ADNOC and Cepsa sign project development agreement for new LAB facility in Ruwais

MOSCOW (MRC) – The Abu Dhabi National Oil Company (ADNOC) announced it has signed a project development agreement with Cepsa of Spain for a new, world-scale Linear Alkylbenzene (LAB) facility in ADNOC’s refining and petrochemicals complex in Ruwais, UAE, as per Hydrocarbonprocessing.

The LAB project is one among a number of initiatives to be executed as ADNOC looks to significantly enhance and expand its refining operations and capabilities to support its downstream plans.

The agreement follows the signing last November of a Memorandum of Understanding (MoU) between ADNOC and Cepsa to evaluate the setting up of a LAB facility in Ruwais. After the successful completion of a feasibility study, the project is now ready to move to the Front End Engineering Design (FEED) stage. The LAB manufacturing facility will be fully integrated within the ADNOC Refining complex, taking feedstocks of kerosene and benzene and benefitting from the suite of utilities and services of the Ruwais complex. The facility is expected to have a production capacity of 150,000 tons per year of LAB upon completion.

Cepsa is a Spanish integrated oil company, wholly owned by Abu Dhabi’s Mubadala Investment Company. Cepsa has over five decades of experience in LAB and brings market experience and market leading technology that provides the best raw material consumption ratios and excellent health and safety performance. LAB is the most common raw material in the manufacture of biodegradable household and industrial detergents, and is also used in house cleaners and soap bars.

Abdulaziz Al Hajri, Downstream Director at ADNOC, said: "We are pleased to be moving forward with our partnership with Cepsa, through its chemical business to develop a new LAB facility in Ruwais. As we expand downstream and grow our refining capacity and capabilities, we will be able to expand the number of new products and value chains we can create. The development of a new LAB facility will enable the emergence of a surfactants cluster in our new Ruwais Derivatives and Conversion Parks, diversifying the number and type of industries being developed there, leading to the creation of an expanded and advanced petrochemicals ecosystem in the UAE."

Echoing this commitment towards the development of the downstream cluster, Pedro Miro, CEO of Cepsa, said: "The start-up of this complex underscores our commitment to continue developing our international operations as part of our integrated business model. We are delighted with our collaboration with ADNOC across several of our businesses (Chemicals, E&P, Trading), and we are convinced that the future will bring us further opportunities to grow together. The Ruwais petrochemicals cluster strengthens our position as leaders in LAB and DETALTM technology, developed jointly with UOP, and adds to our plants in Spain, Canada, and Brazil, as well as giving us access to high growth markets to the east of the Suez Canal".

The signing of the project development agreement comes as ADNOC outlined its new downstream strategy at its Downstream Investment Forum in Abu Dhabi on May 13, 2018. At the heart of this strategy, is a AED 165 billion (US USD45 billion) investment program that will see the Ruwais Industrial Complex upgraded to significantly increase its flexibility and integrated capabilities to produce greater volumes of higher-value refined and petrochemical products.

MRC

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia were 9,100 tonnes in January-April 2018, down by 23% year on year. At the same time, Russian producers were forced to increase their exports by 23%, according to MRC's DataScope report.
April SPVC imports rose to 3,400 tonnes from 1,900 tonnes a month earlier, March lower export prices led to higher purchasing of resin in China. Thus, overall imports of resin into Russia totalled 9,100 tonnes in the first four months of 2018, compared to 11,800 tonnes a year earlier. At the same time, Russian producers were forced to ship resin for export more actively this year because of weak demand from the domestic market, export sales grew almost by a quarter.

Chinese producers have been traditionally the key foreign PVC suppliers for the past several years. April imports of Chinese acetylene resin increased to 3,200 tonnes from 1,900 tonnes a month earlier. Overall imports of resin from China were 8,300 tonnes in the first four months of 2018, compared to 10,700 tonnes a year earlier.

Imports of acetylene PVC are expected to decrease significantly in May-June. Chinese producers raised their export prices in April-May, the rouble exchange rate also weakened against the dollar.

At the same time, Russian producers had to increase their exports this year, although export sales have decreased since March. 40,500 tonnes of SPVC were shipped for export in January-April 2018, compared to 32,800 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has announced that it was awarded a contract by Jinneng Science & Technology Company, to design the world’s largest singletrain propane dehydrogenation unit in collaboration with CB&I, as per Hydrocarbonprocessing.

