In The Spotlight
The petrochemical industry is increasingly turning its attention to chemical recycling. (Image source: Synergy)
Circular chemistry: chemical recycling and the petrochemical industry
As environmental concerns and regulatory pressures gain precedence, the petrochemical industry is increasingly turning its attention to chemical recycling
Often positioned as a potential game-changer, this technology seeks to offer a more sustainable path by converting plastic waste back into its original chemical components, enabling the production of new materials with properties comparable to those made from virgin feedstocks. Its attractiveness lies in addressing the twin evils – the plastic waste crisis and the need for higher-quality recycled materials.
How does chemical recycling work?
Chemical recycling, also referred to as advanced recycling, differs from mechanical recycling in both process and potential. Rather than grinding and melting plastics, it involves breaking down polymers into monomers or other base chemicals through processes such as pyrolysis, gasification, or depolymerisation. This allows for the creation of new plastics suitable for applications that require high purity, including food-grade packaging, where mechanically recycled plastics often fall short.
Several companies around the world have begun to scale up their chemical recycling initiatives.
• ExxonMobil, for example, has announced plans to invest US$200mn to expand its chemical recycling capabilities at its Baytown and Beaumont complexes in Texas. With its proprietary Exxtend technology, the company aims to process up to half a million tons of plastic waste per year by 2027.
• In Europe, Eastman Chemical is building a US$1bn molecular recycling facility in France. Once operational, it is expected to recycle up to 160,000 tons of plastic waste annually using polyester renewal technology.
• In India, Reliance Industries has become a pioneer in this space, producing circular polymers at its Jamnagar refinery, which has received ISCC-Plus certification to ensure sustainability and traceability.
However, the economic challenges associated with chemical recycling are substantial. These technologies are energy-intensive, resulting in higher operational costs compared to traditional recycling or even the production of virgin plastics. In some cases, chemically recycled polyethylene terephthalate (PET) can cost two to three times more than its virgin counterpart, limiting its competitiveness. Additionally, the process often requires clean and sorted plastic waste as feedstock, which is difficult to obtain in many regions due to inadequate waste segregation and contamination. This issue not only affects cost but also scalability.
Advantages of chemical recycling
From an environmental standpoint, chemical recycling does offer certain advantages. Studies indicate that pyrolysis — a commonly used method in chemical recycling — can emit up to 50% less CO₂ than the incineration of mixed plastic waste. The process also has the potential to eliminate hazardous substances embedded in plastics, such as legacy chemicals and substances of very high concern (SVHC), resulting in cleaner end-products. Nevertheless, these benefits must be weighed against the significant energy inputs required for these processes. Without low-carbon energy sources or efficiency improvements, the net environmental gains may be limited.
Looking ahead, the development of chemical recycling will depend on a combination of technological, regulatory, and economic factors. Enhancing waste collection and sorting infrastructure will be crucial for improving feedstock quality. Policy frameworks that clearly define recycled content and support traceability will help create market confidence. Meanwhile, collaboration between governments, research institutions, and industry stakeholders could accelerate innovation and reduce costs over time.
While chemical recycling is unlikely to single-handedly resolve the petrochemical sector’s sustainability challenges, it may play a valuable role within a broader strategy for circularity. When complemented by upstream design changes, responsible consumption, mechanical recycling, and waste minimization efforts, it has the potential to contribute meaningfully to the sector's transition.
Whether it ultimately transforms the petrochemical industry or becomes a niche complement to existing methods will depend on how these challenges are addressed in the years to come.
This article is authored by Synergy Consulting IFA.
The Middle East continues to develop its fossil fuels, along with renewables. (Image source: Adobe Stock)
DNV report highlights Middle East energy sector optimism
Optimism about industry growth in the energy sector, as well as about energy transition prospects, is stronger in the Middle East and North Africa than anywhere else in the world, according to DNV’s Energy Insights 2025 Report
According to the report, based on an annual survey of more than 1,100 senior professionals, 84% of respondents in the Middle East and Africa express optimism about energy industry growth prospects compared to 68% globally, and this figure has risen sharply from 69% last year. The report highlights that the energy sector is booming in the region, as many countries look to develop both their renewable and fossil fuel resources, noting that it has become the fastest-growing renewables market outside China, mainly thanks to solar sector growth. Installed solar capacity is forecast to rise to 100GW of installed capacity by 2030, up from just 23GW today, with Saudi Arabia looking to generate half of its domestic electricity from renewables by 2030, including 40GW of solar PV – six times the current capacity. Early this year Masdar announced a 5.2GW solar plant combined with a 19GWh battery storage facility, making it the largest combined solar battery energy storage system (BESS) in the world.
