Sinopec to expand NPG capacity at Yangzi refinery

MOSCOW (MRC) -- Sinopec to double capacity of the Neopentylglycol (NPG) production line at its Yangzi refinery from 40,000 tpy to 80,000 tpy, the company said on Monday, reported Reuters.

Expanded production line will start operation in 2020.

NPG is used as a raw material to produce paints and lubricants.

As MRC informed previously, China's Sinopec group, parent of Sinopec Corp, will invest USD29.05 billion to upgrade four refining bases between 2016 and 2020 to produce higher-quality fuels. Sinopec's upgrades come as China, the world's second-biggest oil consumer, is embracing more stringent fuel standards in its battle against pollution and suffering an overall glut in refining capacity. After the upgrades, the total refining capacity of the four refining sites will reach 130 MMtpy, or 2.6 MMbpd, while ethylene capacity will reach 9 MMtpy
MRC

Explosion at major Venezuela refinery injures two

MOSCOW (MRC) -- A furnace exploded during a unit restart at Venezuela’s largest refining complex, injuring two workers, a union leader and a family member of one of the victims said on Wednesday, reported Reuters.

The explosion occurred on Tuesday night at the naphtha reformer of the Cardon refinery on the Paraguana peninsula, the sources said, adding the two victims received medical treatment.

"They were trying to pull out the naphtha reformer and one of the furnaces exploded," said union leader Ivan Freites. State-run Petroleos de Venezuela (PDVSA) did not immediately respond to a request for information.

The father of one of the injured workers said his son was recovering after burns on his body. "They told me at 8 p.m. that my son and another colleague had this accident, but that they were fine," said the father, Pablo Cespedes.

The complex is the largest refining center in the country and one of the largest in the world with a capacity of 955,000 bpd. However, operations have been negatively impacted by constant failures and a lack of crude to process.
MRC

China raises 1st batch of 2018 oil product export quotas by 30%

MOSCOW (MRC) — China raised refined products export quotas to its four state oil majors by 30 percent in the first batch of allowances for 2018, a document reviewed by Reuters showed.

The notice did not include quotas for independent refiners, also known as "teapots," the second year the private refiners are being left out of the export scheme. The state majors will receive total export quotas of 16.24 MMt under the general trade term for exporting gasoline, diesel and jet fuel, the Ministry of Commerce said in a notice.

Asia's largest refiner, Sinopec, has the biggest quota share at 6.74 MMt, followed by PetroChina at 5.75 MMt. Sinochem and CNOOC will be allowed to export 2 MMt and 1.75 MMt of products, respectively.

CNOOC also got a separate allowance to export 70 Mt of LNG. "The increase in quota showed oil majors are actively applying for more allowance to export," said a China-based trader who declined to be named.

"Due to weak domestic demand for gasoline and diesel, export margins are better than the domestic margin," the trader said. The trader also said he expects the commerce ministry to issue separate export quotas for two refineries that will be started up by Dalian Hengli Petrochemical and Zhejiang Rongsheng Group next year.

China issued an allowance for 12.4 MMt in its first batch of export quotas in 2017.
MRC

Asia's monthly Iran oil imports skid to lowest in Nov since Apr 2016

MOSCOW (MRC) — Imports of Iranian crude oil by major buyers in Asia tumbled 29% in November from the same month a year ago to the lowest volumes since April 2016, government and ship-tracking data showed, as per Reuters.

In total, China, India, Japan and South Korea imported 1.36 MMbpd last month from Iran, the data showed. The drop comes after imports hit highs earlier this year and last when Tehran ramped up exports after the lifting of sanctions that had targeted its disputed nuclear program.

The slowdown had been expected, as oil loadings bound for Asia fell below 1.5 MMbpd in October, a person with knowledge of Iran's tanker schedules had told Reuters.

Tehran is pushing to retain its prized Asian customers, hoping price reductions will boost the appeal of its crude compared with other Middle Eastern grades even as the potential threat of a renewal of US sanctions looms.

China, the biggest buyer, purchased 8.8% less oil from Iran year-on-year, taking around 557,900 bpd. Meanwhile India's refiners cut Iranian oil imports by more than half in November, ship tracking data showed, squeezing them to a 21-month low in protest at Tehran's decision to award a giant gas field to a Russian company.

Imports to Japan were down 19% from a year earlier to 193,141 bpd, data released by the Ministry of Economy, Trade and Industry showed on Thursday.
MRC

Reliance aims to become big clean energy provider

MOSCOW (MRC) -- India’s Reliance Industries Ltd will become a major provider of clean energy in the country, Chairman Mukesh Ambani said, as the South Asian nation transitions to renewable energy sources from fossil fuels, reported Reuters.

India is one of the world’s biggest users of coal, and renewable energy such as solar power is a priority for Prime Minister Narendra Modi’s government.

"Can Reliance become a leading provider of clean and affordable energy to India? Yes we can and yes we will," billionaire Ambani said at a function on Saturday to mark 40 yr of the company.

Reliance, owner of the world’s biggest refining complex and also a leading petrochemicals player, expanded its tie-up with BP earlier this year to meet India’s rising fuel and renewable energy demand.

Reliance can also be a global producer of innovative materials and among the top 20 companies in the world, Ambani said. He didn't give details.

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