Fire extinguished at Valero Port Arthur refinery

MOSCOW (MRC) -- A fire on the small hydrocracking unit (HCU) was extinguished on Thursday afternoon at Valero Energy Corp’s 335,000-barrel-per-day Port Arthur, Texas, refinery, reported Reuters with reference to people familiar with plant operations.

The fire, which broke out at about noon CDT (1700 GMT), shut the 45,000-bpd 942 HCU at the refinery, the people said.

Valero did not reply to a request for comment.

All personnel at the refinery have been accounted for, the people said. There were no reports of injuries.

The fire started after a seal on a hydrocracker charge pump blew out, the sources said. Because both volatile hydrocarbons and hydrogen are present in an HCU, fires on those units pose a risk of large explosions.

As MRC wrote previously, Valero Energy Corp, the second largest US crude oil refiner, planned to operate its 14 refineries up to 89% of their combined total throughput capacity of 3.15 million barrels per day (bpd) during the second quarter of 2021.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Indian Oil Corp. Ltd. (IOC) has let contracts to McDermott International Ltd. to provide engineering, procurement, construction, and commissioning (EPCC) services for separate projects involving the addition of new units at two of its refineries in India, according to Oil&Gas Journal.

As part of the first contract, McDermott will deliver EPCC for implementation of a new diesel hydrotreating unit and associated installations to be added as part of IOC’s project to increase crude oil processing capacity at its 6-million tonne/year (tpy) Barauni refinery in Begusarai District, Bihar, McDermott said on June 14.

Under the second contract, McDermott will execute EPCC for a catalytic dewaxing unit to improve quality and production capacity of lubricant base oils at the operator’s 8-million tpy refinery in Haldia, Purba Medinipur, West Bengal, India.

Alongside EPCC services, McDermott’s scope of work under the projects - both of which are scheduled to begin by the end of June - also includes project management, residual process design, detailed engineering, fabrication, transportation, and mechanical completion.

The service provider did not reveal a value of the EPCC contracts.

Officially approved in 2020, the 148.10-billion rupee Barauni refinery expansion will increase crude processing capacity by 3 million tpy to 9 million tpy as well as add downstream polymer units at the site as part of IOC’s strategy to help meet growing domestic demand for petroleum products in India (OGJ Online, Aug. 3, 2020).

According to the latest project documents available from IOC, India’s Ministry of Environment, Forest, and Climate Change (EFCC), and Envirotech East Pvt. Ltd. - which completed the project’s environmental impact assessment study in November 2018 - the Barauni capacity expansion will include construction of the new 9-million tpy atmospheric-vacuum distillation unit (AVU) to replace the refinery’s three existing AVUs, which will be idled (OGJ Online, Apr. 8, 2020).

Alongside addition of the new 1.2-million tpy diesel hydrotreating unit, the project also entails installation of major grassroots units.

The expansion project also will involve revamps and upgrades to increase capacity of current units at the refinery.

Part of India’s commitment to produce cleaner fuels, the Haldia catalytic dewaxing unit- which, once in service, will be the refinery’s second comes as part of IOC’s capacity augmentation of its Bharat Stage VI (BS-VI, equivalent to Euro 6) plant to produce low-sulfur fuels and help reduce India’s current reliance on imports of lube base oils.

First proposed in 2016, the catalytic dewaxing unit at Haldia will be equipped to produce 100% premium API Group III base oils by processing unconverted oil from an upstream hydrocracking unit at the refinery. The unit also will have the capability to produce API Group II base oils, as well as white oil and transformer oil as specialty products, according to a series of IOC official project documents filed with Indian regulators.

In a 2019 description of the proposed project, IOC said the Haldia refinery currently operates a 200,000-tpy catalytic Isodewaxing unit for production of API Group II base oils. The now 10.19-billion rupee (formerly 9.67-billion rupee) second catalytic Isodewaxing unit is scheduled for startup by January 2023, IOC said in May 2021.

