Largest US refinery restarts production after Harvey

MOSCOW (MRC) — The largest US refinery was restarting production on Monday for the first time since being shut nearly two weeks ago by Hurricane Harvey, said sources familiar with plant operations, said Reuters.

Motiva Enterprises restored the 325,000 bpd VPS-5 crude distillation unit at its 603,000 bpd Port Arthur, Texas, refinery to minimum production levels early in the day, the sources said.

After bringing VPS-5 online, Motiva began restarting the 105,000-bpd Hydrocracking Unit 2, the sources said. The HCU-2 is a lucrative source of motor fuel exports for Motiva. Motiva confirmed the refinery was restarting units on Monday.

"Motiva can confirm that the restart of the Port Arthur Refinery is progressing well, and we expect to continue to ramp up production rates over the next few days as the area’s logistics infrastructure continues to improve," the company said.

The refinery was shut Aug. 30 due to flooding from Harvey. Last Thursday, VPS-5, HCU-2 and the 110,000-bpd coking unit were ready to resume production after being placed on circulation in which the units were at operating temperatures and circulating feedstock, the sources said.

However, Motiva had been waiting for adequate crude supply to be restored to VPS-5 before restarting production, according to the sources. Motiva said last week the Port Arthur refinery would resume production at 40% capacity by Monday. Motiva did not give a timeline for fully restoring output.

Sources have said it will take four to eight weeks to return to full production at the refinery. CDUs do the initial refining of crude oil and provide feedstock for all other units.

Hydrocrackers use hydrogen to produce motor fuels, especially diesel, from gas oil. Cokers produce motor fuel feedstocks and convert residual crude to petroleum coke, a coal substitute.
MRC

MOSCOW (MRC) — Mexico's top anti-corruption agency said on Monday it had identified USD6.7 MM in "new irregularities" from a contract between state oil company Pemex and Odebrecht, the Brazilian engineering firm that has admitted paying bribes in a dozen countries in recent years, said Hydrocarbonprocessing.

Mexico's Public Administration Ministry (SFP), the government's main anti-corruption auditor, said in a statement that the contract was for work at Pemex's second biggest refinery, the Miguel Hidalgo facility in Tula, Hidalgo state and involved an unnamed employee of the national oil company.

The SFP has launched preliminary sanctioning procedures, but this did not amount to a final verdict and would not prejudice the remaining steps in the investigative process, the statement added.

The SFP investigation began late last year, and covers the awarding and execution of public works contracts between Pemex and a unit of Odebrecht.

The embattled Brazilian firm is involved in a sprawling corruption saga in which it has already paid USD3.5 B in settlements in the United States, Brazil and Switzerland, embroiling politicians across Latin America.

Odebrecht has admitted to US and Brazilian prosecutors that it paid USD10.5 MM in bribes in Mexico, but details have not been made public.

In June, Pemex said it notified Odebrecht that it was canceling the 2015 engineering, procurement and construction contract at the Tula refinery, following an investigation into "administrative irregularities."
MRC

MOSCOW (MRC) -- Reliance Industries Limited (RIL), the oil-to-telecoms conglomerate, said it would buy assets of Kemrock Industries and Exports Ltd, in a move to enter the composites and carbon fibre manufacturing business, as per the company's press release.

RIL said it won an e-bidding process for Kemrock Industries, a company based in Gujarat. The e-bidding process was conducted by a consortium of 11 banks, led by Allahabad Bank.

This participation is a part of Reliance's efforts to enter the Composites business and establish a leadership position in this large and growing market in India. Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products.

The assets will pave the way for Reliance to foray into new materials (Composites and Carbon Fibre) and further strengthen its petrochemicals business portfolio.

The company is in the process of complying with the necessary formalities for acquisition of assets.

As MRC informed before, in February 2016, RIL was awarded a contract worth Rs. 100 crore to Petron Engineering Construction Ltd for its linear low density polyethylene (LLDPE) plant in Gujarat. The LLDPE plant is part of RIL's J-3 project in Jamnagar in the western Indian state of Gujarat. The J-3 project boasts of a petroleum refinery and allied petrochemical plants for the production of plastics and fibre intermediates.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

MOSCOW (MRC) — Enbridge Inc's upgrade of its Line 3 crude oil pipeline hit an obstacle on Monday after the US state of Minnesota told a regulatory committee that it has no need for the project, and that the existing pipe should be shut, said Hydrocarbonprocessing.

The testimony by Minnesota's Department of Commerce is the latest challenge against the USD6.52 B project through the state, which faces fierce opposition from environmentalists and aboriginal groups. The Minnesota Public Utilities Commission, which heard the testimony, is expected to make a final ruling next year and has to issue a certificate of need before Enbridge, North America's largest energy infrastructure company, can start construction in the state.

"The Department of Commerce (DOC) opinion is only one view, which we and other energy consumers will respond to in detail," said Calgary, Alberta-based Enbridge on Monday.

"We disagree ... as do other shippers and consumers of oil in Minnesota and the US Midwest, as outlined in other testimony filed today substantiating the need for the project," Enbridge said. The Line 3 replacement project from Hardisty, Alberta, to Superior, Wisconsin, doubles the capacity of the existing line to 760,000 bpd and is the largest project in Enbridge's history, according to the company.

Citing expert analysis, Minnesota's Department of Commerce said refineries in the state and the upper Midwest "are not short of physical supplies of crude oil, and that they have little room to increase total crude runs."

"Minnesota demand for refined products appears unlikely to increase in the long term," the department said. The department added Enbridge had expanded another pipeline in the region, Line 67, and that other existing and proposed energy infrastructure would be viable alternatives for Line 3, which the state can do without.

Enbridge said last month the Line 3 replacement project will cost 9% more than its previous forecast, citing in part regulatory delays.

Producers in Canada's oil heartland of Alberta, whose landlocked crude trades at a discount to the West Texas Intermediate benchmark, say they need additional export capacity to attain higher prices.
MRC

MOSCOW (MRC) --Solvay has rejoined the World Dow Jones Sustainability Index (DJSI World), underlining the Group’s commitment to improve its performance in sustainable development as part of its business strategy, as per the company's press release.

"Solvay is very proud of this achievement which for us acknowledges how we have successfully integrated sustainability in the way we do business. Sustainability is part of Solvay’s overall performance as captured in the five quantified sustainability objectiveswe set two years ago to steer and monitor our progress. Today’s good news stimulates us to improve further," said Pascal Chalvon-Demersay, Chief Sustainability Officer at Solvay.

The DJSI World, the first global index to track the leading sustainability-driven companies, is a key reference for corporate sustainability.Solvay was in particular rewarded for the robustness of both its materiality analysis and its Sustainable Portfolio Managementmethodology which measures the impact of the Group’s business decisions.

As MRC wrote previously, in late December 2016, Solvay completed the sale of its 70.59% stake in Solvay Indupa to Brazilian chemical group Unipar Carbocloro, following the approval earlier this month of the Brazilian antitrust authority CADE.

Besides, earlier, in July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities. Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March last year.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
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