ADNOC investing USD3.1 billion in Ruwais Refinery

MOSCOW (MRC) -- A USD3.1 billion project to introduce crude processing flexibility, at the Abu Dhabi National Oil Company (ADNOC) owned Ruwais oil refinery, was announced in February, as per Hydrocarbonprocessing.

Known as the Crude Flexibility Project (CFP), the announcement is another significant step forward as ADNOC accelerates delivery of its Downstream refining strategy that aims to enhance margins by introducing asset flexibility, backed by strong crude and product marketing initiatives.

The announcement follows the awarding of the Engineering, Procurement and Construction (EPC) contract, for the project, to a joint venture between Samsung Engineering (Korea) and CB&I (Netherlands).

The refinery modifications, scheduled to be completed by the end of 2022, will enable ADNOC’s Ruwais Refinery-West complex to process up to 420,000 bpd of Upper Zakum crude, or similar crude types from the market, liberating Murban crude, which commands a higher price on global oil markets, to be utilised for export sales.

Abdulaziz Abdulla Alhajri, Director of ADNOC’s Downstream Directorate said: "Enabling the Ruwais Refinery-West to process Upper Zakum, or similar, medium sour crude, in place of Murban light sweet crude, will allow us to extract greater value from our crude resources. It will mean we can maximise the benefit of price differentials to enhance refinery margins, improve the middle distillate products and release valuable Murban crude into the market."

The planned modifications will add an Atmospheric Residue De-Sulphurisation (ARDS) unit that will enable the refinery to process the Upper Zakum crude, or other similar crudes from the market. The ARDS technology is extensively used in upgrading medium to heavy petroleum oils and residues to more valuable clean environmentally friendly transportation fuels and to partially convert the residues to produce low-sulfur fuel oil and hydrotreated feedstocks.

As part of the selection criteria for the EPC contract, ADNOC Refining carefully considered the extent to which bidders would help to drive In-Country Value (ICV) for the UAE. By integrating ICV criteria into the commercial evaluation process, ADNOC aims to maximise spend on local goods and services, to support socio-economic growth, improve knowledge transfer, and create job opportunities for UAE nationals.

As MRC informed before, in May 2017, Abu Dhabi National Oil Company (Adnoc) announced that it would work together with the Austrian producer OMV to help grow Adnoc’s downstream businesses.
MRC

MOSCOW (MRC) -- The Energy Outlook explores the forces shaping the global energy transition out to 2040 and the key uncertainties surrounding that transition. It shows how rising prosperity drives an increase in global energy demand and how that demand will be met over the coming decades through a diverse range of supplies including oil, gas, coal and renewables, as per the company's press release.

"We are seeing growing competition between different energy sources, driven by abundant energy supplies, and continued improvements in energy efficiency. As the world learns to do more with less, demand for energy will be met by the most diverse fuels mix we have ever seen." Spencer Dale, BP group chief economist.

Speed of the energy transition is uncertain and the Outlook covers a range of scenarios. Its 'evolving transition' scenario, which assumes government policies, technologies and societal preferences evolve in a manner and speed similar to the recent past, expects:
Fast growth in developing economies drives up global energy demand a third higher.
The global energy mix is the most diverse the world has ever seen by 2040, with oil, gas, coal and non-fossil fuels each contributing around 25%.
Renewables are by far the fastest-growing fuel source, increasing five-fold and providing around 14% of primary energy.
Demand for oil grows over much of Outlook period before plateauing in the later years.
Natural gas demand grows strongly and overtakes coal as the second largest source of energy.
Oil and gas together account for over half of the world’s energy
Global coal consumption flatlines with Chinese coal consumption seeming increasingly likely to have plateaued.
The number of electric cars grows to around 15% of the car parc, but because of the much higher intensity with which they are used, account for 30% of passenger vehicle kilometres.
Carbon emissions continue to rise, signalling the need for a comprehensive set of actions to achieve a decisive break from the past.
MRC

MOSCOW (MRC) -- Cepsa invests over EUR45 million to improve efficiency of its Huelva plants, as per the company's pres release.

