Baker Hughes opens new chemicals facility in Singapore

Baker Hughes opens new chemicals facility in Singapore

MOSCOW (MRC) -- Baker Hughes is expanding its presence in Asia by opening a new oilfield services chemicals manufacturing facility in Singapore, enabling manufacturing optimization and faster delivery of fit-for-purpose chemical solutions, said Hydrocarbonprocessing.

The facility, which spans approximately 40,000 square meters, will manufacture, store and distribute chemical solutions for upstream, midstream, downstream and adjacent industries to support regional customers and boost Baker Hughes localization efforts.

The new facility builds on Baker Hughes’s recent strategy to source and produce chemicals in proximity to key demand hubs, including the announced chemicals joint venture company with Dussur in Saudi Arabia. As a technology-driven, automated facility, the Singapore facility is aligned with Baker Hughes’ goals for carbon reduction and in support of Singapore’s “Green Plan 2030” – a national sustainability movement to tackle climate change for building a sustainable future with net zero emissions. The facility’s overall process design, in addition to the facility’s ethylene oxide pipeline, also reduces the need for road transport and handling of chemicals.

“The opening of the Singapore chemicals manufacturing facility significantly expands our ability to serve the Asia-Pacific region’s oilfield services industry,” said Maria Claudia Borras, executive vice president for oilfield services at Baker Hughes. “The opening of this facility is aligned to our vision of supporting customers’ needs and investing for growth in the increasingly important chemicals sector. We are proud to make this investment, and I am excited for the opportunities that lie ahead."

"Baker Hughes has a longstanding commitment to localization in the region. By investing in this facility, we are enabling job creation, enhancing supply chain practices, and streamlining our operations,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “It was an honor to celebrate this milestone with many esteemed guests today, notably Mr. Gan Kim Yong, Minister of Trade and Industry, Dr. Beh Swan Gin, Chairman of the Singapore Economic Development Board, Mr. Alvin Tan, Assistant CEO, of Industry Cluster Group, JTC Corporation, our customers, and our Baker Hughes team."

This is the first chemicals facility for Baker Hughes in the region. Outside of chemicals, Baker Hughes has a strong history of localization in Singapore with more than 800 employees throughout the country. The company’s Singapore footprint includes an oilfield services and equipment manufacturing site, a joint turbomachinery and process solutions and digital solutions site, and a completions and well intervention (CWI) manufacturing site.

“We warmly welcome Baker Hughes’ investment in a new facility to produce oilfield services chemicals from Singapore. It is testament to Singapore’s attractiveness to the high-value downstream specialty chemicals sector and will enable the company to address the growing demand from their customers in Asia Pacific,” said Dr. Beh Swan Gin, Chairman, Singapore Economic Development Board.

In conjunction with the facility opening, the Baker Hughes Foundation also announced it is in discussions to contribute a USD100,000 grant with the Singapore Management University to help drive positive social change in Singapore.

As per MRC, Singapore's petrochemical exports fell by 4.2% year on year in July to Singapore dollar (S$) 1.4bn, the first contraction in four months, weighing on overall non-oil domestic exports (NODX). The country's NODX fell to 7.0% year on year to S$17.8bn in July, slowing from the 8.5% expansion in June this year, Enterprise Singapore data showed. Non-electronic NODX, which includes pharmaceuticals and petrochemicals, rose by 6.1% year on year to S$13.7bn in July. Non-electronic NODX to six out of Singapore's top 10 NODX markets rose on a year-on-year basis in July.

JG Summit Olefins selects Aspen Technology to advance operations

JG Summit Olefins selects Aspen Technology to advance operations

MOSCOW (MRC) -- Aspen Technology, a global leader in industrial software, announced that the largest petrochemicals company in the Philippines, JG Summit Olefins Corporation, is advancing its journey toward operational excellence by unlocking untapped value in production optimization, said the company.

This planned deployment with Aspen Unified PIMS supports the company’s innovation-driven vision and is projected to boost operating margin by optimizing feedstock selection at the crackers. The JGSOC expansion project is a step toward further diversification of the local petrochemical and chemical industries and is envisioned to strengthen the industrial value chain linkages for the manufacturing sector.

Samuel Co Chan, Vice-President for Supply Trading and Product Optimization, JG Summit Olefins Group, said: “AspenTech’s distinct and transparent solutions align with JGSOC’s pursuit of operational excellence by deploying the best and most efficient technologies. As the leading, value-driven, and highly innovative software, Aspen Unified PIMS can enable production optimization with greater intuition, accuracy, and accessibility. JGSOC is deriving current benefits in plant efficiency and productivity with Aspen Plus and Aspen DMCplus solutions."

Lawrence Ng, Vice President of Sales, Asia Pacific & Japan, Aspen Technology, added: “AspenTech is pleased to deepen our partnership with JG Summit Olefins Group through the company’s latest adoption of Aspen Unified PIMS software. In advancing toward the Self-Optimizing Plant, this planned deployment empowers JGSOC with a scalable technology solution amidst industry skills shortage."

As per MRC, Linde Philippines announced the recent start-up of its nitrogen and hydrogen production units for JG Summit Olefins Corp's (JGSOC) naphtha cracker expansion at JGSOC's manufacturing complex in Batangas City, Philippines. Linde invested more than USD10 M in the new facilities, which came on stream this past Apr 2022. The plants will supply nitrogen throughout the naphtha cracker complex, and nitrogen and hydrogen will be supplied to JG Summit's polyethylene and polypropylene plants. PCN earlier reported that JGSOC's naphtha cracker is being boosted to 474,000 tonnes/y from 320,000 tonnes/y, and ethylene and propylene production were being expanded by 160,000 tonnes/y and 50,000 tonnes/y, respectively.

