable and safe performance, also produces alcohols,
ethoxylates, ethylene oxide and ethylene glycols.
The Shell Geismar Chemical Plant is located next to the Mississippi River, about
20 miles south of Baton Rouge, Louisiana. It is a stand-alone chemicals
manufacturing plant, operated by Shell Chemical LP. In addition to Geismar,
Shell produces AO at Stanlow in the UK, operated by Essar Oil (UK) Ltd on
Shell’s behalf as part of an integrated oil refinery and petrochemicals site.
2016/3/16
Saudi Refining, Inc. and Shell sign letter of
intent to separate Motiva assets
Saudi Arabian Oil Company ("Saudi Aramco") through its wholly owned Saudi
Refining Inc. ("SRI") subsidiary and Royal Dutch Shell plc, through its U.S.
downstream affiliate, announce today they have signed a non-binding Letter of
Intent to divide the assets of Motiva Enterprises LLC.
The Motiva joint venture was formed in 1998 and has operated as a
50/50 refining and marketing joint venture between
the parties since 2002.
In the proposed division of assets, SRI will retain the
Motiva name, assume sole ownership of the Port
Arthur, Texas refinery, retain 26 distribution terminals, and have an
exclusive license to use the Shell brand for gasoline and diesel sales in Texas,
the majority of the Mississippi Valley, the Southeast and Mid-Atlantic markets.
Shell will assume sole ownership of the
Norco, Louisiana refinery (where Shell operates a
chemicals plant), the Convent, Louisiana refinery,
nine distribution terminals, and Shell branded markets in Florida, Louisiana and
the Northeastern region.
"Motiva's performance has been transformed in the last two years. We propose to
combine the assets we will retain from the joint venture with Shell's other
Downstream assets in North America. This is consistent with both the Group and
Downstream strategy to provide simpler and more highly integrated businesses
which deliver increased cash and returns," said John Abbott, Shell Downstream
Director.
Abdulrahman F. Al-Wuhaib, Senior Vice President of Downstream, Saudi Aramco
said: "Saudi Aramco subsidiaries and affiliates have had a presence in the U.S.
for over 60 years, and the Motiva joint venture with Shell has served our
downstream business objectives very well for many years. However, it is now time
for the partners to pursue their independent downstream goals. The Port Arthur
refinery will advance Saudi Aramco's global downstream integration strategy
through supply & trading, refining and fuels marketing, chemicals and base oils.
Motiva's employees will continue to be critical to fulfilling our future growth
potential in the Americas, reinforcing our reliable customer service and
supporting the communities where we operate. We fully support Motiva's
continuing transformation journey to become an autonomous integrated downstream
affiliate."
Dan Romasko, Motiva President and CEO, said: "Motiva has benefited greatly from
the nearly two decades of support and resources provided by Shell and Saudi
Aramco. While the parties work towards definitive agreements, Motiva will remain
focused on our growth agenda, running operations in a safe, environmentally
sound and efficient manner while continuing to reliably serve our customers."
Both Motiva shareholders are committed to supporting the venture during this
period of transition and assuring excellent customer service and continued
health, safety and environmental performance. During the period of transition,
shareholder financing support arrangements for Motiva remain in place and both
shareholders are committed to maintaining Motiva's balance sheet strength and
liquidity.
Under the terms of the LOI, the partners will evaluate options and select an
optimal deal structure with the objective of formalizing a definitive agreement
to divide and transfer Motiva Enterprises LLC's assets, liabilities and
employees between the companies. The companies will make a further joint
announcement in due course.
Notes to the editor
Cooperation between the companies also includes: Saudi Aramco Shell Refinery Co.
(SASREF) - a 50:50 joint venture refining enterprise at Jubail Industrial City
in Saudi Arabia with a crude oil refining capacity of 305,000 bpd. Shell and
Saudi Aramco also have a multiyear relationship in the Showa JV in Japan. Shell
recently reached an agreement to sell shares representing a 33.24% shareholding
in Showa to Idemitsu Kosan. Shell will retain a 1.80% holding in the company
after completion later this year.
The refining assets from Motiva which will be owned and operated by Shell
include the 230,000 barrel per day Convent refinery located in St. James Parish,
Louisiana and the 235,000 barrel per day Norco refinery located in St. Charles
Parish, Louisiana.
The refining asset from Motiva which will be owned and operated by Saudi Aramco
is the 600,000 barrel per day Port Arthur refinery located in Port Arthur,
Texas.
Distribution terminals, retail assets, branded and commercial customer
agreements will be divided by geography in a way to ensure each partner has an
integrated and robust business.
SRI will have exclusive use of the Shell brand through a long-term license
agreement in its area of operation.
About Motiva Enterprises LLC
Headquartered in Houston, Texas, Motiva
Enterprises LLC refines, distributes and markets petroleum products. With
three refineries in the U.S. Gulf Coast region,
Motiva has a combined capacity of over 1.1 million barrels
per day. The company's marketing operations support a network of
approximately 8,300 Shell-branded gasoline stations in the eastern and southern
United States. Motiva is owned equally by affiliates of Saudi Aramco and Shell
Oil Company.
After Texaco merged with Chevron in 2001, Shell and
Saudi Refining purchased Texaco's interests in the joint ventures. Equilon
became a fully owned subsidiary of Shell, while Saudi Aramco and Shell each
became equal owners of Motiva.
