INEOS Shale seeks new Drill Permit in Yorkshire

MOSCOW (MRC) -- After winning its appeal against a decision by the Rotherham Council in Yorkshire to deny the company permission for test drilling at a greenbelt site in Harthill, INEOS Shale has submitted a second planning application, as per Chemanager-online.

The new application is for a drill site at nearby Woodsetts, where the council has also refused drilling permission.

The UK subsidiary of the Swiss-headquartered chemical producer said it has done additional survey work and can disprove claims put forward by the council on its first application, namely that the subsequent project does not meet ecological standards and also would present hurdles to highway safety.

Like the previous permit, which Ineos has now secured, the new application would provide temporary permission for drilling activity for a maximum of five years. The work would involve months of investigation surveys at various sites as well as site preparation, followed by a period of drilling, coring and testing.

INEOS argues that the activity would be small scale, have no significant impact and would take place on agricultural land with “little ecological value.” The second site, however, takes in a Site of Special Scientific Interest – protected by law to conserve wildlife or geology – in addition to a golf course. Ineos said the golf course, would be restored after drilling has been completed.

Planning consultants who submitted the application on the company’s behalf said it is a re-submission of the rejected application. They insist that the national planning Inspector who overruled the decision “clearly made his decision based on the technical evidence” and that the points raised by local planning officials “were not supported by evidence of any harm."

The resubmission on the same basis allows the opportunity to “rectify the Council’s decision” and avoid the potential for a second appeal with its associated costs, the consultants said, adding that, “we consider that the ecology reason put forward can no longer be substantiated."

According to Drill or Drop, a website that monitors the shale industry, Rotherham’s rejection of the Ineos plans was the seventh this year by councils across the Midlands and the north of England.

Before the decision against the chemical company was overturned, the only green light had been given for another drllling company, Cuadrilla, to test oil flows in West Sussex in southern England.

Along with planning delays, the UK shale gas industry is chafing at new requirements that require a check of potential drillers’ economic potency. The industry complains that it now takes 58 weeks on average to get a planning decision on the drilling of a vertical well for exploration, compared with 13 weeks five years ago.

INEOS is leveraging the fast-track powers created by the British government in 2015 to kick-start the country’s nascent shale gas industry. These allow national planning inspectors to bypass local councils that fail to make a decision within the mandated 16-week timeframe and in some cases override decisions.

The shale gas industry meanwhile has been condemned by an international tribunal for harming humanity, violating human rights and damaging nature. The Permanent Peoples’ Tribunal established in Italy in 1979 to defend human rights has accused drilling companies and governments of failing in their duties to protect the environment.

“The processes of fracking contribute substantially to anthropogenic harm, including climate change and global warming, and involve massive violations of a range of substantive and procedural human rights and the rights of nature,” the tribunal said.

Along with environmental NGOs, two professors from the University of Stirling in Scotland have given the tribunal evidence of the dangers of fracking. “The arguments of the UK industry about the alleged safety of fracking do not stand up to scrutiny,” one said, while the other, accused the industry of a “moral and legal failure.”
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Dow collaborates with vending machine manufacturer to refresh sustainability of refrigerated beverage machines

MOSCOW (MRC) -- As a trusted supplier to high-quality vending machine manufacturers for over 25 years, The Dow Chemical Company has created a brand new low-global-warming-potential polyurethane foam insulation solution that also delivers weight reduction and improves thermal insulation, said the producer on its site.

The insulation will help a cold-drink vending machine manufacturer meet the more stringent ENERGY STAR version 4.0 with a solution that will be compliant with global blowing agent regulations.

The custom formulated polyurethane insulation solution’s excellent mechanical properties, good flow, and superior curing profile delivered a 15 percent weight reduction and 10 percent thermal insulation improvement over the incumbent low-global-warming-potential system, helping ensure the cold-drink vending machines meet the qualifications for ENERGY STAR version 4.0. Compared to competitive solutions using hydrofluorocarbon foam blowing agents, Dow's solution delivers the same or better performance with a global warming potential 99.9 percent lower, providing a more sustainable solution that will be compliant with upcoming global regulations on foam blowing agents.

