Two long-term supply agreements signed with Marathon Petroleum Company

MOSCOW (MRC) -- Air Liquide announced that it has signed two long-term supply agreements with Marathon Petroleum Company for a total of up to 900 tons per day oxygen for Marathon Petroleum’s Refineries in Texas City, Texas and Garyville, Louisiana, according to Hydrocarbonprocessing.

The two agreements mark a growing relationship between the two companies and nearly double the amount of oxygen Air Liquide will supply Marathon Petroleum in total. Both sites are located on the Gulf Coast.

At Marathon Petroleum’s Galveston Bay Refinery in Texas City, Texas, Air Liquide will increase its current oxygen delivery by 400 tons per day. And in Garyville, Louisiana, Air Liquide will increase oxygen delivery by up to as much as 500 tons per day.

Marathon Petroleum Corporation operates the nation's largest refining system with more than 3 million barrels per day of crude oil refining capacity across 16 refineries.

“Air Liquide is pleased to build upon its existing relationship with Marathon Petroleum and further expand its portfolio of investments in the U.S. The two new supply agreements with Marathon Petroleum further demonstrate Air Liquide’s ability to develop and scale its capacity across our pipeline networks and safely and reliably serve the growing demand for industrial gases in key geographies," Michael J. Graff, Executive Vice President and Executive Committee Member, Air Liquide Group said.

As MRC reported earlier, in June 2018, Fluor Corporation announced that it had achieved substantial engineering completion for Marathon Petroleum Corporation’s Tier 3 gasoline sulfur standard reconfiguration project at the Galveston Bay refinery in Texas City, Texas.
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MOSCOW (MRC) -- W. R. Grace & Co., the leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, has licensed its UNIPOL PP Process Technology to Hyundai Chemical Co., Ltd., a joint venture between Hyundai Oilbank Co., Ltd. and Lotte Chemical Corporation, as per Hydrocarbonprocessing.

Located in Daesan, South Korea, the new, 250KTA facility will be part of a larger cracker complex that is slated to open in 2021. The UNIPOL PP unit will be used to produce high-end, specialty grade, random copolymer resins.

Grace's all gas-phase UNIPOL PP Process Technology provides the most advanced and broadest range of PP homopolymers, random copolymers, and impact copolymers in the industry. This process technology, without any moving parts inside of the reactor and requiring less equipment than any alternative, is a reliable, safe, and stable operation which leads to lower capital, operating, and maintenance costs.

Laura Schwinn, President of Grace’s Specialty Catalysts business, said, "Grace is excited to be the technology choice for Hyundai Chemical Co., Ltd.’s plant in Daesan, South Korea. The UNIPOL PP Process Technology will provide their customers with some of the best random copolymer resins in the industry. We are confident that our technology coupled with our non-phthalate CONSISTA® catalysts will give Hyundai Chemical Co., the ability to deliver the resins that are in highest demand from their customers."

As MRC wrote previously, in April 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation.

A leader in polyolefin catalysts and licensing, Grace has the world’s broadest portfolio of polypropylene and polyethylene catalyst technologies used to produce thermoplastic resins for a variety of applications. A leading innovator and strategic partner to its customers, Grace supplies catalyst solutions for all polyolefin processes, as well as polypropylene process technology and process controls. Grace employs approximately 3,700 people in over 30 countries.
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MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) announced a new strategic partnership with OCI N.V. (OCI). OCI is a global producer and distributor of natural gas-based fertilizers and industrial chemicals, headquartered in the Netherlands, according to Hydrocarbonprocessing.

The partnership will see ADNOC combine its fertilizer business, ADNOC Fertilizers, into OCI’s Middle East and North Africa (MENA) nitrogen fertilizer platform to form a new joint venture (JV).

The JV will become the largest export-focused nitrogen fertilizer platform globally and the largest producer in the MENA region with a production capacity of 5 million tons of urea and 1.5 million tons of sellable ammonia. Annual revenues for the combined entity are USD1.74 billion, based on 2018 pro forma figures. ADNOC and OCI will own a 42% and 58% stake in the JV respectively.

