PTQ Q4 2026 Issue

Integrating refining with chemicals, petrochemicals, and fertilisers

Shifting from hydrocarbon combustion towards molecular valorisation opens pathways to economic viability and environmental sustainability

Sabrin Khan and Chiranjib Haldar Genesis, Technip Energies India Limited

T he refining industry is undergoing a transition from traditional fuel production to an integrated approach that combines the production of fuels, petrochemi - cals, and speciality chemicals. This shift is driven primarily by evolving market fundamentals – declining long-term fuel demand growth relative to petrochemicals – as discussed further below, with reduced carbon emissions realised as an important resulting benefit. Integrating petrochemicals and speciality chemicals with refining enables the redistribution of carbon and hydrogen atoms from crude oil to various products, thereby minimising CO₂ emissions associated with fuel combustion and aligning fuel output with petrochem - ical and chemical demands. Additionally, co-processing biomass-based feedstocks alongside crude oil, as well as recycling end-of-life plastics into petrochemical feedstocks, offers another pathway towards sustainability. This circular approach addresses plastic waste issues, reduces reliance on fossil fuels, and lowers the overall carbon footprint. The fertiliser sector can be integrated with refining pro - cesses to optimise feedstock utilisation, improve energy efficiency, and enhance product flexibility. For instance, refinery sour water contains substantial amounts of ammo - nia (NH₃) and hydrogen sulphide (H₂S), which can be sepa - rately recovered through a two-stage sour water stripping process. The recovered H₂S can then be directly converted into sulphuric acid (H₂SO₄). These two key products, NH₃ and H₂SO₄, are essential ingredients in fertiliser production. Additionally, captured CO₂ can be utilised as an ingredient in urea production. Such integration, leveraging shared util - ities, storage, and logistics, reduces both capital and opera - tional costs while improving overall process efficiency. Looking ahead, a low-carbon, integrated complex com - bining refining, petrochemicals, speciality chemicals, and fertilisers could process biomass feedstocks and recycled plastics alongside crude oil to produce fuels, petrochemi - cals, speciality chemicals, and fertilisers. When combined with CO₂ capture and utilisation technologies, this inte - grated approach can substantially reduce the overall carbon footprint, supporting a more sustainable and environmen - tally responsible production system. Initiatives The oil and gas sector currently accounts for approximately

15% of global energy-related emissions, with refineries contributing a significant share of this footprint.1 This chal - lenge comes at a time of growing global commitments to climate neutrality and the acceleration of energy transition policies. Traditional refineries primarily produce transporta - tion fuels, with about 85-90% of their output being com - busted, which directly contributes to Scope 3 emissions. However, the rise of green energy and electric vehicles is expected to diminish long-term fuel demand. Meanwhile, India’s per capita consumption of chemicals and petro - chemicals remains substantially lower than that of Western nations. From 2022 to 2028, India is projected to cap - ture around 10% of the incremental global petrochemical demand growth. Additionally, petrochemical feedstocks are anticipated to account for roughly 40% of global oil demand growth during the same period, presenting strategic oppor - tunities for integrating refineries with petrochemical and Refinery-petrochemical integration represents a strategic paradigm shift from hydrocarbon combustion towards molecular valorisation, chemical production.2 Furthermore, even after integrating refineries with petrochemicals and chemicals, some low- value waste streams will remain. These can be effectively utilised as feedstock for the fertiliser sector, helping to meet the growing demand for fertilisers, while reducing import dependence, and contributing to the ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative. Such an integrated approach not only enhances resource efficiency but also supports India’s sustainability and self-sufficiency goals. Integration approach Refinery-petrochemical integration represents a strate - gic paradigm shift from hydrocarbon combustion towards with significant implications for both economic viability and environmental sustainability

PTQ Q4 2026