Jun 7, 2016 Shell
Shell to build a new Petrochemicals complex
in Pennsylvania
Construction for complex with ethylene cracker and
polyethylene derivatives unit to begin in 18 months.
Shell Chemical Appalachia LLC (Shell) has taken the final investment decision to
build a major petrochemicals complex, comprising an
ethylene cracker with polyethylene derivatives unit, near Pittsburgh,
Pennsylvania, USA. Main construction will start in approximately 18 months, with
commercial production expected to begin early in the next decade.
The complex will use low-cost ethane from shale gas
producers in the Marcellus and Utica basins to produce
1.6 million tonnes of polyethylene per year.
Polyethylene is used in many products, from food packaging and containers to
automotive components.
The facility will be built on the banks of the Ohio River in Potter Township,
Beaver County, about 30 miles north-west of Pittsburgh. As a result of its close
proximity to gas feedstock, the complex, and its customers, will benefit from
shorter and more dependable supply chains, compared to supply from the Gulf
Coast. The location is also ideal because more than 70% of North American
polyethylene customers are within a 700-mile radius of Pittsburgh.
The project will bring new growth and jobs to
the region, with up to 6,000 construction workers involved in building the new
facility, and an expected 600 permanent employees when completed.
“Shell Chemicals has recently announced final investment decisions to
expand alpha olefins production at our Geismar site
in Louisiana and, with our partner CNOOC in China, to add
a world-scale ethylene cracker with derivative units to our existing complex
there,” said Graham van’t Hoff, Executive Vice President for Royal Dutch
Shell plc’s global Chemicals business. “This third announcement demonstrates the
growth of Shell in chemicals and strengthens our competitive advantage.”
Nov 30, 2015
Alpha Olefins expansion announced for
Geismar, Louisiana
Shell Chemical LP today announces the final investment decision to increase
Alpha Olefins (AO) production at its chemical
manufacturing site in Geismar, Louisiana,
making the site the largest AO producer in the world. Shell will construct a
fourth AO unit, adding 425,000 tonnes of capacity.
Construction of the new unit will begin in the first quarter of 2016. The
new capacity brings the total AO production at Shell’s Geismar site
to more than 1.3 million tonnes per annum; the site, with a strong
track record of reliable and safe performance, also produces alcohols,
ethoxylates, ethylene oxide and ethylene glycols.
In addition to Geismar, Shell produces AO at Stanlow in the UK, operated by
Essar Oil (UK) Ltd on Shell’s behalf as part of an integrated oil refinery
and petrochemicals site.
ーーー
2016/3/22 Shell
CNOOC and Shell take final investment
decision to expand petrochemical complex in China
China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. today
announce the final investment decision to expand CNOOC
and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture
(JV) in Huizhou, Guangdong Province, China. This decision follows the
announcement of a Heads of Agreement in December 2015 between the two
partners. Subject to regulatory approvals, CNOOC and Shell have agreed that
CSPC should take over CNOOC’s ongoing project to build additional chemical
facilities next to CSPC’s petrochemical complex.
The project includes the ongoing construction of a
new
ethylene cracker and ethylene derivatives units, which will increase
ethylene capacity by more than 1 million tonnes per
year, about double the current capacity. It will also include a
styrene monomer and propylene oxide (SMPO) plant, which will be the
largest such plant ever built in China.
Shell will apply its proprietary OMEGA, SMPO and polyols technologies to
produce 150,000 tonnes per annum (tpa) of ethylene
oxide, 480,000 tpa of ethylene glycol and
600,000 tpa of high quality polyols. This
increases the volumes and diversity of CSPC’s high quality product range to
around 2 million tonnes per year, as well as enhances overall energy
efficiency. It will be the first time that Shell’s industry-leading OMEGA
and advanced polyols technologies will be applied in China.
LNG Canada’s joint venture
participants delay timing of final investment decision
Today, LNG Canada announces that its joint venture participants
– Shell, PetroChina, Mitsubishi Corporation and Kogas – have
decided to delay a final investment
decision on LNG Canada that was planned for end 2016.
LNG Canada remains a
promising opportunity – it has strong stakeholder and First
Nations’ support, has achieved critical regulatory
approvals, has important commercial and engineering
contracts in place to design and build the project, and
through its pipeline partner Coastal Gas Link, has received
necessary environmental approvals and First Nations support
along the pipeline right-of-way.
“Our project has benefitted
from the overwhelming support of the BC Government, First
Nations – in
particular the Haisla, and the Kitimat community. We could
not have advanced the project thus far without it. I can’t
say enough about how valuable this support has been and how
important it will be as we look at a range of options to
move the project forward towards a positive FID by the Joint
Venture participants,” said Andy Calitz, CEO LNG Canada.
First Nationsは、カナダに住んでいる先住民のうち、イヌイットもしくはメティ以外の民族のこと。
Through their efforts to
build a strong LNG sector for Canada, and a critical,
cleaner energy alternative for the world, the governments of
British Columbia and Canada have developed sound fiscal and
regulatory frameworks for success.
However,
in the context of global industry challenges,
including capital constraints,
the LNG Canada Joint Venture participants have determined
they need more time prior to taking a final investment
decision. At this time, we cannot confirm when this decision
will be made.