This combination brings greater geographic diversity to the platform's MENA production channels, enabling greater combined market access to strengthen market share and better serve its customers around the world. It will have a centralized commercial team, supported by a robust storage and distribution infrastructure with access to key ports on the Mediterranean, Red Sea and Arabian Gulf.

The JV will operate a young, state-of-the-art asset base with low maintenance costs and strong free cash flow generation. As a result, the company will be well-positioned to pay its shareholders attractive dividends and to fund future organic and inorganic growth opportunities.

In conjunction with this joint venture, ADNOC Fertilizers has also signed a new long-term gas supply agreement with ADNOC, which will provide its facilities in Ruwais with the required feedstock for its operations based on a competitive pricing formula.

The JV will be based in Abu Dhabi and registered in the Emirate’s international financial center, Abu Dhabi Global Market (ADGM), furthering the development of fertilizer expertise and trading in Abu Dhabi. The board of the new entity will consist of 6 members nominated by OCI and 4 nominated by ADNOC. H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and Chief Executive Officer (CEO) of the ADNOC Group, will be Chairman of the Board.

Nassef Sawiris will assume the role of CEO of the JV, alongside his current role as CEO of OCI. His leadership will be supported by a joint management team of experienced key executives from OCI and ADNOC, which will drive value creation through the unlocking of substantial operational, supply chain, marketing and trading synergies across the combined platform.

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: "We are extremely pleased to have created this new joint venture with OCI who are a world leader in nitrogen fertilizers and share our ambition and vision to grow our new combined fertilizer business. Pooling our assets and capabilities is a value enhancing step for both companies, allowing us to leapfrog competitors to become the top nitrogen export platform globally. It will also enable us to access new markets, benefitting both existing and new customers."

He added, "This unique business combination is in line with ADNOC’s approach to value-added partnerships and will improve the profitability and cash flow of our fertilizer portfolio. It also supports ADNOC’s objectives to attract investors to Ruwais by leveraging its strategic location, world-class logistics and the UAE’s abundant gas resources at commercially attractive terms. It is another milestone in the delivery of ADNOC’s 2030 strategy and our ambitions to expand ADNOC’s Downstream portfolio."

Nassef Sawiris, CEO of OCI N.V. commented: "I am very pleased to start a long-term strategic partnership with ADNOC, a company which has a clear downstream strategy and drive to unlock value. This partnership creates a first-of-its-kind export platform with best-in-class cash conversion metrics. I believe that this platform has significant potential for future growth and value creation, with the support and under the guidance of its two key shareholders".

This new partnership marks another step in ADNOC’s group-wide transformation and value creation program that addresses the evolving energy and petrochemicals landscape and ensures ADNOC remains a resilient and flexible company able to take full advantage of emerging market opportunities and trends. The Group’s transformation is driven by an expanded approach to strategic partnerships and co-investments as well as the more proactive management of ADNOC’s portfolio of businesses, assets and capital. ADNOC is delivering on its ability to package and structure smart transactions with its partners.

This transaction continues this strategy and follows on from several other recent value creation initiatives, including ADNOC’s debut capital markets transaction, the issuance of the Abu Dhabi Crude Oil Pipeline (ADCOP) bond, the IPO of ADNOC Distribution, the recent strategic equity and commercial partnerships between ADNOC Drilling and Baker Hughes as well as ADNOC Refining and Eni and OMV.

Central to ADNOC’s 2030 strategy is the significant expansion of ADNOC’s Downstream business. In May 2018, ADNOC announced its new Downstream strategy that includes an AED 165 billion (USD 45 billion) investment program that will see the Ruwais Industrial Complex upgraded to significantly increase its flexibility and capabilities to produce greater volumes of higher-value refined and petrochemical products.

The transaction is expected to close in the third quarter of 2019, subject to legal and regulatory conditions.

