U.S. EPA wrongly denied biofuel waiver for W.Virginia refinery

MOSCOW (MRC) - The U.S. Environmental Protection Agency must reconsider its denial of small West Virginia refinery Ergon’s application for an exemption from U.S. biofuel laws after it relied on an “error-riddled” analysis, an appeals court ruled, as per Hydrocarbonprocessing.

The EPA relied on a recommendation from the Department of Energy that, among other things, failed to take into account that Ergon produced high levels of diesel that may not easily be blended and sold into the local market, according to the 4th U.S. Circuit Court of Appeals in Maryland.

The decision will likely bolster supporters of the EPA’s expansion of the small refinery waiver program under President Donald Trump, many of whom argue that President Barack Obama’s EPA had been too stingy with exemptions.

The biofuel industry, meanwhile, has criticized the expansion of the program under Trump, saying it undercuts the U.S. Renewable Fuel Standard (RFS).

The RFS requires refiners to blend biofuels like ethanol into the fuel pool or buy compliance credits from those who do - a measure aimed at helping corn farmers and cutting foreign imports of petroleum. But refineries up to 75,000 barrels per day can seek exemptions from the law each year if they can prove compliance would cause them financial hardship.

Ergon operates a small refinery (23,500 barrels per day) in Newell, West Virginia that produces specialty lube oils and diesel. "We are pleased to see the 4th Circuit Court ruling which recognizes the significant and disproportionate hardship that RFS places on small refineries," said Ergon-West Virginia Inc President Kris Patrick.

The EPA did not immediately respond to requests for comment. Former EPA administrator Scott Pruitt, who resigned earlier this month following a slew of ethics controversies, oversaw a surge in small refinery waivers.

The EPA put out data last week that said it granted 48 such waivers for the years 2016 and 2017, representing some 2.25 billion gallons of biofuels.

The EPA is required to consult with the Department of Energy on the applications. Under Pruitt, the EPA consistently ignored recommendations from the Energy Department to reject or limit waivers to oil refiners seeking exemptions from biofuels laws.

The panel of appellate judges ruled that the DOE’s analysis was flawed because it did not take into the account the regional market for biodiesel and also separated the plant’s lube oil production in part of the application and included in other areas.

"Although the EPA is statutorily required to consider the DOE’s recommendation, it may not turn a blind eye to errors and omissions apparent on the face of the report, which Ergon pointed out and the EPA did not address in any meaningful way," the judges wrote.
MRC

MOSCOW (MRC) -- Honeywell announced that Jiangsu Jiarui Chemical Co., Ltd. will use Honeywell UOP’s C3 Oleflex technology to produce 450,000 metric tons per year of polymer-grade propylene at its facility in the Taixing Industrial Zone in China’s Jiangsu Province, as per Hydrocarbonprocessing.

Honeywell will provide licensing, the process design package, proprietary and non-proprietary equipment, on-site operator training, technical services for startup and continuing operation, and catalysts and adsorbents for the project, which is Honeywell’s 33rd award in China for Oleflex technology.

"Historically, propylene has been produced as a byproduct of making ethylene from petroleum, but with the influx of lighter feedstocks, the amount of propylene from these manufacturing processes is dramatically reduced,” said John Gugel, vice president and general manager of Honeywell UOP’s Process Technology and Equipment business. “The Oleflex process addresses the growing propylene supply gap by producing on-purpose propylene from propane, which is in abundant supply."

Honeywell UOP’s C3 Oleflex technology uses catalytic dehydrogenation to convert propane to propylene. Its low energy consumption, low emissions and fully recyclable, platinum-alumina-based catalyst system minimizes its impact on the environment and has a lower cash cost of production and higher return on investment compared to other technologies. The independent reaction and regeneration sections enable steady-state operations, improved operating flexibility, and a high on-stream factor and reliability.

Honeywell UOP also licenses C4 Oleflex technology, which converts butanes to butylenes, the primary ingredient for making high-octane fuel additives and synthetic rubber. Including this project, Honeywell UOP’s Oleflex technology has been selected for 52 out of 64 propane and isobutane dehydrogenation projects globally since 2011.

Since the technology was first commercialized in 1990, Honeywell UOP has commissioned 29 Oleflex units for on-purpose propylene and isobutylene production. Global production capacity of propylene from Oleflex technology now stands at approximately 6.8 million metric tons per year.

Jiangsu Jiarui Chemical Co. Ltd., is a wholly-owned subsidiary of Jiangsu Sanmu Group. The company is a diversified large-scale trans-regional and multi-industry enterprise engaged in R&D, manufacturing and sales of synthetic resin, solvent, fine chemical material and related products.
MRC

MOSCOW (MRC) -- Zhejiang Wankai New Materials Co is likely to restart its polyethylene terephthalate (PET) unit at Haining, China, according to Apic-online.

A Polymerupdate source in China informed that the company has planned to resume operations at the unit on July 23, 2018 following a maintenance turnaround. The unit was taken off-line for around 1 month.

Located at Haining in China, the PET unit has a production capacity of 550,000 mt/year.

As MRC wrote before, in late October 2015, the company shut down its another PET unit with the capacity of 450,000 per year for a three-week turnaround.
MRC

MOSCOW (MRC) -- McDermott International, Inc. announced it has been awarded a sizeable contract from Samsung Engineering Saudi Arabia Company Ltd. for engineering, procurement and construction (EPC) of CB&I Storage Tanks for the Jubail United Petrochemical Company (JUPC) Ethylene Oxide (EO)/Ethylene Glycol (EG) Plant No. 3 at Jubail, Kingdom of Saudi Arabia, as per Hydrocarbonprocessing.

The fixed lump sum contract encompasses the engineering, procurement and fabrication of 23 CB&I storage tanks and modification of two existing tanks. Work on the project will predominantly be executed from Saudi Arabia utilizing McDermott's local capabilities and facilities.

"McDermott and Samsung have a long track record of successful collaboration and safe execution in the Middle East," said Linh Austin, Senior Vice President, Middle East and North Africa. "Our extensive experience in Saudi Arabia combined with our unparalleled technical competency in the storage sector uniquely position us to deliver this project."

McDermott significantly expanded its service offering after combining with CB&I earlier this year. The combination brought together more than 200 years of experience in the energy sector and positioned McDermott as one of the few companies in the world to offer fully integrated, end-to-end offshore, upstream and downstream solutions across the entire energy value chain.

Work on the contract is expected to begin immediately and will be reflected in McDermott's second quarter 2018 backlog.
MRC

MOSCOW (MRC) -- Huabei Petrochemical (part of PetroChina) is likely to restart a polypropylene (PP) unit in Hebei, as per Apic-online.

A Polymerupdate source in China informed that the company has planned to complete turnaround at the unit in mid-September 2018. The unit was shut for maintenance in early-July 2018.

Located in Hebei, China, the unit has a production capacity of 100,000 mt/year.

As MRC informed previously, in January 2018, PetroChina nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company’s biggest, since January, as a new supply agreement has come into effect.

PetroChina has designated three refineries in northeast China - Dalian, Liaoyang and Jilin - as the main receiving points for the increased Russian supply. Liaoyang will begin taking more crude once a major upgrade is completed at the end of this year. The new volumes will flow as a result of Russia and China expanding the East Siberian Pacific Ocean pipeline that starts at Rosneft’s oilfields in East Siberia and enters China at border town of Mohe.
MRC