OOG seeks more partners, supply for USD15B refinery

MOSCOW (MRC) -- Oman’s Overseas Oil and Gas LLC (OOG) is actively looking for new partners to develop USD15 billion new refinery in Bontang, East Kalimantan, as per Hydrocarbonprocessing with reference to OOG Chairman Khalfan Al Riyami.

OOG is currently in discussion with Japan’s Cosmo Oil International, a unit of Cosmo Energy Holdings, while looking for more investors "because it is a big project", Al Riyami said.

OOG currently controls 90 percent of the project and Indonesian state energy company PT Pertamina controls 10 percent

He said the cost of the project, which consist of a refinery and petrochemical plants, is USD15 billion. Pertamina initially estimated the project cost at USD10 billion.

The company aims to decide on financing source of the project within five months, Al Riyami said. The plant is scheduled to start operation around 2025-2026.

He added that OOG is also looking for more supply of crude oil for the 300,000 bpd refinery, preferrably from national oil companies.

OOG has signed memoranda of understanding with two local companies, PT Sanurhasta Mitra Tbk dan PT Meta Epsi Tbk, to build supporting facilities in Bontang, such as power stations, pipe infrastructure and water treatment for a combined value of USD3 billion.
MRC

Union workers to extend strike at Shell Pernis refinery

MOSCOW (MRC) -- Dutch trade union workers have decided to extend strike action at Royal Dutch Shell’s Pernis oil refinery that they said would limit production to 65 percent of capacity, reported Reuters with reference to union spokesman Egbert Schellenberg.

Schellenberg, spokesman for the FNV union, said the action would continue at least until Shell came back with an offer that could reopen wage negotiations.

So far, Shell has made no proposal to settle the dispute over wage increases which has led to work stoppages at Europe’s largest refinery and Moerdijk chemical plants in the Netherlands since April 8, unions said.

Schellenberg said that in addition to the action at the 404,000 barrel a day Pernis refinery, the strike will continue to prevent maintenance at the Moerdijk facility.

Workers are demanding an immediate pay rise of 5 percent, while Shell has offered an increase of 4.5 percent spread out over two years.

Striking workers shut down a thermal gasoil installation at Pernis on Monday, the unions said, in the first sign of any impact from industrial action on the oil refinery.

As MRC informed before, in May 2018. China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) announced the official start-up of the second ethylene cracker at their Nanhai petrochemicals complex in Huizhou, Guangdong Province, China.

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.
MRC

China to begin product safety crackdown following Jiangsu blasts

MOSCOW (MRC) -- China will launch a nationwide inspection into the safety of industrial products like food packaging and hazardous chemicals, market regulators said, the country's latest effort to allay public concerns after two deadly blasts, reported Reuters.

The State Administration of Market Regulation (SAMR) said in a notice on its website that maintaining quality and safety of major industrial products would "provide a solid guarantee of social stability, promote high-quality development and meet public demand for a good life".

The campaign will last until October and focus on "high-risk industrial products", as well as systemic, regional or industry-wide safety risks. It said it would increase scrutiny of manufacturers and operators of high-risk products and look at the use of explosion-proof electrics and structures.

Firms that prove incapable of making the required rectifications will have their operation licenses revoked, the notice said.

Two deadly blasts in eastern coastal Jiangsu province killed 85 people and injured dozens more last month, putting China's rapidly expanding but sometimes ramshackle chemical industry under intense scrutiny.

The government has already launched a month-long inspection campaign into hazardous chemical production after a blast at a pesticide plant killed 78 people.

The local government of Yancheng will shut down the chemical industry park where the blast occurred, the state news agency Xinhua said. Dozens of other industrial parks and hundreds of other small chemical manufacturers are also expected to be closed, state-owned tabloid Global Times reported on Tuesday.
MRC

Celanese to expand methanol capacity at US plant

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, today announces plans to significantly expand methanol production capacity at the company’s Clear Lake acetyl intermediates manufacturing facility located in Pasadena, Texas, said the company.

Celanese has recently been granted approvals from the Fairway Methanol LLC board of directors for a second phase expansion, which will increase production to 1.7 million metric tons per year – approximately 125% of the original nameplate capacity – to be implemented as soon as operationally feasible and pending customary regulatory and permitting approvals. Financial details of the project are not being disclosed at this time.

In parallel with this expansion, Celanese and Mitsui will evaluate additional cost effective expansion options for the Clear Lake methanol unit.

"Celanese is pleased to deliver on a historic milestone achievement in methanol production using engineering leadership, manufacturing excellence and chemical industry expertise,” said Todd Elliott, Senior Vice President, Acetyls. “Methanol is a crucial raw material for the production of acetic acid and other key chemical products and these expansions will enable Celanese to manage future productivity and growth configuration options for the world’s largest acetyl intermediates production facility, as well as the production network of Celanese acetyls plants globally."

The Clear Lake methanol unit was commissioned in October of 2015 as a joint venture between Celanese and Mitsui & Co., Ltd., of Tokyo, Japan (NASDAQ: MITSY), with an annual capacity of 1.3 million metric tons. The unit utilizes abundant, low-cost natural gas in the U.S. Gulf Coast region as a feedstock. The joint venture operates as Fairway Methanol LLC, with both Celanese and Mitsui maintaining a 50/50 ownership.

The JV operates as Fairway Methanol LLC, with both Celanese and Mitsui maintaining a 50/50 ownership.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation.
MRC

SIBUR and TransContainer sign letter of intent on shipment of ZapSibNeftekhim polymer products

MOSCOW (MRC) -- SIBUR Holding and TransContainer have entered into a letter of intent (LOI) outlining joint plans for transportation of polymer products across Russia and abroad, said the company.

The LOI was signed on the sidelines of the the 24th TransRussia International Exhibition for Transport and Logistics Services and Technologies by Vyacheslav Sarayev, TransContainer’s CEO, and Oleg Makarov, SIBUR’s Management Board member and Executive Director.

As stated in the LOI, TransContainer intends to provide SIBUR with transportation services to deliver ZapSibNeftekhim products to Southeast Asia, primarily China, in 40-foot rail containers.

To ensure on-going delivery, TransContainer commits to having sufficient number of containers permanently available at SIBUR’s terminal in Tobolsk.

"The proposed partnership with TransContainer will facilitate timely and efficient delivery of products from ZapSibNeftekhim polyolefin facilities scheduled for completion in Q2 2019,” said Oleg Makarov, member of SIBUR’s Management Board and Executive Director.

"We offer reliable delivery to major industry players helping them transport feedstock, components and end products. In addition, we are striving to provide new services in transportation and logistics, including high-speed container trains for ZapSibNeftekhim," said Vyacheslav Sarayev, TransContainer’s CEO.
MRC