Lokoil to invest USD60M in Italian refinery

MOSCOW (MRC) -- Lukoil said it plans to invest more than USD60 million over the next three years in its 320,000 barrel-per-day ISAB refinery in Augusta, Italy, on the island of Sicily, according to Hydrocarbonprocessing.

Vadim Vorobyov, Lukoil’s First Deputy CEO, told reporters at a news conference that the investments.

He said ISAB will move to produce high-quality diesel of Euro V grade after the modernization.

Vorobyov also said that Lukoil had no plans to sell ISAB for now.

Reuters has reported in 2017 that Lukoil was looking to sell the ISAB refinery as part of a review of its overseas operations.

As MRC reported before, in October 2018, McDermott International, Inc. announced it had been awarded a significant contract by LUKOIL NizhegorodNefteorgSyntez, a subsidiary of JSC LUKOIL, for the engineering, procurement and construction (EPC) of the Delayed Coker Unit for the Deep Conversion Complex planned to be built in Kstovo, Russia.

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. In Lukoil structure includes one of the largest Russian petrochemical plant - Stavrolen.
MRC

Mammoet completes milestone lift at Shell petrochemical plant

MOSCOW (MRC) -- Mammoet has safely completed a critical lift at Shell’s Pennsylvania Chemicals Project in Potter Township, utilizing its MSG80 to hoist a 2,000 ton quench tower into position, as per Hydrocarbonprocessing.

The facility is the first major US project of its kind to be built outside of the Gulf Coast region in 20 years. Once operational, the facility will boast an ethane cracker and three polyethylene units, and is expected to employ up to 600 employees. As part of its heavy lift scope, Mammoet recently lifted the tallest and heaviest piece, a quench tower, into place using its specialized MSG80 crane.

The quench tower, measuring 87 meters (285 feet) long, was erected according to plan within a twelve hour time period. It was one of the first vertical pieces to be set on site. Due to the restricted availability of space, the MSG80 was the only crane with a small enough footprint and high enough capacity to complete this crucial lift. Additionally, Mammoet’s PTC200 DS is on site and is scheduled to complete a further 45 lifts for the project.

Mammoet’s Project Manager, Tim Dowdle, said the success of the lift was a result of Mammoet’s specialized equipment combined with a highly skilled team of people. "This scope required extensive planning and mobilization within an intense schedule," he said. "Working in close partnership, the Mammoet and Shell teams stepped up to the plate, accepted the challenge and delivered a safe, flawless execution."

As MRC reported before, in March 2018, Shell EP Middle East Holdings B.V. completed the sale of the entire share capital of Shell Iraq B.V (SIBV), which held its 19.6% stake in the West Qurna 1 oil field, for USD406 million, to a subsidiary of ITOCHU Corporation.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Storage tanks explode at Venezuela heavy oil project

MOSCOW (MRC) -- Two storage tanks exploded at the Petro San Felix heavy-crude upgrading project in eastern Venezuela, industry sources said, said Hydrocarbonprocessing.

The tanks were holding diluent, which is mixed with extra-heavy Orinoco belt heavy crude to make it lighter, legislator Jose Brito said in a telephone interview. "These two tanks were holding diluent," Brito said. "Fortunately, there were no injuries."

An oil industry source who asked not to be identified said the two tanks were located at a pumping station associated with the Petro San Felix project.

Venezuela's heavy crude upgrading projects turn tar-like Orinoco crude into more valuable grades of oil. Moving the heavy crude from production fields requires mixing it with some form of diluent that allows it to flow through pipelines.

State oil company PDVSA typically uses either light crude or fuel as diluent. It was not immediately evident what the tanks were holding.

PDVSA did not immediately respond to a request for comment.

Photos on social media that users said were from the project, in the state of Anzoategui, showed flames coming out of two structures with large black plumes of smoke rising in the air.
MRC

Tee Hai Chem sells 51% stake to German giant Brenntag

MOSCOW (MRC) -- SPECIALITY chemicals distributor Tee Hai Chem on Thursday sold a 51 per cent stake to German chemical distribution giant Brenntag for a sum estimated to be SD200-300 million, said Businesstimes.

With the move, the Singapore company aims to accelerate growth by tapping into Brenntag’s global network to further expand its reach regionally and globally, as well as giving Tee Hai’s employees an opportunity to be part of a worldwide organisation.

Following the transaction, the family behind Tee Hai Chem, which include executive director Han Koon Juan and his three siblings, will become minority shareholders.

Headquartered in Singapore and with a heritage of over 53 years, Tee Hai Chem specialises in the procurement, sales and distribution of materials and chemicals, and the provision of services to strategic industries in the region such as life sciences, electronics and research & diagnostics. Its revenue for FY2018 stood at S$170 million.

Even as Brenntag acquires a majority stake, Mr Han, Tee Hai’s second-generation leader and son of founder Han Chin Fong, said that there will be “no changes” to Tee Hai’s management team. Brenntag will work with Tee Hai’s management to jointly operate the company.
MRC

Sinopec Sabic Tianjin restarts PP plant

MOSCOW (MRC) -- Sinopec Sabic Tianjin has resumed operations at its Polypropylene (PP) plant following a brief maintenance, as per Apic-online.

A Polymerupdate source in China informed that the company has planned to restart the plant on March 14, 2019. The plant was shut on March 7, 2019.

Located in Tianjin city, China, the plant has a production capacity 450,000 mt/year.

As MRC wrote before, Sinopec Sabic Tianjin Petrochemical Co. (SSTPC) started up a 1-million-t/y ethylene cracker in Tianjin, China, in 2010, and in 2012 it began construction on a new 260,000-t/y polycarbonate plant at Tianjin, which began operations in 2015.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC