Petrobras reaches 97,3% for the utilization factor of its refineries

MOSCOW (MRC) -- Petrobras’ refining units reached a Total Utilization Factor (FUT) of 97.3% in August, the best result since December 2014, said the company.

Total diesel production for the month was 3.78 billion liters, the highest in 2023. Production of S10 diesel, a more modern, sustainable and low-sulfur product, reached 2.37 billion liters in the same period. Spotlight for the record monthly production of S10 achieved at the Alberto Pasqualini Refinery (REFAP), with 258 million liters; at the President Bernardes Refinery (RPBC), which achieved 329 million liters; and at the Paulinia Refinery (REPLAN), where the 609 million liter landmark was achieved.

The results are important for damping price volatility in the foreign market. According to Petrobras' Director of Sales, Logistics and Markets, Claudio Schlosser, “the S10 diesel production increase in our refineries contributes to our commercial strategy, which provides for the practice of competitive prices in a profitable and sustainable way”, he celebrates.

According to Petrobras’ Director of Industrial Processes and Products, William Franca, the landmark achieved is the result of the reliability and quality of Petrobras’ operations. “The optimization of our processes is allowing us to expand production in our units and offer derivatives with profitability in the domestic market”, he says.

Petrobras’ refineries have been achieving successive records in FUT since May of this year. The calculation of the refining utilization factor takes into account the volume of oil processed and the reference capacity of the refineries, within the design limits of the assets, the safety, environmental and quality requirements of the derivatives produced.

We remind, Petrobras remains eager to repurchase a refinery from Abu Dhabi state investor Mubadala despite antitrust barriers, and a new biofuels partnership could open the door to future talks. Petrobras on Monday announced a memorandum of understanding with Mubadala for potential investment in a biofuel refinery under development in Bahia state by Mubadala-owned Acelen.

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MOSCOW (MRC) - The fire-damaged, gasoline-producing fluidic catalytic cracker (FCC) at Marathon Petroleum's 593,000 bpd Galveston Bay Refinery in Texas City, Texas, is expected to be shut until late this week, said people familiar with plant operations, said Reuters.

Repairs to ductwork damaged in a last Thursday fire on the 140,000-bpd FCC will last into next week, the sources said. The restart of the unit will follow the successful completion of the repairs. Marathon spokesperson Jamal Kheiry declined to comment.

The Thursday night fire in the FCC's regenerator began from a packing leak on a slide valve, the sources said. The fire was short in duration with the unit's operators putting it out before firefighters arrived.

Investigators from the U.S. Occupational Safety and Health Administration (OSHA) are beginning a probe of the fire, the sources said.

No injuries were reported from the Thursday fire. In the regenerator, carbon is removed from the fine powder catalyst that converts gas oil into unfinished gasoline in the FCC's reactor. Removing the carbon extends the life, improving the efficiency of the catalyst.

The Galveston Bay Refinery is the fourth largest by capacity in the United States.

In a May 15 fire on a reformer at the Galveston Bay Refinery, a Marathon employee was killed and two contract workers were injured.

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MOSCOW (MRC) -- Husky TechnologiesTM commemorated the next phase of expansion to the company’s India facilities with ceremonies at their new offices and existing Chennai campus, said Petnology.

The events were hosted by local leaders in the region, as well as senior executive, Robert Domodossola, President of Husky’s Rigid Packaging business.

These momentous celebrations kick off a robust expansion plan that will see a number of exciting developments executed throughout 2023, including: Additional capacity and capability for manufacturing hot runners
The first ICHORTM integrated medical injection molding system that produces blood collection tubes locally
The addition of an Advantage+EliteTM monitoring center to provide proactive, predictive and transparent monitoring services to our existing customers.

Expansion of local OEM parts inventory and team of highly skilled service technicians situated throughout the country to respond to customer service needs swiftly and efficiently.

