Rosneft to develop cooperation, refinery modernization with Cuba

MOSCOW (MRC) -- Rosneft Chief Executive Officer Igor Sechin held a working meeting with Minister of Energy and Mines of the Republic of Cuba Alfredo Lopez and Ambassador Extraordinary and Plenipotentiary of the Republic of Cuba Emilio Lozada Garsia, as per Hydrocarbonprocessing.

During the meeting, the parties discussed extension of supplies volume, joint production projects, as well as prospects for cooperation in modernization of Cuban refinery Cienfuegos.

Rosneft representatives informed the Cuban delegation on the Tuapse refinery reconstruction process. The delegation, which included Minister of Energy and Mines of the Republic of Cuba Alfredo Lopez, Ambassador Extraordinary and Plenipotentiary of the Republic of Cuba Emilio Lozada Garsia and Commercial Attache of the Republic of Cuba in Russia Vivian Hitchman Miranda, examined the key production facilities of the refinery and visited deepwater marine terminal with the transshipment capacity of 17 MMt of oil products per year.

The delegation also visited the construction site of the new diesel line which has no counterparts in Russia and over the world. It will consist of 35 objects including diesel hydrotreating and vacuum gasoil hydrocracking unit, hydrogen production plant, and elementary sulfur production plant that is the most innovative and environmentally friendly facility.

Large scale investment program of Rosneft provides for increase in capacity of the industry oldest refining plant to 12 MMt of oil per year and refining ratio up to 98.5%. Upon the modernization, the Nelson’s Complexity Index of the plant will grow to 9 and will comply with the similar indicators of refineries in the Western Europe.

The plant will produce a wide range of oil products meeting the highest ecological requirements.

By the end of 2016, the refinery had processed about 10 MMt of oil.

As MRC wrote before, in late June 2016, Rosneft and China Petrochemical Corporation (Sinopec Group) signed a Framework Agreement on joint pre-feasibility study of the project related to the construction and operation of a gas processing and petrochemical complex in East Siberia.

Rosneft is the world's largest public oil company. In the company accounts for about 5% of global oil production, and its proven reserves at the international category will exceed 5 billion tons of oil equivalent. The structure of Rosneft includes Angarsk Polymer Plant, Lisichanskiy refinery following the acquisition of TNK-BP and Ufaorgsintez after the closing of the purchase of Bashneft on 12 October 2016.
MRC

MOSCOW (MRC) — Kazakh Prime Minister Bakytzhan Sagintayev fired two senior energy officials on Tuesday after the Central Asia’s biggest oil exporter reported fuel shortages on the domestic market, prompting long queues at petrol stations, said Reuters.

The former Soviet republic operates three large refineries, but still imports almost a third of its fuel from neighboring Russia. One of the three refineries halted gasoline production on Sept. 21 for maintenance and upgrade work.

The government has sought to negotiate higher Russian supplies to compensate for that. But many petrol stations in Almaty, the biggest Kazakh city, have halted or limited sales this month citing lack of fuel, while others have raised prices.

At a government meeting on Tuesday, Sagintayev sacked Deputy Energy Minister Aset Magauov and deputy chief executive of state energy firm KazMunayGaz, Daniyar Berlibayev, blaming the ministry and the company for failing to ensure stable supplies.

The government has said upgrades should allow the country’s three refineries to fully supply the domestic market next year.
MRC

MOSCOW (MRC) -- Indian Oil Corp Ltd (IOCL), the country’s largest refiner, has bought two new types of US crude for December delivery as it tests different grades from the United States, trade sources said on Tuesday, reported Reuters.

IOC bought 1 MMbbl each of US Southern Green Canyon (SGC) and WTI Midland crude likely from a Chinese trader, the people said, speaking on condition of anonymity. The purchase was in addition to 2 MMbbl of Basra Light crude to be delivered in the same month.

The United States has become a new source of crude supply for Asia since Washington lifted a ban on crude exports in late 2015. India joined other Asian countries in buying US crude in the fourth quarter to widen its import sources as well as to reduce trade surplus with the United States.

IOC has issued another sour crude tender that will close later this week to purchase more oil for the same period, according to a document reviewed by Reuters.

Officials at IOC weren’t available for comment.

The refiner has bought about 5.5 MMbbl of US crude so far this year.

Other Indian refiners to have bought US crude include Bharat Petroleum Corp Ltd, Bharat Oman Refinery, Hindustan Petroleum Corp Ltd and Reliance Industries Ltd.

As MRC wrote previously, IOCL conducted maintenance at its polypropylene (PP) plant in Indian from mid-July to mid-August 2017. As per earlier plans, the plant was supposed to shut in early-July 2017. Located at Panipat in the northern Indian state of Haryana, the PP plant comprising two units has a production capacity of 300,000 mt/year each.

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

MOSCOW (MRC) — TransCanada Corp said it expects to take a CUSD1 B charge in the current quarter after deciding to abandon its Energy East and Eastern Mainline pipeline projects, after intense scrutiny by Canada's energy regulator, said Hydrocarbonprocessing.

The termination comes after the National Energy Board (NEB) expanded the scope of its review of Energy East in August, saying it would consider the pipeline's indirect greenhouse gas contributions. Energy East's importance has somewhat diminished for TransCanada since US President Donald Trump this year signed an order reviving the company's Keystone XL pipeline, which would run from Alberta's oil sands to US refineries.

TransCanada had said last month that it would have to abandon the Energy East project after the NEB's decision. The termination was the latest blow to a project that Canada's oil industry says is needed to bring oil sands crude to overseas markets and avoid deep discounts on Canadian barrels that eat into revenue for producers already struggling with low prices.

"After careful review of changed circumstances, we will be informing the National Energy Board that we will no longer be proceeding with our Energy East and Eastern Mainline applications," TransCanada said in a statement on Thursday.
MRC

MOSCOW (MRC) -- An explosion in a storage tank at a Tupras refinery in the western Turkish province of Izmir on Wednesday killed four people but had no impact on production, reported Reuters with reference to the company's statement.

Tupras said in its statement that the explosion occurred following maintenance work on Wednesday morning.

Television footage showed black smoke rising from the site of the blast.

As MRC informed before, in early August 2016, Turkey's biggest petrochemicals company, Petkim, said that police had launched operations at its main facility in Aliaga have not affected operations.
MRC