CB&I awarded multiple petchem technology contracts in China

MOSCOW (MRC) -- CB&I has announced it has been awarded multiple technology contracts by Tianjin Bohua Chemical Development Co. Ltd. for a grassroots petrochemicals plant to be built in Tianjin, China, as per Hydrocarbonprocessing.

The scope of work includes the license and engineering design of an ethylbenzene unit, a methanol to olefins (MTO) light olefins recovery unit and a polypropylene unit. The 530 kta ethylbenzene unit and MTO light olefins unit will use CB&I's proprietary technologies, and the single-line 300 kta polypropylene unit will use CB&I's Novolen gas-phase polypropylene technology for the production of full range polypropylene products, with a focus on high-end impact copolymers.

"CB&I looks forward to strengthening our relationship with Tianjin Bohua by providing three petrochemical technologies from our portfolio to their complex," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "This multi-technology award is another example of how CB&I's technology solutions are best serving the demand in China."

As MRC informed before, in late March 2017, CB&I was awarded a contract valued at approximately USD1.3 billion by Total Petrochemicals & Refining USA, Inc. to provide engineering, procurement and construction for an ethane cracker project located in Port Arthur, Texas. The new cracker will have an ethylene capacity of one million metric tons per year. CB&I was previously awarded a contract for front-end engineering and design services and the ethylene technology license. The facility will utilize six SRT-III (Short Residence Time) pyrolysis heaters.
MRC

MOSCOW (MRC) -- Slovak oil refiner Slovnaft, part of the Hungarian oil and gas group MOL, will shut down some production starting over the Easter holiday in April for a general turnaround lasting until June, said Reuters.

The company will invest 57 million euros into the turnaround during which it will undertake inspections, maintenance and upgrades, it said in a statement on its website on Wednesday.

The shutdown will not impact its Bratislava refinery customers, Slovnaft said, adding stocks and production within the MOL group will cover needs.

A total of 16 productions will be gradually shut down and a restart of full production is expected in mid-June.
MRC

MOSCOW (MRC) -- Iran has sold all the oil it had stored for years at sea and Tehran is now struggling to keep exports growing as it grapples with production constraints, said Reuters.

Since the easing of international sanctions in January 2016, Iran tried to make up for lost sales by releasing millions of barrels parked on tankers offshore. Tanker tracking and oil sources said Iran had sold its last stocks from the floating storage in the past two weeks. Much of the oil stored was condensate, a very light grade of crude.

With no more stocks at sea, Iran has lost a vital resource that had propped up exports. "We do think that (floating storage) has been the primary cause of the boost in exports," Energy Aspects analyst Richard Mallinson said, adding that now floating storage had ended total exports of crude and condensate were likely to slip.

"We see a very difficult path for Iran to raise crude output until it can get the Western expertise and investment back into the upstream, which has been notably slow to materialize," he added. After Western sanctions were eased, Iran's output jumped from about 2.9 MMbpd to about 3.6 MMbpd in June.

But it has barely risen since—fluctuating between 3.6 MMbpd and 3.7 MMbpd— even though Iran fought hard with fellow OPEC members to be excluded from production cuts that came into effect on Jan. 1 and will last till June.

The Organization of the Petroleum Exporting Countries pledged to reduce output by about 1.2 MMbpd, but Iran was allowed a small increase to compensate for years of isolation. Yet it has produced less in the past three months than it was allowed.

Iranian Oil Minister Bijan Zanganeh said last month Tehran was prepared to produce 3.8 MMbpd if OPEC agreed to extend cuts to the second half of 2016, effectively signaling there was little hope of a steep rise in Iranian output.

Prior to the lifting of sanctions, Iran stored unsold oil on ships, which peaked in 2015 at 40 MMbbl on around 25 tankers. The country has up to 60 oil tankers in its fleet. Iran's drawdown of floating storage gathered pace in September. By the start of 2017, Iran still held an estimated 16 MMbbl of oil on ships. Since then, they have emptied.

While the EU and United Nations lifted sanctions on Iran over its nuclear program more than a year ago, the United States has held separate measures in place and President Donald Trump's administration has promised a tough line.

