TechnipFMC wins EPC work for complex at Motor Oil Hellas refinery

MOSCOW (MRC) -- TechnipFMC has won a contract from Greece’s Motor Oil Hellas (MOH) to provide engineering, procurement and construction management (EPCm) services for a new naphtha production complex at MOH’s Corinth refinery near Athens, said the company.

As part of the contract, TechnipFMC will deliver engineering, procurement, and construction management (EPCM) services for the proposed 22,000-b/d naphtha complex, which will include a naphtha hydrotreating unit, a platforming unit, and an isomerization unit, the service provider said.

The project also involves upgrading existing but unidentified utilities and offsite units to meet the requirements of the new complex, according to TechnipFMC.

Once completed, the complex will enable MOH to increase its production of Euro 5-quality gasoline as part of the operator’s strategy to expand production of clean fuels.

Valued at between USD75-250 million, the EPCM contract follows MOH’s previous award to TechnipFMC for execution of front-end engineering design on the naphtha complex, which has been already been completed, the service provider said.

On May 29, privately held MOH’s board of directors approved construction of the naphtha treatment complex at total budgeted expenditure of EUR310 million.

The new complex, which will contribute to the refinery’s increased production of cleaner fuels as well as kerosine and hydrogen, is scheduled to be completed by yearend 2021, MOH said.

As MRC informed informed earlier, TechnipFMC been awarded a large reimbursable contract by ExxonMobil for detailed engineering, procurement, and construction for the recently announced crude expansion project in Beaumont, Texas, USA. The awarded scope covers the addition of four new units – atmospheric pipe still, kerosene hydrotreater, diesel hydrotreater and benzene recovery at ExxonMobil’s Refinery.

In December 2019, ExxonMobil halted PE production at its site in Notre Dame de Gravenchon, France due to commercial reasons, without providing further details.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

MOSCOW (MRC) -- Two Russian oil firms controlled by the family of tycoon Mikhail Gutseriyev plan to increase supplies to Belarus to 750,000 tons this month, three oil industry sources told Reuters, after supplies were hit by an energy spat between Moscow and Minsk.

The supply of oil from Russia to Belarus was abruptly halted on Jan. 1 with companies including Rosneft, Gazprom Neft, Lukoil and Surgutneftegaz suspending deliveries as Moscow and Minsk argued over contract terms.

The Gutseriyev family's oil firms Russneft and Neftisa restored supplies to Belarus late on Jan. 4, the only companies to do so, while others continue trying to reach an agreement on new supply terms with state-run Belneftekhim, which controls Belarus' two refineries.

The three sources, who are familiar with the oil supply schedule, said the Russian Energy Ministry, which oversees the oil export quotas, has granted the companies permission to export 650,000 tons via Transneft's oil pipeline system and 100,000 tons by rail in the January-March period.

The amount is around half of the roughly 1.5 million tons of Russian oil Belarus consumes per month, with the sources saying Russneft and Neftisa were stepping in to maintain minimum levels of oil refining in the country, Russia's ex-Soviet neighbor with which Moscow is seeking deeper political and economic integration.

The sources added that Russneft and Neftisa planned to deliver all 750,000 tons this month, noting that the amount includes the 130,000 tons Russneft had already agreed earlier this month to supply to Belarus.

Belarusian President Alexander Lukashenko, with whom Gutseriyev has traditionally had strong ties, said on Thursday that Moscow and Minsk had failed to reach a deal as Russia had asked for an oil price higher than the global average.

It was not clear at what price and under what conditions Russneft and Neftisa were supplying the oil to Belarus.

Spats between Moscow and Minsk have in the past led to the disruption of supplies to Europe, which gets 10% of its oil from Russia via Belarus' Druzhba pipeline transit link. Transit along the pipeline has continued uninterrupted so far this year.

Russneft and Neftisa would need to redirect oil flows from the domestic market and their exports to other destinations in order to ship additional volumes to Belarus, the sources said.

Russneft and Neftisa are part of a wider Safmar group of companies controlled by the Gutseriyev family, which also includes three mid-sized oil refineries in Russia and a wide range of other assets from retail to real estate.

In a statement to Reuters on Thursday, Safmar said that its oil companies produce a total of 18 million tons of oil a year, enabling it to ensure supplies both to the domestic market and Belarus in the "full amount according to a schedule approved by the Russian Energy Ministry".