We remind, Origin Materials and Husky Technologies announced a milestone in the commercialization of PET (polyethylene terephthalate) incorporating the sustainable chemical FDCA (furandicarboxylic acid) for advanced packaging and other applications.

Since selling the first PET system into India in 1999, Husky’s presence has grown to include more than 250 systems running in the field, delivery of more than 500 hot runners per year, a team of 10 trained service technicians and a robust parts inventory to support local customers.

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MOSCOW (MRC) -- India’s state-owned Oil and Natural Gas Corporation (ONGC) is planning to invest Rs150bn (USD1.8bn) in its petrochemical unit ONGC Petro-additions Ltd (OPaL), reported PTI via Economic Times.

The investment, which forms part of a financial overhaul, will see GAIL depart as a shareholder of OPaL, which operates a large petrochemical facility in Dahej, Gujarat.

ONGC controls a 49.36% stake in OPaL, gas utility GAIL owns a 49.21% share, and the remaining 1.43% stake is held by Gujarat State Petrochemical Corp (GSPC).

Last week, the ONGC board approved a financial reorganisation of OPaL, which has amassed an enormous amount of debt. In a stock filing, ONGC said it would buy back debt, convert share warrants into equity, and invest an additional Rs70bn in equity, giving it a roughly 95% interest in the petrochemical company.

The proposed plan includes “conversion of share warrants issued by OPaL and subscribed by ONGC into equity shares upon payment of final call money of Rs862.81m at the rate of Rs0.25 per warrant,” ONGC said.

In addition, ONGC will “buy back compulsory convertible debentures of Rs77.78bn.” Current owners of CCDs issued by OPaL with backing from ONGC include financial institutions.

According to the statement, ONGC will also invest Rs70bn in OPaL’s equity/quasi-equity security. Following the reorganisation, OPaL will become a subsidiary of ONGC.

The financial restructuring “will augment the holding of ONGC in OPaL and OPaL will become more profitable,” ONGC noted.

Set up in November 2006, OPaL petrochemical complex has an annual capacity to produce 1.5 million tonnes of polymers, 0.5 million tonnes of chemicals, and several other products through the associated units of pyrolysis petrol hydrogenation, butadiene extraction, and benzene extraction.

Last month, it was reported that ONGC would spend over USD24bn to achieve net zero emission targets by 2038.

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MOSCOW (MRC) -- BASF signed a 25-year power purchase agreement (PPA) with State Power Investment Corporation (SPIC) to purchase renewable electricity for its Zhanjiang Verbund site, which is under construction in Guangdong province, China, said the company.

The PPA is a further step in the renewable energy partnership between BASF and SPIC following the framework agreement signed in March 2022.

This partnership is another significant milestone for BASF in securing 100% green power supply for the Zhanjiang Verbund site by 2025. It is also another successful Sino-German low-carbon initiative following the letter of intent (LOI) signed by BASF and China National Development and Reform Commission (NDRC) in June 2023. Under the latest agreement, SPIC will supply 1,000 GWh of renewable electricity annually for BASF’s Zhanjiang Verbund site. Supply will start in 2025 to coincide with the startup of the steam cracker and core of the Verbund site. The electricity will mainly be generated from dedicated offshore wind power and photovoltaic plants in Guangdong, China.

“BASF is taking another concrete step closer towards its ambitious global climate targets. We are very glad to enter into this long-term partnership with SPIC, one of the world’s largest photovoltaic power generation companies, new energy power generation enterprises and clean energy power generation enterprises, on our path towards net zero emissions globally by 2050. Construction at BASF’s new Verbund site in Zhanjiang is in full swing. Once completed, the site will be a role model for sustainable production and will contribute to the green transformation of chemical industry as well as to China’s carbon reduction ambitions,” said Dr. Markus Kamieth, member of the Board of Executive Directors, BASF SE.

We remind, BASF has commenced construction of its syngas plant at the Verbund site in Zhanjiang, China. This world-scale syngas facility, fully integrated into the Verbund site, is scheduled to start up in 2025.


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