"We know how challenging it can be for companies and brand owners to keep up with U.S. Department of Energy standards, SNAP regulations, and end-user requirements," said Robert York, market manager for Dow Polyurethanes. "Dow is fully committed to staying ahead of these changes, and bringing more sustainable, SNAP compliant formulations to the marketplace for our customers."

Polyurethane rigid foam is one of the best insulation materials available to help achieve energy efficiency targets, reduce costs and mitigate greenhouse gas emissions. For companies and brand owners impacted by SNAP regulations, Dow has developed polyurethane-based solutions that will fully comply with all applicable regulations once they become law.

With decades of technical experience, Dow is proud to offer solutions to meet the specific needs of each customer and help manufacturers meet increasingly demanding energy standards in the commercial appliance industry.

As MRC reported earlier, in January 2018, the company announced that the technologies of Dow Corning Polyurethane Additives (PUA) will be incorporated into the Dow Polyurethanes portfolio under the Vorasurf polyurethane additives brand name.

Dow Polyurethanes develops and delivers a broad portfolio of technologies and customized solutions to customers in a variety of industries under its DurableScience, ComfortScience and InsulationScience category brands. Applications range from industrial and infrastructure solutions, to consumer comfort solutions in flooring, furniture bedding and footwear, to automotive solutions for vehicle interior, and energy-efficient insulation materials. The business manufactures and sells key chemical components as well as fully-formulated polyurethane systems for rigid, semi-rigid and flexible foams, and coatings, adhesives, sealants, elastomers and composites. Dow is the world's largest producer of propylene oxide (PO), propylene glycol (PG), and polyether polyols, and is a leading producer of quality aromatic isocyanates, such as MDI. Striving to meet the specific needs of its customers in their local geographic regions, Dow Polyurethanes operates a global network of production sites and systems houses, as well as innovation and service centers.
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Indorama and Dhunseri form joint venture to acquire Egypt PET plant

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into a joint venture agreement with Dhunseri Petrochem Ltd. (Dhunseri) to acquire its Egyptian Indian Polyester Company S.A.E. (EIPET) PET facility located in Ain Sokhna free trade zone, North West of the Gulf of Suez in Egypt, as per IVL's press release.

This plant has a manufacturing capacity of 540,000 tonnes per annum. The transaction takes place with immediate effect. Restart activities for manufacturing recyclable PET has commenced and key raw material PTA will be shipped from IVL Portugal soon after restart of Portugal PTA production anticipated in early July 2018.

This joint venture between Dhunseri and IVL allows for an uninterrupted supply of recyclable PET, which promotes the development of the consumer beverage industry and increases demand for sustainable packaging. Indorama Ventures will bring its world class capability and supply chain economics to the JV in order to competitively serve customers growing needs of sustainable packaging in Egypt and in the region as a whole and will be one of the largest project in EMEA. IVL is one of the few integrated producer of PTA and PET in Europe-Middle East-Africa (EMEA) spanning Lithuania in the North East and Nigeria in West Africa. IVL is the largest producer in Turkey for recyclable PET and producer of PTA and PET in Rotterdam, The Netherlands and in the Iberian Peninsula.

IVL is focused on balancing market needs for recyclable PET packaging, which has faced unprecedented economic challenges over last several years leading to uncompetitive supplies and disruptions in recent times. The facility in Egypt will lead to easing supply concerns in North Africa and in the Common Market for Eastern and Southern Africa (COMESA) as well as the markets covered by the several Free Trade Agreements (FTA) which Egypt is a signatory to.