The Russian Energy Ministry and Transneft did not reply to Reuters requests for comment.
MRC

MOSCOW (MRC) -- Effective January 1, 2020; 100% of the polyethylene terephthalate (PET) production facilities in Wilton, United Kingdom, formerly known as Lotte Chemical UK Limited, have been acquired by a subsidiary of Alpek, S.A.B. de C.V. (Alpek), said the company.

The new business will operate under the Alpek Polyester family of businesses as the legal entity "Alpek Polyester UK Ltd". The Alpek Polyester family is excited about the addition of the Alpek Polyester UK – Wilton Site as the acquisition marks the first PET production capacity outside of the Americas.

The acquisition aligns with Alpek’s growth strategy, creating substantial value by integrating the assets and expanding the global footprint of the Alpek Polyester business to a worldwide PET capacity of over 2.8 million tons, across 6 countries and 15 facilities with over 4,800 dedicated employees.

Alpek Polyester’s goal is to continue PET production onsite and to meet or exceed the requirements of customers and the market. Our team is focused on executing a seamless transition and integration to capitalize on existing momentum and capture synergies.

Alpek Polyester looks forward to continuing the valued relationships that are currently in place with you through the Wilton Site. We look forward to building upon those relationships.

Effective January 1 2020 Alpek Polyester UK Ltd. will assume all responsibilities for the Wilton Site and will begin the transition to Alpek Polyester processes and strategies. During the transition period:
PET Resin sales contacts for the Wilton Site will remain the same. All sales orders will be executed with Alpek Polyester.
All PO inquiries should continue to be directed to the current procurement contact that you have been utilizing at the Wilton Site.
All Payments for purchased PET Resins should be directed to Alpek Polyester UK Ltd.
All Purchase Orders (POs) for the Wilton Site to suppliers will be issued by Alpek Polyester UK Ltd.

As MRC informed earlier, Alpek signed a deal to fully acquire a British plant from Lotte Chemical UK Limited. The plant, a unit of South Korea’s Lotte Chemical, has the capacity to produce 350,000 tonnes of polyethylene terephthalate (PET) per year and is located at Wilton, Teesside.

As per MRC ScanPlast, imports of PET chips into Russia increased by 13% in eleven months of this year compared to the same time a year ago and reached 130,800 tonnes compared to 116,100 tonnes (excluding supplies from Belarus over the past two months). Russia's PET imports almost doubled to 12,300 tonnes in November against 6,300 tonnes in October; last November, material imports amounted to 8,200 tonnes. The share of Chinese material was 78% (9,600 tonnes) in November versus 92% (5,800 tonnes) a month earlier.
MRC

MOSCOW (MRC) -- Dongguan Grand Resource Science and Technology Co Ltd (JuZhengYuan) has unexpectedly shut its polypropylene (PP) No. 2 on 6 January, 2020, due to insufficient of raw materials, reported CommoPlast with reference to market sources.

Based in Dongguan, China, the new plant consists of 2 PP plants with combined production capacity of 600,000 tons/year.

Its 600,000 tons/year PDH unit has been shut since last week due to negative margin. The restart schedule could not be ascertained.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Dongguan Grand Resource Science and Technology Co Ltd is owned by Juzhengyuan Energy (Shenzhen, Guangdong, China). On 26 October 2019, Dongguan Grand Resource’s (Dongguan, Guangdong, China) integrated complex for polypropylene production in Dongguan officially started up.
MRC

MOSCOW (MRC) -- A blaze ripped through the small-scale Ukhta oil refinery, controlled by Russian oil major Lukoil, the emergency ministry said, as per Reuters.

It said the fire hit a diesel processing unit and that one man had been injured. Lukoil declined any immediate comment.

Video footage posted on social media purported to show a huge ball of fire over the refinery. The ministry said the fire has spread through 1,000 square meters.

Interfax news agency, citing an unnamed source, said staff had been evacuated from the plant.

As MRC informed earlier, Saratovorgsintez, subsidiary of Lukoil, closed the production of acrylonitrile (ACN) in September 2019 for scheduled repairs. This production with a capacity of 190,000 tonnes of ACN per year was closed for repair within one month.

Acrylonitrile is one of the main raw materials for the production of ABS.

As per ICIS-MRC Price Report, November ABS imports were 3,300 tonnes versus 3,500 tonnes a month earlier and 4,100 tonnes in November 2018. Overall ABS imports slightly decreased year on year in the first eleven months of 2019 to 31,300 tonnes.

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. In Lukoil structure includes one of the largest Russian and Ukrainian petrochemical industries Stavrolen and Karpatneftekhim.
MRC