Versalis will stop cracker in Priolo at the end of December for turnaround

MOSCOW (MRC) - Versalis, the petrochemical division of Italy's Eni SpA, plans to stop a cracking unit in Priolo, Sicily, for repairs in the last days of December, Polymerupdate reports.

The capacity of the cracking unit at this complex is 490,000 tonnes of ethylene and 130,000 tonnes of propylene per year. The maintenance works will last until February next year. Loading at this cracking installation was reduced in November and December.

It was previously reported that Versalis shut repairing this cracking unit in the spring of 2018.

Ethylene and propylene are the main raw materials for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to ScanPlast of Market Report, the estimated PE consumption in Russia amounted to 1,589,580 tonnes in the first nine months of this year, which is 7% more than a year ago.Shipments of all PE grades increased.
Calculated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Versalis is a petrochemical company, a 100% subsidiary of the Italian oil and gas company Eni SpA. The company produces a wide range of petrochemical products, and is also one of the world's leading elastomer companies.
Eni spa (Ente Nazionale Idrocarburi) is an Italian oil and gas company headquartered in Rome. Eni operates in 70 countries.
mrcplast.com

MOSCOW (MRC) -- Japan's largest refiner JXTG Nippon Oil & Energy is looking to reduce term crude oil imports from the Middle East in 2020 in order to diversify supply sources and adopt a flexible feedstock procurement strategy in preparation for stricter marine fuel sulfur requirements, reported S&P Global with reference to the president of parent company JXTG Holdings' statement Friday.

"We are looking to reduce fixed deals as much as possible in order to be able to buy light and heavy grades as needed on a spot basis," Tsutomu Sugimori said at an earnings press conference in Tokyo.

"This would be most economically rational as well as helping (us) to respond to the IMO (mandate)," Sugimori said, referring to the International Maritime Organization's sulfur limit mandate for marine fuels from next year.

The possible move by JXTG, which has an installed refining capacity of 1.93 million b/d, to reduce its Middle East term crude supply is significant because the supply from the region accounted for 88% of Japan's total crude imports in 2018.

Japan's term crude imports also accounted for 69% of the 3.06 million b/d imported in 2018, with spot supplies making up the balance, according to the Ministry of Economy, Trade and Industry data.

Asked whether JXTG is looking to cut term crude procurements from the Middle East, Sugimori told reporters: "After all the Middle East accounts for the largest amount of our term (supply)." "If we are reducing them (term procurements), that's only the region," he added.

Sugimori's remarks came as JXTG has already made efforts to diversify its crude supply sources to generate economic benefits, while keeping the Middle East as its main supply source.

Japanese refiners typically import crude on VLCCs from the Middle East and refine sour grades with desulurizers to generate economic benefits, while they import arbitrage cargoes on smaller Aframax or Suezmax tankers.

"While the Middle East is currently large (as a supply source) because of the economical rationale, there are some issues surrounding the Strait of Hormuz," Sugimori said.

Tokyo became nervous after the September 14 attacks on Saudi Arabian oil facilities, which occurred after two ships, including one operated by a Japanese shipping company, were attacked on June 13 just outside the Strait of Hormuz. A key route for oil tankers in the Persian Gulf, the Strait of Hormuz is used for around 80% of Japan's crude imports.

JXTG's ambition to adopt a more flexible approach in its crude procurements also came at a time when the refiner is increasingly adjusting its production of IMO-compliant bunker fuels following its start of commercial supply in October.

The IMO will cap global sulfur content in marine fuels at 0.5% from January 1, down from the current 3.5%. This applies outside the designated emissions control areas, where the limit is already 0.1%.

"Our principle is to minimize residual output in our throughput system," said Sugimori, adding that the company will still be able to find buyers for its high sulfur fuel oil supply after making a good progress in cultivating a customer base.

To produce IMO-compliant bunker fuel oil, JXTG is looking to buy light crude oil from the Middle East, the US and Russia, Sugimori said.

"Although I am not sure how this works out by our unit configurations, we should aim for the system to take any (crude) from anywhere," Sugimori said. "The more we diversify [our supply sources], the easier it becomes to respond to the IMO (mandate)."

Since the start of the supply of IMO-compliant bunker fuel, JXTG has been ready to supply 0.5% sulfur bunker fuel oil at eight refineries - all of the refineries it had planned to supply the fuels.

As MRC informed before, JXTG Nippon Oil & Energy resumed operations at its cracker on June 17, 2018, following an unplanned shutdown. The cracker was taken off-line in end-May 2018 owing to Furnace issues. Located at Kawasaki in Japan, the cracker has an ethylene production capacity of 540,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
MRC

MOSCOW (MRC) -- Alfa Laval, a leading global provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling, has strengthened its operations in the United States with three new facilities, expanding its commitment to serving its customers in the United States, reported Hydrocarbonprocessing.

