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BAZAN Group

Coordinates: 32°47′36″N 35°03′07″E / 32.7934°N 35.0519°E / 32.7934; 35.0519 (Haifa Oil Refineries)
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(Redirected from Consolidated Refineries)
This article is about the Israeli company. For the general term, see Oil refinery.
BAZAN Group
Company typePublic
TASE: ORL
IndustryPetrochemical industry
Founded1958; 66 years ago (1958)
Headquarters
Haifa
,
Israel
Area served
Middle East
Key people
Moshe Kaplinsky (Chairman)
Malachi Alper (CEO)
ProductsPetroleum products,
petrochemicals, oil refining
RevenueIncrease US$13.520 billion (2015)[1]
Decrease US$562.52 million (2015)
Decrease US$272.49 million (2015)
Total assetsIncrease US$4.470 billion (2015)
OwnersIsrael Corp. (33%)
Israel Petrochemical Enterprises ltd (15.5%)[2]
Number of employees
1,800 (2015)
SubsidiariesCarmel Olefins Ltd.
Gadiv Petrochemical Industries Ltd.
Websitewww.bazan.co.il
The iconic cooling towers of the Haifa oil refinery (before the collapse of one)

BAZAN Group, (ORL or BAZAN, Hebrew: בז"ן – בתי זיקוק לנפט בע"מ), formerly Oil Refineries Ltd., is an oil refining and petrochemicals company located in Haifa Bay, Israel. It operates the largest oil refinery in the country. ORL has a total oil refining capacity of approximately 9.8 million tons of crude oil per year with a Nelson complexity index of 9.[3] ORL provides a variety of products used in industrial operations, agriculture and transportation.[4] ORL is Israel's largest integrated refining and petrochemical facility.[5] The company also provides storage and transportation services for oil fuel products, as well as electricity and steam to industrial customers in the region.[6]

The company is traded in the Tel Aviv Stock Exchange under the symbol ORL, and is part of the Tel Aviv 35 Index.[7]

History

[edit]

The company's beginnings date back to the British Mandate for Palestine when Consolidated Refineries Limited (CRL), a joint venture of Shell and the Anglo-American Oil Company (now Esso),[8] started constructing a sprawling refinery complex which sat at the end of the British-built Mosul–Haifa oil pipeline which stretched from the oil fields near Kirkuk in then British-controlled Iraq.[9]

Construction of the first refinery unit started in 1938 and was carried out by the M. W. Kellogg Co. with assistance from Solel Boneh, with an annual capacity of two million tons of crude oil. Construction was completed in 1944, increasing the annual yield to four million tons of crude oil.[10]

During World War II, the complex supplied refined products to British and American forces operating in the Mediterranean and Middle East theatre, and was bombed many times during the early stage of the war,[11] by Italy.[12] Damage to the refineries was quickly repaired.[13][14]

Due to concerns about the Arab League Boycott, the British Government sold CRL to the State of Israel in 1958 which then changed its name to Oil Refineries Ltd.[15][16][17]

Since then the complex has undergone significant expansion and upgrades. In the past, ORL also owned the Ashdod Oil Refinery in southern Israel and therefore as a company, it held a monopoly over oil refining in the country. This changed in 2006, when Israel's Government Companies Authority, headed by Eyal Gabbai started privatization processes.[18]

On August 1, 2006, the Ashdod facilities were sold to the Paz Oil Company for 3.5 billion ILS.[19] In February 2007, 44% of the shares were sold to institutional investors.[20] Following this, 46% were sold to the Ofer-Federman group at 3.30 ILS per share,[21] with the remaining shares sold in an IPO on the Tel Aviv Stock Exchange in 2007.[19][22] There were more than 5,500 requests to buy shares, an unprecedented number.[23]

The collapse of the eastern Bazan cooling tower, June 12, 2020
Haifa oil refinery after the collapse of the eastern cooling tower

The company's iconic and historic cooling towers were removed from service in 2008. One of the towers was converted into a visitor's center, which is open to the public for free, and include multi-sensory tours.[24] On June 12, 2020, the eastern cooling tower unexpectedly collapsed.[25][26]