This has increased concerns among Western banks about offering finance to Iran, slowing energy investment decisions. French oil company Total said in February it planned a final investment decision on a USD2 B gas project in Iran by the summer, but said this hinged on a renewal of US sanctions waivers.

"The uncertainty over the US position on further sanctions is casting a huge shadow on the oil trade with Iran," said Paddy Rodgers, chief executive of tanker company Euronav.

In addition, the oil minister's efforts to secure deals with Western firms has run into internal opposition in Iran, which holds the world's fourth biggest oil reserves. The plans have now been postponed until after a May presidential election.

"Iran needs billions of dollars of investment to boost crude oil production and natural gas capacity," said Mehdi Varzi, a former official at state-run National Iranian Oil Company and now an independent consultant. "Most of the fields were discovered many decades ago and are way beyond their production capacity," he said.
MRC

MOSCOW (MRC) -- Air Liquide and Oman Oil Refineries and Petroleum Industries Company (Orpic), Oman’s national refining company, recently signed a long term agreement for the supply of nitrogen to the Liwa Plastics Industries Complex (LPIC), a new plastics production complex including the country’s first steam cracker Orpic is adding to its existing production facilities, in Sohar industrial port area in Oman, said the company on its website.

Investing around EUR20 million to build a state-of-the-art nitrogen production unit with a total capacity of 500 tonnes of nitrogen per day, Air Liquide will strengthen its leadership position in a key industrial area to support the growth of its customer Orpic.

Expected to start operations in the first quarter of 2019, the new nitrogen plant, along with the expansion of Air Liquide’s existing pipeline network, will supply nitrogen for the customer’s plastics production complex expanding to a capacity of polyethylene and polypropylene of 1.4 million tonnes per year. Those plastics components are needed for many applications in derived products from petroleums such as packaging industries as well as other industrial applications.

The nitrogen production unit will be designed and built by Air Liquide’s Engineering and Construction teams using cutting edge technologies and bringing its world class expertise. It will be owned and operated by Air Liquide Sohar Industrial Gases Company.

Francois Jackow, member of the Air Liquide Group’s Executive Committee, supervising Africa, Middle East and India, said: "We are pleased to strengthen our relationship with a strategic petrochemical player such as Orpic. Air Liquide demonstrates its ability to continue capitalizing on its existing assets, such as its pipeline network located in the most dynamic industrial basin of Sohar. With this new nitrogen supply contract, Air Liquide will support the development of the petrochemical industry in Oman."

Christiaan van der Wouden, Chief Operating Officer of Orpic, said: "Orpic is pleased to expand its collaboration with Air Liquide and to secure the highest competitive, reliable and safe supply of nitrogen to the Liwa plastics Industries Complex (LPIC) project, which is critical to the development of a downstream plastics industry in Oman."
MRC

MOSCOW (MRC) -- Shell Chemical Appalachia LLC has made progress on site preparations for its new major petrochemicals complex in Pennsylvania, USA, said Hydrocarbonprocessing.

The early works program is in preparation for the start of main site construction in late 2017, with commercial production beginning early next decade.

"This project is a great investment for a key part of the USA," said Graham van’t Hoff, Executive Vice President for Royal Dutch Shell plc’s global Chemicals business. "Our site preparation and detailed design and engineering work has been progressing safely, efficiently and to the highest standards of engineering."

The site preparation program includes the removal of pre-existing foundations and associated environmental remediation work. It also included the installation of steel pilings for the foundations of several permanent structures. The latest site work has been the laying of concrete to complete the foundations, which started in March.

Shell has finished the relocation of an existing state highway and made improvements to interchanges. The improvements will benefit motorists in the area and help accommodate trucks working on the main construction phase.

Shell has also completed two large river docks to receive equipment during construction. This will allow for large items of equipment to arrive by barge.

The petrochemicals complex will use ethane from shale-gas producers in the Marcellus and Utica basins to produce 1.6 MMt of polyethylene per year. Polyethylene is used in many products, from food packaging and sports equipment to garden furniture. The project will help bring economic growth and jobs to the region, with up to 6,000 construction workers involved in building the facility. We expect to create around 600 permanent employee positions when the complex is completed.
MRC