In the coming weeks, LNG
Canada will continue key site preparation activities and
work with its joint venture participants, partners,
stakeholders and First Nations to define a revised path
forward to FID.
LNG Canada Joint Venture
Participants are Shell (50%),
PetroChina (20%), Mitsubishi Corporation (15%) and Kogas
(15%).
Sun Oct 9, 2016
Royal Dutch Shell signs MOU with Iran's National Petrochemical
Royal Dutch Shell signed a preliminary memorandum of understanding (MOU) with
Iran’s National Petrochemical Company on Sunday for
cooperation in the petrochemical industry, the Iranian oil ministry’s
news agency SHANA reported.
Hans Nijkamp, the head of the department for Iran affairs at Royal Dutch Shell,
said the signing of the MOU came after months of negotiations between the two
companies, according to SHANA.
"We believe that we can have joint projects in the petrochemical field with the
National Petrochemical Company," he said.
Marzieh Shahdaei, Iran’s deputy oil minister and CEO of National Petrochemical
Company, said that Iran plans to expand its petrochemical output from the
current level of 60 million tons to 160 million tons by 2025, according to
SHANA.
Amir-Hossein Zamaninia, a fellow Iranian deputy oil minister, expressed optimism
that petrochemical projects between the two companies would be launched soon.
"With the wisdom that we see in the people working in our country’s
petrochemical industry, without a doubt the projects of this company will be
executed sooner than oil and gas projects," he said, according to SHANA.
Shell and SABIC have signed an agreement whereby SABIC will
acquire Shell’s 50% share in the
petrochemicals SADAF joint venture, located in Jubail,
Kingdom of Saudi Arabia for $820 million.
The SADAF joint venture encompasses six world-scale
petrochemical plants with a total output of more than 4 million
metric tons per year. This announcement marks
an early
termination of the joint venture agreement which was due to
expire in 2020.
"As per the partnership agreement between the two companies
that stipulates the right of SABIC to renew or end the
partnership by the end of 2020...SABIC decided to acquire
the full stake of Shell, which is 50 percent," it said.
This acquisition will enable
SABIC to further optimize operations at SADAF and further
invest in the facilities, integrating them with SABICs other
affiliates. This step will allow Shell
to focus its downstream activities and make selective
investments to support the growth of its global chemicals
business.
Graham van’t Hoff, Executive
Vice President Chemicals, Shell, said: “Our partnership with
SABIC, spanning more than thirty years, has been a great
success story. We’re proud to have established together one
of the first petrochemical ventures in Saudi Arabia - it has
grown substantially since the start, in 1986. We will
continue to explore potential future opportunities with
SABIC.”
Yousef Al-Benyan, SABIC
Vice chairman and CEO, said, “Since SABIC’s early days, we
have enjoyed a strong relationship with Shell Chemicals. We
are confident that our journey of partnership together will
continue and grow in strength. With this transaction SABIC
is looking to capitalize on synergy opportunities of SADAF
with other affiliates, and improve its operation and
profitability.”
The transaction is
subject to regulatory approval and is expected to complete
later this year. Shell’s other activities in the country are
not impacted
Shell’s acquisition of BG Group Plc last
year has turned its attention to existing assets and is sending “mixed
signals about its desired role” in the Middle East, Arab Petroleum
Investments Corp., the investment arm of Organization of Arab Petroleum
Exporting Countries, said in a report last week.
Shell ended plans to build a $6.5 billion
petrochemical plant in Qatar in 2015 and last year exited a natural gas
venture in Abu Dhabi as the downturn in oil prices and the cost of
developing the resources made those projects too expensive.
Shell still has a refining venture with
Aramco in the kingdom, according to the Shell website. Aramco may be valued
at about $2 trillion in an initial stock sale planned for next year. Sabic
is the largest company on the country’s stock exchange by market value.
Aug 16, 2017
Shell completes SADAF
chemicals sale in Saudi Arabia to SABIC for $820mn
Shell has completed the sale
of its 50% share in SADAF, the petrochemicals joint venture,
located in Al Jubail, in the Kingdom of Saudi Arabia to
SABIC for $820 million. This sale was announced on 22
January 2017. Completion follows anti-trust filings in the
relevant countries and regulatory approval from the Kingdom
of Saudi Arabia.
This acquisition will
enable SABIC to optimise operations at SADAF and further
invest in the facilities, integrating them with SABIC’s
other affiliates. This step will allow Shell to focus
its downstream activities and make selective investments
to support the growth of its global chemicals business.
Completion of this deal shows the clear momentum behind
Shell’s global, value-driven $30bn divestment programme.
This deal does not
impact Shell’s other interests in the Kingdom of Saudi
Arabia.
Mar 9, 2017
Shell divests oil sands
interests in Canada for net consideration of $7.25 billion
Royal Dutch Shell plc today announces the signing of two
agreements by Shell Canada Energy, Shell Canada Limited and
Shell Canada Resources (“Shell”) — which are detailed in this
announcement — that will see Shell sell
all of its in-situ and undeveloped oil sands interests in Canada
and reduce its share in the Athabasca Oil
Sands Project (AOSP) from 60 percent to 10 percent. Shell
will remain as operator of AOSP’s Scotford upgrader and Quest
carbon capture and storage (CCS) project.