In 2009 the Bazan Group and Olefins companies merged and in 2010 Haifa Basic Oils was fully purchased by Bazan.[27] In 2012 Bazan commissioned UOP's Unicracking strategies in its plants for production of liquid petroleum gas, naphtha, and kerosene.[28]

More than 70% of ORL's products are distributed locally (for private and public purposes) and the rest is exported.[29] The company is a direct employer of 1,500 workers and an additional 2,000 contractors; the majority of employees are residents of Haifa and the northern region of Israel.[30]

Subsidiaries

[edit]
Engineers in Bazan group Haifa

Carmel Olefins is Israel's sole manufacturer of petrochemical products that are used as raw materials for the plastics industry. Carmel manufactures standard and special grades of polypropylene (PP) as well as a broad range of low density polyethylene (LDPE) grades.[31]

Gadiv Petrochemicals, opened in 1974, manufactures and supplies a range of petrochemicals products including aromatic hydrocarbons, aliphatic solvents and intermediates for pharmaceutical, plastic, food and chemical industries.[32][33]

Haifa Basic Oils produces base oils and paraffin wax, exporting nearly 50% of its products to overseas companies.[27][34]

Partnerships and innovation

[edit]

In 2018 Bazan launched BNNovation, an innovation initiative to grow small and larger companies in the fields of energy, renewable energy, and industry.[35][36] In 2019, BNNovation was among the founders of ESIL Technologies, an international team operating a lab for cleantech innovation and environmental protection.[37][38] Also in 2019, Bazan won the tender to establish an environmental innovation lab in Haifa Bay together with the Israeli branch of EDF Renewables and Johnson Matthey.[39]

Partners include Haier Group Corporation[40][41] and Leumi Partners.[42]

On November 16, 2020, Bazan signed a MOU with the Emirati energy company Mazrui International to import polymers that are not made in Israel.[43] In November 2021, UBQ Materials signed with Bazan to provide climate-friendly thermoplastics for resin products.[44]

The burning torch of the oil refineries at Haifa, as seen from Givat Nesher

Environmental impact

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BAZAN Group's vast petrochemical plants have released significant amounts of pollution to the environment around Haifa Bay. The company has set goals to reduce air pollution,[45] including investing over a billion dollars to develop environmentally-friendly systems.[46]

Starting in March 2011, after being connected to the new national natural gas distribution grid, the plants switched to using natural gas[47] (rather than mostly fuel oil) as their main power source, thus greatly reducing the amount of air pollution emanating from the complex.[48] In 2012, the company also completed a hydrocracking unit.[49] The switch to natural gas was expected to save the company US$200 million per year in fuel and other costs.[50]

In 2014 ORL acquired systems for treating hazards related to smells and treating emissions of volatile organic materials.[51]

In 2020, ORL published its first report for Corporate Responsibility since 2011, including its achievements in reducing benzene emissions and facilitating healthier environmental conditions.[52]

In December 2020 BAZAN announced a $3.7 million project to create, compress and transport hydrogen with the ultimate goal of bringing hydrogen-fueled cars to Israel.[53]

In April 2021, a government CEO committee assigned to resolve Haifa's decline, suggested a full closure of Bazan group's facilities within 10 years, is required.[54]

In July 2021, Bazan presented plans to become the leading Israeli supplier of renewable energy and alternative fuels at a conference in Tel Aviv. The company announced it would make $1.5 billion in capital investments by 2030, and laid out a three-pronged strategy built in accordance with international ESG standards. The company announced a set objective of 15% green polymers by 2025 and 30% by 2030.[55][56]

