Satorp ... a technological marvel
Saudi Arabia's Satorp JV refinery reaches full capacity
BRUSSELS, September 24, 2014
Satorp, Total's joint venture refinery in Jubail, Saudi Arabia, reached its full operating capacity of 400,000 barrels per day (bpd) in August, just one of a series of big, complex refineries ramping up over the next year.
The Satorp refinery, which France's Total operates in partnership with national oil company Saudi Aramco, has been operating at its maximum rate since August 1, Patrick Pouyanne, president of the refining chemicals division at Total, said at the 2014 Platts European Refining Summit in Brussels.
"Less than 6 per cent of its output is going to Europe," he added. "This plant is mainly sending its products to the Middle East, Asia and East Africa."
Total previously indicated in a March financial filing that it expected Saudi Aramco Total Refining and Petrochemical (Satorp) to reach full production around the middle of 2014.
Looking ahead, Pouyanne said he did not expect Satorp to send more than 10 per cent of its products to Europe in future.
European refiners are concerned they will face increased competition from new refineries coming onstream in the Middle East and Asia, although some Chinese projects have been put on hold or cancelled.
Total has already indicated that it would like to reduce its refining capacity in France, where it currently operates five plants. A works council meeting on the group's strategy in the refining business is expected to be held on September 25.
In Italy, Eni is also considering rationalisation, stating in early August that it wanted to cut its refining business by more than half. This prompted a one-day strike by some 30,000 Eni workers.
Together, Satorp, Yasref - Saudi Aramco's joint venture with China's Sinopec in Yanbu - and a capacity expansion at Ruwais in the UAE, are expected to add more than one mbpd of refined products to the market, with a strong focus on middle distillates.
"The downstream developments in the Middle East do have pretty significant implications," said Amrita Sen, chief oil analyst at Energy Aspects, also speaking at the summit in Brussels.
She argued that because the Middle East had the advantage of cheaper crudes and a good location, it would mean stiffer competition for European and US refiners in the second half of 2015 in some overseas markets. "They will be a lot more competitive in Africa, for example," she said. -- Reuters
