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Realigning the two companies’ interests to improve integration
The companies’ sites that produce and use ethylene in eastern France are connected by a pipelines and storage network that begins at Lavéra in south-eastern France and passes through Feyzin to Carling in the north-east.
However, TotalEnergies does not itself use its share of production from the Lavéra steam cracker, which is equally (50/50) owned with INEOS, and sells it mainly to INEOS.
In order to realign the companies’ production and internal use of ethylene, TotalEnergies will therefore sell its stake in the Lavéra assets to INEOS, in addition to part of its interests in the Eastern France ethylene pipeline and storage network, which TotalEnergies will continue to operate.
TotalEnergies reaffirms the key role of the Feyzin petrochemical platform
Within TotalEnergies, the Company is thus consolidating the key role of the Feyzin petrochemical platform as the integrated supplier of ethylene to the Carling platform.
The agreement will have no operational impact on TotalEnergies’ refining and petrochemical sites.
"This operation allows us to strengthen the links between our Feyzin and Carling petrochemical sites, with Feyzin becoming Carling’s integrated ethylene supplier, in line with our strategy to focus on our integrated platforms," said Jean-Marc Durand, Senior Vice President, TotalEnergies Refining Base Chemicals Europe.
The implementation of this project is subject to the prior consultation process of employee representatives and the approval from the relevant authorities.
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
Reporting by Rowena Edwards; Editing by Alexander Smith
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investors who want to address climate change should focus on one simple but essential goal: active stock ownership
They should engage with companies on both sides of the energy transition–those heading in the right direction and those falling woefully short and move away from blame and toward responsibility
Engine No. 1 spent the first six months of 2021 in a fiercely contested proxy battle with ExxonMobil, trying to place four new members with industry expertise and experience in transitioning away from fossil fuels on a board lacking in both. We were successful in winning three of those seats and the company’s behavior has begun to change
every energy company needs a strategy for transitioning away from fossil fuels
But the company’s behavior has started to change and we’re confident that had we not engaged with Exxon a year ago
the changes we’ve witnessed so far wouldn’t have happened
So, the goal for 2022 should be active ownership, and it should not be limited to large or professional investors. Now more than ever, retail investors are interested in engaging on issues they care about
But many of those investors don’t even realize they have a vote on issues related to companies’ environmental and social impacts or the way those companies are managed
Anyone who owns even a single share of stock in some ways owns that company
they can vote on proposals ranging from a company’s environmental policies to important management policies such as executive pay and board composition
Just like voters in political elections change the direction of countries
shareholders have the ability to push the direction of the companies they own
Read more: Thinking of Investing in a Green Fund? Many Don’t Live Up to Their Promises, a New Report Claims
Historically, the way investors tried to change a company’s bad climate-impact behavior was to divest their holdings as a show of discontent
Divestment was an important early step in bringing awareness to the negative effects that companies can have
But the idea that simply walking away will help solve the problem is misguided
If every investor who cared about moving away from fossil fuels and addressing climate change divested from Exxon to show their disdain for the company and its approach
it would simply leave the company with shareholders that don’t particularly care—and that would be a problem
It certainly would have doomed our effort to place new members on the board
investors big and small should make it their goal to vote this proxy season on all environmental
social and governance issues raised at the annual meetings of companies they own
They should sharpen their elbows and raise their voices
This essay is part of a series on concrete goals the world should aim for in 2022 in order to put us on track to avert climate change-related disaster. Read the rest here
Contact us at letters@time.com
CFM is ramping up production of its Leap engines to meet Airbus A320neo demand
Skyrocketing prices for gas and electric power in Europe are beginning to affect Safran’s supply chain as well as the company’s strategic decisions as the manufacturer struggles to orchestrate a steep production increase for its commercial aviation products
“They are a serious and growing concern for us and the entire industry,” CEO Olivier Andries says
“When I look at the price of a megawatt hour in France
and now [the price is] significantly higher in Europe
Despite our hedging policy on energy prices
we have seen them increasing by a factor of 2-2.5 between 2019 and 2022
this will be a fivefold increase in France and Europe between 2019 and 2023.”
