Mitsui & Co ITC hit with water pollution charges after Texas tank fire

MOSCOW (MRC) -- Mitsui & Co Ltd's Intercontinental Terminals Co faces five environmental criminal charges following a March chemical fire at its Deer Park, Texas, petrochemical storage facility, reported Reuters with reference to local officials.

ITC was charged with polluting waterways that flow into the Gulf of Mexico, according to a statement by the Harris County district attorney. ITC could face penalties of up to USD100,000 for each of the five charges, according to Harris County.

ITC did not immediately return a call for comment.

After a fire caused a dike at the facility to break, "large (and still unknown) quantities" of toxic chemicals spilled into a nearby waterway for five days, Harris County District Attorney Kim Ogg said in a statement.

"The discharge from the ITC fire into Tucker Bayou is a clear water pollution case," Alex Forrest, an environmental crimes division chief prosecutor with the district attorney's office, said in a statement.

As MRC informed previously, in late March 2019, state and local investigators began investigating a petrochemical storage company outside Houston, TX where a massive fire fed by giant tanks of fuel burned for days, darkening the skies with soot for dozens of miles. The blaze at Mitsui unit Intercontinental Terminals Co (ITC) in Deer Park, Texas, began on Sunday, 17 March, and was not extinguished until early Wednesday, 20 March. It destroyed 11 tanks that can hold up to 80,000 barrels of gasoline and other fuels.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
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MOSCOW (MRC) -- Brazil’s state-controlled oil company Petrobras detailed long-awaited plans to sell a series of refineries and other assets as the company focuses on its core oil and gas exploration business, said Hydrocarbonprocessing.

Petrobras, or Petroleo Brasileiro SA, said its board had approved a plan to sell eight refineries in Brazil, including its large, recently built Abreu e Lima unit, according to a securities filing.

The company also said it will sell a gas station chain in Uruguay, called PUDSA, and an additional stake in Brazil’s No. 1 fuel distribution company BR Distribuidora SA as part of a massive divestment drive that aims to cut debt and raise money to be invested in its core oil exploration area.

Petrobras, which currently has a 71 percent stake in BR Distribuidora, said it is evaluating a secondary share offering to reduce its stake in that business.

A source with direct knowledge of the decisions taken by the board told Reuters earlier on Friday that the oil company could reduce its stake in BR to as low as 40 percent.

Petrobras said that among the other refining assets to be put up for sale are its Gabriel Passos unit, located in central Minas Gerais state, the Getulio Vargas refinery, in southern Parana state and the Landulpho Alves unit, in northern Bahia state, one of the largest refineries in the country with capacity to process 323,000 barrels per day.

The Abreu e Lima unit is emblematic. Launched in 2005 as a joint project for Brazil and Venezuela, in a collaboration of the leftist governments of Luiz Inacio Lula da Silva and Hugo Chavez, the unit had successive cost overruns that led to total capital expenditure of around USD20 billion from an initial estimate of USD2.3 billion.

Venezuela’s PDVSA later abandoned the project, that was partially concluded in 2014.
MRC

MOSCOW (MRC) -- WorleyParsons announced it is adopting a new brand, Worley, following the successful completion of the A USD4.5 billion acquisition of Jacobs Energy, Chemicals and Resources division (Jacobs ECR), as per Hydrocarbonprocessing.

The new merged business is a pre-eminent global provider of professional project and asset services in energy, chemicals and resources, employing 57,600 people across 51 countries worldwide.

Karen Sobel, Group President Major Projects and Integrated Solutions said “From today, our shared expertise will enable us to deliver end-to-end chemicals, mining and energy projects, including complete offshore delivery solutions in the Gulf of Mexico.

"We now have an incredibly strong team across the USA and Canada, encapsulating some of the best minds in the industry. The combination of our expertise and knowledge means we can offer our customers more value than ever before."

Commenting on the news, CEO Andrew Wood said: “This acquisition is about more than capacity and capability. It’s about opportunity. The opportunity to become the partner of choice for our customers, the employer of choice for our people and to deliver enhanced returns for our shareholders.

