Alfa Laval Wins USD6.6 MM Refinery Order

MOSCOW (MRC) — Alfa Laval, a company in heat transfer, centrifugal separation and fluid handling, has won an order to supply welded heat exchangers to a refinery in the Middle East, as per Hydrocarbonprocessing.

The order has a value of approximately USD6.6 MM. It is booked in the Welded Heat Exchangers business unit of the Energy Division, with deliveries scheduled for 2018.

The Alfa Laval OLMI heat exchangers will be used for cooling applications in different process steps in the refinery.
MRC

MOSCOW (MRC) -- Construction of a gas chemical complex for the production of polyethylene and polypropylene is going ahead of schedule in the Kiyanly settlement (Balkan region, Turkmenistan), Turkmenistan State News Agency reported, said Trend.

The enterprise was planned to be commissioned in September 2018. "However, construction work is going ahead of schedule," the report said. "More than 5,500 workers are employed in the construction, and with the commissioning of the plant, about 1,300 people will work there."

The project is carried out by the consortium of Toyo Engineering Corporation (Japan), LG and Hyundai (South Korea). The total cost of the project is about USD3.4 billion. Currently, commissioning of the main technological units – the unit for gas separation, ethane cracking, high-density polyethylene and polypropylene, is underway.

The plant will annually process 5 billion cubic meters of natural gas and produce 386,000 tons of polyethylene and 81,000 tons of polypropylene.

"The commissioning of a new production structure in Kiyanly will give impetus to the diversification of petrochemical production by becoming an important contribution to the successful solution of tasks on accelerated industrialization of the national economy," said the report.
MRC

MOSCOW (MRC) — Braskem, the American producer of thermoplastic resins, and Danish-based Haldor Topsoe, a company in catalysts and surface science, have signed a technological cooperation agreement to develop a pioneering route to produce monoethylene glycol (MEG) from sugar, said Hydrocarbonprocessing.

The agreement calls for the construction of a demonstration plant in Denmark, with operation slated to begin in 2019.

MEG is a key component of PET resin, the main man-made raw material used by the textile and packaging industries that is also widely used to make bottles. The project is based on a two-step process developed at Topsoe's labs along with own catalysts, and focuses on the conversion of sugar into MEG at a single industrial unit, which will reduce initial investment in the production and boost the competitiveness of the process.

With the agreement, Braskem wants to expand its portfolio of renewable products to offer new solutions that complement its bio-based polyethylene marketed with the I'm green seal.

The demonstration plant will conduct tests to validate the technology and confirm its technical and economic feasibility, which is a critical step before launching production on an industrial scale and commercial operations. The unit will be flexible to validate the technology in different raw materials such as sucrose, dextrose and second-generation sugars.
MRC

MOSCOW (MRC) — South Korea’s Hanwha Total Petrochemical will use at least four times more LPG feedstock when it completes raising its cracker capacity by 30% to 1.4 MMtpy in 2019, said a top executive, as per Reuters.

Hanwha Total operates a 1.1 MMtpy cracker in Daesan, South Korea, that uses about 100 Mt to 200 Mt of LPG a year, said Sebastien Bariller, a senior vice president in charge of feedstock purchasing for the company on the sidelines of a condensate and naphtha forum in Penang.

The amount of LPG used after the cracker’s expansion would be raised by 700 Mt, he said, with supply source mainly from the United States.

Most crackers in Asia—which produce the fundamental building blocks of plastics such as ethylene and propylene—run on naphtha. Many of the units, though, can replace at least 5% of the naphtha with LPG, and that’s often done when LPG prices are at least USD50/t lower than naphtha.

Hanwha Total, which also owns two condensate splitters, is a joint venture between French oil and gas company Total and the Hanwha Group.

Hanwha Total announced earlier this year that it would invest USD450 MM to expand the Daesan cracker capacity to meet rising petrochemicals demand.
MRC

MOSCOW (MRC) -- State-owned Abu Dhabi National Oil Company (ADNOC) aims to sell at least 10% of its fuel distribution unit in an initial public offering in Abu Dhabi, as Gulf states step up plans to privatize energy assets in an era of cheap crude, reported Reuters.

The listing details came as Saudi Arabia and Oman are also looking to privatize energy assets as low oil prices squeeze revenues.

Saudi Arabia plans to list 5% of its national oil company Aramco by next year, which Saudi officials say could raise USD100 B, making it the world’s biggest IPO.

At the holding company level, ADNOC will continue to be owned by the Abu Dhabi government, said ADNOC CEO Sultan Ahmed al-Jaber at an energy conference.

"The IPO of ADNOC Distribution represents an important milestone in this new approach and is a natural evolution for the growth and expansion of this exciting retail-focused business," al-Jaber said.

The ADNOC statement confirms a Reuters story in September that said the company could list more than 10% of its fuel retail business.

The transformation of ADNOC is also seen as part of an economic reform drive led by Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan.

ADNOC produces some 3 MMbbl of oil per day, or around 3% of global production. It also produces more than 9.8 Bcf of raw gas per day, placing it among the largest energy producers in the world.

ADNOC Distribution is the leading fuel distributor in the United Arab Emirates with an approximately 67% market share by number of retail fuel service stations, which stood at 360 by end of September.

As MRC wrote previously, ADNOC plans to almost triple its petrochemical production to an annual 11.4 MMt by 2025 from 4.5 MMt at present, group chief executive Sultan Al Jaber said in November 2016.

ADNOC's petrochemicals are produced by Abu Dhabi Polymers Co (Borouge), which makes polyolefin, and Ruwais Fertilizer Industries (Fertil), which produces urea and ammonia fertilisers.
MRC