California safety, health board approves new hazard regulations for refineries

MOSCOW (MRC) -- The Department of Industrial Relations' (DIR) Occupational Safety and Health Standards Board approved a regulation to strengthen workplace safety and health at oil refineries across the state. The new regulation provides a framework for anticipating, preventing and responding to hazards at refineries, as per Hydrocarbonprocessing.

"This is the most protective regulation in the nation for the safety and health of refinery workers and surrounding communities," said DIR Director Christine Baker. "This new regulation will ensure California's oil refineries are operated with the highest levels of safety possible and with injury and illness prevention in mind."

The approved regulation introduces a new refinery safety order enforced by Cal/OSHA's Process Safety Management (PSM) Unit, adding section 5189.1 to Title 8 of the California Code of Regulations.

Most refineries in California have adopted some of the practices outlined above over the past decade. However, the industry still experiences major incidents that pose a risk to workers, nearby communities and cause disruption to fuel services. The regulation represents a comprehensive safety performance standard for the state's refinery sector. Now that the Standards Board has approved the regulation, the Office of Administrative Law has 30 working days to review and approve it.

The new rules are part of a package of complementary regulations intended to make California refineries safer for both workers and surrounding communities. The companion regulation strengthens the California Accidental Release Prevention (CalARP) program, designed to prevent the accidental release of hazardous substances that could harm public health and the environment. The revised CalARP regulation will also be submitted to the Office of Administrative Law for approval in the coming weeks.

Following a chemical release and fire at the Chevron refinery in Richmond in 2012, the Governor's Interagency Working Group on Refinery Safety called for the establishment of an Interagency Refinery Task Force. The task force was mandated to improve workplace safety and health, emergency preparedness and response procedures at refineries. The California Environmental Protection Agency formed the task force in August 2013, which includes DIR, eight other state agencies, the US Environmental Protection Agency, as well as local and regional agencies from across the state that have refineries in their jurisdictions.

As MRC informed before, on 20 June 2016, three workers suffered minor injuries when a crane collapsed at ExxonMobil’s Torrance refinery in Torrance, California. No reports were issued of damage to the refinery itself. The refinery’s flare system was activated to ensure the safety of refinery workers when operations were halted, and the Torrance Fire Department was onsite to prevent the possibility of a fire or vapor leak.
MRC

MOSCOW (MRC) -- German industrial gases group Linde and U.S. peer Praxair have reached a deal in principle on details of their proposed USD70 billion merger, said Reuters.

The all-share merger of equals, intended to create a market leader that will overtake France's Air Liquide (AIRP.PA), had fallen behind schedule due to complex talks over a Business Combination Agreement formalizing the deal.

The agreement still needs the approval of Praxair's board of directors as well as Linde's management and executive boards, Linde said, adding that signing the agreement was no guarantee the deal would be completed.

Labor representatives at Linde fiercely oppose the planned merger, mainly because moving the headquarters outside Germany will dilute their influence, which currently gives them an effective veto over strategic decisions.

The companies have said that the new combined Linde would be run out of Danbury, Connecticut by Praxair's CEO Steve Angel, with Linde supervisory board Chairman Wolfgang Reitzle as chairman. The headquarters of the new holding company will probably be in Ireland.

Investors and workers are equally represented on Linde's supervisory board, which must approve the deal.

Linde's Reitzle told Reuters this month that he would be reluctant but prepared to use his casting vote as chairman in the event of a stalemate with labor representatives.

German weekly WirtschaftsWoche earlier on Wednesday cited sources as saying that Linde's supervisory board would vote on the merger agreement next week.

Shares in Linde were up 4 percent at 172.55 euros by 1449 GMT (10:49 a.m. ET), while Praxair was 2.5 percent higher at USD133.18.
MRC

MOSCOW (MRC) -- PKN ORLEN has got involved in car-sharing services by becoming the strategic fuel partner for Traficar. As part of this cooperation, in the cities where the service is available, customers will be able to leave or rent a car at selected PKN ORLEN service stations, reported Hydrocarbonprocessing.

