Mongolia launches construction of first oil refinery with Indian aid

MOSCOW (MRC) - Mongolia launched construction of its first oil refinery, a long-awaited project that is funded by India and designed to end the country's dependence on Russian fuel, as per Reuters.

Friday's ground-breaking ceremony was attended by Mongolian Prime Minister Khurelsukh Ukhnaa and Indian Minister of Home Affairs Rajnath Singh.

The refinery, in southern Dornogovi province, will be capable of processing 1.5 million tonnes of crude oil per year, said Mongol Refinery, the state-owned company building the project, in a press release. That is about 30,000 Mbpd.

The refinery will be small by international standards, with most Chinese facilities each processing hundreds of thousands of barrels of crude per day, and India's Reliance Industries running one refinery at a record 1.2 MMbpd.

Still, Mongolia's new refinery, planned for completion in late 2022, will meet all of the nation's demand for gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG).

"By establishing this strategically important oil refinery, the national economy will become independent from energy imports, and fuel and commodity prices will be stabilized," said Mongol Refinery in its statement. The project is expected to boost Mongolia's gross domestic product by 10 percent, it said.

Mongolia imported almost 1.5 million tonnes of oil products last year, virtually all from Russia. They amounted to 18 percent of all Mongolia's imports, according to official data.

Mongolia, a large landlocked country wedged between giants China and Russia, has a population of just 3 million. Almost half its people live as nomadic stock herders, and the country's oil demand is growing only very slowly.

"From a national security perspective, we do need to diversify our sources of oil products from the current single source, Russia," said Munkhdul Badral Bontoi, chief executive of Mongolia-based market intelligence group Cover Mongolia.

The cost of the refinery is estimated at $1.35 billion, and it will include a pipeline and its own power plant.

The refinery will process Mongolia's own crude oil, which is now sold to China.

Mongolia produced 7.6 million barrels of oil last year, about 21 Mbpd, amounting to 6 percent of its total export earnings. The country's petroleum industry regulator is expecting its crude oil output to rise over the years prior to the refinery's start-up.

Mongolia's big southern neighbor China produces around 3.8 MMbpd of crude, and imports more than 9 MMbpd, according to official government data.

Fluor readies first modules for Kuwait refinery project

MOSCOW (MRC) -- Fluor Corporation, a global engineering, procurement, fabrication and construction company, has announced the arrival of the first modules for the Kuwait Integrated Petroleum Industries Company (Kipic) Al Zour project in Kuwait, according to TradeArabia.

The US-based company is working with its joint venture partners Daewoo Engineering and Construction and Hyundai Heavy Industries to deliver two engineering, procurement, fabrication and construction packages for key process support units, utilities and infrastructure for the Al Zour refinery project.

Upon completion, the new complex is expected to be one of the largest refineries in the world and produce 615,000 barrels per day.

Modules are being constructed at the COOEC-Fluor Heavy Industries Company (COOEC-Fluor) fabrication yard in Zhuhai, China. The first 14 of the 188 modules were loaded onto a shipping barge and sailed away in May to Kuwait.

The sailaway of the modules was marked by a ceremony officiated by Hatem Al Awadhi, Kipic’s deputy chief executive officer and Jim Brittain, group president of Fluor’s Energy & Chemicals business, and was attended by executive members of the Fluor-led joint venture, known as FDH JV.

"Fluor is proud to be part of Kipic’s prestigious and strategically important Al Zour project," said Brittain.

"This milestone was achieved through the collaboration and commitment of our craft professionals at the newly expanded Zhuhai fabrication yard where more than 6,500 craft workers are safely fabricating steel and pipe and assembling modules for the project," he noted.

"Fluor and our joint venture partners are working closely with Kipic to implement Fluor’s integrated engineering, procurement, fabrication and construction solutions across every phase of the project to enable the safe and efficient construction, commissioning and start-up of this new refinery," said Al Collins, the president of Fluor’s Energy & Chemicals business in Europe, Africa and Middle East.

With headquarters in Irving, Texas, Fluor ranks 153 on the Fortune 500 list with revenue of USD19.5 billion in 2017 and has more than 56,000 employees worldwide, he added.

As MRC wrote before, 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.

TechnipFMC to provide licensing support of OxyVinyl ethylene di-chloride and vinyl chloride monomer technologies

MOSCOW (MRC) -- TechnipFMC has announced that it has signed a cooperation agreement with OxyVinyls to provide licensing support of OxyVinyl’s Ethylene Di-Chloride (EDC) and Vinyl Chloride Monomer (VCM) technologies, as per Hydrocarbonprocessing.

