SOCAR, Tecnicas Reunidas ink deal for Baku refinery modernization

MOSCOW (MRC) -- Azerbaijan’s state oil company SOCAR has signed an EPC (Engineering, Procurement and Construction) contract with Spanish engineering company Tecnicas Reunidas for reconstruction of units at the Heydar Aliyev Baku Oil Refinery as part of its modernization, said a message posted on SOCAR website Dec. 19, as per Trend.

The refinery is being modernized in order to produce high-quality fuel. The modernization will continue until 2021. "SOCAR-KBR LLC, a contractor for management of the modernization project, has selected the Spanish company Tecnicas Reunidas as a winner of a tender on an EPC contract for reconstruction of units and general production facilities," the message said.

The signing ceremony was attended by SOCAR President Rovnag Abdullayev, Vice President for Strategic Development Tofig Gahramanov, Vice President for Refining David Mammadov, Vice President for Economic Issues Suleyman Gasimov, Director General of the Heydar Aliyev Baku Oil Refinery Elman Ismayilov, First Executive Vice Chairman of the Board and CEO at Tecnicas Reunidas Juan Llado Arburua, Tecnicas Reunidas Director General for Corporate Development Enrique Ruben Alsina Massana and others.

The contract was signed by Director General of the Heydar Aliyev Baku Oil Refinery Elman Ismayilov and Director General for Corporate Development at Tecnicas Reunidas Enrique Ruben Alsina Massana.

Ten international companies participated in the tender for selection of an EPC contractor for reconstruction of units at the refinery.

The cost of modernization of the refinery is estimated at about USD1.5-1.7 billion. The exact cost will be known once all EPC contracts are awarded.

After modernization, the production capacity of the refinery will increase from 6 million to 7.5 million tons per year, and its operational period will increase to 2040.

Index of chemical production in Russia grew by 4.9% in January - November 2017

MOSCOW (MRC) -- Overall output of chemicals grew in the first eleven months of 2017 by 4.9% year on year, with mineral fertilizers accounting for the greatest increase in production, according to Rosstat.

According to the Federal Service of State Statistics, last month's production of basic chemicals rose by 3% from October. Thus, output of basic chemicals went up by 4.9% year on year in January-November 2017, with chemical fertilizers accounting for the greatest increase in production and ethylene - for the least growth.

November output of ethylene was 250,000 tonnes, compared to 205,000 tonnes a month earlier, last month's low production was caused by a scheduled shutdown for maintenance at Stavrolen. Overall, over 2.6 mln tonnes of this olefin were produced in the first eleven months of 2017, up by 2.3% year on year.

Last month's production of benzene rose to 117,000 tonnes from 114,000 tonnes in October. Overall output of this product exceeded 1.24 mln tonnes over the stated period, up by 4.8%year on year.

November production of sodium hydroxide (caustic soda) were 106,000 tonnes (100% of the basic substance) versus 109,000 tonnes a month earlier. The decrease in the volume of output last month was seen at Kaustik (Volgograd). Overall output of caustic soda grew to 1.12 tonnes in the first eleven months of 2017, up by 6.9% year on year.

Last month's production of mineral fertilizers was 1.82 mln tonnes (in terms of 100% nutrients) versus 1.88 mln tonnes in October. However, Russian plants produced 20.06 mln tonnes of fertilizers in January-November 2017, up by 8.3% year on year.

Production of all types of fertilizers increased, with potash fertilizers, the output of which grew by 11.8%, accounted for the greatest increase.

PDVSA at risk of losing Bonaire terminal over maintenance delay

MOSCOW (MRC) -- Venezuela’s PDVSA could lose its license to operate an oil storage terminal it owns on the Dutch Caribbean island of Bonaire if it does not soon fulfill maintenance demands by regulators, a government spokeswoman said, as per Hydrocarbonprocessing.

"We’ve given them an ultimatum to come up with a solid plan to ensure ... more secure and safe" operations by January 5, Danielle Rebel, a spokeswoman for the Ministry of Infrastructure and the Environment in the Netherlands, said on Tuesday.

Ukrainian PP imports grew by 3% in eleven months

MOSCOW (MRC) -- Overall imports of polypropylene (PP) into the Ukrainian market increased in the first eleven months of 2017 by 3% year on year to 112,400 tonne, as per MRC's DataScope report.

November PP imports into Ukraine rose to 11,900 tonnes, compared with 11,100 tonnes in October; the main increase accounted for the supply of homopolymer PP. Overall imports of propylene polymers reached 112,400 tonnes in January-November 2017, compared to 108,600 tonnes a year earlier. Demand for all PP grades increased, but PP block copolymers accounted for the greatest growth.

The structure of PP imports by grades looked the following way over the stated period.

Last month's imports of homopolymer PP to the Ukrainian market grew to 9,200 tonnes from 8,600 tonnes in October. The main increase occurred for the supply of homopolymer PP raffia grade from Saudi Arabia. Imports of homopolymer PP into the country over the eleven months reached 85,800 tonnes, up 3% year on year.

November imports of PP block copolymers into the country were about 1,100 tonnes, which practically the same as in October. Local companies kept their demand for injection moulding and pipe propylene copolymers at high level.

Imports of PP block copolymers into the country were about 11,900 tonnes in January-November, compared with a little more than 11,200 tonnes. Local pipes producers accounted for the greatest increase in demand.

November imports of PP random copolymers into Ukraine grew to 1,500 tonnes against 1,100 tonnes in October, with increase in purchases provided by local producers of pipes and injection moulding products. Overall imports of PP random copolymers reached 12,800 tonnes in January-November 2017, whereas this figure was 11,900 tonnes a year earlier.

Total imports of other propylene copolymers over the reporting period were about 1,900 tonnes, compared with 2,200 tonnes in the same time a year earlier.


Transneft halts domestic oil product pipeline after spill

MOSCOW (MRC) — Russian pipeline monopoly Transneft on Monday said it had stopped pumping oil products such as diesel through one of its lines after discovering signs of an oil spill, as per Reuters.

The company said the spill had occurred due to "criminal tapping into a major oil product pipeline which pumps diesel fuel."

Signs of the spill were discovered on the Novki-Ryazan pipeline, some 200 km southeast of Moscow. The company did not say how large the spill was or when pumping would resume.

Transneft said it would fulfil its obligations to clients and ship diesel volumes in full.