"The cooperation fits perfectly with our strategy and the future growth plans for the ORLEN Group’s retail segment. We keep monitoring market trends in order to tailor our offering to customer needs. Car sharing is a very promising service and by supporting its development we help improve innovation in Polish economy and expand the mobility offer based on Polish companies and capital," said Zbigniew Leszczynski, Member of the Management Board, Sales, PKN ORLEN.

"By joining forces with PKN ORLEN we create the opportunity to develop and increase the availability of the car-sharing service. It is important for us that PKN ORLEN, just like Traficar, recognizes the need to invest in modern transport solutions and is an active initiator of social change in mobility and transport. That is why our cooperation goes much deeper than just the presence of cars at the partner’s stations. Customers receive an innovative, convenient and complete service," said Piotr Gronski, CEO of Traficar.

The car rental service at PKN ORLEN service stations will be available from June 1 in Warsaw and Krakow. Besides designating special parking spaces at PKN ORLEN stations, a number of joint sales, promotion and social initiatives are to be launched.

As MRC informed before, in early May 2016, PKN ORLEN signed a contract with Saudi Aramco for the supply of ca. 200 thousand tonnes of crude oil monthly to its refineries. The contract was effective from May 1st to December 31st 2016, with an option of automatic renewal for successive years. The oil will be processed by all PKN ORLEN's refineries in Poland, the Czech Republic and Lithuania.
MRC

MOSCOW (MRC) -- WorleyParsons announces today that it has been awarded a 5-yr Framework Agreement by Shell Global Solutions International, B.V., for the provision of engineering, procurement and construction management (EPCM) services for Shell downstream projects worldwide, said Hydrocarbonprocessing.

The inclusion of the management and technical consulting services of Advisian helps WorleyParsons Group provide 360 degree solutions to its clients.

"We are looking forward to working with Shell and delivering success. We appreciate the continued confidence shown in WorleyParsons’ capabilities" said Andrew Wood, CEO of WorleyParsons.

Shell reported a 136 percent surge in the profit for the first quarter, boosted by stronger oil and gas prices and improved refining margins.
MRC

MOSCOW (MRC) -- Abu Dhabi National Oil Company (Adnoc) will work together with the Austrian producer OMV to help grow Adnoc’s downstream businesses.

The memorandum of understanding, signed in the presence of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and the Austrian chancellor Christian Kern, covers cooperation on new downstream projects, refining operations, refinery-petrochemical integration and optimisation, and technical and maintenance support.

"This agreement provides the opportunity to work with OMV to identify areas for mutual collaboration that will contribute to our plans to maximise the value from our assets and operations. It will provide access to the in-depth knowledge and experience of OMV, in refining operations and petrochemicals, enhancing our own experience and skills, as we focus on delivering the company’s strategic objectives," said Sultan Al Jaber, the Adnoc chief executive and Minister of State.

Adnoc has set a target to grow domestic petrochemicals production capacity to 11.4 million tonnes per annum by 2025 from 4.5 million tonnes last year. "Together...we have the opportunity to expand our cooperation across the entire value chain, from upstream to downstream, including petrochemicals. We will have a close exchange of expertise that will enable us to make our outstanding, long-term partnership with Adnoc even stronger," said Rainer Seele, the chief executive of OMV, which produces petrochemical products as well as oil and gas.

Earlier this month, Mr Al Jaber toured the Shanghai manufacturing plant of Borouge, a joint venture between Adnoc and Borealis, which is part owned by OMV.

The plant produces up to 90,000 tonnes of value-added compounds a year for the Chinese automotive industry. Mr Steele said in January that OMV planned to increase its investments with Adnoc.

The Austrian company, in which Mubadala Investment Company has a 25 per cent stake, is a partner in the exploration of Abu Dhabi’s offshore oil and gasfields. Earlier this month, OMV reported that its refinery utilisation rate reached a high of 96 per cent thanks to its "petrochemical business and Borealis strongly contributed to this favourable result".

Upstream production in the first quarter hit a 10-year high at 335,000 barrels of equivalent per day on gains from operations in Libya and Norway.
MRC