Wood secures multi-million dollar contract for refinery in Oman

MOSCOW (MRC) -- Wood has secured a new multi-million dollar contract with Duqm Refinery and Petrochemicals Industries to provide two Terrace Wall double-fired delayed coker heaters at their refinery on the south eastern coast of the Sultanate of Oman, said Hydrocarbonengineering.

The award follows on from Wood’s successful delivery of the engineering and process design phase, the technology package and licence of the company’s SYDEC (selective yield delayed coking) technology.

Effective immediately, the contract will be delivered by Wood’s process and technology specialists based in New Jersey, US, and builds on Wood’s strong contribution to the Duqm Refinery to date, including the successful delivery of the overall facility pre-FEED, FEED and ongoing project management.

Bob MacDonald, CEO of Wood’s Specialist Technical Solutions business, comments: "We are delighted to continue to support the development of Duqm refinery and will draw on our experience of delivering our market-leading delayed coking technology and proprietary equipment at greenfield refineries across the globe.

"Wood has an established track record in the design and development of fired heaters spanning more than a century and this contract also expands our footprint further in the Middle East."

The contract is due to be completed in the first quarter of 2020.

Duqm Refinery and Petrochemical Industries Company LLC is a joint venture between Oman Oil Company and Kuwait Petroleum International. On completion, the refinery and petrochemical complex will have the capacity to process around 230 000 bopd.
MRC

Idled St Croix refinery to restart, produce fuels by 2020

MOSCOW (MRC) -- Owners of an idled oil refinery in St. Croix, U.S. Virgin Islands, which was once one of the world's largest refineries, plan to invest USD1.4 billion to refurbish and restart a portion of the plant, reported Reuters with reference to their statement.

ArcLight Capital Partners, a private equity firm that owns 80 percent of Limetree Bay Terminals LLC, expects the former Hovensa plant to be able to process 200,000 barrels per day of crude and deliver fuels to market by January 2020, officials told a news conference in St. Croix.

The Boston-based company spent two years studying the market and developed "a refinery profile we see thriving in the current marketplace," said John Erhard, an ArcLight partner.

The refinery would supply low-sulfur fuels under an International Maritime Organization mandate that begins in 2020. The Caribbean is facing declining fuel supplies from Venezuela, which has sharply cut its shipments to the region.

In the 1970s, the refinery on St. Croix was able to process 650,000 bpd. It halted processing in 2012, filed for bankruptcy three years later and was sold to ArcLight and trading firm Freepoint Commodities.

The two companies run Limetree Bay Terminals, a 25 million barrel oil storage and marine terminal on the site.

As part of its agreement with the USVI government, Limetree has purchased 225 acres of land and more than 100 homes surrounding the refinery to facilitate the restart, US Virgin Islands Governor Kenneth Mapp said in an interview.

"They've already begun spending money," Mapp said. "Assets and resources are already on their way."

Reopening the refinery will be a boon to the US Virgin Islands, which has struggled economically since Hovensa closed in 2012.

The government will collect USD600 million in revenue from the refinery over its first 10 years in operation, Mapp said.

Officials did not discuss BP Plc's potential involvement in the refinery restart, but two sources familiar with the matter said the British oil company is in negotiations to supply crude to the plant.

The deal under discussion would be similar to a supply and marketing arrangement BP struck with NARL Refining for the 115,000-bpd Come by Chance refinery in Newfoundland, one of the sources said. That deal soured over two years ago.

ArcLight and Freepoint officials were unavailable for comment. BP spokesman Mike Abendhoff declined to comment on its potential role.

As MRC wrote before, in late September 2018, BP Plc shut the large crude distillation unit (CDU) at its 413,500 barrel per day (bpd) Whiting, Indiana, refinery to begin an overhaul. BP plans to keep the 240,000 bpd Pipestill 12 CDU shut through late October for the planned overhaul.
MRC

Kraiburg TPE portfolio for automotive and consumer applications expanded

MOSCOW (MRC) -- KRAIBURG TPE is highlighting its market-driven and customer-oriented development expertise at the 26th International Trade Fair Fakuma held from October 16 to 20, 2018 at Friedrichshafen Exhibition Center. In addition to current applications for its thermoplastic elastomers (TPEs), the company will also be showcasing two advanced new material series that provide excellent properties for automotive interior and consumer applications, as per the company's press release.

"Fakuma is the largest trade fair specializing in plastics processing in Europe, the Middle East and Africa (EMEA)," emphasizes Franz Hinterecker, CEO of KRAIBURG TPE. "With our comprehensive materials expertise, sound knowledge of the market and consistently close customer relations, we'll be offering visitors to the fair a comprehensive demonstration of competence covering every aspect of thermoplastic elastomers."

With FG/SF, the new THERMOLAST K series and latest innovation for the automotive industry, KRAIBURG TPE is expanding its portfolio in this growing market segment. The series comprises several compounds in the Shore A hardness range between 50 and 80 with excellent surface properties for automotive interior parts - properties that include reliable adhesion to polypropylene (PP) and good abrasion resistance. The materials can be processed at relatively low pressures. Along with the standard black and natural colors, customer-specific colors are also available.

