Refinery operators were already facing mounting challenges in 2019: declining demand for gasoline and diesel in some markets, new and very efficient capacity coming on-stream and increasing regulatory requirements, to name a few. Then, 2020 brought even more difficulties with the unprecedented challenges to operations brought on by the Covid-19 pandemic.
Global economic challenges prompted a dramatic fall in product demand and skewed product slates – sales of gasoline and diesel fell steeply, and jet fuel sales fell by as much as 90% at one point. Recovery will probably be prolonged, and the repercussions likely long-lasting.
All of these factors present refiners with a dilemma: how to make smart investments while preserving cash in order to maintain their competitive position, when failing to invest could mean competitive vulnerability.
At Shell Catalysts & Technologies, we have always advised customers to consider revamping, repurposing or upgrading their existing assets. In our experience, this can be more capital efficient than adding new units and a better return on investment. A refinery revamp offers a number of benefits:
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