Kuwait Petroleum Corp signs deal for long-term LNG supplies

MOSCOW (MRC) - Kuwait's oil minister said on Thursday that Kuwait Petroleum Corporation (KPC) had signed an agreement with an international firm for long-term supply of natural gas'>liquefied natural gas (LNG), state news agency KUNA reported, as per Reuters.

Bakheet al-Rashidi did not mention the name of the company, describing it as a leading player in the LNG sector. KUNA quoted him as saying the agreement would help KPC meet rising demand for power generation in the Gulf Arab state.

EPA review confirms safety and progress in refinery sector emissions

MOSCOW (MRC) -- API issued the following statement regarding the release of EPA’s proposed amendments to its refinery emissions regulations based on analyses that, after significant effort and years in review, show that refineries are operating at safe air emissions levels to protect public health, as per Hydrocarbonprocessing.

“EPA’s practical clarification to the language of the refinery rule’s regulatory requirements is a positive step that can help reduce uncertainty while meeting our shared goal to protect public health,” Senior Director of Regulatory and Scientific Affairs Howard Feldman. “Balanced, effective refinery regulations allow our industry to invest in the production of cleaner fuels and in our facilities in order to improve environmental performance.

“The safe operation of our refineries and the protection of the health and safety of our workers, the communities where we operate, and the environment are core values for our industry. Through the development of cleaner transportation fuels and lower emissions at our facilities, our industry is contributing to a cleaner environment – including helping the U.S. reduce ozone concentrations by 17 percent since 2000.

“The natural gas and oil industry is committed to safety and environmental stewardship to help continue these trends as communities across the country benefit from the responsible development and use of America’s oil and natural gas.”

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 10.3 million U.S. jobs and nearly 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 40 million Americans.

USD21.1B in M&A deals were announced in the downstream sector in 2017

MOSCOW (MRC) -- A combined value of USD21.1bn in mergers and acquisitions (M&A) were announced in the downstream sector in H2 2017, according to GlobalData, a leading data and analytics company, as per Hydrocarbonprocessing.

The company’s report: ‘Bi-annual Downstream Deals Review – H2 2017’ states that this was a decrease of 19 percent from the USD26.2bn in M&A deals announced in H1 2017. A year-on-year comparison shows a substantial decline of 75 percent in deal value in H2 2017, when compared to H2 2016’s value of USD84.9bn. There were 11 M&A deals with values greater than USD100m, together accounting for USD20.5bn in H2 2017.

Glencore’s agreement to acquire a 75 percent stake in Chevron South Africa and a 100 percent stake in Chevron Botswana, for a cash consideration of USD973m, was one of the top deals registered in H2 2017.

The assets of Chevron South Africa and Chevron Botswana include Cape Town refinery, which has a refining capacity of 110 Mbpd; a lubricants manufacturing plant in Durban; a network of more than 820 Caltex branded service stations (with 220 convenience stores) across South Africa and Botswana; and storage tanks and oil depot distribution facilities.

Financing through equity offerings, debt offerings, private equity, and venture financing in the downstream oil and gas industry totaled USD73.9bn from 87 deals in H2 2017. The majority of the investment came from the debt offerings market, which accounted for 90 percent of the total, at USD66.5bn, in H2 2017. On a year-on-year basis, the total value of announced capital raising deals increased significantly by 42% in H2 2017, compared with USD52bn in H2 2016.

Shell gives profitable growth outlook as Downstream business transforms

MOSCOW (MRC) -- Royal Dutch Shell plc (Shell) today updated investors on its Downstream growth ambitions, underlining the important role they will play in delivering Shell’s world-class investment case, said Hydrocarbonprocessing.

“Our unique Downstream business is fundamental to delivering a world-class investment case,” said Chief Executive Officer Ben van Beurden. “Its unparalleled breadth, depth and the strength of our brand make our Downstream business highly competitive, helping to generate strong free cash flows and returns while making Shell more resilient over the coming decades.”

John Abbott, Downstream Director, explained how the business will help Shell thrive through the energy transition. “We have a customer-centric mindset and the most integrated Downstream business in the world. We have a strong track record of delivery, a diversified portfolio and ambitious growth plans – underpinned by operational excellence – that all ensure our business remains resilient today and for the future,” he said.

“This business will continue to create value for shareholders and customers. We believe our Marketing business is the most profitable in the industry, and Chemicals had a record year in 2017. Meanwhile, our refining and trading teams make the most of our scale, global presence and customer reach. We have a unique strength in our brand and a fully integrated business model that our competitors find difficult to match,” Abbott said.

“Downstream is helping Shell to thrive during the global shift to a lower-carbon energy system. As the energy system evolves, our marketing businesses will provide agile platforms for meeting the changing needs of our customers. We are making products from today’s technologies as good as they can be, with better fuels and lubricants. We are also helping to deliver tomorrow’s products, services and technologies. From battery-electric vehicle charging to next-generation biofuels; LNG for transport to hydrogen; and smartphone apps that enable more efficient driving. We are also working to reduce emissions from our own operations.”

Shell reiterated its expectation of USD6-7 billion annual organic free cash flow from Downstream by 2020, at $60 per barrel (real terms 2016) and mid-cycle Downstream conditions, with USD9-12 billion expected by 2025. The company plans to invest USD7-9 billion a year across Downstream, and to deliver a return on average capital employed (ROACE) above 15%.

RES Polyflow announces renewable fuel agreement with BP

MOSCOW (MRC) -- RES Polyflow, an Ohio based manufacturer of Plastics-To-Fuel energy recovery systems has announced that it has entered into an offtake agreement with BP for the fuels produced by its first commercial production facility, as per Hydrocarbonprocessing.

Located in Ashley, Indiana., the RES Polyflow plant will convert 100,000 tons of plastic waste into 16 million gallons of ultra-low sulfur diesel fuel and naphtha blend stocks per year. The project is expected to begin processing in 2019. The facility will also produce commercial grade waxes for sale to the industrial wax market.

Under the terms of the agreement, BP will purchase all of the diesel fuel and naphtha blend stocks produced by the RES Polyflow facility for distribution in the regional petroleum market.

"As a global energy business, BP is focused on the dual challenge of meeting society’s needs for more energy, while at the same time working to reduce carbon emissions," said Carey Mendes, head of BP’s Global Oil Americas marketing and trading business in Chicago. "Agreements like this one highlight our commitment to helping drive the transition to a low-carbon future, which is embedded in the core of our business strategy."

RES Polyflow CEO Jay Schabel commented that the offtake relationship with BP demonstrates that the company’s proprietary Plastics-To-Fuel process delivers a viable business model for energy recovery in North America. "We provide communities with an alternative to traditional methods of plastic disposal that complement current recycling practices. In addition to creating permanent manufacturing jobs, a reduced carbon footprint associated with the production of high demand petroleum products can be realized for the first time at commercial scale."

The RES Polyflow process converts a wide mix of co-mingled plastic waste into a consistent hydrocarbon liquid on a continuous and highly efficient basis. Once online, the Ashley, Ind. facility is expected to create a new market for the growing stream of complex plastic film, flexible packaging and other low value, non-recycled plastic waste that typically ends up going to landfills or fouling local waterways.

The company plans additional Plastics-To-Fuel facilities for surrounding Midwestern states. The new locations will be anchored by the Indiana facility as the primary post-processing site for the BP offtake agreement. A total of 136 full time manufacturing jobs will be created in NE Indiana when all phases of the project are implemented.