WorleyParsons awarded Chevron EPCM and fabrication contract

MOSCOW (MRC) -- WorleyParsons has been selected to provide engineering, procurement, construction management and fabrication services for Chevron’s Salt Lake Refinery Retrofit Project in Salt Lake City, Utah, said Hydrocarbonprocessing.

The EPCM contract -- valued at approximately USD67 MM -- is for the retrofit of an existing Hydrofluoric Acid alkylation process unit at Chevron’s refinery in Salt Lake City, Utah and the replacement of HF in the plant with ISOALKY, a proprietary alkylation technology developed by Chevron USA Inc., which uses ionic liquids catalyst technology.

Under the agreement, WorleyParsons will modularize the new facilities to minimize construction in the vicinity of the operating refinery units and provide significant overall cost savings. WorleyParsonsCord will also play a role in the project by fabricating the modules in Edmonton, Canada. The WorleyParsonsCord contract value is projected at approximately USD20 MM.

This new plant will be the first of its kind using the new liquid catalyst technology on a commercial scale which is expected to lower risks and environmental impact.

“Chevron’s selection of WorleyParsons and WorleyParsonsCord for the implementation of new refining technology is an example of our company’s diverse capabilities and support of our long standing relationship with Chevron,” said Andrew Wood, Chief Executive Officer of WorleyParsons.
MRC

MOSCOW (MRC) -- State-owned refiner Hindustan Petroleum Corporation Ltd (HPCL) has received environment clearance for expansion of its Mumbai refinery in Maharashtra, entailing an investment of Rs 3,846 crore, according to Plastemart.

With the proposed expansion, HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV quality specifications, besides other petroleum products like LPG, naphtha, kerosene, ATF, fuel oil and sulphur and can meet the current market demands. The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 7.5 mln tpa (MTPA) up to 9.5 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP).

"The Environment Ministry has given environment clearance to HPCL's expansion project subject to compliance of some conditions," a senior government official said.

The total cost of the project is estimated to be Rs 3,223.43 crore for refinery expansion and PRU and revamping of CPP with a capital investment of Rs 622.45 crore.

All new facilities will be set up within refinery premises of 2.1 acres and the project will be completed within 36 months.

Among conditions specified, HPCL has been asked to impart training to all employees on safety and health aspects of chemicals handling. It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying out environmental management and monitoring. As per the proposal, HPCL's expansion project will involve integration of facilities for optimisation of energy and resource conservation.

Through Mumbai Refinery Expansion Project, production of MS meeting Euro V/VI norms will be made possible. The proposed project will improve refinery margin and contribute overall development of the region. The proposed PRU project will facilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in power.

As MRC wrote before, HPCL and Gas Authority of India Limited (GAIL) has recently signed a pact with the Government of Andhra Pradesh (GoAP) for setting up Rs 40,000 crore petrochemical plant in the state. The 50:50 joint venture will set up a 1.5 mln ton ethylene derivative plant. The newly established plant will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints, coatings, cosmetics, textiles and adhesives. The plant is likely to be set up at the petroleum, chemical and petrochemicals investment region (PCPIR) sites identified by the state government at Kakinada.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC

MOSCOW (MRC) -- Saudi Aramco will supply full contract volumes of crude oil to two Asian buyers in March, two industry sources with knowledge of the matter said on Wednesday, reported Reuters.

"We are unaffected" by the OPEC cut, one of the sources said.

Saudi Aramco could not be immediately reached for comment.

The Organization of the Petroleum Exporting Countries (OPEC) agreed in November to reduce production for six months from January to cut oversupply and support prices.

By keeping exports to most Asian buyers little changed, Saudi Arabia is protecting its market share in the region where demand for oil is growing fastest.

"Overall, there is only a slight erosion as scheduled export levels do not appear to be falling more than the cuts in production made to date," Harry Tchilinguirian, global head of commodity strategy at BNP Paribas, said about the impact of OPEC cuts on Saudi's market share in Asia.

As MRC informed before, in June 2016, Sabic and Saudi Aramco became one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods. The state-owned companies signed an agreement to study such a project to be located in Saudi Arabia, they said in a statement. A joint venture is possible if the companies decide to move ahead after the study is completed by early 2017, they said. Oil companies normally refine crude into transportation fuels including gasoline and diesel and leave byproducts such as naphtha to be processed separately into chemicals.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

MOSCOW (MRC) -- Synthomer, one of the world’s major suppliers of latices and speciality emulsion polymers, has announced a price increase on its dispersions and latex product portfolio in Europe, said the producer in its press release.

Synthomer raised prices of acrylic, styrene and butadiene based dispersion and latex products due to continued increases in raw material costs, as follows:

- styrene-acrylics - by up to EUR100 per tonne;
- pure acrylics - by up to EUR70 per tonne;
- carboxylated styrene-butadiene - by up to EUR200 per tonne;
- acrylonitrile-butadiene - by up to EUR150 per tonne;
- high solids styrene-butadiene - by up to EUR300 per tonne;
- any other butadiene containing - by up to EUR300 per tonne.

The adjustment will be effective for all shipments on or after Feb 20th 2017, or as contracts allow and is in addition to all previously announced price increases.

"We are faced with unprecedented cost increases of butadiene. The European contract price of this key feedstock has risen almost 50% in a month. The rapid escalation in cost of styrene has further increased the cost pressures. The supply chains are extremely tight on multiple planned and unplanned supplier outages. Hence we cannot rule out further price increases", says Dr. Christoph Breucker, VP Europe.

As MRC informed before, in March 2016, Synthomer acquired the Hexion Performance Adhesives & Coatings (Hexion PAC) business of US-based Hexion in a transaction valued at USD226m. Following the acquisition, Synthomer will get access to new product technologies and markets. Hexion PAC is complementary to the company's existing business, both geographically as well as in the markets in which it operates. The acquisition will enable Synthomer to venture into the speciality coatings market. Integration of the Hexion PAC business will offer around USD12m of annualised synergies to the company by the end of 2018.

Synthomer is one of the world’s major suppliers of latices and speciality emulsion polymers supporting leadership positions in many market segments including coatings, construction, textiles, paper and synthetic latex gloves. The company has its Head Office in London, UK and provides customer focused services from operational centres in Marl, Germany, Harlow, UK, and Kuala Lumpur, Malaysia.
MRC

MOSCOW (MRC) -- Net exports of ethanol from the United States set a new record of 1.01 billion gallons in 2016, according to a new eight-page summary of 2016 ethanol trade data published by the Renewable Fuels Association (RFA), said Hydrocarbonprocessing.

Gross US ethanol exports totaled 1.05 billion gallons in 2016, second only to 2011’s record of 1.19 billion gallons. Meanwhile, ethanol imports registered at just 34 million gallons, the lowest total since 2010. Brazil was the leading destination for US ethanol exports, followed by Canada and China. Together, the three countries accounted for 68% of total ethanol exports.

"US-produced ethanol continues to be the lowest-cost, cleanest octane source on the planet. Our industry produced 15.2 billion gallons of ethanol last year, and while we continue to meet our domestic needs, ethanol exports are essential for future growth," said RFA President and CEO Bob Dinneen. "Just a few years ago, the US was a net importer of Brazilian ethanol, but as US producers have become more efficient and world sugar prices have risen, Brazil is now the top recipient of our domestic product."
MRC