Shell starts production at new petrochemicals unit in US Gulf Coast

MOSCOW (MRC) – Shell Chemical LP (Shell) announced the start of production of the fourth alpha olefins (AO) unit at its Geismar, Louisiana, USA chemical manufacturing site, said Hydrocarbonprocessing.

The 425,000-tonne-per-year capacity expansion brings total AO production at Geismar to more than 1.3 million tonnes per annum. Start-up operations began in December 2018.

Alpha olefins are key ingredients in many finished products that people use and enjoy every day, including laundry detergents, motor oils, and hand soaps.

"Our team delivered this world-class expansion project safely, on time and within budget," said Graham van’t Hoff, Executive Vice President for Shell’s global chemicals business. "This is a key growth project for Shell’s global chemicals business. Geismar will continue to play a leading role in providing the materials for products that an increasing number of people need and enjoy."

The new unit strengthens Shell’s leading position in the US Gulf Coast and illustrates the strategic value of its integrated downstream business. The Geismar site is supported with advantaged ethylene feedstock from Shell’s nearby Norco, Louisiana and Deer Park, Texas manufacturing sites, enabling the site to respond to market conditions.

The expansion project contains around 3,570 tonnes of steel, 18,290 meters of concrete and 85 linear kilometers of pipe. Several new pieces of infrastructure were built as part of the expansion, including a new water cooling tower, a significant expansion of the site’s rail loading capabilities, and the repurposing of a previously idled tank farm.
MRC

MOSCOW (MRC) -- Meridian Energy Group, Inc., the leading developer of innovative and environmentally-compliant oil refining facilities, has announced that the company and its engineering partners, Axens NA and McDermott International, have begun its first week of meetings to kick off the intensive effort to complete the Front-End Engineering and Design (FEED) of the Davis Refinery located in Belfield, North Dakota, according to Hydrocarbonprocessing.

Meridian announced just one month ago its signed agreement with McDermott International under which McDermott will finalize the FEED for the Davis Refinery. Following the completion of that FEED effort, the Parties will be prepared to enter into a comprehensive turnkey Engineering, Procurement and Construction (EPC). Agreement to build the Davis Refinery. Meridian has been working with Axens NA since 2016 to define the underlying proprietary process technology for the Davis Refinery unit operations and has entered into process book supply and license agreements with Axens this past September for the proprietary process units for the full 49,500 bpd Davis Refinery.

These meetings mark the full implementation of the integrated project partnerships that Meridian has assembled to develop the cleanest refineries on the planet. Axens NA provides a complete range of solutions to ensure the highest level of performance with a reduced environmental footprint, and McDermott is a premier, fully - integrated provider of technology, engineering and construction solutions to the energy industry.

William Prentice, CEO of Meridian, said of this Engineering Summit, "Meridian’s mission is to drive the reinvention of the refining industry, and the Davis Refinery is the future of domestic US refining. To fulfill this mission, Meridian requires Partners that share this vision, and possess the expertise and professionalism to complete Davis and follow-on projects in a reliable and cost-effective manner."

Meridian VP of Operations, Tom Johnson, also commented, "The entire Meridian, Axens, and MDR team is extremely excited to be a part of this innovative project. The team looks forward to delivering a completed oil refinery that meets the conditions of the EPA's approved Synthetic Minor Source Air Quality permit."

Meridian has completed and invested a significant portion of project financing and will continue to invest its own development financing for this next phase through completion of the FEED, as well as site preparation and grading at the Davis site as weather permits. Full project financing, as arranged by Meridian’s investment bankers, financial advisors, and placement agents, including CIBC, will close upon completion of the FEED, in time for full construction to resume later in 2019.

Lance Medlin, Meridian EVP of Projects had this to say, "The Davis Refinery is being designed as a cutting-edge facility, setting a new standard in how emerging energy needs are addressed at regional levels. Meridian’s partnership with McDermott and Axens NA for the engineering and development of the Davis Refinery is another step in what has consistently proven to be the right direction in refining."

Mark Fonda, EVP of Engineering for Meridian Energy Group, commented, "The Davis Refinery has the distinct advantage of being a greenfield, innovative, advanced technology project, which will be the most efficient, smartest, ultramodern refinery ever built. As such, the EPC effort will emphasize clean, efficient use of space, time and resources while maintaining the highest priority for environmental, health and safety compliance."

