The Catalyst Review October 2024 - 6
COMMERCIAL NEWS
Middle East: Oil Market Shepherd
As the site for the largest OPEC providers, immense reserves,
rapidly growing demand and a significant downstream
industry, the Middle East plays a crucial role in stabilizing the
global oil market, despite the consistent geopolitical risks that
tend to gravitate towards the global petroleum market.
OPEC members, and their allies, have realized valuable and
sustained success under the Declaration of Cooperation
(DoC). This cooperation agreement was designed to be a
platform for producers to collaborate on global oil market
stabilization efforts, supported by discussions on various
market issues. The 23 DoC member countries are known
as the OPEC+ Group, and time and again have been able to
reach consensus and make strategic decisions surrounding
the global oil market, consistently measuring then forecasting
supply and demand curves to help combat against the
geopolitical risks that affect the market. One of the DoC's
programs implemented production ceilings to help decrease
global oversupply. It was common for Saudi Arabia to
leverage its extensive production capacity to rebalance the
DoC's output. There have since been countries that have
requested OPEC raise production to ease prices. The DoC's
response plan is to slowly raise production in Q4 2024. Source:
Hydrocarbon Engineering, 10/2024.
Aramco Advances Gas and LNG Strategies
on all Fronts
Saudi Aramco has granted contracts intended to grow its
strategy in gas expansion including the Jafurah Phase 2,
the Master Gas System Phase 3 and the Fadhili gas plant
contracts. The contracts supporting the Jafurah Phase 2
project are valued around $12.4B. To support the massive
gas transportation needs that the Jafurah gas field project
creates, Aramco awarded $8.8B in contracts for the Master
Gas System Phase 3 project. This third phase will expand on
an extensive network of pipelines that connect gas production
and processing facilities with consumers across Saudi Arabia.
To ensure sufficient processing capacity, in early 2024 Aramco
awarded $7.7B in engineering, procurement and construction
contracts to vastly expand the Fadhili gas plant. Saudi Aramco
is on an accelerated path to bring liquefied natural gas (LNG)
to Saudi Arabia, with the intent to be a global leader in the
sector. Direct investment and joint-venture opportunities
will be part of the solution to make this LNG goal a reality, as
well as agreeing to offtake contracts. The company's actions
will strategically place itself as a portfolio player. Source:
Petroleum Economist, 10/09/2024.
Solvay Completes GHG Emissions Reduction
Project at Green River
Solvay completed a project to reduce the amount of
greenhouse gas emissions at its trona-based soda ash plant
in Green River, Wyoming. Installation of regenerative thermal
oxidation (RTO) becomes the first implementation of RTO
in the trona mining industry. The company's goal is a 20%
reduction in greenhouse gas (GHG) emissions at the Green
River soda ash plant and a 4% Group level reduction by 2025.
They also plan to expand the plant's production capacity by
600,000 metric tons each year, with an expected start in 2025.
Source: Chemical Week, 10/10/2024.
Diesel No. 2: The Biomass-based Alternative
Renewable diesel is frequently made from hydrotreated
vegetable oils (HVO) and biomass-based diesel, which is an
established and expanding industry. This renewable form
of diesel differs from fatty acid methyl ester (FAME) based
biodiesel because of its nearly identical chemical structure to
petroleum diesel. In addition, renewable diesel is not only the
greenest diesel on the market, but also a drop-in alternative to
petroleum diesel with vehicle owners having no modification
requirements to use it.
The US Energy Information Administration (EIA) expects an
increase in renewable diesel production by approximately 30%
annually in 2024 and 2025, per its Short-Term Energy Outlook
publication (February 6, 2024), with the state of California
being a leader in demand. In Europe, significant changes are
underway to lower GHG emissions from road transport. In
Europe, the Renewable Energy Directive (RED) regulation and
well as other prominent regulations, have driven the increase
in renewable diesel, with plans to expand through year's end
2025, creating one of the largest biofuel markets worldwide.
Source: Hydrocarbon Engineering, 10/2024.
6
The Catalyst Review
October 2024
The Catalyst Review October 2024
Table of Contents for the Digital Edition of The Catalyst Review October 2024
The Catalyst Review October 2024 - 1
The Catalyst Review October 2024 - 2
The Catalyst Review October 2024 - 3
The Catalyst Review October 2024 - 4
The Catalyst Review October 2024 - 5
The Catalyst Review October 2024 - 6
The Catalyst Review October 2024 - 7
The Catalyst Review October 2024 - 8
The Catalyst Review October 2024 - 9
The Catalyst Review October 2024 - 10
The Catalyst Review October 2024 - 11
The Catalyst Review October 2024 - 12
The Catalyst Review October 2024 - 13
The Catalyst Review October 2024 - 14
The Catalyst Review October 2024 - 15
The Catalyst Review October 2024 - 16
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