Does the Middle East downstream industry need to stay focused on only processing conventional hydrocarbons? Or does it need to evolve, like other regions, to stay relevant? This is one of the key issues facing the downstream sector in the region: choosing the best route to ensure continued growth and security.

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How can we reconcile both routes so that the industry remains competitive and resilient?

How can we reconcile both routes so that the industry remains competitive and resilient? Does it make sense to start introducing bio-based feedstocks into the refining systems in the Middle East?

There is a famous quote from Admiral McRaven that says if you want to change the world then start by making your bed in the morning. This can be applied to the downstream sector in the Middle East where small incremental steps can make a big difference down the line.

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If you make your bed every morning, you will have accomplished the first task of the day. It will give you a small sense of pride and it will encourage you to do another task and another and another. -Admiral McRaven

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In order to be competitive, the first step should be achieving the first quartile of energy intensity index. Many refineries in the region are new and, therefore, have been designed in order to stay in the first quartile but there remain some that are not in that position. And when you add to this problematic the new environmental regulations then achieving first quartile of energy intensity index becomes increasingly more difficult.

Digitalization is definitely a tool that can be used to improve existing assets by reaching those low hanging fruit and helping asset owners. When implemented correctly, digitalization can really help asset owners in maximizing profits, through optimized operation and efficiency. Traditionally, conventional refining is seen as a game of small margins and this is where digitalization tools add value – with relatively small upfront investment, clients actually reap the benefits in months rather than years.

The tools are available. It is now a question of applying them correctly and efficiently and, looking at what can be done to existing assets to reduce the carbon footprint, reduce emissions and be more energy efficient.

There is a lot of talk about bio-fuels and bio-refineries, but what are the real merits of going down this route? In Europe, certain refineries have been transformed into bio-refineries. But what constitutes a bio-refinery? In a number of cases this means that a few units are modified to be able to process some bio material feedstock which in most cases is then blended into the diesel product. The supply chain, feedstock availability, process, and product distribution is far from straight forward and is not viewed as a potential solution for the Middle East.

From a financing standpoint, the issue we are seeing is that as many financial institutions are global companies - they want the projects in which they invest to be compliant with international principles and standards. For this reason, the Middle East has to look at the traditional processes and find different solutions to reduce CO2, to reduce emissions, and to have a lower environmental impact as an industry.

Many ME downstream producers are working on enabling and implementing circularity programs into their operations. For instance, we are seeing a number of initiatives with regard to products - looking to improve the life cycle assessment including increased waste recycling and incorporating chemical recycling processes, etc.

The renewable polymers market is growing and these polymers are based on bio-based feedstock. So clearly we see that there is activity and this trend is likely to continue.

The Advisors: Mathew George, Indian Oil Corporation - Gaetano De Santis, Bapco - Olli Nissinen, Borealis - Gil Morieras, Borouge - Khalid Al Asmi, OQ - Dimitrios Orfanidis, Saudi Aramco - Julien Mathonnière, Energy Intelligence - Samir Al-Jishi, Sipchem - David Marion, Total Energies - Suhail Akram, Thyssenkrupp - Uwe Zwiefelhofer, Linde Engineering Middle East - Moosa AL Moosa-Moosa, Dow Saudi Arabia

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Starved of the in-person conference platform for over two years, the Refining and Petrochemical industry was expectant, and once again, ME-TECH 2022 (Middle East Technology Forum for Refining & Petrochemicals), the region’s premier technical event for the downstream industry, delivered.

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‘It demonstrated to me that there simply is no replacement for face-to-face interaction’, said Stefan Chapman, Vice President, Euro Petroleum Consultants (EPC).

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‘It demonstrated to me that there simply is no replacement for face-to-face interaction’, said Stefan Chapman, Vice President, Euro Petroleum Consultants (EPC).

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‘The conference covered a large scope of topics focusing on the future trends and challenges for our industry, especially the need for decarbonisation which requires genuine collaboration and a willingness to share knowledge and ideas, across the entire value chain, if we are to meet the ambitious net-zero goals set by regional governments’.

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Figure 2 - left, Colin Chapman (EPC), right, Gurminder Singh (Shell Catalysts & Technologies) during the networking break

Following the tried and tested format that has served the downstream industry so well for the past 12 years, ME-TECH 2022 opened proceedings with two highly engaging and insightful pre-conference seminars. The first, hosted by Wood, focused on ‘Unlocking the Sustainable Growth Potential of the Middle East: A Catalyst for a Low-carbon Future’, while the second, hosted by Honeywell UOP, focused on ‘Integration, Optimization and Lifecycle Solutions for a Competitive, Profitable and Sustainable Future’.

Figure 3 - Afternoon Seminar hosted by Honeywell UOP

In addition to the impressive Speaker line-up, the conference also benefitted from the expert moderation of Jean-Paul Sacy (Lummus Digital), Jean-Gaël Le Floc’h (Becht), Richard Charlesworth (IHS Markit), Fabien Lundy (Axens) and Scott Kendrick (Crystaphase).

Stefan Chapman was on hand to conclude proceedings with the final act of the conference, the Closing Panel, which sought to Look Ahead to 2030 and Beyond. Stefan was joined in this captivating discussion by industry stalwarts, Fabien Lundy (Axens), Keith Couch (Honeywell UOP), Goutam Biswas (Chevron Lummus Global), Gurminder Singh (Shell Catalysts Technologies), Manu Van Leuvenhaege (Sulzer Chemtech) and Daniel Carter (Wood) who explored, what might the 2030 “Smart, Green” producer look like - a look at possible big-ticket technology items, they discussed strategies being put in place by GCC producers to address demands for greater diversification, increased competitiveness and greater decarbonisation, they took a look at the role of Licensors - what we might see in the next 10-15 years, the importance of R&D and the close collaboration with Producers and wrapped up proceedings with a deeper dive into key technology enablers - what technologies can be deployed to diversify operations, improve profitability and decarbonise processes and assets?

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'It is crucial that we stay very connected with our customers and provide them the best solutions and tools so they can deploy and overcome current industry challenges and turn them into opportunities,’

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Nathan Ergonul, VP Marketing, FCC, W. R. Grace & Co, asked about the role of technology providers and licensors in the next 10 years.

Figure 6 - Members of the closing panel discussion

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