Petronas produces 'first drop' of LNG from its first floating LNG facility

MOSCOW (MRC) -- Petronas has announced that its first floating liquefied natural gas (LNG) facility, PFLNG Satu, has successfully produced its first drop of LNG from the Kanowit gas field, offshore Sarawak, Malaysia, as per Apic-online.

The 1.2-million-t/y PFLNG Satu reached its final stages of commissioning and start-up with the introduction of gas from the KAKG-A central processing platform on 14 Nov. 2016. The gas was treated and liquefied via its nitrogen-based liquefaction unit and processed into LNG.

Petronas expects PFLNG Satu to lift its first cargo and achieve commercial operations in the first quarter of 2017.

"The operational milestone marks a decade long journey for Petronas since conceptualizing a floating LNG facility to maximize the potential of remote and stranded gas reserves to deliver a game changer in the global LNG business," the company noted.

Petronas is building a second floating LNG facility in Malaysia, based on Air Products' technology, with a capacity of 1.5-million t/y. Petronas earlier said that start-up was scheduled by early 2018.

PFLNG 2 will extract gas from the Rotan field in the South China Sea, offshore Sabah, Malaysia. Cost of the projects was not given.

As MRC informed previously, Petronas postponed the start-up of its USD16bn Refinery and Petrochemical Integrated Development (RAPID) project in Johor to mid-2019, citing a drop in oil prices over the past year.

Petronas plans to build a C6-based metallocene linear LDPE plant and a low density polyethylene (LDPE)/ethylene vinyl acetate (EVA) swing plant at its greenfield integrated refinery and petrochemical complex in southern Johor state by mid-2019. The proposed metallocene LLDPE will have a capacity of 350,000 tpa, while the LDPE/EVA will have a capacity of about 150,000 tpa. The two plants are part of Petronas' planned Refinery and Petrochemical Integrated Development project in Pengerang at Johor.

Besides, in November 2015, Petronas Chemicals Group Bhd awarded a USD482m contract to build a polypropylene (PP) plant at its new world-scale RAPID refining and petrochemicals site in Malaysia to Italy’s Technimont and China’s Huanqiu Contracting & Engineering. The firms will build two 450,000 t/y PP units at Petronas’ Refinery and Petrochemicals Integrated Development (RAPID) complex in Pengerang, Johor. The units will use Spheripol and Spherizone process technologies licensed from LyondelBasell. The work is set to be completed in April 2019.

Thus, RAPID includes a 300,000 bpd refinery and a petrochemical complex with a 3 million tpa steam cracker. The petrochemical complex will have the capacity to produce 7.7 million tpa of petrochemical products.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
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Linde starts up carbon dioxide plant in Texas

MOSCOW (MRC) -- Linde North America announced the start-up of its new carbon dioxide (CO2) plant in Fort Worth, Texas, said Hydrocarbonprocessing.

The 250 tpd plant is supplying CO2 for food and beverage producers, chemical manufactures as well as a variety of industrial companies in Texas.

This project represents yet another Linde investment in Texas, where the company recently started up a large air separation unit (ASU) and is adding new neon production capacity to meet growing customer demand.

"We are proud to bring this new plant online as part of Linde's continued commitment to meet customer needs in the Americas," said Pat Murphy, President, Linde Americas. "This new plant enhances our ability to provide a reliable supply of CO2 to a variety of expanding markets in Texas, including food, beverage and chemicals. The plant has the capacity to satisfy our customers' short- and long-term requirements."

The plant design includes the most sophisticated technology for both quality and energy efficiency. It is designed to capture CO2 emissions from a by-product source that would otherwise be vented into the atmosphere. Linde purifies and liquefies the CO2 for delivery to customers.

Linde recently announced plans for a new neon recovery unit in La Porte that will add 40 million liters annually to Linde's neon supply, primarily to support customers in the semiconductor lithography and laser vision correction markets. This plant is part of a USD250 million investment in La Porte for a state-of-the-art air separation unit (ASU) that also includes a gasification train and supporting equipment and facilities.

As MRC informed earlier, Linde agreed to revive talks with U.S. rival Praxair to create a USD65 billion industrial gases giant which will have its main operations run from Connecticut.
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RINA services awarded Chevron, ExxonMobil Indonesian gas contracts

MOSCOW (MRC) -- PT RINA Indonesia, in consortium with PT Depriwangga, has been awarded two contracts to provide quality assurance services for offshore and onshore projects in Indonesia, said Hydrocarbonprocessing.

The first, awarded by Chevron Indonesia, is to provide inspection services as part of the offshore Bangka Field development project. The second is to provide quality assurance and engineering services for ExxonMobil Cepu Limited (EMCL), a subsidiary of ExxonMobil, for the development of its onshore Cepu Block.

