Mexican regulator approves Pemex oil refinery construction, with environmental conditions

MOSCOW (MRC) -- The environmental regulator for Mexico’s oil industry said on Monday it had approved the construction of a refinery for state oil company Pemex, but imposed conditions to mitigate the environmental impact of the USD8 billion project, said Reuters.

Mexican President Andres Manuel Lopez Obrador has said the facility planned for the Gulf Coast port of Dos Bocas in his home state of Tabasco would help Mexico wean itself off its growing reliance on fuel imports, one of his signature campaign pledges.

Environmental regulator ASEA approved the project after reviewing a report prepared by Pemex that offered a mostly positive environmental assessment of the refinery’s construction despite predicting a “severe” impact on air quality.

ASEA said Pemex, while building the project, must monitor local water quality, rescue and relocate affected wildlife and protect a mangrove forest, among other mitigation measures.

Slated for completion by 2022, the refinery is expected to process up to 340,000 barrels per day of heavy crude oil.

Lopez Obrador tapped the oil company to oversee the project after deeming bids from engineering groups were too expensive, putting more pressure on Pemex, the world’s most indebted oil company that has struggled to reverse declining output.

However, the project has been repeatedly criticized by investors and ratings agencies due to concerns it will divert funds away from Pemex’s more profitable exploration and production business.

Ratings agency Moody’s has said the new refinery could exceed the budget by USD2 billion to USD4 billion due to the government’s “limited know-how” on such projects.
MRC

SKC plans to spin-off chem business

MOSCOW (MRC) -- SKC Co. has received board of directors' approval to vertically spin-off its chemical business and sell a 49% interest in the new separate entity to Petrochemical Industries Co. (PIC) of Kuwait, said Apic-online.

In addition, the parties have signed an agreement to form a propylene oxide (PO) joint venture. The new joint venture company, which SKC and PIC agreed will be valued at USD1.195-billion, will include a 45% stake in SKC Evonik Peroxide Korea.

The transaction is expected to close in the first quarter of 2020, subject to regulatory approvals and customary closing conditions.

"SKC has a strategy to achieve an annual production target of 1-million tons of PO," PIC noted. "SKC believes this joint venture will facilitate the exploration of future opportunities and is an important step towards its strategy."

PIC, a wholly-owned subsidiary of Kuwait Petroleum Corp. (KPC), said the transaction will "enhance" its capacity in downstream derivatives and is an "important" step towards achieving KPC's 2040 petrochemical strategy.

As MRC informed earlier, SKC, a chemical manufacturing subsidiary of SK Group, has agreed with Petrochemical Industries Company (PIC) of Kuwait to set up a 1.45 trillion won chemical joint venture.
MRC

Iraq says Eni, BP deal doesn't mean Exxon excluded from southern mega-project

MOSCOW (MRC) -- Iraq’s oil ministry said it was still in talks with U.S. energy giant ExxonMobil over a major deal to improve the country’s southern oil infrastructure, said Hydrocarbonprocessing.

An agreement with Britain’s BP and Italy’s Eni was not part of the USD53 billion, 30-year mega-project. It covered the building of two seabed oil pipelines for exports through the Gulf, the ministry said.

Reuters on Thursday cited five senior Iraqi oil officials as saying that Iraq was close to reaching a deal with BP and Eni for an export pipeline project that was initially planned as part of the mega-deal with ExxonMobil.

“The ministry affirms that its negotiations with U.S. company ExxonMobil are ongoing,” the ministry said in a statement.

“...Not reaching an agreement or signing a deal between both parties does not mean the end of negotiations or the ‘exclusion’ of ExxonMobil from the project as reported by news agencies citing officials they did not name.”

The deal with Eni and BP was limited to the two seabed oil pipelines, it said. Large strategic projects required more time to research, negotiate, and study, it added.

The southern mega-deal involves several projects including developing oil fields, expanding storage, transport, and export infrastructure, and building byproduct gas treatment units.
MRC

Refinery CDUs back to normal operations

MOSCOW (MRC) -- Motiva Enterprises returned two crude distillation units (CDUs) back to normal operations at its 607,000 barrel per day (bpd) Port Arthur, Texas, refinery, the nation’s largest, said Hydrocarbonprocessing.

Motiva restarted the 80,000 bpd VPS-2 CDU on Sunday and restored production to full on the 195,000 bpd VPS-4 CDU on Saturday after clearing water from the fuel gas lines supplying the units, the sources said.

In an unsigned statement, Motiva declined comment.

As MRC informed earlier, 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.
MRC

Datong Coal chooses Grace Unipol process for new polypropylene facility in Datong

MOSCOW (MRC) -- W. R. Grace & Co. has licensed its Unipol PP (polypropylene) process technology to Datong Coal Mine Group Co. for a new PP plant in Datong, China, as per Apic-online.

The 430,000-t/y PP unit, which will also utilize Grace's Consista catalysts, is scheduled to be completed in 2022. Cost of the project was not given.

"We are excited to partner with Grace and invest in the Unipol PP process technology," noted Kuanqiang Jia, chairman of Olefin Branch Co. "This technology enables us to efficiently produce a broad range of products for our customers and keep up with increasing demands for non-phthalate resins in the region."

The Unipol process technology, along with the Consista catalysts, will permit Datong Coal to produce more than 200 resin grades.

As MRC informed earlier, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation.
MRC