"Our new brand reflects our place at the forefront of the energy, chemicals and resources markets and our ability to support our customers through the global energy transition. We plan to embrace the heritage of both WorleyParsons and Jacobs ECR while looking firmly ahead to, what promises to be, an exciting future as one entity."

The acquisition also marks an expansion in other strategic markets including Europe, Canada, the Middle East and India. The company will have greater global reach, with leading market positions in the energy
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MOSCOW (MRC) -- South Korea’s refiners are set to return to the black when they report first-quarter earnings this week, and are expected to do even better in the current quarter as reduced gasoline supplies and the US driving season bolster margins, reported Reuters.

After a dire fourth quarter due to tumbling oil prices, SK Innovation and S-Oil have benefited from a bounce-back in prices since the start of 2019, although depressed margins partly eroded gains, analysts said.

Under pressure from excess gasoline supplies, Asia’s benchmark Singapore refining margin DUB-SIN-REF - the profit from turning a barrel of Dubai crude into finished products - hit the lowest since August 2013 at USD1.52 a barrel on Jan. 25.

However, refining margins have averaged USD4.40 a barrel so far in April, up from USD3.20 a barrel in the first quarter, while Asian gasoline cracks GL92-SIN-CRK are now at their highest since October 2018.

“Reduced gasoline supplies on US refinery outages are supporting refining margins and also US gasoline stocks have fallen ahead of the US driving season,” said Rho Woo-ho, an analyst at Meritz Securities.

Gasoline demand typically increases during the summer driving season, May through August, as many Americans take to the roads for vacations and outdoor activities.

US gasoline stocks fell by 1.2 million barrels in the week ended April 12, and are forecast to fall by 0.3 million barrels for the week ended April 19, a preliminary Reuters poll showed on Monday.

S-Oil, whose major shareholder is Saudi Aramco, will announce its results on Wednesday, followed by SK Innovation, the owner of South Korea’s top refiner SK Energy, on Thursday.

SK Innovation’s first quarter operating profit is estimated at 306 billion won (USD268.30 million), down 57 percent from 712 billion won from a year earlier, according to Refintiv SmartEstimate.

S-Oil is expected to post an operating profit of 254 billion won for the January-March period, compared with 256 billion won a year earlier, Refintiv SmartEstimate showed.

The pair posted a combined operating loss of 571 billion won in the fourth quarter.

As MRC informed earlier, South Korea’s leading LPG supplier SK Gas Ltd. (part of SK Corporation) will spend KRW 2.02 trillion (~ USD 1.8 billion) to build a combined-cycle power plant and polypropylene (PP) plant in the southeastern industrial city of Ulsan, South Korea.
MRC

MOSCOW (MRC) -- Burckhardt Compression has signed contracts to equip three production lines for synthetics with Hyper Compressors. Each of these petrochemical mega-plants will have an output of 300 to 400 kilotons per year of LDPE and EVA/LDPE, according to Hydrocarbonprocessing.

The production of EVA (ethylene-vinyl acetate copolymers) and LDPE (low-density polyethylene) is technically highly demanding and requires Hyper Compressors as key components. These high-pressure reciprocating compressors compress ethylene with discharge pressure of up to 3,500 bar and installed power of up to 30'000 kW. Burckhardt Compression is one of the very few companies that manufacture these complex compressors. It has more than 55 years of experience in manufacturing Hyper Compressors.

Because of their mechanical and chemical properties LDPE and EVA are used to produce strong, elastic everyday plastic articles such as threaded caps and protective packaging; plastic films for the agriculture and horticulture industries; cable and wire sheathing and insulation; floor coverings and many other products.

As MRC reported before, in May 2017, Burckhardt Compression was selected to modernize MOL Petrochemicals' third-party Hyper Compressor at MOL's LDPE plant in Tiszaujvaros, Hungary. The goal was to improve production performance and to establish a comprehensive, long-term service capability with a running-hours guarantee. The Hyper Compressor at the low density polyethylene (LDPE) plant has been in operation at MOL Petrochemicals in Tiszaujvaros, Hungary, since 1991. Burckhardt Compression is well-known for its Hyper Compressors and the MOL Group already has positive experiences working with Burckhardt Compression at another LDPE site.
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