Fluor achieves substantial engineering completion on Marathon Petroleum project in Texas

MOSCOW (MRC) -- Fluor Corporation announced that it has achieved substantial engineering completion for Marathon Petroleum Corporation’s Tier 3 gasoline sulfur standard reconfiguration project at the Galveston Bay refinery in Texas City, Texas, according to Hydrocarbonprocessing.

"This accomplishment represents the successful completion of thousands of deliverables from the joint Marathon Petroleum and Fluor project team," said Mark Fields, president of Fluor’s Energy & Chemicals business in the Americas. "This milestone was achieved on schedule and under budget because of the strong relationship between the Marathon Petroleum and Fluor project teams, and it has enabled work to transition seamlessly to the construction site."

Fluor and Marathon Petroleum have worked together on this project since the feasibility stage in 2014. Fluor is providing engineering, procurement and construction management services, which will enable the refinery to achieve updated U.S. Environmental Protection Agency Tier 3 gasoline sulfur standards by 2020 and provide cleaner fuel to U.S. markets.

The scope of work includes a new selective hydrogenation unit, a new naphtha desulfurization unit and upgrades to the existing naphtha desulfurization unit and the fluid catalytic cracker. The project also includes the modernization of the utilities and offsites to continue the integration of the former Texas City refinery into the adjacent Galveston Bay refinery.

Engineering was performed out of Fluor’s offices in Houston, and Manila and Cebu, Philippines. Construction activity is underway at the project site, with aboveground piping and structural steel currently being installed. Construction is scheduled to be completed in 2019.

Fluor is also currently providing engineering and procurement services for Marathon Petroleum’s South Texas Asset Repositioning (STAR) program at the Galveston Bay refinery.

As MRC reported earlier, in December 2017, Fluor Corporation announced that BASF’s Coatings division had opened a new automotive coatings plant at the Shanghai Chemical Industry Park in Caojing, Shanghai, China. After completing the front-end engineering and design, Fluor provided engineering, procurement and construction management services for the project. Fluor was responsible for building production lines, a solvent recovery unit, tank farms, utilities, warehouse, administration building and site infrastructure, with more than 1,200 craft workers onsite at peak.
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YASREF awards Jacobs general engineering services contract for Saudi Arabia refinery

MOSCOW (MRC) -- Jacobs Engineering Group Inc. through its local subsidiary in Saudi Arabia, Jacobs ZATE, has been awarded a three-year, general engineering services (GES) contract from Yanbu Aramco Sinopec Refining Company Ltd. (YASREF) to help optimize the production at Yasref's Yanbu Industrial City facilities in Saudi Arabia, as per Hydrocarbonprocessing.

Jacobs will provide a range of services, from basic engineering to Front End Engineering Design (FEED), detailed design, procurement through to construction management, commissioning support and handover for a portfolio of YASREF's capital expenditure projects for the Yanbu refinery.

"This new contract reaffirms our world-class engineering services that will be delivered through our local expert teams, with reach-back to our global subject matter expertise", said Jacobs Energy, Chemicals and Resources Vice President and General Manager EMEA David Zelinski. "We bring access to a full-spectrum technical professional services firm to the west coast of the Kingdom while growing our presence in the country."

The YASREF full conversion refinery is the key facility in Yanbu Industrial City, covering about 5.2 million square meters. YASREF uses 400,000 barrels per day (bpd) of Arabian heavy crude oil to produce premium transportation fuels, as well as high-value refined products. The facility became operational in 2014, contributing to the Kingdom's vision to reliably supply domestic and international markets with high quality, clean refined products and fuels.

Jacobs has been operating in Saudi Arabia for more than 40 years, developing strong partnerships with the Kingdom's industrial leaders including, Saudi Aramco, Saudi Basic Industries Corporation (SABIC) and Saudi Arabian Mining Company (Ma'aden). Examples of the company's work in the region include BP Khazzan Oman Gas Field, Sinnovate Smart Technology Hub, Zuluf Gas/Oil Separation Plant FEED, King Abdulaziz Project for Riyadh Public Transport, Sadara Chemical Company, Prince Mohammed bin Abdulaziz International Airport, Ma'aden Wa'ad Al-Shamal Phosphate Company and numerous infrastructure projects with the Saudi Industrial Property Authority (MODON).