As MRC reported earlier, in May 2018, ADNOC unveiled plans to invest AED 165 billion (USD45 billion) alongside partners, over the next five years, to become a leading global downstream player, enabling it to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE.
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MOSCOW (MRC) -- Mexican President Andres Manuel Lopez Obrador’s push to build a new oil refinery involves high risks of flooding and other environmental issues, according to government document, but is described as otherwise viable, reported Reuters.

The documents cover environmental impacts declared by state energy company Pemex and were made public by the oil industry environmental regulator known as ASEA. They conclude that while the development of the Dos Bocas refinery will moderately affect the environment, those impacts "will be controlled, mitigated or compensated."

The assessment by Pemex, which has been directed by Lopez Obrador to oversee the construction of the refinery, also asserts that the facility’s operations "will totally comply" with all existing environmental laws and is economically viable.

ASEA has 60 days to evaluate the assessment.

Lopez Obrador has pitched the USD8 billion project, which if completed would be Mexico’s biggest refinery, as needed to reduce a growing dependence on imported fuels.

The refinery is expected to process 340,000 barrels per day (bpd) of Mexico’s flagship grade, Maya heavy crude, mainly to produce gasoline and ultra-low-sulfur diesel (ULSD), a type of motor fuel that is set to become a standard in the country.

The president personally attended the ceremonial groundbreaking for the project at the construction site in the Gulf Coast port of Dos Bocas, in his home state of Tabasco, on June 2.

In May, Lopez Obrador ordered Pemex to supervise construction after he dismissed would-be private builders as unable to meet his budget or aggressive three-year timeframe.

Parts of Pemex’s environmental assessment of the project are blacked out, including details such as estimated emissions and damages to nearby beaches, which the government argues should be treated as confidential.

ASEA is part of the environment ministry and its executive director is a presidential appointee who does not need to be approved by the Congress.

Major credit ratings agencies have called out the refinery as an ill-conceived project for both the government as well as state-owned Pemex, the world’s most indebted oil company, arguing it is unnecessary and would divert money away from more profitable exploration and production activities.

Fitch Ratings has already stripped Pemex debt of its investment-grade status, and if another ratings agency does the same, it would trigger billions of dollars in forced selling and likely lead to a spike in the company’s financing costs.

As MRC informed previously, Mexican national oil company Pemex is currently processing about 9 percent more crude oil at its domestic refineries than it did in 2017, said Chief Executive Officer Carlos Trevino in April 2018.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).
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MOSCOW (MRC) -- India’s Maharashtra state has identified a new site for the planned USD44 billion oil refinery that state-run firms are building with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), reported Reuters with reference to Chief Minister Devendra Fadnavis.

The new sit in western Maharashtra would be at Raigad district, about 100 kms (62 miles) south of the country’s financial capital Mumbai.

The refinery was initially proposed to be built at Nanar, a village in Ratnagiri district, some 400 kms (250 miles) south of Mumbai.

But thousands of farmers refused to surrender land, fearing it could damage a region famed for its Alphonso mangoes, vast cashew plantations and fishing hamlets that boast bountiful catches of seafood.

The protests forced the Maharashtra government to suspend the land acquisition process for a refinery in Nanar.

The 1.2 million barrels per day refinery and associated petrochemical project is seen as a game changer - offering India steady fuel supplies and meeting Saudi Arabia and ADNOC’s need to secure regular buyers for their oil.

In Raigad, the state-run City and Industrial Development Corporation plans to acquire land from 40 villages for the refinery, Fadnavis said in a written reply to state lawmakers.

State run companies - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum - own 50% of the Ratnagiri Refinery & Petrochemicals Ltd (RRPCL), the company that is building the project. Saudi Aramco and ADNOC hold the remainder.

As MRC informed previously, in December 2018, India delayed the commissioning of a giant refinery that state-owned firms are building in tie-up with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC) by two year to 2025.
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