Safran’s decision to create a fourth carbon brake factory has been postponed by 18-24 months
“We have to factor in that evolution for our future investments,” Andries says
“Energy costs account for 40% of the cost of a carbon brake.” Plans for the factory were announced in 2019
it would complement the existing one in nearby Villeurbanne
Energy prices are much lower at the company’s other manufacturing sites in Walton
As the Feyzin project has been put on the backburner
production capacities are being increased in Walton and Sendayan
A €250 million ($247 million) investment
the Feyzin plant was to add 200-300 metric tons of annual production capacity to the current 1,500-1,700 metric tons by 2028
Safran Landing Systems CEO Cedric Goubet said in October
A new process for carbon brake manufacturing
currently in the research and technology stage
is targeting a fourfold to fivefold improvement in energy efficiency
The process was to be introduced at the Feyzin plant first
before being retrofitted to other factories
Safran’s supply chain is being affected by energy prices
Many suppliers do not have hedging policies
“Some prefer to stop producing rather than lose money,” Andries says
“We welcome the French government’s plan to support small and medium-size enterprises [and help them curb their energy expenditures]
It is not just a matter of living through the next winter; it is about France and Europe’s competitiveness against other regions
“And note: The plan does not address large companies,” Andries adds
Safran is still dealing with delays—even though Airbus CEO Guillaume Faury says the number of aircraft waiting for their engines to be delivered is no longer “meaningful.”
“We are late with Airbus and Boeing,” Andries says
where the aerospace supply chain had less support than in Europe during the COVID-19 crisis
CFM is a GE-Safran joint venture and therefore has a strong footprint in the U.S
but the catch-up phase will last until the end of 2023
Fewer than 1,200 engines will be delivered in 2022
As for the target of 2,000 deliveries in 2023
but it will be a challenge,” he adds
“We operate in a degraded environment,” Airbus’ Faury says
and a lot of outstanding work is complicating the production flow
“The efficiency is low and predictability is low,” Faury concedes
“It will take until mid-2023 or longer to recover significantly
I hope we are at [the lowest] point.”
to 347 engines in the third quarter from 226 in the second quarter
“We made commitments with Airbus until 2024
and we are focusing on the 2022-23 ramp-up,” Andries says
Faury has reaffirmed plans to increase A320neo-family aircraft production to 75 per month by 2025
Andries expects CFM will eventually deliver about 100 Leap 1Cs per year
when the program is mature on the production side
Geopolitical tensions also are having an effect on Safran’s supply chain policy as the company moves toward a dual-sourcing strategy
we had decided from the beginning to have two sources for each component and thus avoid single points of failure,” Andries says
“We are reinforcing that approach—we want to be multicountry
multisource and favor friendly countries—what we call friend-shoring.”
Thierry Dubois has specialized in aerospace journalism since 1997
An engineer in fluid dynamics from Toulouse-based Enseeiht
His expertise extends to all things technology in Europe
Thierry is also the editor-in-chief of Aviation Week’s ShowNews
Jens is executive editor and leads Aviation Week Network’s global team of journalists covering commercial aviation
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Safran has announced plans to build a new production facility for aircraft carbon brakes in Feyzin
The company says the plant will incorporate a range of "Factory 4.0" technologies developed by Safran
which it expects to result in reduced energy and water consumption and increased use of renewable energy
Safran anticipates adding up to 200 new employees at the facility after its completion
Safran’s carbon brakes are used on more than 10,000 airplanes flying for 500 airlines worldwide
Safran currently produces carbon brakes at plants in Villeurbanne
The timeline for completion of the new facility has not been made public
The transaction also includes terminals in Toulouse and Villette-de-Vienne
a consortium comprising commodity trader Trafigura and Entara
has entered into an agreement with ExxonMobil’s ESSO SAF to acquire the Fos-sur-Mer refinery in France.
the financial terms of which were not disclosed
also includes terminals in Toulouse and Villette-de-Vienne
has direct access to a major port and the capability to handle a diverse range of crude oil feedstocks
Rhône Energies aims to leverage the refinery’s workforce and manufacturing performance to enhance margin capture
Rhône Energies plans to retain approximately 310 staff members.
As part of the acquisition terms set out in April
Trafigura will enter a minimum ten-year exclusive agreement for crude oil supply and product offtake with Rhône Energies.
Don’t let policy changes catch you off guard
Stay proactive with real-time data and expert analysis
This arrangement includes ownership of crude oil and product stocks
guaranteeing the refinery a secure and cost-effective feedstock supply
as well as a reliable outlet for its refined products in the domestic market.
In addition to the supply chain agreements
Rhône Energies has pledged to continue providing Esso SAF with products in the region.