At the same time, the region is continuing to develop its fossil fuels, particularly natural gas, DNV notes. Iran, Qatar, and Saudi Arabia are in the world’s top ten natural gas producers, while other countries are also growing production. The combination of gas and solar is a winning one, with solar offering a cheaper and cleaner way to meet rising domestic electricity demand, while natural gas can be profitably exported.
Middle East and Africa respondents are most optimistic about reaching revenue and profit targets in the year ahead, at 73% and 71% respectively, compared with 63%/54% in North America, 58%/48% in Europe, 55%/52% Asia Pacific and 63%/54% Latin America.
Uncertain political environment
The report highlights the uncertain policy and geopolitical environment, particular in the US, with political risk seen as the leading constraint to growth. Recent geopolitical shifts have caused considerable uncertainly, with a lot of capital being diverted from renewables into oil and gas, and emerging technologies such as green hydrogen CCS, green steel and synthetic fuels being negatively impacted.
Reflecting this uncertainty, several oil and gas companies, (bp for example), have scaled back renewables commitments over the past year and increased their investment in fossil fuels. 53% of oil and gas sector respondents say they will prioritise fossil fuels over renewables over the next five years — up from 46% a year ago, while 24% of respondents in the power sector are looking to prioritise fossil fuels over renewables over the next five years, more than double the figure (11%) of a year ago. While optimism in the oil and gas sector has held steady over the past two years, standing at 66% in 2025, most oil and gas respondents (60%) say that political issues such as elections, policy uncertainty and regime change are a major threat to success in the year ahead.
Policy reversals and uncertainty are expected to hold back the energy transition in some sectors and regions, with only 55% of energy industry professionals now believing the energy transition is accelerating, sharply down from 79% two years ago. A key factor noted is the shift in investor sentiment. However, many organisations continue to invest in sustainable energy, taking a medium to long-term view.
Certain parts of the world are positive about the pace of the energy transition, notably the Middle East and Africa region, where 77% say the pace of the energy transition is accelerating, and Asia Pacific, where the figure is 68%. In contrast, only 47% in North America and 48% in Europe think the pace is accelerating.
"Despite global economic and political uncertainty, most of the energy industry maintains a general optimism, supported by megatrends such as electrification and energy demand," says the report. "Energy security and affordability have become priorities and are influencing both oil and gas expansion and the acceleration toward renewables. Sentiment varies from region to region, with the Middle East and Africa the most optimistic, and North America the least."
The groundbreaking ceremony. (Image source: TotalEnergies)
TotalEnergies and OQEP break ground on Marsa LNG plant
TotalEnergies and OQ Exploration and Production (OQEP) have broken ground on the Marsa LNG plant in the port of Sohar, northern Oman
The 1 million ton per year (Mt/y) liquefaction plant is being built by Marsa LNG LLC, a joint company between TotalEnergies (80%) and OQEP (20%). LNG production is expected to start in the first quarter of 2028, to serve the marine fuel market in the Gulf.
With an investment of US$1.6bn, Marsa LNG Project will become the Middle East’s first dedicated LNG bunkering hub. Once operational, the facility will provide cleaner fuel alternatives for the shipping industry, underpinning the nation’s economic diversification and environmental sustainability objectives while marking a transformative step for the region’s maritime sector.
A new LNG bunkering vessel is currently under construction, which will be stationed in Sohar from 2028 to supply LNG to a wide range of vessels.
The Marsa LNG plant is fully electrified and has a 300 megawatt-peak (MWp) photovoltaic solar farm, making it one of the lowest carbon intensity LNG plants in the world, with less than 3 kg CO2e/boe of scope 1 and 2 emissions.
Major contracts
Three major contracts have been signed relating to the construction of the hub. WSP International Oman Branch was awarded a consultancy services contract, to provide project management, back-office support, design review, site supervision, and contract management. The second agreement was signed with Boskalis International Oman Branch for dredging works, involving the removal of approximately 3.8mn cubic meters of material to develop the access channel, berth pocket, and turning circle, with project completion expected in September 2025. The third contract was awarded to Six Construct LLC Oman Branch, covering the construction of the LNG jetty, shore protection, and drainage systems.