The EIPET plant is strategically located in Ain Sokhna free trade zone, Egypt, offering logistics advantage when sourcing feedstocks and delivering end products in key markets, domestically and internationally. This facility is one of the largest in the Middle East and Africa and is well-positioned to cater to the increasing packaging needs of customers in the region and elsewhere. The economic resurgence in the region is expected to further improve demand growth potential, which currently is at around 7% per annum. Both partners are confident about the reforms that President El-Sisi has brought about in Egypt and the JV is a step forward to fulfilling the commitment made to the Egyptian authorities over the past three years.

Dhunseri and Indorama Ventures have established a sound business rapport and support mechanism in India since 2016 and expects to achieve continued success in this follow up investment in Egypt. Indorama Ventures has successfully revived a PTA producer in Portugal following the previous owner’s bankruptcy and has recently taken on the revitalization of Brazil’s largest PET plant, which faced a serious financial crisis after its former parent went in liquidation. The revival of these businesses will support easing of reliable supplies by IVL to its customers and help grow sustainable packaging in markets worldwide.

The addition of EIPET will increase Indorama Ventures’ existing global PET capacity by 10%. This plant uses the same technology as deployed at the IVL Dhunseri facility in India, allowing the Company to leverage its proven operational expertise and track record of successful integration. This recently built facility will be among Indorama Ventures’ finest in terms of scale and competiveness, enabling the Company to maintain its position at the forefront of the industry and serving customer needs in every geography in a timely and reliable manner.

Indorama Ventures expects to be able to leverage on internal feedstock supply of PTA from its manufacturing base in Asia and Iberian Peninsula as well as IPA from its facility in Spain, enabling it to utilize its assets more efficiently and ensure supply continuity to all its customers. In addition, this joint venture will also open up a new avenue for growth by providing immediate access to a large domestic market and duty-free access to North and East Africa through preferential trade agreements in the region. Additional volume can be exported, with duty-free privileges to key Western markets that currently face limited availability of supply.

Commenting on this joint venture, Mr. Aloke Lohia, Group CEO of Indorama Ventures said, "I am delighted to extend our strategic partnership with Dhunseri through this acquisition. EIPET is a good fit with Indorama Ventures’ strategy in the recyclable and sustainable PET business, where the Company aims to supplement its position and build scale in key markets. EIPET also marks Indorama Ventures’ maiden entry into Egypt, complementing our existing footprint in EMEA. EIPET will provide meaningful opportunities for feedstock integration from our existing assets while allowing us to serve our customers in growth markets of Egypt and in the region."

Mr. C. K. Dhanuka, Executive Chairman of Dhunseri said, that "Our JV in India has been extremely smooth and provided a win-win situation for both, the customer and us. After experiencing the JV in India, we are very upbeat on entering the same in Egypt, which will be again a equal ownership JV."

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of USD 8.4 billion in 2017. The company is listed in the Dow Jones Sustainability Index (DJSI).

Dhunseri Petrochem Ltd. is one of the largest producers of PET resin in India and among the top ten in the world. The company manufactures the finest bottle grade PET resin, for packaging of drinking water, carbonated soft drinks, edible oil, pharmaceuticals and many more. Dhunseri Petrochem Limited is the Petrochem division of Dhunseri Petrochem & Tea Limited.
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Mongolia launches construction of first oil refinery with Indian aid

MOSCOW (MRC) - Mongolia launched construction of its first oil refinery, a long-awaited project that is funded by India and designed to end the country's dependence on Russian fuel, as per Reuters.

Friday's ground-breaking ceremony was attended by Mongolian Prime Minister Khurelsukh Ukhnaa and Indian Minister of Home Affairs Rajnath Singh.

The refinery, in southern Dornogovi province, will be capable of processing 1.5 million tonnes of crude oil per year, said Mongol Refinery, the state-owned company building the project, in a press release. That is about 30,000 Mbpd.

The refinery will be small by international standards, with most Chinese facilities each processing hundreds of thousands of barrels of crude per day, and India's Reliance Industries running one refinery at a record 1.2 MMbpd.