As MRC reported before, Technip Energies has been recently awarded a significant Engineering, Procurement, Construction and Commissioning (EPCC) contract by Indian Oil Corporation Limited (IOCL) for its BR9 Expansion Project in Barauni, Bihar, in the Eastern part of India. This EPCC contract covers the installation of a new Once-through Hydrocracker Unit (OHCU) of 1 million metric tonnes per annum (MMTPA) capacity, a Fuel Gas Treatment Unit (FGTU) and the associated facilities.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

MOSCOW (MRC) -- U.S. crude oil stockpiles that include the Strategic Petroleum Reserve fell for the 11th straight week as refiners ramped up output, but fuel inventories grew sharply due to weak consumer demand, the Energy Information Administration said, as per Hydrocarbonprocessing.

Crude inventories that exclude the SPR fell by 5.2 million barrels in the week to June 4 to 474 million barrels, the third consecutive weekly drop, as refiners have boosted output as the economy recovers after the COVID-19 pandemic and in anticipation of more summer driving.

However, fuel stocks were up sharply, as demand was weak in the most recent week, with the product supplied falling to 17.7 MMbpd vs 19.1 million the week before.

Many people already had fuel because gasoline buyers across the U.S. East Coast hoarded supplies after the Colonial Pipeline ransomware attack shut the nation's largest fuel line for several days. Fuel demand also took a hit from thunderstorms up and down the coast during the Memorial Day weekend.

"These are lame demand numbers," said Robert Yawger, director of energy futures at Mizuho. "It seems the gasoline build is largely a function of the miserable weather we had Memorial Day weekend. It was pouring out, there was nowhere to go."

U.S. gasoline stocks rose by 7 million barrels in the week to 241 million barrels, compared with analysts' expectations for a 698,000-barrel rise. Distillate stockpiles, which include diesel and heating oil, rose by 4.4 million barrels, versus expectations for a 1.4 million-barrel rise.

Futures pared gains after the report. U.S. crude was up 28 cents to USD70.33 a barrel as of 10:48 a.m. EDT (1448 GMT) while Brent was 44 cents higher at USD72.66 a barrel.

Refinery crude runs rose by 328,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 2.6 percentage points, in the week.

As MRC informed earlier, Crude oil futures slipped during mid-morning trade in Asia June 11 after settling at fresh highs as the OPEC Monthly Report for June reinforced a positive demand outlook for the second half of the year. At 10.50 am Singapore time (0250 GMT), the ICE August Brent futures contract was down 57 cents/b (0.79%) from the previous settle at USD72/b, while the NYMEX July light sweet crude contract was down 51 cents/b (0.73%) at USD69.83/b.

Meanwhile, as MRC informed earlier, Indian refiners, anticipating a lifting of US sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year. The world"s third-largest oil consumer and importer halted imports from Tehran in 2019 after former US President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, donated 1,000 PPE suits made from recycled PET yarns to medical personnel fighting COVID-19, said the company.

The yarns are made from used PET bottles which are collected from around the country and recycled, including through partners such as Big C Supercenter and The Street Ratchada as part of their CSR programs. The high-quality yarns used to make the PPE suits are made from recycled PET bottles at IVL’s facility in Nakhon Pathom, which is Thailand’s only producer of recycled yarns for medical use. The medical graded PPE suits have been tailored by a producer certified by Thailand's Food and Drug Administration. The company recycles more 1.6 billion post-consumer PET bottles every year, including 60,000 post-consumer bottles collected and donated by The Street Ratchada and Big C.

500 of the PPE suits were donated to eight hospitals in Nakhon Pathom, namely Sam Pran Hospital, Nakhon Chaisi Hospital, Luang Por Poen Hospital, Huai Phlu Hospital, Don Tum Hospital, Bang Len Hospital, Kamphaeng Saen Hospital and Phuttha Monthon Hospital. Another 300 suits were given to field hospitals at Thammasat Hospital and in Nong Chok District in Bangkok, and the Naval Medical Department received 200 PPE suits.

In addition to the PPE suits, IVL is producing 1,000 bedding sets made of yarns 100% recycled from 45 PET beverage bottles and contain property of preventing virus and bacteria. The company will donate to field hospitals at Thammasat Hospital and in Nong Chok District.

Mr. Yash Lohia, Chief Sustainability Officer at Indorama Ventures, said, “We are a responsible Thai company, and as part of our commitment to our community we continue to look at how we can help those around us who may be affected by COVID-19. We have successfully developed recycled PET yarns suitable for the PPE suits since last year. Our goal is to protect the protectors – frontline medical personnel –in a sustainable way. Our 100% recyclable PET plastic has benefits as a hygienic and sustainable material. Our collaboration with The Street Ratchada and Big C will create more awareness of proper waste management and drive cooperation to help create a truly circular economy.”