Under the first agreement,
Shell will sell to a subsidiary of Canadian Natural
Resources Limited (“Canadian Natural”) its entire 60 percent
interest in AOSP, its 100 percent interest in the Peace
River Complex in-situ assets, including Carmon Creek, and a
number of undeveloped oil sands leases in Alberta, Canada.
The consideration to Shell from Canadian Natural is
approximately $8.5 billion
(C$11.1 billion), comprised of $5.4 billion in cash plus
around 98 million Canadian Natural shares currently valued
at $3.1 billion. Canadian Natural is one of Canada’s largest
energy companies and a leader in the oil sands, with a
market capitalisation of approximately $35 billion (C$46
billion).
Separately and under the second agreement, Shell and
Canadian Natural will jointly acquire and own equally
Marathon Oil Canada Corporation (“MOCC”), which holds a 20
percent interest in AOSP, from an affiliate of Marathon Oil
Corporation for $1.25 billion each, to be settled in cash.
The combination of these
transactions will result in a net consideration of $7.25
billion to Shell.
ShellはAOSPの持分60%のほか、Peace
River Complex in-situ
assetsやAlberta州の未開発のオイルサンドのリースを売却する。
AOSPには下記を含む。
今後のOperator
Shell Albian
Sands mining and extraction operations
(Muskeg River and Jackpine mines）
能力255,000 barrels per day
On completion of all
transactions listed above, it is envisaged that Canadian
Natural will be the operator of the AOSP upstream mining
assets, and Shell will continue as operator of the Scotford
upgrader and Quest CCS project, located next to the 100
percent Shell-affiliate owned Scotford refinery and
chemicals plants. This arrangement is expected to allow
Shell to maximise value in its competitive Canadian
Downstream business and leverage proprietary technology.
The transactions are expected to close mid-2017, subject to
customary closing conditions and adjustments and regulatory
approvals.
Shell Chief Executive
Officer Ben van Beurden said: “This announcement is a
significant step in re-shaping Shell’s portfolio in line
with our long-term strategy. We are strengthening Shell’s
world-class investment case by focusing on free cash flow
and higher returns on capital, and prioritising businesses
where we have global scale and a competitive advantage such
as Integrated Gas and deep water. The proceeds will
accelerate free cash flow and reduce gearing and make a
meaningful contribution to Shell’s $30 billion divestment
programme.”
Shell Canada President
and Country Chair Michael Crothers said: “We are very proud
of the oil sands and in-situ operations that our people have
grown in Alberta over the past several decades. These assets
are an excellent fit for Canadian Natural, a highly
experienced oil sands developer.”
“Shell has been in Canada
for more than 100 years and we plan to continue our presence
as one of the country’s largest integrated energy companies.
We are enhancing returns in our important Downstream
business and leveraging our world-class manufacturing
capabilities through the integration opportunities that come
with continuing to operate the Scotford upgrader and Quest
CCS project, located next to the Shell Scotford refinery and
chemicals plants.”
In addition to the cash
proceeds and Canadian Natural shares, the divestment
includes additional intellectual property agreements valued
at up to $285 million and a long-term supply agreement for
the Scotford refinery. The transactions will potentially
allow for additional cost reductions and continued value
chain optimisation for Shell.
The transactions
constitute a Class 2 transaction for the purposes of the UK
Financial Conduct Authority's Listing Rules. The net cash
proceeds received from these transactions will be used to
pay down debt. In the full year 2016, the assets being
divested to Canadian Natural recorded profits before tax of
negative $22 million with upstream production averaging
around 160 thousand barrels per day. For the year ended 31
December 2016, reserves associated with the assets being
divested to Canadian Natural were 2 billion barrels and the
gross assets at that date were approximately $12 billion.
The transactions are estimated to result in a post-tax
impairment of $1.3 to $1.5 billion, subject to adjustments.
Shell’s share position in Canadian Natural will be managed
for value realization over time.
Shell and Canadian
Natural have agreed that, subject to closing of the
transactions and additional further conditions, Shell may
swap its 50 percent purchased interest of MOCC for a 20
percent interest in assets of the Scotford upgrader and
Quest CCS project. If the swap were to occur, Shell would
fully exit AOSP’s mining operations and hold a 20 percent
interest in the Scotford upgrader and Quest CCS project.
Shell retains significant
operations in Canada that are not impacted by these
transactions, including in Upstream shales with a large
Duvernay and Montney acreage position; Downstream through
chemicals, refining and marketing; and in Integrated Gas
with the proposed LNG Canada project.
Notes to editors
Prior to this
announcement, the Athabasca Oil Sands Project (AOSP) was
a joint venture between Shell Canada Energy (60
percent), Chevron Canada Limited (20 percent) and
Marathon Oil Canada Corporation (20 percent).
AOSP includes the
Shell Albian Sands mining and extraction operations
(Muskeg River and Jackpine mines) north of Fort
McMurray, Alberta and the Scotford
upgrader and Quest
CCS project northeast of Edmonton, Alberta.
Production capacity of both the mine and the upgrader is
255,000 barrels per day.
The 100 percent
Shell-affiliate owned Scotford refinery and chemicals
plants, adjacent to the Scotford upgrader and Quest CCS
project, are not included in the divestment.
The Peace River
Complex includes facilities at Peace River, Carmon Creek
and Cliffdale. 2016 full year production from these
assets was approximately 14,800 barrels per day.