"I'm very proud to see Marsa LNG breaking ground, alongside our longstanding partner OQEP, and with the strong support from the Sultanate’s authorities. This flagship project demonstrates that LNG production can be very low carbon, contributing to making gas a long-term transition fuel. With an ambitious technical design, we intend to set the standard and pave the way for the next generation of low-emissions LNG plants across the world. We also offer an effective way to support the shipping sector’s energy transition, by providing lower-emissions marine fuel in a key location at the entrance of the Gulf,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
His Excellency Salim bin Nasser Al Aufi, Minister of Energy and Minerals, stated, “This project marks a significant step in advancing low-emission energy solutions, reinforcing Oman's position as a reliable regional hub for clean maritime fuel. It aligns with the objectives of Oman Vision 2040, particularly in sustainability and industrial innovation. Additionally, it underscores our dedication to providing responsible energy solutions for the global shipping sector while actively reducing its carbon footprint.”
"As the first LNG bunkering hub in the Middle East, Marsa LNG will play a pivotal role in reducing emissions in the shipping industry while reinforcing Oman’s position as a key player in the global energy sector," added Ahmed Al Azkawi, CEO of OQEP.
Offshore rig attrition by type and annual marketed utilisation. (Image source: Westwood)
Offshore rig market sees tailing off in demand: Westwood
Saudi Aramco’s suspension of over 30 jackup contracts by up to one year is a factor behind the tailing off in demand in the offshore rig market, according to new research from Westwood
This suspension is related to the deferral of some expansion projects following the decision to maintain maximum sustainable capacity at 12 mn bpd rather than raise it to 13mn bpd as originally planned.
Other factors behind the dampening of offshore rig market demand are the entry of newbuild rigs in the market and the deferment of several long-term deepwater drilling and P&A projects.
With the combination of a drop in demand and increase in supply, marketed utilisation fell to 88% as of March 2025, representing a fall of 6% in less than two years.
Westwood predicts utilisation of the combined jackup, semisub and drillship segments to fall further this year to around 85%, making it likely that more rigs could permanently be removed from the active drilling fleet this year.
So far this year, nine rigs have been confirmed for removal from the active fleet: four jackups, three semisubs and two modern ultra-deepwater drillships.
The average age of assets retired from the fleet has continued to reduce for floating rigs, but not for jackups. Along with falling utilisation and age, factors increasing the likelihood of a rig being scrapped are limited future prospects, being without work or cold-stacked for some time, and being due for a five-yearly special periodic survey (SPS), which can be expensive.
Other factors can be one-off designs in a contractor’s fleet, where they may not be able to spread spare parts costs etc, outdated designs, and mergers between owners, which can lead to the streamlining of fleets.
“To sum up, due to the reduction in jackup, drillship and semisub demand and utilisation this year, we will likely see more assets moved to cold stack due to not having follow-on commitments in place,” concludes Westwood. “Meanwhile, further M&A activity could also be in the works.
“These factors we believe will spur further older, idle and surplus assets to be removed from the fleet, which in the long run may help set the stage for a stronger recovery in utilisation from the second half of 2026 onwards, when Westwood expects to see a rebound in demand.”
Industry 4.0 is transforming operations in the oil and gas sector. (Image source: Adobe Stock)
Revolutionising operations with AI and advanced technologies
In an exclusive interview, Dr. Darius Ngo, Fellow and Senior Vice President - Yokogawa Global Business Consulting, discusses how the company is helping to transform the oil and gas sector through AI and advanced technologies
How are AI and advanced technologies transforming the oil and gas sector, and how can they help companies to operate more efficiently, safely and sustainably?
Industry 4.0 is transforming businesses through digitisation and the use of integrating artificial intelligence (AI) and advanced technologies embedded solutions has demonstrated to revolutionise the oil and gas sector by enhancing the production efficiency, safety and sustainability of business processes. Industrial AI and advanced solutions are generally pivotal in predictive maintenance, enabling real-time monitoring and early detection of equipment anomalies. This proactive approach minimises downtime, reduces maintenance costs, and enhances overall operational efficiency.
In a groundbreaking achievement, Yokogawa, in collaboration with JSR Corporation, has successfully operated a process plant autonomously for more than 35 consecutive days since 2022 using reinforcement learning AI. This marked the first instance where AI managed plant operations without human intervention, optimising for quality, yield, energy efficiency, and responsiveness to disturbances. With a stronger demand of Industrial AI, a robust composable platform is evolving and enables integration of AI for edge computing, facilitating immediate data processing and predictive analysis, which is crucial for energy-intensive sectors like oil and gas and power. This holistic approach leverages AI, cloud solutions, IoT, and real-time data analytics to create connected and efficient operations, driving innovation and sustainable growth within the oil and gas industry.
How do you view the receptiveness of Middle East operators to AI and the latest digital solutions, and how do you view the market in the region’s oil and gas sector for your solutions? Are there any projects you would like to highlight?
