Pemex eyeing later refinery start-up date, months after initial announcement

Pemex eyeing later refinery start-up date, months after initial announcement

MRC -- Mexican state-owned oil company Petroleos Mexicanos is working to nail down the start-up date at its newest refinery, months after the government said it had begun early output to ramp up to full capacity by December, said Hydrocarbonprocessing.

The Dos Bocas refinery, in the Gulf state of Tabasco, was set to be fully operational and close to producing commercial-grade diesel and gasoline this month, former Energy Minister Rocio Nahle said in September.

The refinery, which is to process 340,000 barrels per day (bpd) at full capacity, has said it had received its first load of crude and begun refining it.

Mexican President Andres Manuel Lopez Obrador had also said the refinery, with a price tag which has more than doubled the initial estimate of $8 billion, would be producing tens of thousands of barrels a day by the end of the year.

Both deadlines were met with skepticism from analysts and the top Pemex executives who spoke on the condition of anonymity, noting that a series of pipeline connections and tests are needed at the refining before it can ramp up production. Pemex said late Wednesday the refinery was still being inspected.

Pemex CEO Octavio Romero visited the site "with the objective of reviewing how the facilities will operate and planning start-up dates for the project," the oil firm said on its X social media account. Pemex did immediately not respond to a request for comment.

Romero was still in Tabaso on Thursday, a source told Reuters. He met with Lopez Obrador earlier this week at the refinery. Neither the government nor Pemex have given further insight into the refinery's status. Mexico has for years struggled with its expensive, obsolete refining system, and the president has heavily propped up the indebted oil company during his administration.

With its six active domestic refineries, Pemex is processing less than half of its combined capacity of 1.6 million bpd. Lopez Obrador had promised to achieve fuel self-sufficiency by 2024, when his term ends. In addition to Dos Bocas, Pemex purchased a refinery in Texas and is building two coker plants, though Pemex continues to import massive quantities of gasoline and diesel.

We remind, Maersk is about to launch the first of its 18 large methanol-enabled vessels currently on order. On 9 February 2024, it will enter service on the AE7 string connecting Asia and Europe, which includes port calls in Shanghai, Tanjung Pelepas, Colombo and Hamburg (see all port calls in the fact box below), with Ningbo, China, being its first destination.

mrchub.com

INEOS announces the acquisition of the LyondellBasell Ethylene Oxide and Derivatives business

INEOS announces the acquisition of the LyondellBasell Ethylene Oxide and Derivatives business

MRC -- INEOS has announced an agreement with LyondellBasell to buy its Ethylene Oxide and Derivatives business including the Bayport Underwood site, Texas, said the company.

The deal includes the 420 kt Ethylene Oxide plant, the 375 kt Ethylene Glycols plant and the 165kt Glycol Ethers plant together with all associated third-party business on the site, for $700 million.

Ethylene Oxide plays an essential role in the day-to-day life of millions of people. It is a key raw material used in large-scale chemical production around the world. It is necessary for the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soap and detergents.

The first site acquired by INEOS in 1998 was the Ethylene Oxide facility at Zwijndrecht Belgium. As a key raw material, this Ethylene Oxide facility became the foundation from which INEOS has grown its chemicals business.

Tobias Hannemann, CEO INEOS Oxide said, "We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its Ethylene Oxide & Derivatives business into the US, which is the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.

There is free land on the Bayport Underwood site for INEOS’ growth aspirations and it is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing Ethylene Oxide & Derivatives platform. We look forward to welcoming the business, site and team of very professional and highly motivated people into the global INEOS group.”

The LyondellBasell Ethylene Oxide & Derivatives site in Bayport Underwood produces high-quality ethylene oxide and derivatives. The fully integrated platform has access to cost advantaged US energy, feedstocks and logistics networks, and has both an excellent performance record and reputation in the market.

“This transaction is evidence of our disciplined focus on value creation through the execution of a key pillar of our strategy – growing and upgrading our core,” said Peter Vanacker, LyondellBasell CEO. “We remain proud of the positive cash generation, access to advantaged feedstocks, reliability and highly skilled team that makes up the EO&D business and are excited to have reached an agreement with INEOS to enable the business to continue generating value under different ownership.”

All current employees on the LyondellBasell Bayport Underwood Site and some who work offsite, will transfer over to INEOS on completion of the transaction.

Target completion is the second quarter of 2024, subject to regulatory and other third-party approvals, at which point INEOS will acquire a site with world class assets, leading production facilities and a successful and experienced team.

We remind, INEOS has announced it has completed the acquisition of the Eastman Texas City site, the 600kt Acetic Acid plant and all associated third party activities, from Eastman Chemical Company. As previously announced, Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.

mrchub.com

Maersk to deploy first large methanol-enabled vessel on Asia - Europe trade lane

Maersk to deploy first large methanol-enabled vessel on Asia - Europe trade lane

MRC -- Maersk is about to launch the first of its 18 large methanol-enabled vessels currently on order. On 9 February 2024, it will enter service on the AE7 string connecting Asia and Europe, which includes port calls in Shanghai, Tanjung Pelepas, Colombo and Hamburg (see all port calls in the fact box below), with Ningbo, China, being its first destination, said Hydrocarbonprocessing.