Cepsa has worked in Andalusia for over 50 years and currently generates over 6,000 direct and indirect jobs
Cepsa today inaugurated its aromatics optimization plant at its La Rabida refinery in Palos de la Frontera in the presence of Susana Diaz, head of the Andalusian regional government, and Pedro Miro, CEO of Cepsa. The project was made with an investment of EUR45 million and is an example of efficiency and innovation in its processes. The plant took two years to build, and saw over 200 workers from auxiliary companies contribute.

The project has covered the installation of new processing and storage equipment and has employed over 550 tons of steel, 2,500m3 of cement, 95 new or adapted machines and 40 kilometers of cable. Its start-up helps to give Cepsa an added value in its aromatics products and an increase in benzene production, a key raw material for chemicals, which in turn means an increase in the refining margin.

Speaking at the event, Susana Diaz said: “One of the things that I value most about Cepsa is that it knew how to transform itself from being an oil company to a global energy company.” Diaz also expressed her gratitude for the company’s investment in Andalusia, where the company has over 3,000 employees.

On behalf of Cepsa, Pedro Miro, said: "This investment strengthens Cepsa’s positioning as an integrated, and sustainable value creating company that shows its commitment to innovation and excellence in operational management. The project also reinforces our presence in Andalusia, a region which we have contributed to for over 50 years and where we will keep on investing in integration, the best technology, and sustainable growth. All of that is aligned with our strategy for 2030, which will bring progress and new opportunities for Andalusia and for our staff across the world."

This project improves efficiency, diversifies Cepsa’s aromatics products and has other benefits such as a better fraction of crude oil to obtain benzene, a key product used in the chemical industry. It also helps to transform excess aromatics from the refinery into high value basic products for petrochemicals such as xylenes used in solvents, and improves benzene production costs at one of the refinery’s chemical plants.

This in turn helps Cepsa to lower its dependence on imported products such as benzene, which will be used at the Palos Chemicals plant to produce phenol, which is used in the pharmaceutical, agricultural and high tech plastic sectors. The xylene produced, used to produce nylon, PET, varnishes and more, will be sold and also used as a raw material for Cepsa’s Gibraltar San Roque refinery.

Cepsa has operated in Andalusia for over 50 years and currently employs 3,600 people directly and generates 2,600 indirect jobs. The company’s revenue of EUR14.5 billion makes it the region’s largest company in terms of production and revenue representing 10% of its GDP.

Cepsa has two oil refineries in the region, two petrochemicals plants, 6 cogeneration plants, a combined cycle plant, a biofuels plant, two liquefied gas bottling plants, 282 service stations, and provides fuel to four airports and 10 ports. It also has a stake in the gas pipeline MEDGAS, which supplies natural gas from Algeria and Europe via Spain.
MRC

MOSCOW (MRC) -- The Egyptian Ethylene and Derivatives Company (Ethydco) is preparing to submit an international tender for general contractors next month for the implementation of the polybutadiene industrial rubber plant, as per GV.

Khaled Talaat, Ethydco assistant head of marketing, told Daily News, "Ethydco will address companies that have previous experience to present their technical and financial offers and the awarded company is expected to be announced in May."

He explained that the production capacity of the plant is 36,000 t/y of industrial rubber, i.e. polybutadiene, with investments of USD 100 million, while the plant is expected to run in 2020, according to the economic studies of the project.

He added that the company is still studying ways to market polybutadiene and export it as part of the strategy of the Ministry of Petroleum to implement projects to maximize added value, which aims to achieve economic returns to the state from the manufacture of raw materials and production inputs, rather than sales of crude material.

He added that the new plant will contribute to fulfilling local market needs of industrial rubber, which is used in many important feed-in industries, such as car tyres, conveyors, carpets, the manufacture of polystyrene, and many different industries.

Ahmed El-Sakka, project manager at Ethydco, said that a number of scenarios are on the table to finance the USD 100 million project, whether through shareholders or agreements with banks to lend part of the cost. "We are seeking to decide on the general contractor for the project in the coming period, then agree on funding as the next step."