The new FG/SF compounds also comply with all common OEM standards for components used in automotive passenger compartments in relation to emission and smell as well as UV-resistance. The target applications range from floor mats and anti-slip mats with complex geometry that require enhanced surface quality to decorated surfaces and functional parts with a pleasantly soft touch, such as thumb wheels and switches.

The new compounds in the FC/AD/PA THERMOLAST K series are aimed at manufacturers in the consumer and food industries. These materials have been developed specifically for food contact and feature excellent adhesion to polyamides. The natural-colored compounds are available in hardness degrees ranging from 40 to 80 Shore A. They are not only characterized by easy processing and colorability, but also by high tensile strength and elongation at break.

This makes the TPE family particularly suitable for a wide range of applications with direct food and mouth contact such as container and packaging seals, and parts of kitchen utensils and tableware. Other applications include sports items and cosmetics, as well as seals for hearing aids.

As MRC reported earlier, in December 2017, Kraiburg TPE presented a new series of thermoplastic elastomers from its Thermolast K family that was specially developed for excellent adhesion and UV resistance in two-component applications with ethylene-propylene-diene rubber (EPDM). The new compounds are intended for automotive applications such as EPDM window trim and sealing profiles with moulded TPE corner joints and end elements.

Kraiburg Rubber (Suzhou) Co. Ltd. was established in 2005 and is part of the Waldkraiburg-based German company Kraiburg Holding GmbH & Co. KG. The company produces a wide range of standard rubber compounds (based on NR, EPDM, CR, AEM, SBR, FKM, etc.) for automotive, building and construction applications, and other industrial markets as well as highly customised products for all kinds of industries at its Suzhou site. The compounds are produced on highly automated and fully process-controlled mixing lines, based on state-of-the-art technology. The company has 130 employees.
MRC

Citgo, Valero drive up U.S. purchases of Venezuelan oil in September

MOSCOW (MRC) - Venezuela’s September crude sales to the United States rose to their highest in over a year, boosted by purchases by Citgo Petroleum, the U.S. refining arm of Venezuela’s state-run PDVSA, and Valero Energy, according to Refinitiv Eikon trade flows data, said Reuters.

A collision in August at a dock of Venezuela’s main oil port of Jose has limited exports in large vessels to Asia, spurring loading of more medium-size tankers including those typically covering routes to the United States.

Venezuela’s overall crude exports fell 14 percent in September to 1.105 million bpd due to declining oil output and dock woes at Jose terminal. The OPEC-member country’s crude production fell for third time in a row to 1.448 million bpd in August, according to official figures.

The United States imported 601,505 barrels per day (bpd) of Venezuelan crude last month, a 28-percent increase versus August and the highest monthly average since August 2017, according to the Refinitiv Eikon data.

Valero and Citgo bought over 250,000 bpd each of Venezuelan crude last month compared with an average of 170,000 bpd earlier this year, according to the data.

A total of 38 cargoes were purchased by U.S. customers from PDVSA and its joint ventures in September. At least three of those shipments were co-loaded in different Venezuelan ports to avoid problems at Jose, where repairs are expected to take at least one more month to be completed.

PDVSA’s exports last month included more light and medium crudes, generally produced at very low levels in Venezuela and leaving less of these grades for PDVSA’s domestic refineries to produce fuels.

In September, PDVSA sold Citgo and Valero some 84,000 bpd of Santa Barbara, Mesa and Leona crudes, which are typically processed at Venezuelan refineries.

PDVSA regularly imports gasoline, diesel, liquefied petroleum gas and refining feedstock to offset low production at its refineries.
MRC

Not all Russian producers raised PVC prices in October

MOSCOW (MRC) -- Negotiations over October shipments of suspension polyvinyl chloride (SPVC) began in the Russian market in the first week of the month. Some producers managed to achieve a further price increase, according to ICIS-MRC Price Report.

Contrary to many converters' expectations, October did not become a month of price reduction. Some Russian producers still managed to achieve a price increase of Rb1,000/tonne from September. Some converters still agreed prices at the lat month's level.

Demand for PVC began to subside in the Russian market in September under the pressure of seasonal factors, and some producers started to increase their exports, especially since the rouble devaluation against the dollar virtually equalized prices of export material, to be shipped to certain countries, with domestic prices.

Some converters maintained September volume of PVC purchasing in October, but overall demand for resin continued to decline gradually. Producers are going to sell for export the freed from the domestic market quantities of polymer.

PVC imports were insignificant in the past few months. Export prices for acetylene resin went down significantly in China in October, and some companies have already expressed their willingness to purchase resin. But due to the delivery complexity, the current external purchases do not put pressure on the Russian market.

Traditionally, many converters were in no hurry to agree on deals for October shipments, and PVC purchases before the start of the winter season corresponded only to the current needs.

Overall, October deals for resin with K=64/67 were negotiated in the range of Rb78,000-79,000/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes. Resin with K=58/70 was contracted at the prices, which were by an average of Rb1,000/tonnes higher.
MRC