Undeveloped oil
sands mining leases include the area designated as
Jackpine Mine Expansion 88, 89, 90, 30, 36, 632, 15, 631
north of AOSP, Pierre River Mine 9, 14, 17, 352 north of
Canadian Natural’s Horizon project and exploration
mining leases 839, 512, 913, 914 east of the Teck
Resources Frontier Mine project.
The transactions
also include the Grosmont leases approximately 140 km
west of Fort McMurray.
Jan 13, 2020
Shell Chemicals to produce
polycarbonate
Shell today announced it has
signed a Memorandum of Understanding with CNOOC Oil &
Petrochemicals Co Ltd (CNOOC) to explore its first
commercial-scale polycarbonate (PC) production unit, which would
be located at the CNOOC and Shell
Petrochemical Company (CSPC) joint-venture chemicals complex
in Huizhou, China.
年産能力は26万トン程度とみられる。
中海シェル石油化学（CNOOC and Shell Petrochemicals Company Limited）
立地：広東省恵州市大亜湾
出資：Shell
Nanhai BV 50%
CNOOC Petrochemicals Investment Limited (CPIL)* 50%
*CNOOC（中国海洋石油）90% / Guangdong Investment and
Development Company 10%
As an interim step,
Shell has started constructing a
PC development unit at its Jurong Island chemicals plant
in Singapore.
An expanded and
differentiated product range is a key part of Shell’s
growth strategy for its chemicals business. PC is a
transparent and impact-resistant engineering polymer,
and is used to make vehicle headlights, LED spotlights,
UV-blocking windows and spectacles.
“This is an example
of our customer-led growth strategy in action,” said
Thomas Casparie, Executive Vice President of Shell’s
global chemicals business, “we have an advantaged route
to production and are looking at investment in a number
of commercial-scale units to serve the growing number of
polycarbonate customers.”
The platform for this
new product entry is Shell’s own patented diphenyl
carbonate (DPC) process technology. Shell has developed
this over recent years to achieve significant advantages
in cost, safety, efficiency and CO2 footprint. Shell
will now combine its DPC technology with melt-phase PC
technology licensed from EPC Engineering & Technology
GmbH in Germany.
Shell’s PC production
units will also produce alkyl carbonates. These are used
for lithium ion batteries which support the energy
transition.
May 12, 2022
Shell signs agreement to sell
retail and lubricants businesses in Russia
Shell Overseas Investments
B.V. and B.V. Dordtsche Petroleum Maatschappij – subsidiaries of
Shell plc – have signed an agreement to
sell Shell Neft LLC, which owns Shell’s retail and
lubricants businesses in Russia, to PJSC
LUKOIL.
The deal
includes 411
retail stations, mainly located
in the Central and Northwestern regions
of Russia,and
the Torzhok
lubricants blending plant, around
200 kilometres north-west of Moscow.
“Our
priority is the well-being of our
employees,” said Huibert Vigeveno,
Shell’s Downstream Director. “Under this
deal, more than 350 people currently
employed by Shell Neft will transfer to
the new owner of this business.”
“The
acquisition of Shell’s high-quality
businesses in Russia fits well into
LUKOIL’s strategy to develop its
priority sales channels, including
retail, as well as the lubricants
business,” said Maxim Donde, LUKOIL’s
Vice President for Refined Products
Sales.
The
agreement with LUKOIL follows Shell’s
announcement in early March of its
intention to withdraw from all Russian
hydrocarbons in a phased manner, and
will be carried out in full compliance
with applicable laws and regulations.
The
sale is expected to be completed later
this year, subject to regulatory
approval.
Notes to Editors:
LUKOIL is one of the largest
publicly traded, vertically
integrated oil and gas companies in
the world in terms of proved
hydrocarbon reserves and production;
and the second largest producer of
crude oil in Russia. Established in
1991, LUKOIL currently operates
globally with core upstream assets
located in Russia. The full
production cycle includes oil and
gas exploration, production and
refining; production of
petrochemicals and lubricants; power
generation; marketing and
distribution.
On March 8, 2022, Shell announced
its intent to withdraw from its
involvement in all Russian
hydrocarbons, including crude oil,
petroleum products, gas and
liquefied natural gas (LNG) in a
phased manner.
Shell Neft LLC is wholly owned by
Shell Overseas Investments B.V. and
B.V. Dordtsche Petroleum
Maatschappij.
Shell Neft’s retail network consists
of 240 sites owned by Shell, 171
sites owned by dealers (and 19
Trademark License Agreement sites
which are out of the scope of this
transaction with LUKOIL).
2023/8/24 ICIS
Shell mulls divestment as an option for
Singapore petrochemical assets
Energy giant Shell is considering divestment of its refining and chemical assets
in Singapore as part of an ongoing strategic review of operations, a company
spokesperson said on Thursday.
“Our strategic review is ongoing and we are exploring several options including
divestment,” a Shell spokesperson told ICIS in an emailed statement.
In June, Shell CEO Wael Sawan had said that the company’s
plants at two Singapore sites – Pulau Bukom and Jurong Island – will
undergo a “full review” as it seeks to repurpose its global energy and chemicals
parks’ footprint to offer more low-carbon solutions.
