Phillips 66 and Renewable Energy Group to build renewable diesel facility

MOSCOW (MRC) -- Phillips 66 and Renewable Energy Group, Inc. announced that planning is underway for the construction of a large-scale renewable diesel plant on the U.S. West Coast, as per Hydrocarbonprocessing.

The plant would utilize REG’s proprietary BioSynfining® technology for the production of renewable diesel fuel. Planned feedstocks include a mix of waste fats, oils and greases, including regionally-sourced vegetable oils, animal fats and used cooking oil.

"REG is excited to be working with a leading refiner, Phillips 66 , on a project that has the potential to significantly expand biofuel production in Washington state and provide low carbon fuel markets with products that are in significant demand on the West Coast ,” said Randy Howard , CEO of REG. “We look forward to working with state and local stakeholders to facilitate development of this important project and increase the supply of low carbon fuels in the region."

The new facility would be constructed adjacent to the Phillips 66 Ferndale Refinery in Washington state . The Ferndale Refinery offers existing infrastructure, including tank storage, a dock, and rail and truck rack access.

"The proposed facility’s strategic location in Washington state would enable us to move renewable fuels more efficiently to support West Coast and international fuel market demand." said Brian Mandell , senior vice president, Marketing and Commercial, Phillips 66 . "We continually look for opportunities to provide our customers with a reliable source of innovative renewable fuels."

This announcement follows more than a year of collaboration between Phillips 66 and REG related to site selection and preliminary engineering. The companies expect to make a final investment decision in 2019. If approved, production at the new facility is currently premised to start in 2021.

REG owns and operates 13 biomass-based diesel refineries, with a combined effective production capacity of 565 million gallons per year. This includes REG Geismar, a 75-million-gallon nameplate capacity plant located in Louisiana that was the first renewable diesel plant built in North America . REG’s 100 million gallon per year REG Grays Harbor biodiesel plant, the largest biorefinery in the REG fleet, is also located in Washington state .
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MOSCOW (MRC) -- ExxonMobil has started operations of a new unit at its Antwerp refinery in Belgium to convert heavy, higher-sulfur residual oils into high-value transportation fuels such as marine gasoil and diesel, as per Hydrocarbonprocessing.

The new 50,000 barrel-per-day unit expands the refinery’s capacity to meet demand for cleaner transportation fuels throughout northwest Europe. The company’s investment in the new coker will also help meet anticipated demand for lower-sulfur fuel oil to comply with new standards to be implemented by the International Maritime Organization in 2020.

"Our investment in Antwerp strengthens ExxonMobil’s competitiveness and position as a leading European refiner by expanding the refinery’s product slate and increasing our ability to deliver larger quantities of cleaner, higher-value fuels to European customers," said Bryan W. Milton, president of ExxonMobil Fuels & Lubricants Company. "The USD2 billion we have invested in our Antwerp refinery over the last decade has made the facility one of the most modern and efficient in the world."

Other projects completed in Antwerp include a 130 megawatt cogeneration unit, which leads to reduced greenhouse gas emissions, and a diesel hydrotreater, which has increased the refinery’s production capacity for low-sulfur diesel to enable modern diesel engines to achieve lower emissions standards.

The delayed coker is the first of several expansion projects designed to strengthen the competitiveness of ExxonMobil’s advantaged facilities in Europe. The company is currently constructing a new hydrocracker in Rotterdam that will upgrade heavier hydrocarbon byproducts into cleaner, higher-value finished products such as EHCTM Group II base stocks and ultra-low sulfur diesel. ExxonMobil is also considering an expansion project at its Fawley refinery in the United Kingdom that would include a new hydrotreater unit and associated hydrogen plant to increase domestic diesel production and reduce reliance on imported fuel.
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MOSCOW (MRC) -- Emirates National Oil Company (ENOC) has scheduled month-long maintenance for November at its 140,000 barrels per day (bpd) condensate splitter in the United Arab Emirates (UAE), as per Hydrocarbonprocessing.

The planned maintenance will include the integration of a new crude distillation unit (CDU) pipeline that is expected to come onstream late next year, the sources said.

The sources declined to be identified as they were not authorised to speak with media. ENOC did not immediately reply to an email from Reuters on the matter.

The maintenance comes as companies including ENOC and South Korea's Hanwha Total are grappling with feedstock condensate supply tightness due to sanctions against Iran which will take effect this month.