Mr. Pongsak Nantawannakul, Managing Director at The Street Ratchada, said, "We have supported the production of the PPE suits by collecting the post-consumer PET bottles since last year. We were able to hand over a total of 730 kilograms of PET bottles being raw materials for recycling. We realize that medical personnel are working hard and are at risk of infection. It is important that all parties need to support each other and together fight against the outbreak situation. We would like to encourage all Thai people to be strong and go through this crisis together."

Mr. Piriya Kamoldechdecha, First Executive Vice President of Hyper, Market & Food Place Operations at Big C Supercenter Public Company Limited, a BJC Group retailer, revealed, "The PET bottles collection is part of ‘Biggie Bear Encourage Recycling’ project by the BJC Group’s Big C. We strive to be a driving force and take part in community, society and environment development as 'Thai Retailer with Customers at Its Heart'. More than 137 branches of Big C nationwide are now opening to collect post-consumer PET bottles. BJC Group’s Big C realize an increasing waste during the COVID-19 pandemic. That is why we have initiated the project. The collaboration with IVL has enabled us to bring tangible benefits to waste as well as support medical personnel."

IVL’s integrated oxides and derivatives site at The Woodlands, Texas, was acquired from Huntsman in January last year.

The Woodlands facility will also support IVL’s fibres and PET segments on various sustainability projects.Extensive designing and engineering of the research center will start in coming months, and full occupation is expected in early 2022. It will be a hub for IOD research in the Americas, with links to sister facilities in Australia, India, and China. The Woodlands facility will also support IVL’s Fibers and PET segments on various sustainability projects. IVL, the world’s biggest maker of fully recyclable PET bottles, is investing USD 1.5 billion to towards its recycling and net zero targets.

As per ScanPlast, Russia's calculated consumption of polyethylene terephthalate (PET) grew to 263,660 tonnes in the first four months in 2021, up 13% compared to the same period in the previous year. 78.3% of the increase in consumption falls on the share of bottled PET chips due to the virtual absence of exports and an increase in the volume of imports.
MRC

MOSCOW (MRC) -- NOVA Chemicals Corporation has announced Avik Dey will become Senior Vice President and Chief Financial Officer, effective June 15, as per the company's press release.

Dey succeeds Julie Beck, who will transition to the role of Special Advisor to the Chief Executive Officer.

Dey will be responsible for NOVA Chemicals’ finance, strategy, information technology, and government relations teams, reporting to Luis Sierra, President and CEO. He will become a member of NOVA’s senior executive committee and will be based in Calgary, AB.

Dey joins the company from the Canadian Pension Plan Investment Board (CPPIB) where he most recently served as Managing Director, Head of Energy & Resources. While at CPPIB, Dey held numerous board memberships and led the strategy to build the portfolio of one of the world’s leading private investors focused on energy transition. Throughout his 20-year career, Dey has invested over USD9Bn of private and public capital and is an established, highly regarded investor, entrepreneur, and corporate executive. He has held senior financial, accounting and control leadership positions across energy, investment management and professional sports in Canada and the US.

Dey currently serves as a director of Enactus Canada. He has recently served on the boards of Calpine Corporation, Seven Generations Energy, Wolf Midstream and Chaired the boards of Teine Energy and Crestone Peak Resources. Dey was named to Canada’s Top 40 under 40 for 2017 and holds a Bachelor of Commerce from the University of Calgary.

As MRC reported earlier, in May 2021, three leading resin makers – Canada’s Nova Chemicals Corp. among them –established a USD100-million investment fund to help finance recovery and recycling of polyethylene (PE) and polypropylene (PP) in Canada and the US. Nova, Dow Inc. and LyondellBasell Industries are contributing a total of USD25 million to start the Closed Loop Circular Plastics Fund, which they said they hope to grow to USD100 million with money from other corporate and financial investors. The fund is being managed by New York-based investment firm Closed Loop Partners.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is wholly owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates. The company develops and manufactures chemicals and plastic resins.
MRC