Jurong Island
Petrochemical Corp. of Singapore : PCS
日本ｼﾝｶﾞﾎﾟｰﾙ石油化学 50% （住友化学 54.7%)
Shell Eastern
Chemicals 50% ↓ QPI and Shell Petrochemicals
(Singapore) 50% Shell 50%
Qatar Petroleum International 50%
The Polyolefin
Company (Singapore) : TPC
日本ｼﾝｶﾞﾎﾟｰﾙﾎﾟﾘｵﾚﾌｨﾝ 70% （住友化学 95.7%)
Shell Overseas
30% ↓ QPI and Shell Petrochemicals
(Singapore) 30%
“This review is in response to the ongoing high grading journey of Shell Group’s
Chemicals and Products portfolio over the years, the current challenging market
conditions and enhanced capital discipline,” the spokesperson said.
“Singapore’s position as a trading and marketing hub to serve our customers in
the region remains important.”
Shell’s cracker at Pulau Bukom, Singapore has ethylene capacity of 1.15m tonnes/year,
according to the ICIS Supply and Demand Database.
Its Singapore sites also produce ethylene oxide (EO)/ethylene glycol (EG),
butadiene (BD), benzene, ethylbenzene (EB), styrene, polyether polyols,
propylene, propylene glycol (PG), propylene oxide (PO) and lubricants.
Newswire agency Reuters reported on 23 August that Shell has hired investment
bank Goldman Sachs to explore a potential deal for its Singapore assets, citing
unnamed sources.
Companies that are reviewing Shell’s Singapore assets include China’s Sinopec as
well as global trading firms Vitol and Trafigura, according to Reuters.
Shell’s spokesperson did not reply to queries regarding the potential buyers
mentioned in Reuters’ report.
----------------------
August 28, 2023 (Reuters) -
Sinopec not interested in acquiring Shell's
Singapore assets
Asia's top refiner, Sinopec Corp , is not interested in
acquiring Shell's refinery or petrochemical plant in Singapore although
it is keen on participating in a shale gas project in
Saudi Arabia, the Chinese company's president said on Monday.
Sinopec President Yu Baocai was speaking after sources last week told Reuters
that Shell had hired Goldman Sachs to advise on a potential sale of its
Singapore assets and that Sinopec was among the companies reviewing them.
However, Yu, speaking at a briefing in Hong Kong after the state-run oil and gas
giant reported a 20% decline in interim earnings, said that Sinopec is
interested in participating in Saudi Arabia's Jafurah
shale gas project.
This is in line with an earlier Reuters report saying Sinopec and TotalEnergies
were in separate discussions with state-run Saudi Aramco to invest in the
Jafurah project, the largest shale gas development outside the U.S., with
reserves estimated at 200 trillion cubic feet of raw gas.
Yu also said that Sinopec was one of the international companies invited by the
Sri Lankan government to build a refinery there, and that it was evaluating the
matter.
Sri Lanka shortlisted Sinopec and commodities trader Vitol to become potential
investors in a proposed export-oriented refinery in Hambantota.
Separately, Sinopec is set to start operating a retail fuel business in the
island nation next month.
Yu also said that Russian oil makes up a small fraction of Sinopec's
international crude purchases and that it will make "dynamic adjustment" in
future buying based on the global market situation.
Chinese refiners have benefited from cheap crude oil supplies from Iran,
Venezuela and Russia as Western sanctions have forced those producers to sell
oil at deep discounts to keep revenue flowing.
Although Chinese state majors have shied away from Iranian and Venezuelan oil,
Sinopec has been taking in Russian supplies, traders have said.
----------------
Shell to sell interest in Singapore Energy and Chemicals Park to
CAPGC
Shell Singapore Pte Ltd, a
subsidiary of Shell plc, has reached an agreement to sell its
Energy and Chemicals Park in
Singapore to CAPGC Pte. Ltd., a
joint venture company between Chandra Asri
Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.
The transaction will transfer
all of Shell’s interest in Shell Energy and Chemicals Park
Singapore to CAPGC.
“This agreement marks a
significant step in Shell’s ongoing efforts to high-grade our
Chemicals and Products business, and is a testament to our
commitment to deliver more value with less emissions, as
outlined at our Capital Markets Day last year.” said Huibert
Vigeveno, Shell’s Downstream, Renewable and Energy Solutions
Director. “We are proud of our history at
Bukom and Jurong Island and our contributions to the
economic growth of Singapore in this sector in the past decades.
Our commitment to Singapore remains steadfast and its importance
as a regional hub for our marketing and trading business remains
important. As Singapore continues to decarbonise, Shell looks
forward to a continued partnership with the country, and with
our customers in the region.”
Shell ran a competitive bid process
to reach this milestone. Staff in Shell Energy and Chemicals
Park Singapore will continue their employment with CAPGC under
the new ownership, providing continuity for staff and
contributing to ongoing operational reliability and safety.
Subject to regulatory
approval, the transaction is expected to complete by the end of
2024.
The Shell Energy and
Chemicals Park Singapore comprises its integrated refining
and chemicals assets on Pulau Bukom
and Jurong Island.
Shell
Jurong Island occupies more
than 60 hectares on Jurong Island, and manufactures
petrochemicals including ethylene
oxide, ethoxylates, styrene monomer and propylene oxide.
It is Shell’s largest petrochemical production and
export center in the Asia Pacific region.
The
Pulau Bukom assets include a
237,000 barrels-per-day refinery and a 1.1 million tonnes-a-year
ethylene cracker. It was Singapore’s first refinery
in 1961.
Shell is selling 100% of
its interests in its Energy and Chemicals Park in Singapore,
including the physical assets and commercial contracts.
As announced on its
Capital Markets Day in June 2023, Shell had initiated a
strategic review of its Energy and Chemicals Park assets on
Bukom and Jurong Island in Singapore. This review is in
response to the ongoing high-grading of Shell Group’s
Chemicals and Products portfolio, changing market conditions
and enhanced capital discipline. Following the strategic
review, divestment has been the priority focus.
Following completion,
all employees providing dedicated support to the Shell
Energy and Chemicals Park Singapore will retain their
employment with CAPGC.
Shell and CAPGC have
also signed crude supply and products offtake agreements
that will come into effect following completion.
Singapore’s position as
a trading and marketing hub to serve Shell’s customers in
the region remains important.
Shell continues to
support Singapore’s energy needs through Liquefied Natural
Gas supply and trading. Shell is also investing in electric
vehicle charging infrastructure in the country.
In March 2024, the
Singapore government announced their partnership with a
consortium formed by Shell and ExxonMobil to study the
feasibility of a cross-border carbon capture and storage
project.
CAPGC Pte. Ltd. (“CAPGC”)
is a joint venture that is majority-owned and operated by
Chandra Asri Group and minority-owned by Glencore through
their respective subsidiary companies. Chandra Asri is
Indonesia’s leading chemical and infrastructure solutions
company, supplying products and services to various
manufacturing industries in both domestic and international
markets. Glencore is one of the world’s largest global
diversified natural resource companies and a major producer
and marketer of more than 60 commodities that advance
everyday life.
2024/6/18 Shell
Shell signs
agreement to acquire Pavilion Energy
Shell Eastern Trading Pte. Ltd., a subsidiary
of Shell plc, has reached an agreement with
Carne Investments Pte. Ltd., an indirect
wholly-owned subsidiary of Temasek, to acquire
100% of the shares in
Pavilion Energy Pte. Ltd. Pavilion Energy
includes a global
liquefied natural gas (LNG) trading business
with a contracted supply volume
comprising about 6.5 million tonnes per annum (mtpa).
Headquartered in
Singapore, Pavilion Energy’s global energy
business encompasses LNG trading, shipping,
natural gas supply and marketing activities in
Asia and Europe.
“The acquisition of
Pavilion Energy will strengthen Shell’s
leadership position in LNG, bringing material
volumes and additional flexibility into our
global portfolio,” said Zoë Yujnovich, Shell’s
Integrated Gas and Upstream Director. “We will
acquire Pavilion’s portfolio of LNG offtake and
supply contracts, which includes additional
access to strategic gas markets in Asia and
Europe. By integrating these into Shell’s global
LNG portfolio, Shell is strongly positioned to
deliver value from this transaction while
helping to meet the energy security needs of our
customers.”
The
acquisition will be absorbed within Shell’s cash
capital expenditure guidance, which remains
unchanged. The deal is in excess of the internal
rate of return (IRR) hurdle rate for Shell’s
Integrated Gas business, delivering on its
15-25% growth ambition for purchased volumes,
relative to 2022, as outlined during the 2023
Capital Markets Day.
Integration
of portfolios will commence after completion of
the deal, which is expected by Q1 2025, subject
to regulatory approvals and fulfilment of other
conditions precedent.
Pavilion
Energy’s portfolio comprises about 6.5 mtpa
of its long-term sale and supply LNG
contracts. It also includes long-term
regasification capacity of approximately 2
mtpa at the Isle Grain LNG terminal (United
Kingdom), regasification access in Singapore
and Spain, as well as the time-charter of
three M-type, Electronically Controlled Gas
Injection (MEGI) LNG vessels and two
Tri-Fuel Diesel Electric (TFDE) vessels. It
also has a LNG bunkering business with its
first vessel deployed in early 2024.
Pavilion
Energy’s pipeline gas business is not
included as part of the transaction and will
be transferred to Gas Supply Pte Ltd (GSPL),
a wholly-owned subsidiary of Temasek, prior
to completion.
Pavilion
Energy’s 20% shareholding in block 1 and 4
in Tanzania are not included in the
transaction.
Global
demand for LNG is estimated to rise by more
than 50% by 2040, as industrial coal-to-gas
switching gathers pace in China, South Asian
and South-east Asian countries. These
countries are expected to use more LNG to
support their economic growth, according to
Shell’s
LNG Outlook 2024.
Shell
believes LNG will play a critical role in
the energy transition, replacing coal in
heavy industry. It also has a continued role
in displacing coal in power generation,
helping to reduce local air pollution and
carbon emissions. LNG helps to provide the
flexibility the power system needs, at a
time when renewable generation is growing
rapidly. Find out more in Shell’s
Energy Transition
Strategy 2024.
Shell
plans to grow its LNG business by 20-30% by
2030, compared with 2022, and purchased LNG
volumes are planned to grow by 15-25%,
relative to 2022, as outlined in the 2023
Capital Markets Day. This transaction is
expected to help deliver these targets.