The Bangka Field is located approximately 70 km offshore at East Kalimantan in water depths of 3,200 ft. The field comprises two stacked upper slope channel complexes, known as the Upper Channel and Lower Channel reservoirs both containing gas-condensate. Chevron Indonesia is creating "Bangka hubs" which are located in the Makassar Strait, Indonesia.

Chevron is developing the field as two subsea wells connected via a single flexible flowline to the existing West Seno Floating Production Unit (FPU), which is located approximately 20 km south of the field. RINA Indonesia will provide QA/QC inspection services for material and component fabrication, installation, testing, pre-commissioning and commissioning activities.

In addition, the company will perform third party expediting services for various materials and equipment purchased domestically and globally for the project. The 12-month contract has an estimated value of USD1.3 million.

The contract awarded by ExxonMobil Cepu Ltd. (EMCL) for the Cepu Gas Drilling Program comprises services for land drilling and completion program for six wells in the Jambaran Tiung Biru field with four new and two re-entry wells and a further optional two new and one re-entry wells in the Kedung Keris field. The contract, which was awarded to PT RINA Indonesia and PT Depriwangga, is valued at USD3 million and covers QA and QE for drilling equipment and tools, OCTG, drilling tubulars supporting equipment and materials. The contract is expected to run for three years with work carried out at various facilities and bases located throughout Indonesia and worldwide.

"RINA Services is a strong company that can support major oil companies throughout the world," said Andrea Bombardi, Chief Commercial Officer Energy & Infrastructure, RINA Services. "We are delighted to be providing services to our US key clients, Chevron and ExxonMobil on these two prestigious projects. The Bangka Field development is the company’s second deep water project in Indonesia, the first being the Jangkrik Complex Project, and builds on the success of RINA with US oil majors and in this region."
MRC

Sadara Chemical inks 20 year agreement with Saudi Rufayah Chemicals Co

MOSCOW (MRC) -- Sadara Chemical, a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical, has signed a 20-year agreement with Saudi Rufayah Chemicals Co (RCC), said Reuters.

Under the deal, RCC, a Saudi downstream firm will use the aromatics concentrate (Pygas) and Pyoil supplied by Sadara for its new chemical complex planned for the PlasChem Park in Jubail.

Saudi Arabia is trying to develop its downstream industry to produce diversified products near its petrochemical facilities.

Aramco is building its Rabigh PlusTech Park at PetroRabigh, a joint venture with Japan's Sumitomo Chemical on the Red Sea coast.

Sadara did not give a value for the supply agreement in a statement. The complex, due to be on stream in December 2020 and developed by RCC, is expected to have a total investment of about USD500 million.

RCC plans to produce 12 downstream products with production capacity exceeding 350,000 tonnes per year of products including hydrocarbon resin, isoprene, pure DCPD, aromatic solvents, premium wash oils and other products.

Sadara said in August it started its facility on the Gulf coast of Saudi Arabia, the first mixed-feed cracker in the six-nation Gulf Cooperation Council, which can process both ethane and naphtha.

The Sadara complex, comprising 26 integrated facilities, is the largest petrochemical facility to be built in a single phase. All facilities are scheduled to be commissioned by the end of 2017.

As MRC wrote earlier, in June 2015, Sadara Chemical Co. signed a 20-year supply agreement with Energy Chemicals Sources Co. (ECSC), a new joint venture of Halliburton and The Industrialization & Energy Services Co. (TAQA), to supply feedstock to ECSC's planned chemical production facility to be built in Jubail.

Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City 2, Kingdom of Saudi Arabia. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.
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Lotte Chemical to expand ethylene output capacity

MOSCOW (MRC) -- Lotte Chemical Co., a major chemicals firm here, said Monday that it plans to increase ethylene output capacity in South Korea to meet growing demand, reported KoreaTimes.

Lotte Chemical plans to jack up the annual output capacity of its plant in Yeosu by 200,000 tons to 1.2 million tons by the end of 2018.

The company said it would spend a total of 300 billion won (USD257 million) on the facility expansion.

When the output expansion is completed, Lotte Chemical’s annual ethylene output in South Korea will rise to 2.3 million tons.

Lotte Chemical also operates plants in Malaysia, the U.S. and other countries.

When its overseas output of ethylene is counted, the company will have an annual production capacity of 4.5 million tons by 2018, becoming the No. 1 ethylene producer in the country, it said.

As MRC informed before, in 2015, Lotte Chemical Corp announced that the petrochemical firm would expand its naphtha cracking centre in Malaysia at a cost of 300 billion Korean won (USD257 million). With the mechanical completion of the expansion scheduled in the second-half of 2017, Lotte Chemical Titan (M) Sdn. Bhd. will have ethylene production capacity of 812,000 tonnes per year (tpy), up 92,000 tpy from the current size, the company said in a quarterly earnings statement.

South Korean Lotte Chemical is a global petrochemical company, established in 1976. It produces low density polyethylene (LDPE), high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), functional resins, styrene monomer (SM), polyethylene terephthalate (PET), etc.
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