ENOC had chartered at least one vessel to store jet fuel to ensure supply to airlines in Dubai, sources told Reuters last month.

It also has onshore tanks to store refined oil products, including gasoline and feedstock. Separately, ENOC last month announced that it would be constructing a jet fuel pipeline that can carry 2,000 cubic metres of the aviation fuel per hour to Al Maktoum International Airport.

The 16.2-km (10-mile) jet fuel pipeline is expected to be operational in the first quarter of 2020,
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MOSCOW (MRC) -- Saudi Aramco and SABIC have announced their selection of Yanbu, on the west coast of Saudi Arabia, as the site for the development of an integrated industrial complex to convert crude oil to chemicals (COTC), as per Hydrocarbonprocesing.

The announcement by Saudi Aramco and SABIC, the two largest industrial entities in the Kingdom, reflects the high importance both companies place on making the Kingdom a key hub for global chemicals production. The complex will utilize an economically viable, innovative configuration to convert crude oil to chemicals. This process is unprecedented in the industry.

The COTC complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of chemicals and base oils annually and is expected to start operations in 2025.

The complex is expected to create an estimated 30,000 direct and indirect jobs, further stimulating the Kingdom’s economic diversification efforts. By 2030 the COTC complex is expected to have 1.5% impact on the Kingdom’s Gross Domestic Product (GDP), with investments being shared equally by both companies.

Consistent with the Kingdom’s Vision 2030 economic transformation program, this project will support the creation of a world-leading downstream sector in Saudi Arabia, built on four key drivers: maximizing value from the Kingdom’s crude oil production via integration across the hydrocarbon chain; enabling the creation of conversion industries to produce semi-finished and finished goods to help diversify the economy; developing advanced technologies and innovation; and enabling sustainable development in alignment with the Kingdom’s National Transformation Program.

The announcement strengthens the alliance between the two largest Saudi global entities and solidifies the Kingdom’s position as a global leader in chemicals by substantially increasing production and maximizing value across the entire hydrocarbons chain.

Earlier this year, Saudi Aramco and SABIC awarded the Project Management and Front End Engineering to Wood and KBR. The Partners are working on finalizing the selection of Leading Edge Technologies to complement their technologies.
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MOSCOW (MRC) -- Nigeria's state oil firm NNPC said that it had signed a crude-for-product deal with BP for the next six months to help meet the country's gasoline needs over the holidays and ahead of its general election early next year, as per Hydrocarbonprocessing.

Despite being Africa's biggest oil producer and an OPEC member, Nigeria is almost wholly reliant on fuel imports as its refineries barely function after years of neglect and infrastructure sabotage. Periodic fuel shortages are common with cars lining up at the pump sometimes for days, especially during the Christmas period.

Incumbent President Muhammadu Buhari, whose popularity is already sagging, cannot afford to be seen as unable to meet the needs of Nigeria's 190-million population. It was not immediately clear what volume would be allocated to BP. NNPC already has 10 similar deals for a total of just over 300,000 barrels per day of crude out its close to 1.9 million bpd of production as of October.

NNPC initially announced on Twitter late on Wednesday without providing details. BP declined to comment. In its statement, NNPC said the arrangement with BP would account for 20 percent of the west African country's total gasoline needs. NNPC imports about 70 percent of Nigeria's fuel needs, mainly gasoline, via swap contracts known as Direct Sale Direct Purchase (DSDP). Foreign firms must pair up with a local company to deliver the products. NNPC said that BP will be partnered with Nigerian firm AYM Shafa. BP was not originally among the companies with whom NNPC signed DSDPs. "BP's partnership with AYM Shafa...makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period," NNPC managing director Maikanti Baru said, adding that AYM Shafa has 150 retail outlets and depots. The existing contract holders that include trading houses Vitol, Trafigura, Mercuria and French oil major Total started in mid-2017.

NNPC extended the existing DSDP contracts to June 2019 but several trading sources in the consortiums have requested new price terms, sources with direct knowledge said. Higher oil prices this year have helped boost Nigeria's foreign exchange reserves, but the weakness in the country's currency against the U.S. dollar has forced the central bank to spend billions to keep the naira stable and prevent an unwelcome spike in its import bill. Nigeria has been using swaps for about 10 years. NNPC launched the DSDP model in 2016 and under it, NNPC sells crude oil to refiners or trading houses, who in return, supply mainly gasoline but also other petroleum products such as diesel.
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