The company produces a high-quality product of high- and low-density polyethylene and butadiene using the latest technology. The company exports its products to 28 countries in the world while its sales in the domestic market reach 25 %.

He said that the Ethydco petrochemical complex in Alexandria is the latest project in the Egyptian petrochemical industry and one of the most important national projects with investments of USD 1.9 billion.
MRC

MOSCOW (MRC) -- BEWi Group AB, a leading full-line supplier in the Nordic countries of particle foam products, has through a Dutch wholly-owned subsidiary, entered into a conditional agreement today with funds managed by Gilde Buy Out Partners (Gilde) and its co-investors to acquire Synbra Holding B.V. (Synbra), as per press-release from BEWi.

Synbra is a specialist in particle foam and specialty foams for industrial products and solutions and sustainable insulation systems with operations in Northern Europe and Portugal. The combined Group would become a leading European provider of value-adding particle foam products, with a strong potential for accelerated growth. The acquisition is subject to financing and regulatory approval, completion of relevant works council consultations procedures and notifications under the SER Merger Code will be made.

In order to present proforma financial information in connection with the transaction, BEWi presents a preliminary financial information summary for full year 2017.

BEWi intends to acquire Synbra through a newly incorporated Dutch wholly-owned subsidiary The contemplated acquisition strengthens and expands BEWi’s position as a European supplier of particle foam products and related services, with a broader market reach and product range.

Purchase price will be a cash consideration of EUR 117.5 million (approximately SEK 1,165 million) on a cash and debt free basis. BEWi intends to finance the acquisition by own cash, a directed share issue and a bond issuance.

Closing is expected in the first half of 2018, subject to customary conditions, regulatory approval, completion of the relevant works council consultation procedures, notifications in accordance with relevant legislation and BEWi issuing a bond for the financing of the Synbra acquisition.

ln connection with the transaction, Synbra has entered into a conditional agreement to sell 66 percent of the shares in Synbra’s German subsidiary lsoBouw GmbH to Hirsch Servo Gruppe (“Hirsch”), an Austrian manufacturer active in the EPS business and hence lsoBouw would not be part of the contemplated joint BEWi and Synbra Group. The divestment of lsoBouw to Hirsch is subject to, interalia, regulatory approval. The remaining 34 percent of the shares in lsoBouw GmbH will be acquired by BEWi. Hirsch has entered into an agreement with Saint-Gobain Rigips to acquire Saint-Gobain’s insulation operations conducted in four production units in Germany.

The intended Synbra acquisition would contribute with a balanced and attractive customer portfolio, as well as modern production facilities and highly committed staff. Synbra has approximately 710 employees (not including lsoBouw GmbH) and operates 10 strategically located production facilities in the Netherlands, Denmark and Portugal. Synbra’s net sales in 2017 was approximately EUR 233 million excluding lsoBouw GmbH (approximately SEK 2 300 million).

Synbra’s portfolio of products, geographic footprint and skilled employees will be a valuable addition to BEWi and the combined Group’s expansion strategy and will make the combined Group the leading full-line particle foam supplier in Northern Europe. Additionally, the acquisition will provide BEWi with the opportunity to accelerate its broad product and service portfolio and support the combined businesses’ objective of becoming the preferred partner for particle foam products used for efficient packaging, building and insulation.

As a result of this contemplated acquisition, BEWi and Synbra would become one of the largest manufacturer of particle foam, also known as expanded polystyrene (“EPS”) and related materials in Europe. BEWi and Synbra together are anticipated to drive growth within this product segment, outperforming the European particle foam/EPS market on average.

BEWi’s major shareholders have proposed the appointment of Gunnar Syvertsen as the new chairman of BEWi Group AB. Gunnar has been a member of the BEWi board since 2014 and his experience includes General Manager in Heidelberg Cement North Europe. Following the contemplated transaction, the combined Group management is expected to include senior members of both companies, to ensure knowledge- sharing and efficient implementation of the integration process.
MRC