Shell,
via its BG acquisition, holds the first LNG
importing license to Singapore, supplying
nearly a quarter of the country’s natural
gas needs. For more than 10 years, Shell has
brought LNG to Singapore and other markets
in Asia reliably and competitively, trading
in LNG, Crude, Oil products and other energy
commodities to serve customers across Asia,
actively contributing to the region’s energy
supply security. Shell is a pioneer in
developing LNG as a marine fuel for
bunkering in Singapore.
Shell and ExxonMobil sell offshore North Sea assets in US$246m deal
SHELL and ExxonMobil have agreed to sell their joint Dutch North Sea venture to
Canadian company Tenaz Energy in a deal worth
US$246m, further distancing themselves from the shrinking Netherlands gas
market.
Along with the shutdown of the onshore Groningen gas field,
Nederlandse Aardolie Maatschappij (NAM) Offshore BV
is undergoing a restructure to scale back on gas production, only producing from
“small fields” on land and sea.
NAM (Nederlandse
Aardolie Maatschappij) is an exploration and production company with
authentic Dutch roots. Its headquarters are in Assen in the Netherlands.
NAM’s core business is exploring for and producing oil and gas, both onshore
and offshore in the Netherlands.
NAM is half owned by the British Shell and half by the American company
ExxonMobil.
Martijn van Haaster, director of NAM, said:
“With this sale, we are concluding our 60 years of offshore activities, and a
new chapter is starting for our colleagues and for NAM.”
Production of natural gas in the UK and Dutch regions of the North Sea has been
on the decline in recent years due to shrinking demand and environmental
concerns.
Dutch households consumed 11% less gas in 2023 compared to the previous year,
and natural gas extraction declined by 34%. The Netherlands’ reliance on imports
has risen for both liquified and gaseous natural gas, with the bulk of imports
coming from Norway and the US.
Similarly, the UK has seen a steady decline in natural gas liquids (NGLs)
production from 3.3m t in 2020 to a projected 2.12m t in 2024, with the
government promising a “phased and responsible” transition away from drilling in
the North Sea.
With the pool for exploration growing smaller, companies have been pulling out
of the Dutch North Sea, with ExxonMobil last year selling its XTO Netherlands
operation to Tenaz.
Inside the deal
The sale will almost quadruple Tenaz’s total corporate production – in 2023, NAM
produced 1.1bn m3 of gas, enough to supply a million Dutch homes with gas for a
year. Tenaz will take over all NAM’s offshore exploration and production
business, connected pipeline infrastructure, and onshore processing in the
Netherlands.
However, the deal does not include NAM’s assets in the
onshore Ameland area, which the joint venture has been operating since the
1980s.
The assets consist of production and exploration licences in the Dutch North Sea
which span 2,415 km. Gas is produced from six hubs and two main production areas
in the region.
Tenaz expects the acquisition of NAM will close in mid-2025 and plans to expand
gas drilling by around 30 locations.
Anthony Marino, CEO of Tenaz, said: “This acquisition is an important step in
our strategy of securing value enhancing acquisitions that have substantial
organic investment opportunities. We welcome NOBV’s (NAM Offshore BV) workforce
of highly skilled and experienced professionals who will be critical to the
continued success of Tenaz.”
---------------------------
2023/9/15
Shell and ExxonMobil in talks to sell NAM, raising concerns about
earthquake liability ガス掘削による地震
Government urged to protect victims of Groningen earthquakes
Henk Nijboer, a member of the Dutch Parliament representing the Labor Party,
has voiced concerns over reports indicating that Shell and ExxonMobil are
considering the sale of the Nederlandse Aardolie Maatschappij (NAM), the
company set up decades ago to explore and produce oil and gas. According to
the Groninger Internet Courant, Nijboer suggested that these energy giants
might be attempting to distance themselves from their
responsibility toward the Groningen region.
Nijboer’s apprehensions were raised through written questions addressed to
State Secretary for Mining Hans Vijlbrief.
According to Bloomberg, Shell and ExxonMobil, who both own a 50% stake in
NAM, are in talks with the Canadian firm Tenaz Energy about the potential
sale of the Dutch gas company.
Lawmaker calls for action
In Nijboer’s view, Shell and Exxon are looking to exit the scene after
reaping billions from gas extraction in Groningen. “It seems that Shell and
Exxon are abandoning NAM in an attempt to evade their responsibility,”
Nijboer wrote in his letter to Vijlbrief. “How will you ensure that not only
NAM but also Shell and Exxon, as shareholders, remain liable for the damages
and reinforcement efforts in Groningen for many years to come?” he further
queried.
Nijboer is determined to prevent NAM from being sold off or dismantled,
potentially leaving the future responsibility for Groningen unclear. He has
inquired whether Vijlbrief is willing to summon Shell and Exxon executives
in order to reach legally binding agreements on the issue and to ensure that
they cannot escape their financial responsibilities, “neither now nor
decades from now.”
NAM not commenting
NAM has remained silent on the reports of its sale. The deal, if it happens,
could have serious implications as it would cast doubt on the ongoing
commitment of Shell and ExxonMobil to addressing the consequences of gas
extraction in Groningen, an area that has been plagued by tremors and
subsidence linked to drilling activities.
NAM, a joint venture of Royal Dutch Shell and ExxonMobil, is responsible for
the extraction of natural gas from the Groningen gas field.
Gas production in the northern Netherlands has caused
over 1,000 earthquakes, which have damaged homes, businesses, and
infrastructure.