See also

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References

[edit]
  1. ^ "Oil Refineries Ltd". Tel Aviv Stock Exchange. 2011. Archived from the original on 29 March 2012. Retrieved 31 August 2011.
  2. ^ "OIL REFINERIES Ltd : Shareholders Board Members Managers and Company Profile | IL0025902482 | MarketScreener".
  3. ^ "About Bazan Group". Retrieved 11 July 2022.
  4. ^ "BAZAN Group". www.israelcorp.com. Archived from the original on 2019-04-30. Retrieved 2019-05-05.
  5. ^ "BAZAN Group". www.israelcorp.com. Archived from the original on 2020-06-12. Retrieved 2020-05-27.
  6. ^ "Company Overview". www.gadiv.com. Retrieved 2020-05-27.
  7. ^ "דף הבית - הבורסה לניירות ערך בתל אביב | אתר הבורסה". market.tase.co.il. Retrieved 2024-05-05.
  8. ^ Bialer, Uri (1998). Oil and the Arab-Israeli Conflict, 1948-1963. Springer. p. 13. ISBN 0230377742.
  9. ^ Semiat, Raphael (October 2015). "Israel's Chemicals Industry: From the Desert to the Dead Sea". aiche.org. Retrieved 5 May 2019.
  10. ^ Naor, Mordechai. Oil refineries: 60 years of energy in 2000.
  11. ^ "This Week in History: Italy bombs Tel Aviv - Features - Jerusalem Post". www.jpost.com. 9 September 2011. Retrieved 2019-05-05.
  12. ^ Tribune, International Herald (2015-07-16). "1940: Rome Reports Bombing Haifa". IHT Retrospective Blog. Retrieved 2019-05-05.
  13. ^ "Ofer-Federman Group Wins Control of Haifa Oil Refineries". Haaretz. 2007-02-20. Retrieved 2019-05-05.
  14. ^ Arielli, Nir (2010). "'Haifa is still Burning': Italian, German and French Air Raids on Palestine during the Second World War". Middle Eastern Studies. 46 (3): 331–347. doi:10.1080/00263200903068565. ISSN 0026-3206. S2CID 144057558.
  15. ^ "Shell and British Pertoleum Close Down Distribution in Israel". www.jewishvirtuallibrary.org. Retrieved 2019-05-05.
  16. ^ Rubner, Alex (1960). The Economy of Israel. Praeger. p. 29.
  17. ^ "בזן". Globes (in Hebrew). 2014-01-19. Retrieved 2019-05-05.
  18. ^ "State Prepares to Privatize Oil Refineries". Haaretz. 2003-07-29. Retrieved 2019-05-05.
  19. ^ a b "Paz Wins Ashdod Refinery Tender". Haaretz. 2006-08-01. Retrieved 2019-05-05.
  20. ^ "Israel to sell Oil Refineries Haifa plant in Feb". Reuters. 2007-01-10. Archived from the original on May 5, 2019. Retrieved 2019-05-05.
  21. ^ "Ofer-Federman Has Lost 15% of Its Investment in Oil Refineries, on Paper". Haaretz. 2007-02-21. Retrieved 2019-05-05.
  22. ^ Maimon, Avner (March 2017). "The Israeli Refining & Petrochemicals Market Bazan Group" (PDF). iene.eu. Retrieved 5 May 2019.
  23. ^ "Ofer-Federman Group Wins Control of Haifa Oil Refineries". Haaretz. 2007-02-20. Retrieved 2019-05-05.
  24. ^ "The startling rehabilitation project of Haifa oil refineries cooling tower | Guy Shachar". guyshachar.com. 2016-11-13. Retrieved 2019-05-05.
  25. ^ "תיעוד: קריסת הסמל של בז"ן כפי שצולם במצלמות האבטחה". כאן-תאגיד השידור הישראלי. Retrieved 2020-06-12.
  26. ^ staff, T. O. I. "Iconic Haifa oil refinery tower collapses". www.timesofisrael.com. Retrieved 2020-06-12.
  27. ^ a b "Oil Refining Storage and Retail" (PDF).
  28. ^ "UOP Delivers Unicracking™ Technology Package and Helps Bazan Increase Profits by $38 Million Quarter-Over-Quarter |". www.uop.com. Retrieved 2020-05-27.[permanent dead link‍]
  29. ^ "BAZAN Group (Oil Refineries Ltd.) | Devex". www.devex.com. Retrieved 2020-05-27.
  30. ^ "העוגן הכלכלי והתעסוקתי של הצפון". TheMarker. 2020-02-27. Retrieved 2020-06-29.
