Exxon Baytown refinery hydrocracker remains shut after upset

MOSCOW (MRC) -- The hydrocracking unit at Exxon Mobil Corp’s 560,500 barrel per day (bpd) Baytown, Texas, refinery remains shut following a power interruption on Saturday, reported Reuters with reference to sources familiar with plant operations.

Exxon spokeswoman Sarah Nordin said the Baytown refinery was experiencing an operational issue resulting in safety flaring.

"We are working diligently to minimize the safety flaring. There is minimal impact to production,” Nordin said. “We expect to meet our contractual commitments."

The 25,000 bpd hydrocracker was shut after a brief power interruption at the refinery early on Saturday morning, according to a notice filed with the Texas Commission on Environmental Quality.

As MRC informed earlier, in October 2017, ExxonMobil Chemical Company commenced production on the first of two new 650,000 tons-per-year high-performance polyethylene (PE) lines at its plastics plant in Mont Belvieu, Texas.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- WorleyParsons has been awarded a new three-year contract by NOVA Chemicals for continued engineering on the Corunna Cracker Expansion Project (Phase 3) in Ontario Canada, as per Hydrocarbonprocessing.

This award follows WorleyParsons successful completion of services to Phase 2 of the Project. Under the new contract, WorleyParsons will provide engineering, procurement, construction management and project management services.

The services will be led and executed from WorleyParsons’ North American offices and other WorleyParsons’ offices.

"We are pleased to announce this award, which extends our services to the Project and continues our strong relationship with NOVA Chemicals", said Andrew Wood, Chief Executive Office of WorleyParsons.

As MRC informed before, in early June 2018, Bayport Polymers LLC (Bay-Pol), a joint venture of Total and Novealis Holdings LLC - a joint venture of Borealis AG and NOVA Chemicals Inc. - held the official groundbreaking ceremony for the construction of a new ethane cracker at the Total Port Arthur Refinery. The new USD1.7-billion ethane cracker is the first project under construction by the recently-formed Bay-Pol joint venture.
MRC

MOSCOW (MRC) -- Specialty chemicals company Lanxess has announced plans to open a new applications development and technical services (AD&TS) laboratory for polyurethane dispersions (PUDs) in Latina, Italy, as per ProcessWorldwide.

As part of the existing Urethane Systems AD & TS center, the new lab will operate as a standalone facility dedicated to PUDs. It has been built with the scope of enhancing the company's Urethane Systems business partnership with clients and end users, via a technology focused interaction and high scientific focus. Start of operation will be in the 3rd quarter of 2018.

According to the company, the new laboratory will be capable of supporting market needs in a variety of coatings and adhesives applications in leather and textile finishing, plastic, glass and metal substrates coatings, as well as glass fiber sizing.

As MRC reported earlier, in December 2017, Lanxess announced the expansion of its Additives segment and plans to acquire the phosphorus chemicals business with a US production site from Belgian chemical group Solvay. Both companies signed an agreement to this effect.

Lanxess is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
MRC

MOSCOW (MRC) -- A refinery in Saudi Arabia has shipped its RBOB gasoline to the United States for the first time, a potential precursor for more deliveries to a region where prices are currently at seasonal three-year highs, reported Reuters.

The 400,000 barrels-per-day Jubail Satorp refinery, a joint venture between Saudi Aramco and French company Total, said in its verified Twitter account that it sent the shipment of reformulated blendstock gasoline - commonly called RBOB - to the United States. It did not say whether those barrels had arrived yet, and its exact destination was unclear.

The shipment is unusual because when Satorp was founded in 2008, it was not expected to send RBOB to the United States, as Saudi gasoline demand remained strong, said Robert Campbell, head of oil products research at Energy Aspects in New York.

Satorp was not immediately available for comment.

Motor gasoline inventories in the United States fell to about 239 million barrels in the week to July 6, according to U.S. Energy Department data. Stockpiles were up from the same time last year, when inventories totaled 235.7 million barrels.

Market participants expect the additional supply could slow U.S. inventory drawdowns.

Energy trading companies often route vessels based on favorable spreads for crude oil and products, and right now moving gasoline to the United States is more profitable. But this shipment also could mean demand in Saudi Arabia is weakening, Campbell said.

The shipment suggests that the Americas has become one of the best destinations for surplus gasoline, he added. "It's tough because that means Asia really is quite significantly oversupplied," Campbell said.

Demand in Saudi Arabia has waned as the government has undertaken reforms that have reduced fuel consumption across several sectors, Campbell said.

As MRC wrote before, Satorp (Saudi Aramco Total Refining and Petrochemicals Company) has recently selected Axens to evaluate, develop, and implement an Advanced Process Control (APC) system for its aromatics complex ParamaX producing high purity paraxylene and benzene.
MRC

MOSCOW (MRC) – Carbon Holdings, a mid-to-downstream petrochemical company and catalyst of industrial development in Egypt, signed 48 key project documents for its USD10.9 billion Tahrir Petrochemicals Company (TPC), officially launching a world-scale petrochemicals complex that, once operational, will help double Egypt’s total exports and create thousands of direct and indirect jobs, as per Hydrocarbonprocessing.

Senior members of the Egyptian Council of Ministers’ economic team were present for the ceremony, including HE Tarek El Molla, Minister of Petroleum; Admiral Mohab Mameesh, Chairman of the Suez Canal Economic Zone; and Admiral Hisham Abu Senna, Chairman of the Red Sea Ports Authority. Distinguished diplomats present included ambassadors from the United Kingdom, United Arab Emirates, and China, as well as chiefs of mission from the United States and Germany.

Participating in the event were senior officials from international finance institutions, including Societe Generale, debt financial adviser, represented by Richad Soundardjee, Group Chief Regional Officer, corporate and Investment Banking, and Lazard, an adviser to Carbon Holdings, represented by Xavier Atieh, Managing Director Head of the Middle East and Africa. Joining them to witness the signing were Abdulla Mazrui, Youssef Al Nowais, Osama Kamal, and Tania Issa from Carbon Holdings' board of directors.

"The message today is clear: Egypt is emerging as an industrial and export powerhouse. We have just made crucial progress towards the establishment of TPC as the centerpiece of a new, global-caliber manufacturing hub,” said Carbon Holdings Chairman and Chief Executive Officer Basil El-Baz. “This vision is to attract investment from global development finance institutions, export finance agencies, and other sophisticated investors. Located in the Suez Canal Economic Zone, in the heartland of the nation’s oil and gas industry, TPC will both drive industrial development and lead export growth. Its $8 billion in projected annual exports will by themselves result in a dramatic increase in Egypt’s total exports, while its output will make it possible for Egyptian manufacturers to make and export a range of products including plastics and packaging, paints and solvents, adhesives, floor coverings, and more.
MRC