News and Insights

Saudi Aramco’s decision to divest its stake in Malaysia’s Pengerang Refining and Petrochemical (PRefChem) venture marks another important turning point for the Asian downstream energy sector. The transaction, which will see Malaysia’s national oil company Petronas assume full ownership of the integrated complex, reflects not only changing corporate priorities but also wider structural changes taking place across the Asia-Pacific refining and petrochemical market.

From a continent-scale refinery expanding into petrochemicals, to a free zone attracting global logistics firms, to plans for a purpose-built industrial city, Lagos is steadily building the foundations of a manufacturing powerhouse.

The global energy landscape is undergoing a profound reconfiguration in 2026, driven by unprecedented volatility in the Middle East. The escalation of regional conflicts, long concentrated in the world’s primary supply hub, has triggered severe disruptions in oil flows. As a result, major oil companies and governments are being compelled to rethink supply security and pivot toward more stable geographic alternatives. In this shifting paradigm, the Americas are emerging not merely as a strategic reserve but as the premier destination for long-term capital allocation, where political risk is increasingly viewed as manageable compared to the acute instability surrounding the Strait of Hormuz.

EMA, EnBA, EBA, EEA, EAA, EMAA, EMA/AA & Ionomers are often the backbone materials in technical applications ranging from golf ball covers to cold-pack sensitive meat packaging and collectively represent roughly 700 kt in demand globally. The majority of present-day capacity is located in Europe, Japan and North America by producers including Dow, ExxonMobil, ENEOS NUC, SK Functional Polymers & Westlake, among others – with announced capacity in China and potentially the Middle East on the way.

After nearly sixty years as a member, the United Arab Emirates has confirmed it will withdraw from OPEC and OPEC+, with the change taking effect today, May 1st. This decision removes one of the group’s largest producers at a time of heightened geopolitical instability, with key export routes disrupted and crude prices elevated above $110 per barrel.

South Korea’s petrochemical industry is entering a decisive phase, as government intervention helps stabilize producers under pressure from surging feedstock costs while pushing the sector toward long-delayed restructuring. The latest support package targets core operators such as LG Chem, Lotte Chemical, and Hanwha TotalEnergies, aiming to minimize disruption across the country’s main production hubs.