  31. ^ "Start-Up Nation Finder - Israeli innovation network". Start-Up Nation Finder. Retrieved 2019-05-13.
  32. ^ "Company Overview of Gadiv Petrochemical Industries Ltd". www.bloomberg.com. 13 May 2019. Retrieved 2019-05-13.
  33. ^ "Gadiv Petrochemical Industries • HAIFA UP". HAIFA UP. Retrieved 2019-05-13.
  34. ^ "Israel's Chemicals Industry: From the Desert to the Dead Sea". www.aiche.org. 2015-10-08. Retrieved 2020-05-27.
  35. ^ "Bnnovation – Unique Path to Success by Bazan Group". www.bnnovation.co.il. Retrieved 2020-05-27.
  36. ^ גוטמן, ליאור (2019-12-16). "בזן זכתה במכרז להקמת מעבדה לחדשנות סביבתית". כלכליסט - www.calcalist.co.il. Retrieved 2020-05-27.
  37. ^ "Israel To Establish $4M Innovation Lab In Haifa For Environmental Tech | Environment News". nocamels.com. 2019-12-16. Retrieved 2020-05-27.
  38. ^ "בזן זכתה במכרז להקמת מעבדת חדשנות סביבתית". Bizportal (in Hebrew). Retrieved 2020-05-27.
  39. ^ גוטמן, ליאור (2019-12-16). "בזן זכתה במכרז להקמת מעבדה לחדשנות סביבתית". כלכליסט - www.calcalist.co.il. Retrieved 2020-06-11.
  40. ^ Gutman, Lior (2019-06-30). "China's Haier Group Dips Toes in Israel's Petrochemical Sector". CTECH - www.calcalistech.com. Retrieved 2020-05-27.
  41. ^ "שת"פ בין בז"ן לענקית האלקטרוניקה הסינית האייר". כלבו – חיפה והקריות (in Hebrew). 2019-07-02. Retrieved 2020-05-27.
  42. ^ leumipartners.com https://leumipartners.com/portfolio/bazan-group/. Retrieved 2020-05-27. {{cite web}}: Missing or empty |title= (help)
  43. ^ "Bazan signs MOU with UAE-based Mazrui to import polymers to Israel". WNN. Retrieved 2020-11-19.
  44. ^ "Bazan Group Inks Deal with UBQ Materials to Incorporate Climate Positive Thermoplastic into Resin Product Lines". Polymerupdate.com. Retrieved 2021-11-03.
  45. ^ "Ministry of National Infrastructures". mfa.gov.il. 20 October 2002. Retrieved 2019-05-21.
  46. ^ ניר, דיאנה בחור (2018-06-29). "גם אם יקימו את בזן במדבר, תקום סביבנו התיישבות. התעשייה שלנו היא מגנט". כלכליסט - www.calcalist.co.il. Retrieved 2019-05-21.
  47. ^ "Infrastructure Ministry approves natural gas to be flowed to Haifa refinery". Ynetnews. 2011-06-04. Retrieved 2019-05-21.
  48. ^ Neiman, Rachel (6 September 2014). "Israel's Energy Past… and Future". Israel21c. Retrieved 2019-05-21.
  49. ^ "Oil Refineries Ltd to build hydrocracking unit at Haifa". Icis. Retrieved 2019-05-21.
  50. ^ Bousso, Ron (10 April 2013). "Israel's gas bonanza ushers golden era for refiners". Reuters. Retrieved 7 May 2013.
  51. ^ Ltd, Oil Refineries. "BAZAN Group is publishing the results of its Financial Statements for the third quarter and first nine months of 2014". www.prnewswire.com (Press release). Retrieved 2020-05-27.
  52. ^ "Bazan Sustainability" (PDF).
  53. ^ Surkes, Sue. "Bazan Group embarks on $3.7 million project to advance hydrogen-fueled vehicles". www.timesofisrael.com. Retrieved 2020-12-30.
  54. ^ "Gov't c'ttee: Close Haifa petrochemicals plants within decade". Globes. 2021-04-27. Retrieved 2021-06-25.
  55. ^ "בזן מציגה אסטרטגיה ירוקה חדשה בהשקעה של 1.5 מיליארד דולר | כלכליסט". calcalist (in Hebrew). 2021-07-22. Retrieved 2021-08-25.
  56. ^ כהן, עומרי (2021-07-22). "קבוצת בזן תשקיע 400 מיליון דולר בפעילויות ירוקות". Globes. Retrieved 2021-08-25.
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32°47′36″N 35°03′07″E / 32.7934°N 35.0519°E / 32.7934; 35.0519 (Haifa Oil Refineries)

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