The plant will be located in Qingdao, Shandong Province, China and have the capacity to produce 900,000 metric tons per annum (MTA) of propylene when completed.

The project is based on CB&I’s advanced CATOFIN propane dehydrogenation technology combined with Clariant’s custom-made CATOFIN catalyst and Heat Generating Material. The partners have previously collaborated on numerous projects to design specialized propane dehydrogenation units both in China and around the world.

The CATOFIN process is a proven and highly reliable technology of producing olefins, such as propylene or isobutylene, from light paraffin feedstocks with high operational reliability and efficiency. Based on Clariant’s state-of-the-art catalysts, the technology allows maximum conversion of raw materials at optimum reactor pressure and temperature, resulting in high yields at lower operating costs.

Incorporated into the process, Clariant’s patented metal-oxide Heat Generating Material further increases the catalyst’s selectivity and yield, while conserving energy and reducing emissions. Jinneng Science & Technology Company, is a major industrial producer of fine chemical products and coal chemical products. As sustainability is a core component of their business strategy, the company integrates energy efficiency, environmental protection and innovative recycling practices into all production processes.

Mr. Qingping Qin, Founder and CEO of Jinneng Science & Technology Company commented, "We are proud to be building the world’s largest propane dehydrogenation unit using the proven and advanced CATOFIN technology. It will enable us to generate tremendous economic benefit and to realize our ambitious development strategy in the years to come." Stefan Heuser, Senior Vice President & General Manager Business Unit Catalysts at Clariant, also welcomed the news, stating, "Clariant is honored to be part of this historic project for Jinneng Science & Technology Company. We share their passion for sustainability, which is an integral part of our innovation chain. Our CATOFIN catalysts and Heat Generating Material are perfect examples of how we are constantly developing new and improved products and services to help our customer meet their needs."

As MRC informed before, in June 2016, Clariant inaugurated its new production plant for water-based pigment preparations in Mexico. The new plant located in Santa Clara doubles Clariant’s Mexico annual production capacity for water-based pigment preparations and enhances its ability to serve customers across North and Latin America.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

MOSCOW (MRC) -- Renewable Energy Group, Inc. celebrated with local, state and industry leaders the completion of upgrades at its Ralston, Iowa biorefinery increasing the production capacity from 12 to 30 million gallons per yearas, per Hydrocarbonprocessing.

REG invested USD32 million dollars to expand the production capacity as well as significant upgrades to logistics and storage capabilities.

“REG is positioned for long-term growth along with the entire biodiesel industry. We are proud of the project’s completion as it shows our ability to deliver more high quality products to meet market demand.” said Randy Howard, CEO. “The investment to further expand production was an easy decision for our company with the growth of our feedstock provider (Landus Cooperative) and the state of Iowa’s support of incentivizing higher biodiesel blends."

REG broke ground on this expansion in November of 2016 with an initial USD24 million commitment. As the project developed, REG invested USD8 million for additional improvements. First Midwest Bank provided USD20 million to partially finance the expansion.

In total, the project included 150,000 man hours and onsite peak manpower was up to 160 workers. The project was completed with zero recordable injuries.

"The Ralston plant was first built in 2002, as we moved forward with the expansion, we also took the time to improve key safety items including a fire protection system and a storm shelter,” said Derek Winkel, Executive Director, Manufacturing Operations. “Our new load out system enhances our ability to efficiently load and unload products for our transportation suppliers and customers."

REG Ralston is one of the company’s 13 biomass-based diesel refineries. REG has a combined effective production capacity of 565 million gallons per year.
MRC

MOSCOW (MRC) -- Total has signed a Memorandum of Understanding (MoU) with the Government of Oman to develop natural gas resources in Oman. This MoU covers both upstream and downstream businesses, as per the company's press-release.

Total and Shell as operator will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25% and 75%, as per the agreement between both companies and before possible State back-in, with the objective of an initial gas production of around 500 MMcfd and a potential to reach 1 bcf/d at a later stage.

Total will use its equity gas entitlement as feedstock to develop in Oman a regional hub for Liquefied Natural Gas (LNG) bunkering service to supply LNG as a fuel to marine vessels. This will be achieved thanks to a new small-scale modular liquefaction plant to be built in Sohar port. The plant will comprise a train of around 1 Mt per year and will offer the flexibility for expansion as required by the development of the LNG bunkering market.

"We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project,” stated Arnaud Breuillac, President Exploration & Production at Total. "We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman."
MRC