The Middle East's oil and gas sector is increasingly embracing artificial intelligence (AI) and digital solutions to enhance operational efficiency, sustainability, and competitiveness. Leading regional operators such as Saudi Aramco and ADNOC have already made significant investments in AI technologies, focusing on enhanced efficiency and resource optimisation to gain competitiveness in the global market.
Yokogawa recognises the Middle East as a pivotal region in the global oil and gas sector, reflecting its strategic importance through significant investments and an established local presence. Many of the local operators are already users of Yokogawa’s advanced solutions and they are accelerating adoption of embedded AI to drive Industrial Automation to Industrial Autonomy (IA2IA). Yokogawa’s solutions and robust integration capability have repeatedly demonstrated to improvise safety, productivity and sustainability.
In Yokogawa, we are pleased to have successfully implemented Yokogawa’s AI/FKDPP reinforcement learning and advanced digital solutions among the Middle East regional operating companies. This embedded AI technology has transformed operations into full autonomy in process control without human intervention. This has also expedited the next phase of generative AI combined with large language models (LLM) for an AI-based OT intelligent advisory system.
See the full interview in the latest edition of Oil Review Middle East here:
Share of energy sources in Saudi Arabia's power mix. (Image source: Rystad Energy)
Gas displacing oil for Saudi Arabia power generation
Gas is set to increasingly displace oil used for power generation and industrial facilities in Saudi Arabia thanks to the giant Jafurah unconventional gas project, according to Rystad Energy analysis
By tapping into unconventional gas, Saudi Arabia could displace up to 350,000 bpd of crude burn by 2030, according to Rystad. The increased gas supply would not only curb domestic crude use but also free up more oil and refined products for export, strengthening the country’s position in global energy markets. This shift comes at a critical time, as oil product demand in Saudi Arabia is projected to rise by approximately 100,000 bpd between now and 2030, largely driven by increasing consumption of gasoline and diesel.
The Jafurah unconventional gas field, the largest liquid-rich shale gas play in the Middle East, contains an estimated 200 trillion standard cubic feet (scf) of natural gas. The Jafurah project, set to start production this year, is a key component of Saudi Arabia’s Vision 2030, which seeks to boost gas production by 60% from 2021 levels while diversifying the nation’s energy mix. The project will see more than US$100bn in investment in the next decade, positioning Saudi Arabia as the world’s third-largest shale gas producer.
“Saudi Arabia is stepping up investment in natural gas as a cleaner, lower-carbon alternative to oil and coal. This strategic pivot, alongside the OPEC+ decision to cap Aramco’s oil production at 12 million barrels per day by 2027, is designed to support price stability while increasing domestic gas consumption. Output is projected to climb to 13 billion cubic feet per day (Bcfd) by 2030, setting the stage for a major expansion in gas supply. This will allow the nation to redirect more crude for export, reinforcing its influence in the global energy landscape. As the initiative advances, the success of this shift will depend on robust midstream infrastructure, downstream integration and deeper-zone drilling campaigns,” said Pankaj Srivastava, senior vice president, Commodities Markets – Oil.
On the domestic front, the economics of fuel switching continue to favour gas over crude for power generation, resulting in operational costs that are six to eight times lower per kilowatt-hour. These cost advantages underpin Saudi Arabia’s strategy to replace crude with gas in its power mix, enabling the Kingdom to redirect more crude toward export markets and strengthen fiscal returns, says Rystad.
The report provides expert insights to help oil and gas professionals navigate digital transformation with confidence. (Image source: DataPARC)
Industrial analytics alternatives in a new industrial age
A new report from dataPARC, produced in association with Oil Review Middle East, provides essential guidance to help oil and gas professionals navigate the industrial analytics landscape with confidence
Industrial analytics are transforming operations in the oil and gas sector, providing actionable insights to enhance operational efficiency and facilitate better and faster decision-making. The market is constantly evolving, with AI and machine learning are ushering in a new era of predictive and prescriptive solutions, automation and autonomous operations, and AI tools increasingly taking on a lot of the heavy lifting.
With many players in the industrial analytics space, companies looking to migrate from legacy systems, or looking to upgrade their capabilities, will need to take a number of factors into account when selecting a new system, from ease of integration and conversion to advanced analytics capabilities and licensing.
This report provides guidance on selecting a new platform, identifying the criteria that need to be taken into consideration and the main features that should be looked for. It highlights the strengths of the dataPARC platform, and gives real-world examples of how industrial analytics are transforming operations in the oil and gas sector, through illustrative case studies.
Whether you're looking to replace legacy tools such as ProcessBook or explore AI-powered analytics, this report delivers the strategies, comparisons, and case studies you need to move forward.
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