McDermott awarded FCCU contract in India

MOSCOW (MRC) -- McDermott International, Inc. announced that it has been awarded a sizeable* technology contract by Indian Oil Corporation Limited (IOCL) for the technology license, basic engineering, proprietary equipment, training and technical services for a grassroots Fluid Catalytic Cracking (FCC) unit using INDMAX Technology, licensed by McDermott's Lummus Technology and developed in partnership with IOCL, according to Hydrocarbonprocessing.

This FCC unit is part of a refinery expansion project for IOCL to grow into petrochemicals at the complex in Panipat, Haryana, India. Lummus Technology is the exclusive worldwide licensor of INDMAX Technology, which is a unique solution for vertical integration of refinery and petrochemical complexes and offers better product yields with lower capital and operating expenditures.

The INDMAX Technology combines the proprietary and innovative INDMAX catalyst and process concepts developed by the premier Research & Development Centre of IOCL with state-of-the-art FCC technology and hardware design features of Lummus Technology. "IOCL has been an important partner to us for many years and we look forward to the continued relationship by participating in this refinery expansion project," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "IOCL currently operates INDMAX units at their Paradip and Guwahati refineries, and they are in the process of commissioning another at their Bongaigaon refinery."

This award will be reflected in McDermott's second quarter 2019 backlog.

As MRC wrote before, in July 2019, McDermott International, Inc. announced the recent successful startup of the world's largest catalytic dehydrogenation plant, which is located at Hengli Petrochemical (Dalian) Refinery Co., Ltd.'s site in Liaoning Province, China, and uses McDermott's Lummus CATOFIN technology.

McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
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MOSCOW (MRC) - Phillips 66 plans to run the 11 refineries it operates in the mid-90% range of their combined 2.17 million barrel per day (bpd) capacity in the third quarter, the company said Reuters.

The company operates nine wholly-owned refineries with a combined capacity of 1.67 million bpd and two refineries co-owned with Cenovus Energy with a combined capacity of 502,000 bpd.

The transition to low-sulfur marine fuel on Jan. 1 is already affecting refined products markets but how exactly it will shape distillate and gasoline supply early next year remains unclear, Jeffrey Dietert, vice president of investor relations, said during a conference call with Wall Street analysts to discuss second-quarter results.

"We're expecting conversion of tanks in the September-ish time frame and expect shippers to be buying compliant fuels in the fourth quarter," Dietert said. "I think there are some early indications of compliant marine fuels trading at USD12 to USD15 a barrel over Brent. There's not a lot of liquidity in that market. It's still early."

The International Maritime Organization, a United Nations affiliate, mandated that marine fuel oil would have a sulfur contract of 0.5% beginning on Jan. 1, 2020, down from the current 3.5%.

Phillips does expect gasoline supply will be affected as vacuum gas oil, a gasoline feedstock, may be blended with fuel oil to meet the new sulfur limit.

"It doesn't look to us as though there's going to be 2 million barrels a day of incremental diesel production to meet that incremental marine fuel market. And some is going to have to come from other products," Dietert said. "But it should take some gasoline out of the gasoline pool," he added.

Phillips 66 expects a new 25,000 bpd isomerization unit at its 260,000 bpd Lake Charles, Louisiana, refinery will reach full production in the third quarter.

Isomerization units convert refining byproducts into feedstocks for motor fuel or petrochemical production.
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MOSCOW (MRC) -- German chemicals giant BASF , which surprised investors with a profit warning earlier this month, said a slump at its basic petrochemicals businesses accounted for most of the weakness in the second quarter, said Reuters.

"Earnings in the second quarter of 2019 were significantly negatively impacted by the lower volumes and margins in the Chemicals and Materials segments," BASF said in a statement, adding that the two divisions accounted for 83% of the overall earnings decline in the second quarter.

In a surprise announcement on July 8, BASF forecast a 30% fall in 2019 operating profit instead of a rise as previously predicted, weighing heavily on the share price. It also published preliminary group results for the second quarter at the time.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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MOSCOW (MRC) -- AkzoNobel has announced plans to add three new production lines at its Changzhou powder coatings plant in China - the company’s largest facility of its kind in the world, said the producer on its site.

The EUR3 million investment will support additional supplies of acrylic powder coatings, metallic powder coatings and powder primers for the automotive sector, strengthening AkzoNobel’s ability to deliver more locally produced premium products.