EDC and VCM are used primarily as feedstocks for the fabrication of PVC (PolyVinyl Chloride), a common plastic used in the construction of pipe, doors, windows, cable insulation and signage. OxyVinyls has the largest market share in licensing of both technologies.

"We are delighted by the signature of this agreement with today’s leading EDC/VCM licensor. This agreement allows us to complement our portfolio and offer to clients a full suite of high-quality technologies in the vinyls chain," Marie-Christine Charrier, Vice President Technologies of the EMIA region for TechnipFMC said.

TechnipFMC’s operating center in Lyon, France, a center of excellence for polyolefins, chemicals, petrochemicals and bio-sourced products is managing the agreement and will execute the process design packages.

As MRC reported previously, TechnipFMC has recently signed an exclusive cooperation agreement with KEM ONE, Europe’s third-largest PVC producer, to support the marketing and licensing of KEM ONE’s Suspension PolyVinyl Chloride (S-PVC) technology.

Curacao refinery seeks temporary operator to replace Venezuelas PDVSA

MOSCOW (MRC) - The government-owned Isla refinery in Curacao is seeking a company to immediately replace Venezuela’s state-run PDVSA as operator of the 335,000-barrel-per-day facility, which has been largely idled due to a lack of crude shipments to the plant, according to a document seen by Reuters.

The refinery this week sent letters to oil companies and traders offering partnerships for operating the refinery both in the short term and under a new, long-term lease beginning in January 2020, according to a copy of one letter.

"The rapidly deteriorating situation in Venezuela and financial and operational impediments to PDVSA’s business activities have presented a near term risk to continued operations of the oil facilities by PDVSA on its own," the refinery letter said.


PolyMirae, a LyondellBasell joint venture, to expand its PP capacity in South Korea

MOSCOW (MRC) -- PolyMirae Company Ltd. (part of LyondellBasell) has announced that it would establish a joint venture with SK Advanced in South Korea, as per LyondellBasell's press release.

The joint venture intends to build a new 400,000 ton/year polypropylene (PP) plant to serve customers in Asia. The plant will be located in the southeastern port city of Ulsan and is dependent on regulatory filings and permitting reviews.

PolyMirae is a joint venture 50 percent owned by LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, and 50 percent owned by Daelim, a construction and petrochemical company in South Korea.

Construction on the project will begin in January 2019 and operations at the plant will begin in the first half of 2021.

"Through direct investment or through a joint venture such as PolyMirae, we continue to build production capacity to serve rapidly growing end markets in Asia," said James Seward, Vice President of Joint Ventures and International Marketing at LyondellBasell. "With the addition of this joint venture's capacity, PolyMirae will ensure that automotive manufacturers in South Korea and throughout Asia will continue to be able to locally source the polypropylene they need to advance the next generation of fuel efficient vehicles, and that LyondellBasell will gain access to additional export volumes to ensure our global production footprint will continue to grow alongside our customer base."

The new PP plant will be one of the largest of its kind in Asia and will utilize LyondellBasell's industry-leading Spheripol technology. Polypropylene manufactured at the joint venture will be sold to customers in South Korea and exported throughout Asia for use in automotive components, injection molding, blow molding and packaging film. Some of the polypropylene will also be sold to compounding companies in South Korea and the broader region.

PolyMirae is a 50/50 joint venture between LyondellBasell and Daelim. The new company will be a joint venture between PolyMirae and SK Advanced.

As MRC informed before, in September 2017, LyondellBasell announced the successful startup of a new 20,000 PP compounding plant in Dalian, China. This is the company's third facility in China, strategically located to serve the region's growing automotive market.

PolyMirae is a joint venture between Daelim and LyondellBasell Industries, both of which are well respected companies worldwide, and is a leading polypropylene production company in Korea. With Daelim's outstanding accumulated on-site operational experience and LyondellBasell's core technologies and worldwide sales network, PolyMirae was founded on September 1st 2000 in order to produce and supply the best polypropylene in Asia.

Daelim Industrial is a construction and petrochemical company that is a part of the Daelim Group hailing from South Korea. As the first Korean company to build petrochemical plants in the Middle East, Daelim continues to expand globally. Daelim builds petrochemical, refinery and power plants in more than 36 countries. With headquarters in Seoul, South Korea, Daelim completed more than 600 engineering and construction projects around the world, as well as operates manufacturing facilities in South Korea. Founded in 1939, Daelim has approximately 5,300 employees worldwide. Revenues for 2014 were USD8 billion.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies."