GS Caltex completes construction of $2 billion petrochemicals manufacturing plant

GS Caltex completes construction of $2 billion petrochemicals manufacturing plant
GS Caltex completed the construction of its 2.7-trillion-won (USD2 billion) petrochemicals manufacturing plant in Yeosu, South Jeolla, said Koreajoongangdaily.

The biggest investment project ever by GS Caltex aims to diversify the company’s portfolio outside the oil refining business and into petrochemical manufacturing, therefore reducing the company’s exposure to crude price fluctuations.

The newly-built production plant, a mixed feed cracker (MFC), will mainly produce olefins such as ethylene and polyethylene. Olefins are widely used as raw materials for plastics, rubbers and chemical products.

The MFC will annually produce 750,000 tons of ethylene, 500,000 tons of polyethylene, 410,000 tons of propylene, 240,000 tons of mixed C4 raffinate and 410,000 tons of pyrolysis gasoline, according to GS Caltex.

Unlike naphtha crackers, which uses only naphtha for petrochemicals production, MFCs can use not only naphtha but other feedstock such as liquid petroleum gas and refinery off-gas, which are crude refining byproducts. The facility can also produce hydrogen using naphtha and refinery off-gas, replacing the previously-used liquefied natural gas, and therefore cut carbon emissions by 76,000 tons a year, said GS Caltex.

“The completion of the MFC facility will serve as a major turning point for us, in terms of business diversification through the non-oil refinery business expansion and growth,” said GS Caltex CEO Hur Sae-hong.

“Amid high volatility, we now have the capability to respond to market demand with a diverse product line-up.”

Hur added that GS Caltex will “develop other high value-added products in the future,” to become an all-encompassing energy company, from oil refining to petrochemicals, renewable energy and material recycling.

GS Caltex is 50 percent owned by GS Energy, a wholly owned subsidiary of GS Holdings, and 50 percent owned by the American company Chevron.

A ceremony to celebrate the completion of the MFC was held Friday in Yeosu, attended by CEO Hur, South Jeolla Gov. Kim Yung-rok and Second Vice Minister of Trade, Industry and Energy Park Il-jun.

We remind, South Korea's oil refining and energy giant GS Caltex has teamed up with leading domestic companies in their respective fields to enter the carbon capture, utilization and storage (CCUS) sector.
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PT Kilang Pertamina Internasional selects Univation UNIPOL PE process for two reactor lines in Indonesia

PT Kilang Pertamina Internasional selects Univation UNIPOL  PE process for two reactor lines in Indonesia

PT Kilang Pertamina Internasional ("PT-KPI") has selected Univation's UNIPOL™ PE Process for two reactor lines. Each reactor line is designed to achieve nameplate capacities of 350,000 tons per annum for a combined polyethylene (PE) production capacity of 700,000 tons per annum, said the company.

The two new reactor lines will be located at PT-KPI's Tuban Complex, East Java, Indonesia. PT-KPI will access the "full-density" flexibility of their two new UNIPOL™ PE Process lines to produce a broad array of both HDPE and LLDPE products to satisfy growing PE demand within the Indonesian region.

PT-KPI will utilize Univation's advanced PRODIGY™ Bimodal HDPE Technology and advanced ACCLAIM™ Unimodal HDPE Technology to cover key end-use applications including large part blow molding, unimodal and bimodal films, and pressure and non-pressure pipe products. PT-KPI will also access Univation's UCAT™ J Catalyst to produce grades that cover large-volume product segments including LLDPE film and HDPE injection molding applications.

PT-KPI has also selected Univation's advanced process control platform ? PREMIER™ APC+ 3.0 ? to further enhance the overall operating performance of their two UNIPOL™ PE Process lines. Specifically developed for the UNIPOL™ PE Process, the APC+ 3.0 platform represents Univation's latest generation of advanced process control software with capabilities that include optimizing raw material utilization, maximizing production rates, and enabling seamless product grade transitions. Additionally, PT-KPI has elected to utilize the UNIPOL™ PE Process Virtual Plant Simulator ("UVPS") software. The recently updated UVPS training platform delivers a realistic training experience allowing PT-KPI to train its operating staff on all essential unit operations related to the UNIPOL™ PE Process including steady-state and transitional operating procedures.

Luis Cirihal, president of Univation Technologies, commented, "Our Univation expert teams are already fully engaged on this important Indonesian project to enable PT-KPI with the successful construction, commission, and start-up of their two new UNIPOL™ PE Process lines". Luis continued his comments, "We further look forward to supporting PT-KPI as they take full advantage of the broad PE product flexibility for both highly competitive large-volume grades as well as key specialty grades. Furthermore, we are focused on assisting PT-KPI with their on-going product needs after start-up as they continue to successfully produce a variety of HDPE and LLDPE grades that are vital to satisfy Indonesian PE market needs – both today and into the future".

PT Kilang Pertamina Internasional provided their comments, "We are pleased to collaborate with Univation Technologies on our two new polyethylene reactor lines as we prepare to introduce this new significant source of polyethylene supply to Indonesia and the Asia Pacific region. In accordance with Design Build Competition (DBC) concept, Univation Technologies is registered in our Approved Licensor List and was chosen by the entire group of EPC contractors who competed in our Bidding (Tender) Process".

We remind, Pertamina Power Indonesia, Keppel Infrastructure and Chevron New Energies have agreed to develop green hydrogen and green ammonia in Sumatera, Indonesia. The signing of the JSA took place at the Business 20 (B20) Investment Forum held in conjunction with the B20 Summit in Bali.

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Wood Group to pay USD115m to settle legacy lawsuit

Wood Group to pay USD115m to settle legacy lawsuit

Engineering giant John Wood Group has agreed to pay out USD115m (GDP97.5m) to settle a legacy lawsuit, said BBC.

The Aberdeen-based firm's settlement follows the conclusion earlier this year of a lawsuit involving Enterprise Products Operating LLC. Enterprise first filed a lawsuit against Amec Foster Wheeler and one of its subsidiaries in 2016, the year before Wood bought Amec.

It related to alleged cost increases and delays on a project agreed in 2013. The contract involved the engineering, procurement and construction of a propane dehydrogenation unit in Texas.

Wood said on Friday that the agreed settlement would be paid in one instalment within the next seven days.

In September, Wood announced it had completed the sale of its Built Environment consulting business to Canadian firm WSP Global for about USD1.8bn (GDP1.52bn), immediately reducing its net debt position.

As per MRC, Wood has been awarded the front-end engineering design (FEED) scope for Gen2 Energy’s green hydrogen production facility, located in Mosjoen in northern Norway. Gen2 Energy is a Norwegian company dedicated to developing, building, owning and operating an integrated value chain for green hydrogen. The company targets having several large-scale production facilities for green hydrogen, making it easy and cost efficient for consumers to adapt to green hydrogen.
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Asahi Kasei acquires ISCC PLUS certification for several products

Asahi Kasei acquires ISCC PLUS certification for several products

Asahi Kasei, a diversified Japanese multinational company, and its affiliated companies have acquired the widely recognized international certification ISCC PLUS1 for several products, said the company.

The certification ensures that biomass, recycled materials, etc., are appropriately managed under the mass-balance method2 in the whole supply chain including manufacturing. With the acquisition of this certification, Asahi Kasei will be able to provide ISCC PLUS certified products.

The Asahi Kasei Group aims to contribute to a carbon-neutral and sustainable world from the perspective of “Care for Earth” by focusing on initiatives such as the use of biomass raw materials, recycled raw materials, and renewable energy. The company strives to meet the expectations of its customers and society by further advancing the provision of products and services with such sustainable characteristics while deepening collaboration with other companies based on its medium-term management plan for fiscal 2024 focused on the theme "Be a Trailblazer."

We remind, Asahi Kasei Plastics Singapore Pte Ltd (APS), a wholly owned subsidiary of Asahi Kasei, acquired the widely recognized international certification ISCC PLUS for its polyphenylene ether (PPE) as a sustainable product on September 19, 2022. Production of PPE using biomass-derived raw material is scheduled to begin in January 2023.

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GS Caltex to enter carbon capture, utilization and storage sector

GS Caltex to enter carbon capture, utilization and storage sector

South Korea's oil refining and energy giant GS Caltex has teamed up with leading domestic companies in their respective fields to enter the carbon capture, utilization and storage (CCUS) sector, said Kedglobal.

The company on Tuesday said Korea East-West Power, Hyundai Glovis, Hanwha Solutions, Samsung Construction and Trading (C&T), Namhae Chemical, Linde Korea, GS Energy and GS Engineering and Construction (E&C) signed an agreement to form the CCUS consortium.

Under the deal, the eight companies will capture CO2 emissions from plants at Yeosu National Industrial Complex in Yeosu, South Jeolla Province, including GS Caltex's plant there, for use as raw materials for chemical conversion and mineral carbonation.

The remaining carbon dioxide will be sent to landfills at home and abroad for underground storage. Under the carbon treatment method, CCUS technology is divided into carbon capture and storage (CCS) and carbon capture and utilization (CCU).

GS Caltex will take fully part in the development of the CCUS business covering CO2 collection, utilization and storage and supervise the supply of blue hydrogen.

Hyundai Glovis will handle sea shipping for the carbon dioxide, which will be used in CCS operations at a storage facility developed by GS Energy and Linde Korea.

The CCU side will be done by Hanwha Solutions, Hyundai Glovis, GS E&C, Samsung C&T and Namhae Chemical. Korea East-West Power will conduct carbon capture and supply blue hydrogen.

We remind, GS Caltex Corp., a major South Korean refiner, said Friday it has completed the construction of a new olefin cracking facility on the country's southwest coast, as it seeks to expand the petrochemical business. The new mixed feed cracker (MFC), built in Yeosu, about 320 kilometers south of Seoul, will annually produce 750,000 tons of ethylene, 500,000 tons of polyethylene and 410,000 tons of propylene, among others
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