"China is a high priority region for us and the booming powder coatings industry in China will help to optimize our production and investment strategy," says CEO Thierry Vanlancker. "This latest investment will also reinforce our capability to support local customers and enhance our manufacturing and supply chain."

Adds Mark Kwok, President of AkzoNobel China/North Asia: "Given emerging market trends and customer needs, we are fully aware of the importance of manufacturing and delivering locally. The Changzhou site plays a strategic role in supporting our business development in China. The new production lines will further our localization strategy to create more value for both ourselves and our customers with efficient and customized solutions."

Opened in 2012, the Changzhou site supports the manufacture of both powder coatings and liquid coatings, including decorative paints, protective coatings and vehicle refinishes. The powder coatings facility was a later addition and started production in 2018. It covers virtually all industry applications and supports the entire East China region.

As MRC wrote earlier, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

AkzoNobel, the global leader in powder coatings, supplies these coatings to more than 30,000 customers worldwide, covering market segments ranging from domestic appliances, architecture and automotive to furniture, IT and general industrial applications.
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MOSCOW (MRC) -- Linde Malaysia, the leading gases and engineering company, has announced it has started up a new gas and liquid producing air separation unit (ASU) supplying oxygen, nitrogen and argon to leading Japanese glass manufacturer, Nippon Electric Glass (NEG) and other customers located at the Hicom Industrial Estate (Hicom) in central Malaysia, as per Linde's press release.

This new ASU expands Linde’s existing production capacity at its Hicom facility by 60 percent and will meet the growing demand from its customers in the electronics, healthcare, metallurgy, glass and food and beverage industries.

Speaking at the official opening ceremony, Binod Patwari, Linde’s Regional Managing Director for ASEAN said, "We are pleased to have started supplying NEG while expanding our industrial gas capacity and pipeline supply network in central Malaysia. This plant will increase our network density, ability to reliably supply and support the growth of our other customers within central Malaysia."

The new plant will be integrated into Linde’s Remote Operating Centre (ROC), which is also located at Hicom. Through remote network access, employees at the ROC monitor, operate and control systems and equipment at 128 Linde plants across the ASEAN, South Asia and South Pacific regions, resulting in greater operational efficiency, optimisation of resources and reduced downtime.

"Linde’s long-term investment in Malaysia has benefitted our economy, industries and people through technology transfer, talent development and job opportunities. The company’s adoption of digital solutions to create value for its customers and the industry sets a good example and supports Industry4WRD, our National Policy on Industry 4.0, to drive technological transformation of the manufacturing and manufacturing related services sectors in Malaysia. I look forward to seeing more businesses follow Linde’s lead." said Ministry of International Trade and Industry, Deputy Minister, Yang Berhormat Dr Ong Kian Ming.

"Linde’s long-standing presence in Malaysia and the opening of the new air separation unit embodies how manufacturing industries are consistently moving up the value chain by adopting digital solutions and Industry 4.0. InvestKL is confident that Linde’s investments will add great value to the local economy, and at the same time spur positive impact on our local talent and digital ecosystem. We are thrilled to support Linde’s expansion in Greater KL and Malaysia and we will continue to facilitate high-value activities and services from global multinationals such as Linde," added InvestKL Acting Chief Executive Officer, Muhammad Azmi Zulkifli.

As MRC reported before, in June 2018, The Linde Group and the specialty chemicals company Evonik Industries concluded an exclusive cooperation agreement on the use of membranes for natural gas processing.

Linde is a leading industrial gases and engineering company with 2018 pro forma sales of USD 28 billion (EUR 24 billion). The company employs approximately 80,000 people globally and serves customers in more than 100 countries worldwide. Linde delivers innovative and sustainable solutions to its customers and creates long-term value for all stakeholders. The company is making our world more productive by providing products, technologies and services that help customers improve their economic and environmental performance in a connected world.

Linde has been present in Malaysia since 1960. A leading industrial gas supplier in Malaysia with close to 60 years of experience in the industry, it combines local knowledge with global expertise and resources in the areas of technology, research and development, gas applications, engineering and best operating practices.

Linde Malaysia is the specialist in the provision of total gas solutions to a variety of industries. It manufactures and distribute industrial, specialty and medical gases and provide a range of related services including installation of gas equipment, pipelines and associated engineering services. In addition, it supplies packaged chemicals, welding and consumables products.
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