SAPREF lets contract for Durban refinery

MOSCOW (MRC) -- South African Petroleum Refineries (Pty.) Ltd. (SAPREF), a 50-50 joint venture of Shell Refining SA and BP Southern Africa, has let a contract to KBR Inc. to provide technology for an upgrade of the 33,000-b/d FCC unit at its 180,000-b/d refinery in Durban, South Africa, said Ogj.

As part of the contract, KBR will license its Catalyst Regeneration technology as well as deliver basic engineering, detailed engineering, and proprietary equipment for the FCC regenerator project, which will enable SAPREF to improve the unit’s reliability and integrity by optimizing catalyst and air distribution, the service provider said.

KBR disclosed neither a value of the contract nor a timeframe for its work on the project.

While SAPREF itself has not revealed details on the proposed FCC regeneration project, BP Southern Africa said it planned to continue investing in upgrading SAPREF to ensure the refinery can meet domestic consumer demands for low-sulfur fuel, according to the company’s website.

In its most recent major maintenance shutdown, executed in 2019, SAPREF completed two upgrading projects at Durban to enable production of a low-sulfur fuel oil and low-sulfur diesel, the latter of which included installation of a new reactor in one of the plant’s diesel hydrodesulfurizing units, the operator said in its 2019 annual sustainability report.

As MRC informed earlier, Royal Dutch Shell Plc restarted the small crude distillation unit (CDU) on 2 April at its 318,000-bpd joint-venture Deer Park, Texas, refinery. The 70,000-bpd DU-1 CDU was shut on Feb 14 by a pump seal failure. All other units were shut the following day by severe cold weather. DU-1 is the last unit shut in February to restart at the refinery.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

PE production in Russia up by 12% in Q1 2021

MOSCOW (MRC) -- Russia's overall polyethylene (PE) production totalled 823,700 tonnes in the first three months of 2021, up by 12% year on year. High density polyethylene (HDPE) accounted for the greatest increase in the output, according to MRC's ScanPlast report.

March total PE production in Russia rose to 283,900 tonnes, whereas this figure was at 252,600 tonnes a month earlier, output of all PE grades increased. Thus, overall PE production reached 823,700 tonnes in the first quarter of 2021, compared to 734,700 tonnes a year earlier. Production of all PE grades grew, but HDPE accounted for the greatest increase.

The PE production structure by grades looked the following way over the stated period.


March total HDPE production reached 175,900 tonnes versus 152,500 tonnes a month earlier, all producers raised their capacity utilisation. Russian plants' overall HDPE output reached 505,800 tonnes in the first three months of 2021, up by 15% year on year.

Last month's total low density polyethylene (LDPE) production rose to 60,100 tonnes from 54,800 tonnes in February, Angarsk Polymers Plant and Tomskneftekhim increased their capacity utilisation. Thus, overall production of this PE grade totalled 178,200 tonnes over the stated period, up by 3% year on year.

March linear low density polyethylene (LLDPE) production grew to 47,800 tonnes from 45,300 tonnes a month earlier, ZapSibNeftekhim increased its capacity utilisation. Overall LLDPE output rose to 139,700 tonnes in January-March 2021 from 122,100 tonnes a year earlier.

MRC

EPA to send experts to refinery in US Virgin Islands to conduct investigation after recent incidents

MOSCOW (MRC) -- The US Environmental Protection Agency (EPA) plans to send experts and staff to the Limetree Bay refinery in the US Virgin Islands as soon as this week to conduct an investigation after recent incidents at the plant caused some residents to feel ill, reported Reuters with reference to the agency's statement.

The EPA is conducting the investigation with the US Virgin Islands Department of Planning and Natural Resources and US Virgin Islands Department of Health.

The agency said is looking to determine “the level of the exceedances, the composition of the releases, the duration and cause of the incidents, the corrective actions taken or to be taken, the potential public health impacts, and how to best prevent future incidents.”

As MRC informed before, in late March 2021, EPA said it had revoked an expansion permit for the Limetree Bay oil refinery in the US Virgin Islands, citing concerns that the area around the facility is overburdened with pollution. The decision allowed the plant to keep operating but blocked ongoing expansion work pending an EPA review to assess measures the facility needs to take to protect nearby residents.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Mammoet completes first stage of work that leads to construction of PDH/PP blocks of Polish Grupa Azoty chemical plant

MOSCOW (MRC) -- Tasked by company Grupa Azoty ((Tarnow, Poland), one of the main players on the European fertilizer and chemical market, Mammoet recently completed the first scope of work that will lead to the construction of the propane dehydrogenation and polypropylene (PDH/PP) blocks of its client’s chemical facility, according to Hydrocarbonprocessing.

The project took place in the town of Police, in the northwest of Poland, and involved the lifting and transport of more than 480 items from a small port to the construction site six kilometers away.

“We are happy to announce the completion of the first stage of our collaboration with Grupa Azoty Polyolefins,” says Jakub Walasek, Branch Manager for Mammoet Poland. “This is one of the biggest projects in Poland in recent years and we were entrusted to deliver some of the largest items ever moved on Polish roads.”

Among the items transported by Mammoet, 5 were extremely large with a weight between 600-800t, and the largest was around 900t. The size of many of those items required the company to look for efficient and sometimes creative ways to get them from the port to their final location.

Characteristic of this first scope of the project with Grupa Azoty Polyolefins was certainly its complexity. There were multiple items to be moved, and many of them came in different shapes and sizes. Mammoet used PST’s and conventional axle lines for the transport. The largest item, called the PP splitter, required the use of two times double 16 axle lines PST’s in dolly configuration with turntables.

As MRC wrote previously, in late January 2021, Grupa Azoty said the first large propylene tank had been installed at its EUR1.5-billion (USD1.82 billion) PDH and PP project at Police, Poland.

We remind that the scheduled startup of Grupa Azoty’s flagship Polimery PDH and PP project at Police, Poland, has been delayed to the first quarter of 2023 due to the impact of the COVID-19 pandemic.

According to MRC's ScanPlast report, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Kemira to close Montevideo office in May in a move to optimize use of its sites

MOSCOW (MRC) -- Kemira has announced the closure of the Montevideo office in Uruguay effective from May 1, 2021, as per the company's press release.

This action is aligned with the company's global strategy to optimize the use of its sites and reduce operational costs by implementing remote work when possible.

With this change, the personnel based at the Montevideo office will work remote or be transferred to Kemira’s office located at the UPM Plant in Fray Bentos, where Kemira has been established since 2007.

This action will not result in a reduction of Kemira’s staff.

As MRC reported earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC