Hyundai Engineering In USD3.2B Petrochemical Project In Iran

MOSCOW (MRC) -- South Korea’s Hyundai Engineering Co said on Monday that it had signed a deal worth USUSD3.2 billion with Iran’s Ahdaf Investment Company for the construction of the second phase of a petrochemical complex in Iran, said Koreaherald.

"The project allowed us to spearhead into the Iranian construction market as a lead manager. We plan to do everything in our capacity to clinch additional projects in the future," a spokesperson for Hyundai told The Korea Herald, which noted that the deal is the largest so far signed by a South Korean company in Iran.

Hyundai Engineering will act as lead manager of the Kangan Petro Refining Complex in southwestern Iran. The petrochemical complex is planned to have an annual production of around 1 million tons of ethylene, 500,000 tons of monoethylene glycol, and 350,000 tons of heavy and light polyethylene, The Korea Herald reported.

The financing of the deal – which was signed as an Engineering, Procurement, Construction and Finance (EPCF) contract -- will be finalized within nine months by Korean banks, the Iranian oil ministry’s news service Shana said on Sunday. Construction will take 48 months, according to the Iranian news service.
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MOSCOW (MRC) -- SOCAR GPC, a gas-processing project of the State Oil Company of Azerbaijan Republic (SOCAR), has selected UNIPOL PE Technology licensed by Univation Technologies for use in its world-scale 600KTA polyethylene plant to be built in Garadagh, Azerbaijan, as per Businesswire.

This project represents the first UNIPOL PE Process licensed in Azerbaijan and by SOCAR. The new polyethylene facility will take advantage of the flexibility of the UNIPOL PE Process to manufacture conventional and advanced polyethylene products covering a broad range of both high-density polyethylene (HDPE), including best-in-class HDPE injection molding grades, as well as linear low-density polyethylene (LLDPE) resin grades.

SOCAR GPC has also selected Univation’s XCAT Metallocene Polyethylene Technology for the manufacture of advanced metallocene film structures suitable for high-performance food packaging, stretch-wrap, heavy-duty sack and specialized multi-layer applications.

Production output from this new PE plant will be focused on satisfying growing polyethylene demand in both domestic and European markets in a wide range of goods.

SOCAR’s UNIPOL PE Process line will deliver a broad, flexible product mix with the agility to shift between HDPE and LLDPE over time to meet their customers’ evolving needs and underlying market opportunities. Furthermore, this world-scale 600KTA line will allow significant economy-of-scale benefits enabling both project capital cost efficiencies and ongoing highly competitive manufacturing costs.

As part of the Univation-Linde Alliance, Linde AG (Engineering Division) will complete the basic engineering design package (BEDP) for the project. In 2016, Univation and Linde Engineering entered into an Alliance relationship focused on delivering operating and capital cost advantages for both new build and retrofit projects for UNIPOL PE Technology.


MRC

MOSCOW (MRC) -- CH2M has signed a framework agreement with Shell to provide engineering, procurement, construction and project management services across upstream, integrated gas and downstream projects globally, said Hydrocarbonprocessing.

"We are committed to improving and embracing fundamental changes to how the industry delivers engineering, procurement, and construction projects," said CH2M Chair and CEO Jacqueline Hinman. "These changes are critical to owners and service providers."

As an engineering, procurement and construction services provider, CH2M will focus on delivering projects for Shell's operating sites and business units. This collaboration will allow Shell's business units to access CH2M's global technical and management expertise.

"We share Shell's commitment to KPI-driven performance measurement and incentives, and to innovation that will migrate the capital project life-cycle to a fully data-driven environment. These ways of working are inherent in our values, and our collective ideas and commitment can improve capital efficiency across Shell's asset base," said Sheila Galegher, Vice President and CH2M's Global Account Manager for Shell. "We are ready to be the change agent Shell needs to deliver on their goals."

As MRC wrote before, in March 2016, Shell and Saudi Aramco announced plans to break up Motiva Enterprises LLC and divide up the assets, almost two decades after forming the US oil refining and marketing joint venture.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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MOSCOW (MRC) -- At least eight people were injured on Wednesday by explosion at a Pemex fuel storage and distribution facility near the state-owned oil company's Salamanca refinery, in the central Mexican state of Guanajuato, said Reuters, citing Pemex.

The company said there were no deaths or "severe damages" at the facility, which supplies gasoline to regional buyers. It added that the fire has been extinguished.

The blast occurred as workers were filling a tanker truck with fuel in a part of the plant away from storage facilities, Pemex said in a statement.

As MRC informed earlier, Pemex is investing almost USD5.5bn in upgrading its refineries, increasing pipeline capacity and modernising a fertiliser plant.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
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MOSCOW (MRC) -- Indian Oil Corp became India's first refiner to buy light sweet Hibernia crude from Canada's largest oil company, doing the deal after the opening of the arbitrage for Canadian oil to flow to Asia, reported Reuters.

Production in North America, led by US shale output, is increasing after supply cuts by OPEC and non-OPEC countries pushed oil prices to above USD50 a barrel.

This was also the first time that Suncor Energy has sold a cargo of offshore Canadian crude to IOC, a Suncor spokeswoman Sneh Seetal said on Wednesday.

Seetal declined to say how big the cargo was or when it would load, but confirmed Canada's biggest oil company had won an Indian Oil Corp tender.

"We do market our offshore crude production globally on an opportunistic basis," she said.

Trade sources said Suncor sold the 1-MM-barrel cargo of Hibernia crude to IOC on a free on board basis. Separately, IOC has also bought its first Russian Urals crude cargo in about a year in another tender.

IOC previously bought a cargo of Canadian White Rose oil in November 2013. State-refiners like IOC were last year given the freedom to draw up the crude import strategies that would allow them to make swift gains from changing market dynamics.

News of the Suncor cargo comes after market sources this week said two other vessels carrying Atlantic Canadian crude are on their way to China.

The Stena Suede and the Jag Lalit, both Suezmaxes, loaded at Whiffen Head terminal, Newfoundland, according to Reuters ship tracking data. At least one of them was sold by Husky Energy to buyer PetroChina, two sources said.

Husky had said in February it sold its first one-million-barrel cargo of offshore Atlantic Canada crude bound for China from its White Rose field.

As MRC wrote before, Indian Oil Corporation's Rs 34,555-crore 15 million tonnes per annum Paradip Refinery was commissioned in phases from March 2015 onwards. Indian Oil Corporation is conducting feasibility studies to set up a petrochemical complex at Paradip in Odisha for Rs 20,000 crore. The petrochemical complex would be built in the vicinity of the company’s to-be-commissioned 15-mln tpa greenfield refinery at Paradip. The petrochemical complex would be in addition to the already announced Rs 3,150-crore polypropylene project at the same location, the foundation stone for which was laid by MOS for petroleum and natural gas.

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