The company also plans investments in the refinery to reduce its carbon footprint and to support the co-processing of biogenic feedstocks
thereby increasing the production of renewable fuels.
part of the Rhône Energies consortium and established by former Crossbridge Energy executives
will manage the Fos-sur-Mer asset.
asset integrity and performance in commercial
Entara CEO Nicholas Myerson said: “We are delighted to have finalised the sales agreement for the Fos-sur-Mer refinery and the Toulouse and Villette-de-Vienne terminals.
“We look forward to continuing our engagement with the operational management and the transition team to ensure a smooth transition of operations
Discussions with national and local stakeholders have been particularly constructive
and we remain committed to collaborating with all parties on operations and our future plans.”
The sale agreement follows a consultation process with employee representatives.
Discussions with relevant authorities are in progress
with the necessary approvals expected by the end of October 2024
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TotalEnergies SE and INEOS Group have entered a deal to realign ownership interest in their jointly held petrochemical production assets and logistics infrastructure located at the 650-acre Lavéra platform along the Mediterranean coast in southeastern France
INEOS Olefins & Polymers Europe has agreed to purchase TotalEnergies’ 50% interest in the companies’ existing Naphtachimie
and Appryl joint-venture (JV) chemical production businesses and other infrastructure assets
including part of TotalEnergies ethylene pipeline network in France
TotalEnergies and INEOS said in separate releases on July 5
the deal would transfer INEOS Olefins & Polymers South 100% ownership of the following JV operations:
INEOS also would acquire the southern sections of TotalEnergies’ ethylene pipeline network running from Lavéra to France’s Lyon region
The pipeline system’s central and northern sections—from the Lyon to Lorraine regions—would be held equally by both INEOS and TotalEnergies
Still subject to consultation and necessary regulatory approvals
the deal is anticipated for completion by yearend 2023
the proposed acquisition of chemical and infrastructure assets comes as part of a strategy to further integrate and enhance competitiveness of its French and southern European businesses
as well help reduce carbon dioxide emissions meet internal climate abatement targets in line with the company’s Net Zero 2050 commitment
chief executive officer of INEOS Olefins & Polymers South
Realignment of its stake in the petrochemical and logistics similarly complements TotalEnergies’ integration and balance of its production and internal use of ethylene in eastern France
While the jointly held sites that produce and use ethylene in eastern France via a pipeline-and-storage network that begins at Lavéra in southeastern France and passes through Feyzin to Carling in the northeast
TotalEnergies said it does not currently use its share of production from the Lavéra steam cracker but instead sells most of it to INEOS
which will continue to act as operator of the ethylene logistics network
said the asset divestment plan specifically will support integration between its 109,000-b/d Feyzin integrated refining and petrochemical platform
and the company’s Carling polymer production site in eastern France
"This [proposed deal] allows us to strengthen the links between our Feyzin and Carling petrochemical sites
with Feyzin becoming Carling’s integrated ethylene supplier
in line with our strategy to focus on our integrated platforms," said Jean-Marc Durand
senior-vice president of TotalEnergies Refining Base Chemicals Europe
the proposed divestments will have no operational impact on TotalEnergies’ refining and petrochemical sites
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast
He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University
Ahmad Ghaddar and Noah Browning in London; editing by Jason Neely
Reporting by Forrest Crellin and Benjamin Mallet; Editing by Silvia Aloisi and Mark Porter
Strikes at French refineries looked likely to spread as Exxonmobil employees yesterday were called to join a protest at oil giant Total that has shut down seven plants and raised fears of supply cuts
Total's management said they had started halting refining operations after unions extended their two-day strike to an unlimited action
The CGT union then called for a one-day strike at the two refineries in France run by Exxonmobil
citing similar restructuring proposals at Exxonmobil
The Total strike yesterday affected seven of the company's 31 refineries which supply about half of France's filling stations
Total insisted there was "at this stage no risk of a shortage" of fuel at the pumps
The French Petroleum Industry Union said that the country's depots had up to three weeks' worth of fuel
which is under pressure after announcing possible job cuts last month
said there was "a hardening of the movement" since unions on Wednesday had only announced a two-day strike
said however that "if the strike continues
there will be tension in the Rhone-Alpes region (in southern France) in the coming days" since some oil depots were also on strike
Employees on Thursday voted for "an unlimited strike at all the plants" in France
The energy giant last month said it was studying a permanent closure of a refinery in Dunkirk
which employs 370 people directly and 450 sub-contractors
Total has come under pressure from the government to guarantee jobs after President Nicolas Sarkozy said that fighting unemployment was a priority
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