The agreement with strengthen Saudi Arabia's base oils sector. (Image source: Adobe Stock)

Bahri Chemicals, a subsidiary of logistics and transportation company Bahri, has signed a Contract of Affreightment (COA) with Luberef to strengthen Saudi Arabia’s base oil and petrochemicals sectors

Under the agreement, Bahri Chemicals will transport base oil produced in the kingdom from local ports to destinations across the Arabian Gulf and the west coast of India.

The strategic partnership will unlock synergies between the two companies, reflecting their shared commitment to advancing Saudi Arabia’s base oils sector, while also serving as an example of collaboration under the Saudi Inc. initiative, which strengthens partnerships and growth among Saudi companies.

Faisal Al Husseini, president of Bahri Chemicals, said, “This agreement with Luberef builds on our long-standing collaboration and reflects Bahri Chemicals’ commitment to delivering reliable, flexible, and customer-first maritime transportation solutions. Together with Luberef, we aim to create long-term value for our customers and contribute to the Kingdom’s economy.”

Eng. Samer A. Al-Hokail, President & CEO of Luberef, added, “This agreement represents another important step in our partnership with Bahri Chemicals toward enhancing the efficiency and resilience of our operations across international markets. We look forward to further strengthening our cooperation to deliver sustainable value to customers and to advance the Kingdom’s standing in the base oil sector.”

Luberef is one of the world’s leading suppliers of high-quality base oils, serving markets in Saudi Arabia and India, in addition to various markets across the Middle East and North Africa.

Bahri Chemicals is one of the largest owners and operators of chemical tankers in the Middle East, currently operating a fleet of 50 vessels, through which it provides maritime transportation services to a global customer base in the chemicals, clean petroleum products, and vegetable oils sectors.

The inauguration of the new plant. (Image source: Farabi Petrochemicals)

Farabi Petrochemicals Company has inaugurated its fourth integrated Linear Alkyl Benzene (LAB) plant in Saudi Arabia

The US$950mn state-of-the-art facility, located in Yanbu Industrial City, adds 120,000 metric tons per year of LAB capacity. Built adjacent to Aramco’s refineries, the plant leverages locally produced kerosene and benzene feedstocks, ensuring world-class integration, efficiency, and sustainability performance.

The new plant underlines Farabi’s commitment to Saudi Arabia’s Vision 2030 objectives of downstream diversification, localisation and GDP growth.

The company also signed a new Memorandum of Understanding (MoU) with Unilever to expand their 20-year strategic partnership. Unilever is the world’s largest buyer of LAB, a key ingredient in household and industrial cleaning products.

The expanded agreement aligns Farabi’s capacity growth with Unilever’s constantly growing global demand in home care products, supporting innovation and sustainable growth. Both companies expressed confidence that this deepened collaboration will generate long-term value and advance their shared sustainability goals.

Eng. Mohammed Al Wadaey, CEO of Farabi Petrochemicals Group, said, “Farabi Petrochemicals is proud to be the world’s largest producer of LAB and NP which is the result of consistent growth, product diversification, advanced industrial infrastructure and dedication of our talented employees. We actively support Vision 2030 driving economic diversification, creating job opportunities, contributing to Saudi Arabia’s position as a global industrial hub, while maintaining a positive impact in the environment.”

Global refining capacity is on the rise. (Image source: Rystad Energy)

The Middle East and Asia are driving global refining growth, according to new research from Rystad Energy

Middle Eastern refiners have expanded their refining capacity in the last 20 years from nearly 8mn bpd to around 13mn bpd, with major additions concentrated in Saudi Arabia and the UAE, as the region focuses on adding value through downstream integration. This includes the development of complex, large-scale refineries designed not only to serve growing domestic demand but also to supply refined products to key export markets across the globe. Saudi Aramco for example has invested heavily in expanding its refining footprint, developing advanced complexes such as Jazan and forming joint ventures including YASREF and SATORP.

