Norinco and Saudi Aramco form USD10-B refinery plan

MOSCOW (MRC) — Chinese defense conglomerate China North Industries Group Corp (Norinco) has signed a framework agreement with state-run oil company Saudi Aramco to build a refinery and chemicals complex in northeast China, said Reuters.

The planned projects—including a 300-Mbpd refinery and an ethylene complex with an annual capacity of 1 MMt—are to be built at an estimated cost of 69.5 B yuan (USD10.09 B).

The framework pact, which follows a memorandum of understanding (MoU) in March, marks one of the high-profile agreements signed during China's Belt and Road Forum, the first summit under President Xi Jinping's ambitious plan to promote global trade and investment.

The investment would boost Aramco's presence in China's massive refining industry, adding to its 25% stake in the Fujian refinery in southeast China operated by state refiner Sinopec Corp.

Norinco, the state defense giant that also runs oil and gas businesses, won regulatory approval in 2015 to build the refinery and petrochemicals complex in Panjin, Liaoning province.

Industry analysts have cast doubt over the feasibility of adding a large plant in the region, which traditionally has surplus refining capacity and is far from the main consuming regions.
MRC

CB&I awarded multiple technology licenses in Indonesia

MOSCOW (MRC) -- CB&I has been awarded a contract by PT Petrokimia Butadiene Indonesia (PBI), a Chandra Asri Petrochemical Group company, for the license and engineering design of three proprietary technologies in West Java, Indonesia, said the company on its website.

The scope of work includes the license and engineering design of a CDMtbe unit, a Butene-1 recovery unit and a BASF SELOP selective hydrogenation unit as part of an expansion of PBI's petrochemicals facilities.

"This multi-technology contract underlines the confidence PBI has in our technology portfolio and further establishes our presence and leadership in the region," said Philip K. Asherman, CB&I's President and CEO.

CB&I is a leading provider of technology and infrastructure for the energy industry. With over 125 years of experience and the expertise of more than 40,000 employees, CB&I provides reliable solutions to our customers around the world while maintaining a relentless focus on safety and an uncompromising standard of quality.
MRC

HPCL and Mittal to invest USD3 bln petrochemical unit in Bhatinda

MOSCOW (MRC) -- State-owned Hindustan Petroleum Corporation Ltd (HPCL) and its partner Lakshmi N Mittal will invest about USD3 bln in setting up a petrochemical complex at the Bhatinda refinery in Punjab, according to Plastemart.

HPCL-Mittal Energy Ltd (HMEL), a joint venture between HPCL and Mittal Energy Investments Pvt Ltd, Singapore, plans to set up an up to 1.2 mln ton naphtha cracker, expandable to 1.7 mt.

As MRC informed before, in August 2015, HPCL shelved a plan to build a refinery in Andhra Pradesh, although it went go ahead with a proposed petrochemical unit. The company’s oil refinery at Visakhapatnam is being expanded to almost double, obviating the need to add capacity in the state at present.

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

LyondellBasell begins construction of Hyperzone PE plant at La Porte complex

MOSCOW (MRC) -- LyondellBasell has broken ground on the first commercial Hyperzone polyethylene (PE) plant at its La Porte, Texas complex, said the company on its website.

The plant will be capable of producing 500 metric tpy of high-density polyethylene (HDPE) and will employ LyondellBasell's new proprietary Hyperzone PE technology that provides enhanced material performance. Startup of the plant is planned for 2019.

Hyperzone PE technology enables customers to produce cost-effective, light weight plastics that are strong, durable and widely recyclable. The new Hyperzone PE technology also enables the production of a broad spectrum of HDPE products in one single plant, whereas previous technologies require multiple plants.

The company plans to make the Hyperzone process technology available for licensing in the future. The technology took years to advance to commercialization and was a product of LyondellBasell's global research and development teams in Ferrara, Italy; Frankfurt, Germany; Cincinnati, Ohio; and Houston, Texas.

The company chose to build the new plant at its existing La Porte complex because of its proximity to price-advantaged US feedstocks and the transportation infrastructure needed to ship product to markets across the globe. The project will create up to 1,000 jobs at the peak of construction and 75 permanent positions.

The La Porte complex is one of LyondellBasell's largest manufacturing facilities, spanning approximately 550 acres. The complex has two docks on the Houston Ship Channel and truck and rail transportation capabilities. Once the Hyperzone PE plant is complete, the La Porte complex will more than double its annual PE capacity to 900 metric Mtpy. LyondellBasell produces a total of 3 metric MMtpy of HDPE, including its share of capacity through joint venture facilities. The company is a leading worldwide producer of all forms of PE with an annual capacity of 5 metric MMtpy.

The Hyperzone PE plant is part of LyondellBasell's plan for USD3 B–USD5 B of investments along the US Gulf Coast. The company recently completed work on ethylene expansion projects at its La Porte, Channelview and Corpus Christi sites in Texas. Additionally, development of a world-scale propylene oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is progressing, and a final PO/TBA investment decision is expected in the second half of 2017.
MRC

Pembina Pipeline, Petrochemical Industries sign JV for integrated polypropylene facility

MOSCOW (MRC) -- Pembina Pipeline Corporation announced that it, along with Petrochemical Industries Company K.S.C. of Kuwait, has reached key milestones for the previously announced proposed integrated propylene and polypropylene production facility in Sturgeon County, Alberta, said Refiningandpetrochemicals.

Pembina and PIC have executed 50/50 JV agreements that includes binding commercial terms in support of the Project and have formed a new entity, Canada Kuwait Petrochemical Corporation. Additionally, Pembina is pleased to announce that CKPC will proceed with activities for front end engineering design for the Project.

"The encouraging results of the recently completed feasibility study, the previously announced award of $300 million in royalty credits from the Alberta Government's Petrochemicals Diversification Program, and a Joint Venture with our world class partner, PIC, gives Pembina the confidence to further advance the Project," said Stuart Taylor, Pembina's Senior Vice President, NGL & Natural Gas Facilities. "This Project represents a material extension of our natural gas liquids value chain strategy and creates a significant incremental local market for western Canadian hydrocarbons."

The anticipated cost of FEED is expected to represent approximately 2.0% to 2.5% of the Project's current cost estimate. FEED activities are expected to be completed by late 2018, followed by a final investment decision from each partner.

The proposed PDH/PP Facility is expected to consume 22,000 bpd of Alberta-produced propane, which is expected to be sourced from Pembina's Redwater Fractionation Complex, as well as other regional facilities. The Project is anticipated to produce in excess of 1.2 B pounds per year of polypropylene which would be transported to North American and global markets. Subject to required approvals and a positive FID, the JV expects to construct the PDH/PP Facility in close proximity to RFS in Sturgeon County, part of Alberta's Industrial Heartland.
MRC