Russian gas flows to Europe remain stable

Russian gas flows to Europe remain stable

MOSCOW (MRC) -- According to According to the operator, the flow of gas from Russia to Europe through some major pipelines remained stable, albeit low, on Tuesday, said Industry-update.

Physical flows through art Nord Stream 1 pipeline from Russia to Germany was 14,604,119 kilowatt-hours (kWh) between 7:00 a.m. and 8:00 a.m. CET, in line with Monday’s reported level of about 14,600,000 kWh. The pipeline was operating at 20% of its capacity as Russia shut down flows on July 27, citing maintenance. In its statement, Russia blamed problems with the turbines for the initial shutdown of the crucial pipeline.

Applications for Russian gas to flow from Ukraine to Slovakia through the Velke Kapushany border crossing, in Slovakia’s eastern plains near Ukraine, totaled about 36.5 million cubic meters (mcm) per day, slightly higher than the previous day, according to statistics from the Ukrainian System Operator.

On Tuesday, Ras Gazprom “announced that it will deliver 42.2 million cubic meters of gas to Europe through the Ukrainian Suja entry point, compared to 41.9 million cubic meters on Monday. According to the data of the operator Gascade, on Tuesday, the flow of gas from Germany to Poland through the Yamal-Europe pipeline increased from day to day.

Output flows at the Mallnow measuring station on the German border were 4,153,766 kWh on Tuesday, compared with about 2,520,000 kWh the day before. Germany’s ongoing gas shortages, which forced it to draw on reserves and shut down part of its industrial sector in early August, could have serious consequences for Europe.

Russian gas producer Gazprom blamed Western sanctions for its refusal to accept a turbine repaired from Germany. Although Russia has decided not to resume supplies due to sanctions, it still exports gas to Europe at a lower rate.

As per MRC, Italian energy group Eni believes it will be able to completely replace Russian gas imports by 2025 as uncertainty over Moscow's energy supplies to Europe forces countries to seek alternative sources. After signing new gas supply agreements with Algeria, Egypt and Congo earlier this year, Eni sees additional opportunities arising in other countries including Libya, Angola, Mozambique, and Indonesia, as well as in its home country. The initiatives are designed to secure up to an equivalent of 100% of Russia's 20 Bcm3 of annual gas exports to the Italian market by 2025.

bp is considering the sale of oil assets in Mexico

bp is considering the sale of oil assets in Mexico

MOSCOW (MRC) -- Oil major BP is considering selling oil assets in Mexico to shift its focus to renewable energy sources in the country Bloomberg News, said Industry-update.

The oil company, in partnership with France’s TotalEnergies, Equinor, Hokchi Energy and Qatar Petroleum, signed three exploration contracts six years ago. The oil major has divested itself of its stake and is in the process of returning the blocks it secured to Mexico’s regulator, the National Hydrocarbons Commission, according to a company spokesman.

After Mexico introduced competitive oil auctions for the first time in eight decades in 2013 and 2014, several major oil companies, including BP, flocked to the resource-rich country. Although firms have successfully discovered and developed oil fields, operating the fields has become a challenge for companies since Andres Manuel Lopez Abrador became the country’s president in 2018.

The president wanted to reverse energy reforms passed by the previous government and reduce competition from state-owned oil giant Pemex to private players. The government has also called on oil companies to reduce their carbon footprint.

Earlier this year, BP won approval from CNH to buy back its stake in the shallow water contract, which was awarded in a consortium with TotalEnergies, Qatar Petroleum and Hokchi. In February 2022, Total acquired BP and Equinor’s stake in one deepwater block.

Bloomberg News quoted a BP spokesman as saying that the oil company has determined that the shallow-water block has a “very low” probability of success and that the commercial viability of the prospect is unlikely.

Through Hokchi Energy, BP indirectly owns a stake in the Mexican blocks. Hokchi Energy also owns more than 500 STAs in Mexico. Hokchi Energy is owned by Argentina’s Pan American Energy, which is a joint venture between BP and Bridas.

As per MRC, Cenovus Energy Inc has agreed to purchase partner bp PLC's 50% ownership interest in jointly held BP-Husky Refining LLC's 160,000-b/d refinery in Toledo, OH, US. As part the proposed deal, Cenovus will pay $300 M in cash for bp's stake in the refinery, plus the value of inventory, bp and Cenovus said in separate releases on 8 Aug 2022. Upon finalizing the transaction, Cenovus-which has held the other 50% interest in the BP-Husky Refining partnership since merging with Husky Energy Inc in 2021-will take 100% ownership of the venture, as well as assume operatorship of the refinery from bp. In addition to the refinery sale, the parties confirmed signing a multi-year product supply agreement, further details of which were not revealed.

Axalta releases second quarter 2022 results

Axalta releases second quarter 2022 results

MOSCOW (MRC) -- Axalta Coating Systems’ Q2 sales rose 9.6% year on year to USD1.23bn, led by record pricing and by volume growth, said the company.

However, income from operations of USD103.6m was down 45.6% due to continued variable cost inflation, foreign currency headwinds, and high expenses for logistics, labour and energy, the US-based coatings company reported.

Furthermore, the Russia-Ukraine conflict and China’s extended COVID-19 lockdowns weighed on Q2 2022.

Adjusted earnings before interest and tax (EBIT) were off 13.1% from Q2 2021.

We remind, Axalta, a leading global supplier of liquid and powder coatings, broke ground for construction of a state-of-the-art coatings facility in Jilin City, Jilin Province, North China. The 46,000-square-meter new plant will produce mobility coatings to support growing customer demand in China for light vehicles, commercial vehicles, and automotive plastic components. "Our new plant in Jilin is another building block supporting our ambitious growth strategy for our mobility business in China," said Nicolas Franc de Ferriere, Vice President, Mobility, Asia Pacific at Axalta.