Still, Mongolia's new refinery, planned for completion in late 2022, will meet all of the nation's demand for gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG).

"By establishing this strategically important oil refinery, the national economy will become independent from energy imports, and fuel and commodity prices will be stabilized," said Mongol Refinery in its statement. The project is expected to boost Mongolia's gross domestic product by 10 percent, it said.

Mongolia imported almost 1.5 million tonnes of oil products last year, virtually all from Russia. They amounted to 18 percent of all Mongolia's imports, according to official data.

Mongolia, a large landlocked country wedged between giants China and Russia, has a population of just 3 million. Almost half its people live as nomadic stock herders, and the country's oil demand is growing only very slowly.

"From a national security perspective, we do need to diversify our sources of oil products from the current single source, Russia," said Munkhdul Badral Bontoi, chief executive of Mongolia-based market intelligence group Cover Mongolia.

The cost of the refinery is estimated at $1.35 billion, and it will include a pipeline and its own power plant.

The refinery will process Mongolia's own crude oil, which is now sold to China.

Mongolia produced 7.6 million barrels of oil last year, about 21 Mbpd, amounting to 6 percent of its total export earnings. The country's petroleum industry regulator is expecting its crude oil output to rise over the years prior to the refinery's start-up.

Mongolia's big southern neighbor China produces around 3.8 MMbpd of crude, and imports more than 9 MMbpd, according to official government data.
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Fluor readies first modules for Kuwait refinery project

MOSCOW (MRC) -- Fluor Corporation, a global engineering, procurement, fabrication and construction company, has announced the arrival of the first modules for the Kuwait Integrated Petroleum Industries Company (Kipic) Al Zour project in Kuwait, according to TradeArabia.

The US-based company is working with its joint venture partners Daewoo Engineering and Construction and Hyundai Heavy Industries to deliver two engineering, procurement, fabrication and construction packages for key process support units, utilities and infrastructure for the Al Zour refinery project.

Upon completion, the new complex is expected to be one of the largest refineries in the world and produce 615,000 barrels per day.

Modules are being constructed at the COOEC-Fluor Heavy Industries Company (COOEC-Fluor) fabrication yard in Zhuhai, China. The first 14 of the 188 modules were loaded onto a shipping barge and sailed away in May to Kuwait.

The sailaway of the modules was marked by a ceremony officiated by Hatem Al Awadhi, Kipic’s deputy chief executive officer and Jim Brittain, group president of Fluor’s Energy & Chemicals business, and was attended by executive members of the Fluor-led joint venture, known as FDH JV.

"Fluor is proud to be part of Kipic’s prestigious and strategically important Al Zour project," said Brittain.

"This milestone was achieved through the collaboration and commitment of our craft professionals at the newly expanded Zhuhai fabrication yard where more than 6,500 craft workers are safely fabricating steel and pipe and assembling modules for the project," he noted.

"Fluor and our joint venture partners are working closely with Kipic to implement Fluor’s integrated engineering, procurement, fabrication and construction solutions across every phase of the project to enable the safe and efficient construction, commissioning and start-up of this new refinery," said Al Collins, the president of Fluor’s Energy & Chemicals business in Europe, Africa and Middle East.

With headquarters in Irving, Texas, Fluor ranks 153 on the Fortune 500 list with revenue of USD19.5 billion in 2017 and has more than 56,000 employees worldwide, he added.

As MRC wrote before, in December 2017, Fluor Corporation announced that BASF’s Coatings division had opened a new automotive coatings plant at the Shanghai Chemical Industry Park in Caojing, Shanghai, China. After completing the front-end engineering and design, Fluor provided engineering, procurement and construction management services for the project. Fluor was responsible for building production lines, a solvent recovery unit, tank farms, utilities, warehouse, administration building and site infrastructure, with more than 1,200 craft workers onsite at peak.
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