These investments better position Alfa Laval as a key partner for its customers throughout the United States. Alfa Laval customers will benefit from greater accessibility to the products, services, capabilities and industry-leading expertise they need to improve their processes and enhance their business’ sustainability and profitability.

"Our focus is to add value to our customers’ businesses through quality, a reliable supply chain, stability, performance innovation, and deep product and application experience" says Jo Vanhoren, managing director and president, North America Cluster, Alfa Laval. "The expansion gives us greater flexibility to adapt to customers’ needs. We’re producing closer to our customers, enhancing sustainability overall, and we’re faster, as needed, to serve our customers better."

Already the market leader in the United States and North America, this USD50 million investment continues to increase the company’s pace of innovation, while providing a stronger local presence for its customers in the United States. These state-of-the-art facilities provide Alfa Laval customers access to the company’s expert engineers for unrivaled product and application competence, and service centers designed around making it easier for customers to keep their equipment and processes optimized for performance.

"We are investing in logistical excellence - localized production, service, supply and distribution - to create even better experiences for our customers," says Vanhoren. "Our focus is to add value to our customers’ businesses. We are committed to developing a more sustainable environment and turning our customers’ sustainability challenges into business opportunities."

The company has expanded its facility in Richmond, Va., with a new brazed heat exchanger production unit. This will provide customers in the United States with an enhanced and streamlined supply chain for this range of compact heat exchangers. Because of this expansion, 90 % of the most popular brazed heat exchanger models will be produced in the United States.

Alfa Laval has expanded its facility in Greenwood, Ind., to house a new, automated distribution center which, combined with a centralized transportation hub outside of Indianapolis, will shorten order lead times for its customers. The facility features state-of-the-art service center upgrades for reconditioning and repair of plate heat exchangers, decanters and high-speed separators. Plus, an all-new high-speed separation center of competence has been developed, offering factory acceptance, media testing, and hands-on customer training from expert Alfa Laval engineers.

Alfa Laval also expanded its facility in Broken Arrow, Okla., with an all-new spiral heat exchanger manufacturing facility, adjoining its existing air-cooled heat exchanger facility. Together, these facilities offer a Welded Competence Center for customers in these demanding market applications.

As MRC reported earlier, Alfa Laval has recently won an order to supply compact heat exchangers to a refinery and petrochemical plant in China. The order has a value of approximately SEK 100 million and is booked in the Welded Heat Exchangers unit of the Energy Division. Deliveries are scheduled for 2020.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
MRC

MOSCOW (MRC) -- McDermott International, Inc. announced that it has been awarded a sizeable technology contract by Naftna Industrija Srbije (NIS) for the modernization of its existing Fluid Catalytic Cracking (FCC) unit to be implemented at their refinery in Pancevo, Serbia, according to Hydrocarbonprocessing.

As part of this project, McDermott's Lummus Technology will provide the license and basic engineering for the Indmax FCC technology and a grassroots CDEtbe unit for production of bio ethanol base Ethyl Tertiary Butyl Ether (ETBE). The state-of-the-art Indmax FCC technology, which was jointly developed by Indian Oil Corporation (IOCL) and Lummus, will shift the yield of the existing FCC unit toward production of valuable olefins and higher-octane naphtha. Part of the olefins will be converted with bio-ethanol to ETBE using Lummus' CDEtbe technology, which is used as a clean, octane-boosting gasoline-blending component.

"We are extremely pleased that NIS has again selected Lummus Technology to upgrade their refinery," said Leon de Bruyn, Senior Vice President of Lummus Technology. "This award represents the first license of the Indmax FCC technology in Europe, demonstrating the increasing interest in Indmax FCC globally. It also demonstrates our ability to supply integrated and optimized solutions to our clients from our broad portfolio of technologies. NIS will benefit from the added process flexibility and improved economics for many years to come."

Previously, NIS has also selected the hydrocracking technology from Lummus Technology's joint venture, Chevron Lummus Global (CLG), as well as, more recently, Lummus Technology's delayed coking 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 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.

The award for the license and basic engineering will be reflected in McDermott's fourth quarter 2019 backlog.

As MRC wrote before, in October 2017, Russian oil producer Gazprom Neft, through its subsidiary NIS, started construction of a new deep conversion complex (DCC) at its Pancevo Refinery in Serbia with an investment of over EUR300m.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

NIS is one of the largest integrated oil and gas companies in South-Eastern Europe, engaged in exploration, production and refining of oil and gas, and marketing petroleum products. Major shareholders are Gazprom Neft (56.15%) and the Government of the Republic of Serbia. (29.88%). The rest of the shares are owned by minority shareholders.
MRC