First phase of CITGO Aruba Refinery camp almost complete

MOSCOW (MRC) -- The first phase of an envisioned 1,500-bed man camp that will house workers needed to support the CITGO Aruba Refinery refurbishment project on the island is almost complete, according to Hydrocarbonprocessing.

This first construction phase of the man camp - which will be situated in the same location used by the refinery's previous operator consists of dormitory buildings and service facilities that can house up to 400 workers.

Construction of the man camp has positively impacted the economy of the island, with engineering and construction activities employing nearly 150 local residents, as well as procurement activities for materials and services.

Over the next several weeks, work at the man camp site will continue, with full completion scheduled for the 1Q 2018.
MRC

Sika commences concrete reinforcing fiber production for EMEA region

MOSCOW (MRC) -- Sika has started producing high-performance concrete reinforcing fibers for clients in the Europe, Middle East and Africa region at its manufacturing facility in Troisdorf, Germany, where a new production line has been commissioned, reported CoatingsWorld.

Made of a thermoplastic material (polypropylene), the fibers are used to increase the structural strength of concrete in highly demanding applications. With this new production line, Sika is continuing to expand its range of concrete additives and positioning itself as an innovative single-source supplier to the construction industry.

The global market volume of steel and synthetic fibers used in concrete applications is estimated at approximately CHF 800 million, with synthetic fibers recording the biggest growth. Macro fibers such as Sika's newly developed product line SikaFiber Force-60 are mainly used instead of steel reinforcements for strengthening concrete or shotcreted structures with demanding performance requirements. Typical areas of use include tunneling, mining, precast concrete elements and industrial floors, as well as foundations and ground slabs. The new fibers not only improve the safety, durability and serviceability of concrete and enhance its performance, but also increase the efficiency of the construction process as they are added to the ready-mixed concrete during mixing.

"With our latest innovation, synthetic macro fibers, we want to offer customers new technologies in the area of structural reinforcement," said CEO Paul Schuler. "We are carrying out a targeted investment in the build-up of production in the EMEA region, and are confident that these high-performance products have significant growth potential."

As MRC wrote before, in March 2016, Sika opened a new mortars and concrete admixtures plant in Vancouver, Canada. With the new plant, which is the company's fourth facility in Canada, Sika expects to serve the Pacific Northwest, a region that includes the cities of Vancouver, Seattle and Portland. The new plant fulfils the company's continued supply chain strategy in North America by expanding production capacities in conurbations and major cities in the area.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories.
MRC

Naphtha cracker to be shut by Keiyo Ethylene

MOSCOW (MRC) -- Keiyo Ethylene is in plans to take its naphtha cracker off-stream for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the cracker is planned to be shut in May-June 2018. The exact date and duration of the planned shutdown could not be ascertained.

Located at Ichihara in Chiba prefecture of Japan, the cracker has a production capacity of 740,000 mt/year.

As MRC informed before, another major Japanese petrochemical producer - Idemitsu Kosan - resumed operations at its cracker in Japan in late October 2017. The cracker was taken off-line for maintenance on September 22, 2017. Located at Chiba in Japan, the cracker has an ethylene production capacity of 375,000 mt/year.

Founded in 1991, Keiyo Ethylene Co. Ltd. produces and sells petrochemical products. The Company produces ethylene, propylene, and other petrochemical products.
MRC

As Saudi Arabia limits US crude shipments, Iraq steps in

MOSCOW (MRC) — Saudi Arabia's efforts to reduce a worldwide crude supply glut by cutting shipments to the United States means others are now filling in, most notably Iraq, in a trend that is set to accelerate in coming months, as per Reuters.

Over the summer, normally one of the busiest periods for crude shipments, US imports of crude from Iraq rose by 41% from a year ago, while similar shipments from Saudi Arabia have dropped by 22%. That trend has continued, with ClipperData showing Iraqi shipments to the nation's largest refinery in October surpassed Saudi Arabia's for the first time in more than 30 yr.

It shows how Saudi Arabia's leading role in reducing world supply has also cost it market share in the world's largest oil consumer, as its share of US imports has fallen to the lowest level since 1985. Imports have increased from OPEC members Iraq and Nigeria, along with Canada, and refiners are relying more on rising US shale production.

"For every barrel (the Saudis) don't produce they're losing market share," said Sandy Fielden, director of research, commodities and energy at Morningstar. "Refiners go to an alternate in that situation and obviously the Iraqis took advantage."

Saudi Arabia cut shipments to the United States beginning in June, as part of the ongoing effort by the Organization of Petroleum Exporting Countries to cut supply. OPEC, along with non-member nations including Russia, agreed in late 2016 to cut world output by 1.8 MMbpd. Representatives of OPEC countries will meet at the end of the month to consider extending cuts.

Between June and August of this year, according to US Energy Information Administration data, Iraq exported an average of 600,000 bbl of oil daily to the United States, compared with 426,600 bpd a year ago. Saudi Arabia's shipments dropped to an average of 850,000 a day from 1.09 MMbpd last year, according to US energy data. At its peak in 1991, Saudi Arabia supplied the United States with 29% of its crude.

Shipments from Iraq to Motiva Enterprises LLC's Port Arthur, Texas refinery are up by almost 35% in the six months through October, according to Matt Smith, director of commodity research at ClipperData. The Texas refinery, the largest in the United States and owned by Saudi Aramco, did not respond to a request for comment.

"For October, we've seen that Iraqi crude deliveries have surpassed Saudi deliveries for the first time since 1985," Smith said. Official US data on refiner-level imports currently only extends through August. Those cuts to US supply are set to accelerate; on Thursday, the Saudi Arabian energy ministry told Reuters that December crude exports to the United States will be more than 10% lower than November levels.

Reduced supply has helped raised crude prices, with Brent crossing USD64/bbl last week, a two-and-a-half-year high. While Saudi Arabia has decreased exports to the US Gulf 16%, exports to the West Coast fell just 8% from last summer, as the Saudis face competition from producers in Latin America.

Saudi Arabia "cut imports to Motiva, while they cut less to the others," said Fareed Mohamedi, chief economist at Maryland-based Rapidan Energy Group. "They're willing to sacrifice to themselves, but their refinery went out to buy other crude which also helped tighten up the market."

Even if Saudi imports remained at that summer average of 850,000 bpd, that would equal just 11% of overall US crude imports, the lowest percentage since 1985, according to EIA data. In addition, US production has risen by 430,000 bpd this year through August, EIA data shows. Fielden said while the shale threat means OPEC will extend production cuts, the shipping figures suggest disagreement on supply to the United States.

"This example between Iraq and Saudi is, I think, destined to be an ongoing situation," he said.
MRC

Indian Oil Corp starts crude oil trading through Singapore subsidiary

MOSCOW (MRC) — India’s top refiner Indian Oil Corp began trading crude oil through its Singapore unit, buying a million barrels of Nigerian oil Akpo, the state-run company’s head of finance AK Sharma said, as per Reuters.

IOCL Singapore Pvt Ltd has bought the parcel from Total for Dec. 8–17 loading, he said. "We have got a very good deal," Sharma told Reuters, adding the cargo will be co-loaded with a million barrels of Angola’s Girassol oil, which the refiner has procured under a term deal.

Sharma declined to give any details on price. IOCL Singapore currently has two officers and, Sharma said, the company will gradually increase its workforce in line with transactions from the city state.
MRC