Kuwait Al-Ahmadi refinery completes biofuels project

MOSCOW (MRC) - Kuwait’s Mina Al-Ahmadi oil refinery has completed a biofuels expansion project with two additional production units coming on-stream, reported Reuters with reference to the state-run Kuwait News Agency, citing the Kuwait National Petroleum Corp (KNPC).

The two new coal and naphtha hydro treating units will produce 37,000 and 8,400 barrels per day (bpd) of oil equivalent respectively, Waleed al-Badr, KNPC chief executive officer said.

Operations are still underway to complete the same project in the Mina Abdullah refinery, he added.

The two refineries are undergoing upgrades and expansion as part of the Clean Fuels Project (CFP) with a focus on producing higher-value products such as diesel and kerosene for export.

Upon completion, Al-Ahmadi refinery, which consists of 31 units, will have a production capacity of 364,000 bpd, KUNA quoted Abdullah al-Ajmi, the deputy CEO for projects, as saying.

The cost of the biofuels project has reached 4.6 billion dinars (USD14.7 billion), according to Al-Ajmi.

After the units in Mina Abdullah come on-stream, the biofuel project will have a capacity of 800,000 bpd.

Kuwait currently has a refining capacity of around 730,000 bpd, mainly from Mina Al-Ahmadi and Mina Abdallah, its largest refineries.

As MRC informed previously, in February 2020, Qatargas signed an agreement with Shell to deliver 1 million mt/year of LNG to Kuwait for 15 years, starting this year. The LNG will come from Qatar Liquefied Gas Co. 4, a joint venture between Qatar Petroleum (70%) and Shell (30%), Qatargas said Sunday in a statement.

We also remind that in March 2019, Mammoet safely completed a critical lift at Shell’s Pennsylvania Chemicals Project in Potter Township, utilizing its MSG80 to hoist a 2,000 ton quench tower into position. The facility is the first major US project of its kind to be built outside of the Gulf Coast region in 20 years. Once operational, the facility will boast an ethane cracker and three polyethylene units, and is expected to employ up to 600 employees.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- Vietnam’s Binh Son Refining and Petrochemical Co will likely delay maintenance at its Dung Quat refinery, scheduled to begin on June 12, due to the coronavirus pandemic that has led to travel curbs, reported Reuters with reference to two sources familiar with the matter.

“We have difficulties shipping needed equipment to Vietnam and travel bans will make it difficult for foreign contractors to send their workers to the refinery,” one of the sources said, adding the maintenance may be delayed until 2021.

A trader, however, said it might be delayed until the second half of this year.

Binh Son declined to comment.

The company said in a statement over the weekend that 35% of the maintenance work would be handled by foreign contractors and 65% by domestic ones. It said in January it had signed deals with seven contractors for the maintenance.

“Binh Son is monitoring the COVID-19 situation in Vietnam and (will) keep updating with the contractors to make appropriate changes to the maintenance plan,” the statement said.

The 130,000-barrel-per-day refinery said on Friday it would cut output as domestic demand for refined fuels had fallen 30%-40% since February, adding it may have to cease production “if demand continues to decline”.

Vietnam has reported 241 coronavirus cases as of late Monday, with no reported deaths, the Ministry of Health said.

As MRC informed earlier, Binh Son Refining and Petrochemical took its polypropylene (PP) plant off-stream for a maintenance turnaround in June 2017 for a period of around 7 weeks. The exact date shutdown could not be ascertained. Located in Vietnam,the plant has a production capacity of 150,000 mt/year.

According to MRC's ScanPlast report, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- Lyondell Basell Industries plans to restart the gasoline-producing fluidic catalytic cracker (FCC) at its 263,776 barrel-per-day (bpd) Houston refinery next week, reported Reuters with reference to sources familiar with plant operations.

Lyondell spokeswoman Chevalier Gray declined to comment.

Lyondell plans to complete repairs to the 90,000 bpd FCC this week and restart the unit next week, the sources said. The FCC was shut by a Feb. 16 fire that led to the discovery of multiple cracks in the unit’s reactor.

Previously the sources had told Reuters the unit would likely be shut through the end of April. But since that time Lyondell has focused remaining contract workers in the refinery on the FCC work, the sources said.

As MRC informed before, Lyondell Basell Industries said maintenance operations were staffed at its Houston refinery to assure safety and reliability. Gulf Coast market sources told Reuters hundreds of contractors were home in mid-March to reduce the risk of coronavirus spreading in the 263,776 barrel-per-day refinery. Those contractors work for companies hired by Lyondell to perform maintenance on units in the refinery. Lyondell employee operations and maintenance staff continue to work in the refinery, the sources said.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 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.
MRC

1. Covid-19 compounds European refiners’ challenges

MOSCOW (MRC) -- The demand impact from widespread lockdowns causes an immediate demand headache. But longer-term structural obstacles remain, said Hydrocarbonprocessing. “The prospects for European gasoline look particularly grim at the moment.” So says Chris Judge, vice-president, crude and oil products at price reporting agency Argus Media and an analyst of European refined products markets for well over 20 years. Or, rather said. As, to put into context the scale of both the short and longer-term challenges facing the European refining sector, Judge uttered these words in late February, before the extent of the impact of the Covid-19 pandemic on European and global products demand was clear.


MRC

MOSCOW (MRC) -- Nova Chemicals Corp. is making substantial reductions in its construction activities in the wake of the COVID-19 pandemic, reported Kemicalinfo.

"We are adjusting construction work on our new AST2 polyethylene facility and Corunna cracker expansion projects in Ontario to temporarily focus on only the most critical work, which will result in a reduction of approximately 90% of our total construction workforce," Nova Chemicals CEO Todd Karran said.

Karran said that the company’s commissioning and construction activities have been suspended on its furnace refurbishment project in Alberta.

"It is too early to say what impact COVID-19 will have on our overall construction schedule, and a phased ramp-up will be considered at the appropriate time to allow for the safe completion of construction activities," he added.

Nova Chemicals’ manufacturing sites remain operational and product delivery has not been impacted currently by the pandemic.

Chemical industry has been listed as essential critical infrastructure in the US and an important place of work in Canada.

"Despite borders being closed to the north and south, we do not anticipate any issues with cross-border shipments at this time as trade is considered critical and distribution/supply chains in North America are open," Karran said.

"We have adjusted polyethylene and expandable polystyrene production to provide sufficient supply of resins for food packaging, medical supplies, and other high-demand goods," he added.

As MRC reported earlier, in January 2017, NOVA Chemicals announced the start up of its new world-scale linear low density polyethylene (LLDPE) gas phase reactor at its Joffre, Alberta site.

Besides, NOVA Chemicals expanded ethylene production capacity by 20% at its cracker in Corunna, Ontario from the previous capacity of about 839,000 tpy. The expansion occurred between 2014 and 2018 and was part of a wave of expansions and upgrades to NOVA's existing facilities near Sarnia, Ontario. Other upgrades in the plan included a debottlenecking of the Moore low-density polyethylene (LDPE) line and a retrofit of the Moore high-density polyethylene (HDPE) line.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is wholly-owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
MRC