As MRC wrote earlier, in October 2018, Meridian Energy Group selected Axens as the technology provider for the final stages of basic engineering design for its 49,500 BPD Davis refining complex being constructed in Billings County, North Dakota. The project will utilize Axens’ Suite of clean fuels technologies to refine local Bakken tight oil and produce ultra-low sulfur transportation fuels while minimizing energy consumption and environmental footprint.
MRC

MOSCOW (MRC) -- Loop Industries, Inc, a leading technology innovator in sustainably produced plastic, and ThyssenKrupp Industrial Solutions’ division, Uhde Inventa-Fischer GmbH, a leading global polyester technology provider and polyester plant engineering firm, have entered into a strategic collaboration that would shape the future of PET and Polyester manufacturing, as per Plasticsinsight.

The Global collaboration agreement integrates their respective technologies intended to offer a turn-key industrial solution for the license to manufacturing companies that are seeking a commercially viable technology to produce sustainable PET and polyester plastic.

Sami Pelkonen, CEO of the Electrolysis & Polymers Technologies business unit of thyssenkrupp Industrial Solutions, said, "We have successfully established a large variety of patented technologies and processes in the global market. This agreement will enable a very resource efficient and cost-attractive solution for the production of sustainable PET and polyester. The collaboration with Loop Industries is an important milestone on the way to producing sustainable PET and polyester."

Daniel Solomita, Founder and CEO of Loop Industries, commented, "This Global Collaboration Agreement allows for Loop’s technology to rapidly transform the plastic market and fully capitalize on our disruptive potential as the leader in the circular economy for PET plastic. thyssenkrupp’s extensive engineering expertise and proven Melt-To-Resin technology provides Loop with a world class partner to bring the Waste-to-Resin manufacturing solution to market."

According to Solomita, "WTR is a key pillar of Loop’s commercialization blueprint to meet global demand from consumer packaged goods and other brands for Loop branded sustainable resin. The two companies plan to license the respective technologies developed by Loop and thyssenkrupp Industrial Solutions to manufacturing partners in different regions around the world in order to quickly roll out multiple WTR plants decoupling PET plastics from fossil fuels over the next decade."
MRC

MOSCOW (MRC) -- Turkey has resumed imports of Iranian crude oil after a one-month hiatus in November when US sanctions on Iran were reimposed, reported Reuters with reference to trading and shipping sources.

The United States granted Turkey and other countries import waivers in early November. Turkey said it was permitted to take 3 million tonnes a year, equivalent to about 60,000 barrels per day (bpd), under the waiver.

Turkey used to import about 200,000 bpd of Iranian crude before Washington announced last year that it would pull out of the 2015 Iran nuclear deal and reimpose sanctions.

Turkey had reduced its imports from Iran in the months prior to sanctions coming into force in early November. Its imports fell to zero in November.

But in December Turkey took delivery of two tankers carrying Iranian crude, equivalent to about 54,000 bpd during December, according to a shipping and trading source familiar with the matter.

The Solan tanker delivered into the port of Aliaga, while the Sea Topaz I discharged at Tutunciftlik.

So far in January, Turkey is set to receive a cargo from the Iranian-owned tanker Sinopa, the sources and Refinitiv Eikon ship tracking showed.

Turkish officials and Tupras were not immediately available to comment.
MRC

MOSCOW (MRC) - China will take action against highly-polluting diesel trucks by imposing tougher fuel and engine standards, raising rail freight volumes and strengthening its monitoring capabilities, new guidelines published by the environment ministry said, as per Reuters.

The Ministry of Ecology and Environment said in a policy document on Friday it would aim to "significantly increase" the number of diesel trucks capable of meeting emission standards by 2020, targeting a compliance rate of at least 90 percent by next year.

It also promised to improve the quality of diesel, crack down on low-grade fuel and reduce overall nitrogen oxide and particulate matter emissions from fuel combustion.

New trucks that fail to comply with state requirements will not be allowed to enter the market, and key regions will also be ordered to implement advanced “China VI” fuel standards starting in July this year, the document said.

China is in the fifth year of a “war on pollution” but average emission levels in many smog-prone northern cities remain significantly higher than the levels recommended by the government.

The northern regions near the capital Beijing will eliminate more than 1 million outdated diesel-fueled trucks by the end of 2020. Tougher controls on diesel freight will also be imposed during smog build-ups, it said.

National rail freight rates would be increased by 30 percent compared with 2017, and China will work to ensure that long-distance bulk commodity deliveries are done via rail or ships, it said.

Tackling truck emissions has become a major part of China’s efforts to curb pollution. Though trucks produce 13 times more pollution per unit of cargo than trains, the share of rail in total freight amounted to just 7.7 percent in 2017.
The environment ministry said last year that while diesel trucks accounted for just 7.8 percent of China’s total vehicles, they contributed as much as 57.3 percent of total nitrogen dioxide emissions and more than three quarters of airborne particulate matter.

The ministry plans to charge higher fees and introduce more stringent monitoring procedures to try to persuade firms to make better use of the rail network to deliver goods.
MRC