Philippines short-lists three company groups for LNG terminal project

MOSCOW (MRC) -- The Philippines has short-listed three different groups to build and operate its first liquefied natural gas (LNG) import terminal and hopes to nominate one by November, as per Reuters.

Short-listed companies were chosen from 18 groups that submitted proposals for the project, Alfonso Cusi told Reuters on the sidelines of the Singapore International Energy Week.

They include state-owned Philippines National Oil Company (PNOC), which is seeking a partner for the project, Cusi said, while Tokyo Gas has partnered with the Philippines' First Gen Corp.

China National Offshore Oil Corp (CNOOC) is also in the running, although it has yet to firm up a local partner, Cusi said. CNOOC has been in talks with the Philippines' Phoenix Petroleum as a partner, he added.

"Hopefully we can have a conclusion on which proposal to accept by the end of November," Cusi said. The Philippines is expected to start importing LNG to feed gas-fired power plants in Batangas province, south of the capital Manila, as domestic gas supplies from its Malampaya field are set to run out in 2024.

Besides meeting local demand, the Philippines also hopes the terminal would become an LNG trading hub for the region, Cusi said. "We are already the de-facto transhipment port for LNG to China," Cusi said, adding that large cargoes are often broken up into smaller parcels for deliveries to China via ship-to-ship transfers off the Philippines.

"We should institutionalize this before someone else does." PNOC last week formally announced it was seeking a joint-venture partner to design, build, finance, operate and maintain an LNG hub in Batangas Bay, near the gas-fired power plants supplying electricity to the country's main Luzon island.

Bidders have until Dec. 21 to submit eligibility documents to PNOC. A First Gen spokeswoman said the company has been open to taking in a partner for the LNG project, but she was not aware of any joint venture agreement or talks between First Gen and Tokyo Gas. First Gen operates four of the country's five gas-fired power plants.

Tokyo Gas declined to comment.
MRC

CNOOC and SHELL sign MOU on petrochemical project

MOSCOW (MRC) -- On 16 October, China National Offshore Oil Corp. and Shell International Petroleum Company Ltd. signed a memorandum of understanding (MOU) to explore their existing collaboration and the development of petrochemical manufacturing facilities at the Nanhai site in Huizhou, Guangdong province, said Chemengonline.

The objective is to establish a world-class integrated site that has scale and competitiveness. The MOU was signed by CNOOC chairman Yang Hua and Shell CEO Ben van Beurden, in the presence of Chinese Premier Li Keqiang and Dutch Prime Minister Mark Rutte.

“I am pleased that CNOOC and Shell have taken a step towards furthering our already-beneficial partnership at Nanhai,” says Graham van’t Hoff, executive vice president for Shell’s global chemicals business. “This news builds on the successful start-up of phase two of the site expansion in May and demonstrates the ongoing strategic importance of the site."

In May this year, CNOOC and Shell announced the official start-up of the second ethylene cracker at their Nanhai petrochemicals complex. The new ethylene cracker increased ethylene capacity at the complex by around 1.2 million metric tons per year (m.t./yr), more than doubling the capacity of the complex. The new facility will also include a styrene monomer and propylene oxide (SMPO) plant, which will be the largest in China when it begins operations.
MRC

Air Liquide Engineering & Construction wins China chemical contract

MOSCOW (MRC) -- Air Liquide Engineering & Construction has signed a contract to supply an air separation unit (ASU) to Shandong Runyin Bio-Chemical Industry Co. Ltd (Runyin), a subsidiary of Shandong Ruixing Group, a large chemical company and one of the key high-tech players in China, as per Hydrocarbonprocessing.

Under the terms of the contract, Air Liquide Engineering & Construction will design and build a large ASU with a production capacity of 2,950 tons of oxygen per day.

The ASU will be an integral part of the customers’ key research and development project for chemical production. In support of this project, ?Air Liquide will provide its strong expertise and best-in-class oxygen production technologies which enable maximized energy efficiency and reduced environmental footprint.

The first industrial production is expected in 2020. Founded in 1970, Ruixing Group specializes in biochemical, fine chemical, thermal power generation and equipment manufacturing. Domenico D’Elia?, Senior Vice President, Sales and Technology, Air Liquide Engineering & Construction commented: “"Air Liquide demonstrates the commitment to contribute to the upgrading of China industries. This success with our new customer, Shandong Runyin Bio-Chemical, reaffirms our ability to provide competitive solutions that are safe, reliable and highly efficient?.?"
MRC

Unipec, Vitol poised to win tender to supply fuels to Bangladesh

MOSCOW (MRC) -- Bangladesh Petroleum Corp (BPC) has received offers from a mix of traders and state oil companies in its tender for over 1.4 million tonnes of oil products for the first half of 2019, with Unipec and Vitol giving the best quotations, as per Reuters.

"Unipec is supposed to win the tender for both gasoil and jet fuel as they came up with the lowest offers. And Vitol is likely to secure the tender for fuel oil and gasoline as their offers are (the) lowest," said a senior official of BPC.

The deals with Unipec and Vitol will be finalised within a short time after verifying all other details, the official said.

China's Unipec - trading arm of Chinese state major Sinopec - gave the lowest offer for gasoil and jet fuel at premiums to Middle East quotes of slightly below USD2.90 and USD3.70 a barrel respectively, according to the official.

The Asian unit of trading house Vitol submitted gasoil and jet fuel offers that were slightly higher. Vitol Asia gave the lowest offers, however, at premiums to Middle East quotes for gasoline slightly under USD4.25 a barrel and fuel oil at about USD22.30 a tonne, the BPC official said.

Other sellers who participated in BPC's import tender include PetroChina, Sinochem, Emirates National Oil Company (ENOC), Trafigura, PTT and Gunvor.

Bangladesh typically imports about 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 importers for those fuels in Asia.
MRC

Galp lifts earnings outlook on oil price, improved output

MOSCOW (MRC) -- Portugal's Galp Energia raised its 2018 pre-tax earnings estimate to 2.3 billion euros (USD2.6 billion) from a previous forecast of 1.8-1.9 billion on Monday, as a jump in oil prices and stronger output boosted its third-quarter results, as per Hydrocarbonprocessing.

Galp shares rose by more than 3 percent to 15.5 euros, outperforming the broader Lisbon, which was up by 1.3 percent, and the Stoxx 600 oil and gas index, which was 1.4 percent higher. Oil and gas output rose 10 percent in the third quarter from a year earlier to around 104,000 barrels of oil equivalent per day, but Galp's new projection for a full-year output increase of 15 percent came at the lower end of its previous forecast range of 15-20 percent.

International oil prices surged over 40 percent in the quarter from a year ago. Third-quarter net income and EBITDA (earnings before interest, tax, depreciation and amortisation) rose 35 percent and 38 percent respectively, in line with market expectations, even as refining margin fell 21 percent and refinery throughput declined 7 percent due to scheduled maintenance.

Galp's refining margin of USD5.8 per barrel was nevertheless well above the industry's benchmark of USD3.2 in the quarter. The rise in projected EBITDA came despite expectations of a "weaker refining environment in the fourth quarter".

The company, which is a relative newcomer in the world of big oil, plans to boost output to 150,000 barrels of oil equivalent per day by 2020.

Most of Galp's production growth will come from Brazil, where it has stakes in large offshore oil fields and is looking for further expansion opportunities.
MRC