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MOSCOW (MRC) -- Chevron was cited for fines worth almost USD1 million stemming from a major fire at its refinery in Richmond, Calif., reports Hydrocarbonprocessing with reference to the state's division of Occupational Safety and Health.
As MRC informed earlier, a fire broke out in a crude distillation unit (CDU) at Chevron's 245,000 bpd Richmond refinery near San Francisco, California, forcing the closure of much of the facility. The fire lasted for hours, sending plumes of black smoke over the San Francisco Bay and causing an estimated 15,000 local residents to visit emergency rooms.
Chevron replaced pipes in at least one other US refinery based on a check of facilities following the August fire, since on-going investigations of the accident focused on corroded pipes found in the crude-distillation unit, where the fire started.
Cal/OSHA outlined 25 workplace violations, including 11 "willful serious" and 12 "serious" against Chevron and levied fines worth USD936,200, the highest allowed by state law.
"Our investigators found willful violations in Chevron's response before, during and after the fire," said Cal/OSHA Chief Ellen Widess.
Chevron will appeal the citations, company spokesman Sean Comey said.
"Although we acknowledge that we failed to live up to our own expectations in this incident, we do not agree with several of the Cal/OSHA findings and its characterization of some of the alleged violations as "willful,'" Mr. Comey said.
MRC
Chevron was fined USD1 million for Richmond refinery fire
The last remained PVC plant was closed in Italy
Vinyls Italia's plants for PVC production were stopped back in 2009. In May 2010, the Qatari company Ramco reported to the Government of Italy the termination of long negotiations on purchase of the production assets of Vinyls Italia, which was on the verge of bankruptcy. The failure of negotiations was related to the lack of compromise in a purchasing price (as indicated in the tender documents) and lack of access to the port in the petrochemical industrial park of Porto Marghera.
On 29 July, three authorized commissioners of Vinyls Italia presented to the Minister of Economic Development of Italy a new international tender, which was to generate interest in buying the company and all of its chlorine complex, as MRC informed previously. However, the committee members were not able to find an investor who would have resumed production of PVC at the plants.
As a result of the closure, the PVC units of Vinyls Italia in Porto Marghera and Porto Torres will be sold to an American company that had won the tender. It is planned that the production capacity will be desmantled within three months. Factory workers will be paid arrears for six months in addition to the bonus and a severance pay, but their fate is yet uncertain.
The secretary of the Italian Confederation of Workers Trade Unions (CISL) commented on the event, saying that "Italy must import PVC, and will become, at least, in this respect China-dependent."
MRC
KBR to perform turnaround services for BP Decatur site
MOSCOW (MRC) -- KBR has been selected to provide the BP Decatur site with specialty turnaround management and turnaround mechanical execution services for one of the six on-site production units at the Western Hemisphere aromatics petrochemical site in Decatur, Ala, said Plastemart.
This plant utilizes paraxylene to manufacture plastic bottles, polyester material and new generation polyesters and resins.
The contract award is valued at USD3.5 mln and underscores KBR’s ability to mobilize skilled resources and execute highly complex, time-sensitive projects.
"KBR has extensive experience serving the petrochemical industry by providing specialized turnaround management, project controls, and direct hire execution services," said Ivor Harrington, Group President, KBR Services.
"KBR has provided supplemental maintenance, annual shutdowns and small capital projects to the site since 1998. We are pleased to have been selected by this valued client and look forward to building on our long-standing relationship as we work toward the successful completion of this project" - added he.
As MRC wrote earlier, KBR was awarded to design and construct an ethylene furnace for INEOS Olefins & Polymers USA (INEOS) that upon commissioning would provide the highest achievable ethylene yields in the industry.
KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets.
MRC
Dow Chemical highlights role of petrochemicals industry in Middle East
MOSCOW (MRC) -- Senior executives from Dow Chemical Company (Dow) highlighted the positive impacts of downstream manufacturing, the role of the 'Value Park' model, and the Company's commitment to the region at the 7th MIT Pan-Arab Conference, said Ameinfo.
Jim McIlvenny, senior vice president and chairman of the Dow Sadara Project Office outlined emerging fundamental shifts in the global competitive landscape that are challenging the Middle East's historical feedstock advantage.
He emphasized the need to leverage the region's strong base of petrochemical knowledge to build downstream facilities, supply value-added products and create manufacturing jobs that, in turn, generate more jobs and propel continued growth. McIlvenny also highlighted the importance of collaboration across companies and countries in a globalized world.
"At Dow, we firmly believe in the potential that the Middle East has to offer, as is evident from our growing manufacturing and business footprint. We welcome opportunities, such as this conference, to facilitate dialogue and brainstorm solutions to the rising economic and employment issues facing the Middle East," he added.
As MRC wrote earlier,Dow Chemical would construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, Texas, as part of Dow"s previously announced comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.
The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber.
MRC
Cash-rich Gulf companies investing in petrochemicals in South East Asia
MOSCOW (MRC) -- Arabian Gulf investors are pouring billions of dollars into petrochemicals in South East Asia as they chase new consumers outside a flagging China, said Thenational.
Thanks to bumper years of high oil prices that buoyed oil and petrochemical revenues, companies from Abu Dhabi to Qatar have a pile of cash to spend in countries with growing populations and low labour costs.
This week Qatar Holding announced it would invest up to USD5 billion (Dh18.36bn) in a Malaysian petrochemicals complex to rival Singapore's in scope, and Dubai's Drydocks World agreed to build a USD2.5bn maritime complex catering to the industry in Indonesia.
Meanwhile, Saudi Aramco is evaluating a refining and petrochemical complex in the Indonesian province of East Java, Qatar Petroleum (QP) is taking a stake in a USD4bn Vietnamese petrochemical complex and Abu Dhabi's Borouge is opening plastics sales offices throughout the region.
The migration of Gulf dollars to South East Asia follows a period of blossoming deals in China.
Sinopec, Saudi Aramco and ExxonMobil agreed in 2007 to invest USD5bn into upgrading a petrochemical complex and build 750 filling stations. A year later Sinopec signed a strategic cooperation agreement with Saudi Basic Industries Corporation (Sabic). Borouge, which is owned by Abu Dhabi National Oil Company and Austria's Borealis, opened its first resin plant in China in 2010 and decided to build a second the same year.
South East Asian petrochemical manufacturing is fuelled by a growing hydrocarbon industry, with investors including Abu Dhabi's Mubadala Petroleum and Kuwait Petroleum. The promise of fresh feedstock is an enticement for Gulf manufacturers who have enjoyed expansive supplies of cheap natural gas in their home countries, but are now facing tighter supplies as governments redirect gas to power generation and producers look to more technically challenging sour gasfields.
"It's not like you could build another 10 petrochemical complexes here, because the feedstock isn't there," said Mr Potter. "Wherever there is interesting feedstock, people are having a look."
American companies that invested in Chinese complexes are also re-evaluating investments, but for another reason. As MRC wrote earlier, a rush of cheap gas unlocked from American shale has ignited a boom in industrial investment in the US, the world's biggest market for petrochemicals above China and Europe.
"All the major US companies who invested in China building their facilities, now with the access to cheap supply of natural gas they are reconsidering their plans for expansion in China," said Mr Al Sadoun. "Because the market is there."
MRC