MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) has announced it has concluded a new long-term Liquefied Petroleum Gas (LPG) sales agreement with Wanhua Chemical Group of China, according to Hydrocarbonprocessing.
Under the terms of the 10-year contract, Wanhua will purchase up to 1 million metric tonnes of LPG per annum.
The agreement, which was signed by Abdulla Salem Al Dhaheri, Marketing, Sales and Trading Director at ADNOC and Mr. Kou Guangwu, Executive Vice President of Wanhua Chemical Group, represents another important milestone in the expanding relationship between ADNOC and its partners and customers in China.
Commenting on the agreement, Abdulla Salem Al Dhaheri said: "Todays signing, of another important long-term sales agreement with a major end-user of LPG, further reinforces ADNOC’s position as a major supplier of crude oil and petroleum products to the growing economies of Asia. At ADNOC, we remain committed to achieving the best commercial value from our products, expanding our client base and penetrating new markets, through a combination of both short and long-term sales and trading opportunities."
In line with its strategy to maximise value from its downstream refining, petrochemical and gas processing operations, ADNOC produces up to 10,500,000 metric tonnes per year of LPG. This is sold both locally in the UAE and internationally.
Mr. Kou Guangwu, Executive Vice President of Wanhua Chemical Group said: "Wanhua Chemical Group is government owned but also publicly listed on the Shanghai Stock Exchange. The company has investment grade credit ratings from Moody’s, S&P and Fitch Ratings. Wanhua is one of the world’s leading chemical companies and the largest user of LPG in China. Through this long-term supply agreement, we look forward to strengthening our strategic partnership with ADNOC. We will continue working on potential collaborations between our companies, either in China or in the UAE, to add more value to the ‘One Belt One Road’ project."
Wanhua Chemical is the world’s largest MDI producer and the biggest TDI supplier in Europe. It operates a world-scale, advanced C3/C4 petrochemical industrial chain in China, as well as high value-added specialty chemical clusters.
LPG is the main feedstock for Wanhua petrochemical units, with consumption demand of up to 6 million tons per annum projected by 2021. Wanhua owns the world largest LPG underground cavern storage with total capacity of 2.4 million CBM as well as excellent port conditions with two 50K DWT dedicated VLGC berths.
As MRC reported earlier, in November 2018, Saudi Aramco and ADNOC signed a framework agreement to explore opportunities for collaboration in the Natural Gas and Liquefied Natural Gas (LNG) sector. The cooperation brings together two of the world’s leading energy producers from the Arabian Gulf to jointly work together in an area of strategic importance for both companies as they seek to boost revenues from the natural gas and LNG business segments.
MRC
MOSCOW (MRC) -- KBR, Inc. has announced that it has been awarded a contract by Linggu Chemical Co. Ltd (Linggu) for an ammonia plant in Yixing City, Jiangsu Province in China, as per Hydrocarbonprocessing.
Under the terms of the contract, KBR will provide the technology licensing and basic engineering design (LBED) package for building a new 1,500 metric tons per day ammonia synthesis unit as a replacement for one of their existing units in Yixing, China. The plant will utilize KBR's proprietary ammonia synloop technology.
KBR's ammonia synloop provides a cost-effective ammonia synthesis solution with low energy consumption, and low CAPEX and OPEX for a reliable and efficient plant. This is the second grassroots ammonia synthesis unit for Linggu using KBR technology. KBR licensed the first synloop unit to Linggu in 2015.
"With KBR's advanced ammonia synthesis technology, we believe our plants will stand out in the coal-to-ammonia market in China," said Mr. Tan Fuyuan, Chairman of Linggu.
"We are honored to deliver this second ammonia unit to Linggu," said John Derbyshire, KBR President, Technology. "This project award showcases the superiority of KBR's Ammonia Synthesis Technology and its great fit for the market needs in China."
KBR is a leader in ammonia technology and has been involved in the licensing, design, engineering, and/or construction of more than 230 grass roots ammonia plants and over 100 revamp ammonia projects globally.
As MRC wrote before, this autumn, KBR, Inc. Houston was awarded contracts for a technology license, basic engineering design services and proprietary catalyst supply by Lihuayi Lijin Refining & Chemical Co., Ltd., for a new olefins production unit in Dongying, China. The unit will use KBR’s proprietary Catalytic Olefins Technology (K-COT) and Selective Cracking Optimum Recovery (SCORE) Technology.
MRC
MOSCOW (MRC) - A group representing biofuel companies asked a federal judge on Tuesday to force the U.S. Environmental Protection Agency to stop exempting small refineries from renewable fuel laws until a lawsuit challenging the agency’s actions is resolved, as per Hydrocarbonprocessing.
Producers United argued, among other things, the EPA violated the law when it issued retroactive biofuel credits to HollyFrontier and Sinclair Oil this year as part of a legal settlement. The EPA’s decision, first reported by Reuters, lowers statutory renewable fuel mandates without any required public notice, the group alleges in the challenge, filed in U.S. Appelate Court in Washington.
Several biofuel organizations have brought similar lawsuits against the EPA related to small refinery hardship waivers, but Producers United is the first to ask a judge to freeze the program. The group did not disclose its members.
The EPA declined to comment. “We don’t comment on pending litigation,” an agency spokesman said. The U.S. Renewable Fuel Standard (RFS) requires refiners to blend biofuels like ethanol into their fuel pool or buy compliance credits from competitors who do. Refineries with a capacity less than 75,000 barrels-per-day can receive waivers if they prove compliance would cause them disproportionate hardship.
The EPA, under President Donald Trump, has greatly expanded the waiver program, awarding 29 exemptions for the 2017 calendar year, up from 16 in 2016 and just seven in 2015, EPA data shows. The EPA says lawsuits brought by HollyFrontier and Sinclair forced the agency to expand the definition of hardship, but biofuel groups say the shift was politically motivated and driven by former EPA administrator Scott Pruitt.
The EPA gave HollyFrontier nearly $34 million worth of credits for this year to reverse denial of a waiver for one of its Wyoming plants dating back to 2015. Sinclair received waivers worth undisclosed millions for two facilities in the same state for 2014 and 2015.
Both companies had challenged EPA’s denials in a federal appellate court in Colorado in 2016. Producers United claims the EPA’s expansion of the program was done largely in secret and must be legally scrutinized before it can be allowed to continue.
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