Petrofac, Tecnicas Reunidas likely to win Saudi Aramco deals

MOSCOW (MRC) -- British oilfield services company Petrofac and Spain's Tecnicas Reunidas are likely to win contracts to build projects for state oil giant Saudi Aramco's Uthmaniyah and Ras Tanura plants, said Reuters.

Tecnicas Reunidas is the lowest bidder to build units for a cleaner fuels project at Ras Tanura refinery, originally estimated to cost more than USD2 B, aimed at removing sulfur from refined oil products, the source said.

The project is part of a drive by the kingdom to meet stricter environmental standards in export markets. Petrofac is the front-runner to build a gas treatment facility at Uthmaniyah gas plant, expected to cost around USD600 M, the sources said.

Top oil exporter Saudi Arabia is struggling to keep up with domestic demand for gas, used in a number of sectors such as petrochemicals that are key to diversify the economy. The aim of the Uthmaniyah project is to recover ethane as well as propane and other NGL from 1.4 Bcfd of gas.

Uthmaniyah is one of the operating areas of Ghawar, the world's largest onshore oilfield. The gas plant has a processing capacity of 2.5 Bcfd.

Saudi Arabia is building a number of gas plants to meet rising domestic gas demand. It has said its Fadhili, Midyan, and Wasit gas plants will add more than 5 Bcfd of non-associated gas processing capacity.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

US crude stocks fall unexpectedly in week: EIA

MOSCOW (MRC) -- US crude stocks fell unexpectedly last week, while gasoline stocks decreased more than expected and distillate inventories rose, said Hydrocarbonprocessing, citing data from the Energy Information Administration.

Crude inventories fell by 2.5 MMbbl in the last week, compared with analysts' expectations for an increase of 522 Mbbl.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 724 Mbbl, EIA said. "While the numbers are bullish in terms of headlines and we could see crude rally further on more rhetoric ahead of the informal OPEC-and-rest meeting, we feel all these are already baked into the cake," said Tariq Zahir, trader in crude oil spreads at Tyche Capital in New York.

WTI crude futures for September delivery fell USD0.14 to USD46.44/bbl, at 11:51 a.m. Eastern (15:51 GMT). WTI prices traded at a high point for the day of USD46.79 and a low of USD45.84/bbl. Brent crude futures for October delivery rose USD0.16 to USD49.39/bbl.

Refinery crude runs rose by 268 Mbpd, EIA data showed. Refinery utilization rates rose by 1.3%. Gasoline stocks fell by 2.7 MMbbl, compared with analysts' expectations in a Reuters poll for a 1.6 MMbbl drop.

Distillate stockpiles, which include diesel and heating oil, rose by 1.9 MMbbl, versus expectations for a 742 Mbbl drop, the EIA data showed. US crude imports fell last week by 211 Mbbl.
MRC

Veolia to provide wastewater treatment system for LACC ethane cracker and Lotte MEG plant

МОSCOW (MRC) -- CB&I has chosen Veolia Water Technologies to engineer and procure a wastewater treatment package for a 1,000-kta Lotte Axiall Chemical Company (LACC) ethane cracker and associated monoethylene glycol (MEG) plant being constructed in Lake Charles, Louisiana, said Hydrocarbonprocessing.

The 650-gpm system will treat wastewater from three sources at the facility using induced gas flotation, corrugated plate interceptor, moving bed biofilm reactor and discfilter technologies. Veolia’s work scope includes process design, equipment procurement, system integration, construction support, commissioning, start-up and training. The system will be operational prior to the cracker coming online in October 2018.

CB&I was awarded the EPC contract for the cracker plant in late 2015 and will also supply its latest proven ethylene technology.

LACC is a joint venture between Axiall Corporation, based in Atlanta, Georgia, and Lotte Chemical Corporation of South Korea.

As MRC informed earlier, Westlake Chemical Corporation has provided an update on its pending acquisition of Axiall Corporation. Axiall and Westlake have received all regulatory approvals required for the transaction, including clearance from both the U.S. and Canadian competition authorities.
MRC

Prices of Russian PVC continue to rise in the second half of August

MOSCOW (MRC) -- A shortage of polyvinyl chloride (PVC) in the period of strong seasonal demand continued to affect prices in the Russian market. Bashkir Soda Company (BSC) announced a further price increase this week, according to ICIS-MRC Price report.

BSC announced a rise of Rb1,500/tonne in prices of suspension polyvinyl chloride (SPVC) with constant K=70 since 15 August, at the same time, it is worth noting that this is the first price increase of this resin this month. Before, prices were at the level of July. Bashkir Soda Company maintained its prices of the resin with other constants unchanged.

As reported earlier, in August, due to the deficit, prices of Russian PVC broke the last year's record and reached Rb75,500-79,500/tonne CPT Moscow, including VAT, for the resin with K=64/67 and Rb78,000-83,000/tonne CPT Moscow, including VAT, for the resin with K=70.

As MRC informed previously, BSC produced 126,700 tonnes of PVC in the first half of 2016, up by 1% year on year. In 2015, the plant with the output of 242,200 tonnes of SPVC became the leader in SPVC production in Russia.

Bashkir Soda Company produces caustic soda and soda ash, plastics and synthetic resins. The main shareholders are Bashkiria (with 38.27% of the registered capital), Cyprus Modisanna Limited (31,16%), Bashhim (29.02%). In April 2013, the reorganization of JSC "Kaustik" (Sterlitamak) was been completed through a merger of OAO "Soda" (Sterlitamak). In May 2013, JSC "Kaustik" was renamed LLC "Bashkir Soda Company".
MRC

Canadian oil refinery to re-use 100% of water with GE’s wastewater treatment technology

MOSCOW (MRC) -- Federated Co-Operatives Ltd.’s refinery complex in Regina, Saskatchewan, Canada, is installing General Electric’s advanced water recycling technology for a wastewater improvement project that will enable the refinery to clean 100% of its wastewater on-site, said Hydrocarbonprocessing.

Once fully operationally, the Co-op Refinery Complex will be the only refinery in North America to recycle all of its wastewater for steam production, which is used for heating, hydrogen production, to power equipment and for cooling towers.

Several years ago, the refinery expanded its operations to produce 30 Mbpd more, taking it from 100 Mbpd to a 130 Mbpd facility, which increased its water usage. The refinery’s current water source is a blend of well water and city water, and restrictions on water use mandated that the Co-op Refinery Complex had to find a new source of water. GE offered a solution combining membrane bioreactor technology and a high-efficiency reverse osmosis system to recycle and reuse 2 M gallons of wastewater a day. In addition to the water reuse solution, GE provides the refinery with wastewater specialty chemicals and monitoring solutions to provide system optimization.

After commissioning, the refinery will reduce its use of freshwater by 28%, which is the equivalent of approximately 3,100 households in Regina, on an annual basis. By recycling 100% of its wastewater on-site, the Co-op Refinery Complex will significantly decrease volatile organic compound emissions from its wastewater ponds and reduce the associated nuisance odors. The wastewater improvement project is expected to be fully operational by the fall of 2016.
MRC