Angarsk Polymer Plant resumed PE production

MOSCOW (MRC) -- Angarsk Polymers Plant has resumed its low density polyethylene (LDPE) production after scheduled turnaround, according to ICIS-MRC Price Report.

According to the enterprise’s customers, Angarsk ZP completely resumed LDPE production on 12 August after a lengthy scheduled maintenance works, and began the first polymer shipments. The scheduled shutdown started on 22 June and was initially planned to last for one month. The plant's annual production capacity is about 75,000 tonnes.

It is also worth noting that next shutdowns for maintenance at Russian plants are scheduled for September.
Tomskneftekhim and Kazanorgsintez will stop their capacities.

Angarsk Polymer Plant (controlled by Rosneft through OOO Neft-Aktiv) is the only petrochemical full-cycle plant in Eastern Siberia. The bulk of the produced ethylene is used by the plant for the production of LDPE, styrene monomer (SM) and polystyrene (PS). Straight-run gasoline and hydrocarbon gases, mainly produced by OAO Angarskaya NHK, are the feedstocks for the plant.

MRC

MOSCOW (MRC) -- Phillips 66 restarted the gasoline-producing fluidic catalytic cracking unit (FCCU) at its 253,600-barrel-per-day (bpd) Alliance, Louisiana, refinery following a month-long shutdown, said sources familiar with plant operations, said Hydrocarbonprocessing.

Phillips 66 issued a statement saying it had no comment.

The 120,000-bpd FCCU was originally supposed to be shut for a few days when the entire refinery was taken down as a precaution on July 10 ahead of Hurricane Barry. But malfunctions developed during restart attempts on the unit, leading to weeks of repairs on the FCCU, the sources said.

As MRC informed earlier, Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture.
MRC

MOSCOW (MRC) -- Motiva Enterprises plans to shut the big crude distillation unit (CDU) at its 607,000 barrel-per-day (bpd) Port Arthur, Texas, refinery, the nation’s largest, by Sept. 5 for a 60-day overhaul, sources said, said Hydrocarbonprocessing.

In addition to the 325,000-bpd VPS-5 CDU, Motiva plans to shut the naphtha processing complex, which includes the 115,000-bpd naphtha hydrotreating unit 2 (NHTU2), 85,000-bpd catalytic reformer 5 (CRU 5) and 50,000-bpd isomerization unit for the work, scheduled to finish by Nov. 5, the sources said. Motiva issued a statement saying that it declined to comment.

While the other units are shut, Motiva has also has scheduled a 10-day shutdown of the 105,000-bpd hydrocracking unit 2 (HCU 2), according to the sources. VPS-5, the NPC and HCU 2 were all added to the refinery during a five-year, USD10 billion expansion that finished in 2012, more than doubling the capacity of the Port Arthur plant.

Some of the work on VPS-5 will include replacement of piping damaged in early June 2012, the sources said. About six weeks after starting up for the first time, the unit was shut for a week to repair a leak. During the restart in June 2012, thousands of gallons of caustic sodium hydroxide were unknowingly vaporized, causing widespread chemical corrosion and forcing VPS-5 to be shut for seven months of repairs.

The damage to VPS-5 was a factor that led to the split-up of Motiva by co-owners Royal Dutch Shell Plc and Saudi Aramco in 2017. Motiva is now a subsidiary of Aramco. VPS-5 is the largest of three CDUs at the refinery doing the primary breakdown of crude oil into hydrocarbon feedstocks for all other production units as well as making unfinished motor fuels. The other two CDUs will remain in operation.

Hydrotreaters remove sulfur from motor fuels and their feedstocks in compliance with U.S. environmental rules. Reformers convert low-octane refining byproducts into high-octane components that are blended into gasoline.

Isomerization units also convert byproducts into components blended into gasoline. Hydrocrackers convert gas oil into motor fuels, primarily diesel, which is one of the most lucrative products made by U.S. Gulf Coast refiners.
MRC

MOSCOW (MRC) -- Africa’s largest oil refinery will not be finished until the end of 2020 due to problems importing steel and other equipment, executives at Dangote, which is building the facility in the Nigerian commercial hub of Lagos, told Reuters.

Nigeria, Africa’s most populous nation, imports virtually all its fuel due to sclerotic and underutilised refineries, and even the state oil company is looking to the 650,000 barrel per day (bpd) Dangote refinery to help address this. Price caps force NNPC to import nearly all its gasoline at a significant cost and periodic fuel shortages are common.

Despite the delays at the congested Apapa and Tin Can Island ports in Lagos, a Dangote executive said the company could start using the refinery’s tank farms as a depot to warm up operations. “We will be able to complete the (refinery) project by the end of next year - mechanical completion,” said Dangote Group Executive Director Devakumar Edwin, who oversees the project.

The company expects fuel production within two months of completion of the refinery, which could transform Africa’s biggest crude producer from a fuel importer into a net exporter, upending global trade patterns.

Billionaire Aliko Dangote, who built his fortune on cement, first announced a smaller refinery in 2013, to be finished in 2016. Dangote then moved the site to Lekki, in Lagos, upgraded the size and said production would start in early 2020. Industry sources told Reuters last year that fuel output was unlikely before 2022.

Edwin also said during an interview at his office in Lagos that Dangote is setting up its own trading desk, with a senior team of three people and a staff of roughly 30 who will monitor international commodity prices. “We are setting up a complete trading desk here with us. In the next three months the full desk will be set up,” he said.

Giuseppe Surace, the refinery’s chief operations officer, said the refinery’s tank farms will be finished this year and could be used as a warm-up for operations. The tanks will be connected to five “single point mooring buoys” (SPMs), which will allow the refinery complex to pump crude straight into tanks from large ships at sea and pump products back out onto boats of any size.

The SPMs will be the primary method of supplying oil products from the refinery, Surace said, adding that the team were considering using the tanks as training or as a depot before the refinery’s production starts.

“We might do that. We will be ready to do that,” he said, though he added that no decision had been taken yet. The team is in talks with NNPC, two other international oil companies and two large oil traders, all of whom are interested in supplying crude and buying products, Edwin said.

Edwin said the crude unit for the refinery, which set sail from China last month, would arrive by the end of October.
MRC

MOSCOW (MRC) -- McDermott International, Inc. announced it has been awarded a sizeable* contract by PetroLogistics ll LLC to perform the front-end engineering design (FEED) services for a propane dehydrogenation (PDH) facility planned for the U.S. Gulf Coast, said the company.

Under the scope of the contract, McDermott will assist in the development of a PDH plant to be constructed on the U.S. Gulf Coast. The plant has a design basis of 500 KTA.

"McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the U.S.," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We will pull from our vast expertise in engineering to complete the FEED."

"The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of US propylene: petroleum refineries and heavy feed ethylene crackers," said Nathan Ticatch, PetroLogistics II President. "As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation. We are excited to work with McDermott to develop a facility that can supply a solution to this need."

McDermott was selected due to its strength in engineering and extensive knowledge in executing fluid catalytic cracking (FCC) projects. "We have had excellent experience working with McDermott in the past and we are pleased to be collaborating with them again on this very important project," said David Lumpkins, PetroLogistics Chairman.

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

PetroLogistics II is a Houston based company focused on acquiring, developing and operating petrochemical manufacturing, processing and logistics assets in North America. PetroLogistics II is owned by affiliates of Quantum Energy Partners and certain members of the Company's management.


MRC