As MRC wrote before, WorleyParsons has been awarded a general engineering service (GES) contract by YASREF. YASREF operates a full-conversion refinery that covers about 5.2 million square meters in the Yanbu Industrial City in Saudi Arabia. WorleyParsons will deliver engineering and consultancy services for the refinery to optimize the production of YASREF’s facilities. The services will be provided from WorleyParsons’ offices in Saudi Arabia for a term of three years with an option to extend for a further three years.
MRC

Freeport LNG signs 3-year liquefaction sales and purchase agreement with Trafigura

MOSCOW (MRC) -- Freeport LNG Marketing, LLC (Freeport LNG) announced that it has entered into a binding mid-term sales and purchase agreement (SPA) with Trafigura PTE LTD (Trafigura) for 0.5 million tons per annum (mtpa), to be supplied from its natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas, as per Hydrocarbonprocessing.

The SPA with Trafigura will commence on July 1, 2020, soon after the expected completion of construction of the third liquefaction train.

"We welcome Trafigura's more than 25 years of global commodity trading experience to Freeport LNG's expanding operations. We view this as the start of a long-term relationship that will be key in growing our future business," said Michael S. Smith, Chief Executive Officer, Freeport LNG.

"Trafigura puts the security of supply for its customers at the heart of our LNG strategy. We view this agreement as a further proof of our commitment to this and are proud to count Freeport LNG as our partner," said Hadi Hallouche Head of Oil Asia at Trafigura.
MRC

EU to investigate BASF and Solvay nylon deal

MOSCOW (MRC) -- The European Commission opened an in-depth investigation into the proposed purchase by Germany’s BASF of Solvay’s nylon business, saying such a deal could reduce competition in the supply of the nylon production chain, as per the press-release of European Commission.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Nylon is used in everyday products like clothes, sports shoes and carpets. But it's also an important industrial input, for example contributing to make lighter engines and cars. However, only a few manufacturers provide essential inputs to produce different nylon products, so we need to carefully assess whether the proposed acquisition would lead to higher prices or less choice for European businesses and, ultimately, consumers."

The proposed transaction involves Solvay and BASF, two companies active in the nylon industry, where both manufacture nylon compounds and nylon fibres.

Solvay is currently the only manufacturer in the European Economic Area with production assets at all levels of the nylon production chain, from ADN to nylon compounds and nylon fibres. Currently, Solvay sells an important part of its production of intermediates at various levels of the value chain to other companies active in making nylon compounds and fibres. BASF is also vertically integrated, but does not produce ADN. It currently only sells a small part of its production of intermediates because it uses almost all of its production internally, for the production of nylon compounds and fibers.

The proposed transaction would create an important player in the nylon compounds market with a market size almost double that of the closest competitor. The merged entity would also control substantial parts of the merchant markets and of the production capacities at all levels of the nylon production chain. Moreover, no other player would be similarly fully integrated in the production chain. Competitors will thus depend on the merged entity to continue to supply them with one or more essential inputs.

In addition, there is no indication that competition could be preserved by new entrants, since access to essential inputs (such as ADN) is limited and critical to be able to compete effectively.

BASF, headquartered in Germany, is a large diversified chemical company active in a range of sectors including chemicals, performance products, functional materials and solutions, agricultural solutions and oil & gas. It is active in the polyamide value chain, in particular in the production of Hexamethylene Diamine, Adipic Acid, adipate Salt, Base Polymers and Engineering Plastics.

Solvay, headquartered in Belgium, is activein the polyamide value chain, in particular in the production of ADN, Hexamethylene Diamine, Adipic Acid, adipate Salt, Base Polymers and Engineering Plastics.
MRC

Investment in Evonik catalysts plant in Calvert City

MOSCOW (MRC) -- The Evonik Business Line Catalysts (KA) has extended its long-term partnership with a global leader in refinery catalysts, as per the company's press release.

Evonik manufactures their state of the art hydroprocessing catalysts in its plant in Calvert City, Kentucky. Based on that long-term partnership, the partner company invested in capacity expansion in Calvert City to produce its newest generation of catalysts and to increase overall capacity.

"This investment demonstrates the high expertise of the Business Line in efficient operations and custom manufacturing of state of the art custom catalysts. Furthermore it underlines the commitment of both parties for the future", says Dr. Oliver Meyer, Vice President Catalysts Americas.

As MRC informed before, Evonik raised the prices for its superabsorbent polymers, offered in Europe and the Americas, up to 15% with effect as of 4 May, 2018. The price increase has become unavoidable to compensate higher raw material costs.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.
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