China has nearly doubled its refining capacity over the past two decades, from 10.6mn bpd in 2005 to 18.8mn bpd in 2025, to meet rising domestic demand and improve energy security, while also positioning the country as a key exporter of refined products. India’s refining capacity has grown from 2.9 million bpd in 2005 to around 5.2mn bpd this year, for similar reasons, including strong domestic consumption and strategic investments in refining infrastructure.

“The Middle East and Asia are driving global refining growth by focusing on large, integrated mega-refineries that secure energy supplies and meet rapidly rising demand. In contrast, Europe and the US are retreating, with older, less efficient plants closing due to high costs and uncertainty over future fuel needs. This shift has sparked a wave of rationalisation, where smaller, less flexible refineries are being shut down while bigger, more adaptable facilities gain ground through economies of scale. Today, nearly all new projects are larger and more economically viable, so even though the total number of refineries worldwide has declined, overall refining capacity continues to grow significantly,” said Arne Skjaeveland, vice president, Oil & Gas Research, Rystad Energy.

Rystad Energy’s research shows that in the last two decades, global primary refining capacity has increased by about 13.5 million barrels per day (bpd), or roughly 15%, while the number of refineries has been in decline since 2011 driven by ageing infrastructure, shrinking profit margins and weakening fuel demand as electrification advances.

As for emissions, emissions intensity across the sector has held relatively steady overall. Asia, followed by the Middle East, has seen total refinery emissions surge, driven by rapid growth in capacity and throughput. The newer, highly complex refineries in Asia and the Middle East tend to consume more energy but often achieve greater carbon efficiency per barrel thanks to modern technologies and tighter integration. Meanwhle, emissions in North America and Europe have remained flat or declined, largely as a result of retrofits and refinery closures rather than gains in carbon efficiency.

The two companies will collaborate on AI-powere autonomous operations. (Image source: Borouge)

Abu Dhabi-based petrochemicals company Borouge is collaborating with Honeywell to conduct a proof of concept for AI-powered autonomous operations, which is set to deliver the petrochemical industry’s first AI-driven control room designed for full-scale, real-time operation

The initiative aims to deploy the proof-of-concept technologies to enhance Borouge’s operations across its Ruwais facilities in the UAE. Autonomous operations will enable Borouge to optimise production, reduce energy use, and enhance safety while reducing costs at what will be the single largest petrochemical site in the world. Both companies will leverage their expertise in process technology and autonomous control capabilities to identify new opportunities to deploy Agentic AI solutions and advanced machine learning algorithms.

The project is a key component of Borouge's companywide AIDT programme, which is projected to generate US$575mn in value this year. In 2024, Borouge’s portfolio of over 200 AIDT initiatives—spanning operations, health and safety, sales, sustainability, and product innovation—generated $573mn in value

Borouge has already installed the world’s largest Real-Time Optimisation (RTO) system across three large-scale ethane crackers and 20 furnaces. The initiative analyses over 2,500 parameters per minute, enabling instant data-driven decisions, significantly enhancing productivity, optimising energy consumption and reducing emissions. The unique system minimises ethane dumping and optimises resource use, in line with Borouge's commitment to sustainable growth and operational excellence.

Borouge has invested in its state-of-the-art Innovation Centre located in Abu Dhabi and is now using advanced AI-powered tools to accelerate innovation, enabling the company to bring new grades of advanced polymers to market quicker. In collaboration with ADNOC AI Lab, Borouge has completed its first “Polymer Optimisation” programme, achieving a 97% accuracy, enabling Borouge to reduce its development timeline from months to weeks.

Hazeem Sultan Al Suwaidi, chief executive officer of Borouge, said, “Borouge's AI, Digitalisation, and Technology (AIDT) transformation programme is setting new standards in operations, innovation and business performance. By collaborating with global AI leaders such as Honeywell, we are accelerating growth, driving efficiency, and enhancing shareholder value. This project further strengthens Borouge’s competitive edge as we continue to deliver on our ambitious AIDT roadmap.”

George Bou Mitri, president of Honeywell Industrial Automation, Middle East, Turkey, Africa, Central Asia, said, “By integrating AI and automation technologies into core operations, we are helping unlock new levels of efficiency, safety, and performance. This agreement shows how advanced technologies, applied with purpose, can reshape industrial operations at scale.”