The container vessel built by Hyundai Heavy Industries (HHI) in South Korea has a nominal capacity of 16,000 containers (TEU) and is equipped with a dual-fuel engine enabling operations on methanol as well as biodiesel and conventional bunker fuel.

Maersk has set a Net-Zero greenhouse gas emissions target for 2040 across the entire business and has also set tangible and ambitious near-term targets for 2030 to ensure significant progress. Maersk has secured sufficient green1 methanol to cover the vessel’s maiden voyage and continues to work diligently on 2024-25 sourcing solutions for its methanol-enabled vessel fleet.

“Deploying the first of our large methanol-enabled vessels on one of the world’s largest trade lanes, Asia - Europe, is a landmark in our journey towards our Net-Zero target. With the vessel’s capacity of 16,000 containers, this will make a significant impact in our customers’ efforts to decarbonize their supply chains, and we are looking forward to introducing more methanol-enabled vessels on this and other trades during 2024.”

We remind, Lummus Technology and Toshiba Energy Systems & Solutions Corporation announced a master collaboration agreement to jointly pursue carbon capture projects. Lummus will provide its post-combustion carbon capture technology and Toshiba will provide its advanced amine-based solvents specifically tailored for post-combustion carbon capture and its system design guidelines optimized for Toshiba's solvents.

mrchub.com

Shell sees $6 B in oil and gas investments in Nigeria

Shell sees $6 B in oil and gas investments in Nigeria

MRC -- Shell sees a $5-B offshore oil investment opportunity in Nigeria and pledged to spend a further $1 B in five to 10 years to boost natural gas output for domestic supplies and exports, a presidential spokesperson said on Thursday, citing Shell's director of upstream operations, said Hydrocarbonprocessing.

Nigerian President Bola Tinubu held talks with Shell's Zoe Yujnovich in a move to attract capital to Africa's top energy producer, presidential spokesperson Ajuri Ngelale said in a statement. Yujnovich was cited as saying Shell has "an imminent $5 billion investment opportunity" in the offshore Bonga North oil project.

"I am really keen to make that investment as soon as possible. We want to continue and build a pipeline of new investments in Nigeria," Yujnovich said. A Shell spokesperson did not immediately respond to calls seeking comments.

Nigeria's oil output has been in decline for years, hobbled by large-scale theft and sabotage. It has picked up in recent months, helped by offshore production that is less prone to attacks. Tinubu pledged to resolve "all investment-related issues" slowing the flow of capital into Nigeria's energy industry.

"There is no bottleneck that is too difficult for us to remove in our determined march toward making Nigeria the African haven for large scale investments," Tinubu was quoted as saying.

We remind, Shell plc subsidiary Shell Gas BV and partners in the Oman LNG LLC venture signed an amended shareholders’ agreement for Oman LNG LLC extending the business beyond 2024.Oman LNG in turn signed various agreements to secure its gas supply until 2034, Shell said in a release Oct. 23.

mrchub.com

Lummus and Toshiba Announce Partnership for Advanced Carbon Capture Solutions

Lummus and Toshiba Announce Partnership for Advanced Carbon Capture Solutions

MRC -- Lummus Technology, a global provider of process technologies and value-driven energy solutions, and Toshiba Energy Systems & Solutions Corporation (“Toshiba”) announced a master collaboration agreement to jointly pursue carbon capture projects, said the company.

Lummus will provide its post-combustion carbon capture technology and Toshiba will provide its advanced amine-based solvents specifically tailored for post-combustion carbon capture and its system design guidelines optimized for Toshiba’s solvents.

“I am excited about our partnership with Toshiba, which expands Lummus’ range of low carbon solutions and aligns with our commitment to lowering emissions for the downstream energy industry,” said Leon de Bruyn, President and Chief Executive Officer, Lummus Technology. “Combining Lummus’ post-combustion carbon capture technology with Toshiba’s highly competitive solvents and technology gives our customers a strong option for CAPEX and OPEX solutions as they advance their carbon capture investments.”

“We are delighted to collaborate with Lummus to introduce our advanced amine-based solvent and CO2 capture solution to a broader audience,” said Shinya Fujitsuka, Senior Vice President of Toshiba Energy Systems & Solutions Corporation. “Addressing the urgent need for decarbonization is paramount, and I have every confidence that our partnership with Lummus will enable us to make meaningful contributions towards achieving this goal.”

Central to this collaboration is Lummus’ access to Toshiba’s advanced amine-based post-combustion carbon capture solvents and technology that have been used in commercial and demonstration plants in Japan capturing over 600 tons per day of CO2. This access allows Lummus to integrate its technology into project designs, delivering operational excellence and a competitive cost structure for customers. By incorporating Toshiba’s advanced solvents, Lummus can offer clients an OPEX-competitive solution, characterized by lower specific energy consumption per ton of CO2 absorbed, higher solvent stability against degradation and reduced amine emissions.

We remind, Lummus Technology announced it has signed a Strategic Supply Agreement with NET Power Inc. to design and supply recuperative heat exchangers for NET Power's near-zero emissions power generation process.
The HXR recovers energy from the turboexpander exhaust and air separation unit to reheat recirculated CO2, making it one of the most important equipment components in the NET Power Cycle.

mrchub.com