Ten US refineries emitted excessive cancer-causing benzene in 2019

MOSCOW (MRC) -- Ten US oil refineries, including six in Texas, released the cancer-causing chemical benzene in concentrations that exceeded federal limits last year, reported Reuters with reference to government data published by the green group Environmental Integrity Project.

The study is based on the first full year of data reported by US refineries since a US Environmental Protection Agency rule was implemented in 2018. The rule requires continuous monitoring of air pollutants around plants to protect nearby communities, many of which are disproportionately poor, black and Hispanic.

"These results highlight refineries that need to do a better job of installing pollution controls and implementing safer workplace practices," EIP Executive Director Eric Schaeffer said in a statement. "Now, EPA needs to enforce these rules."

EPA officials did not immediately respond to requests for comment.

Long-term exposure to benzene can cause blood disorders and leukemia, according to the agency.

Monitoring for benzene is meant to be a tool that allows for "early detection of potential problems," said Ericka Perryman, a spokeswoman for the American Fuel & Petrochemical Manufacturers trade group, in a statement.

But the EPA’s data "is not intended as a measure of community exposure or health risk and could inadvertently provide misleading results to the public," she added.

According to the report, benzene levels consistently exceeded the EPA standard of 9 micrograms per cubic meter of air at the fencelines of 10 of the more than 100 refineries examined by EIP. The EPA requires facilities that exceed that threshold to take corrective action, the report said.

Philadelphia Energy Solutions’ refinery in Philadelphia recorded the highest benzene concentrations, at nearly five times the EPA standard, the data show. HollyFrontier Corp’s (HFC.N) Navajo Artesia plant in New Mexico followed, with more than three times the federal standard.

Philadelphia Energy shut that refinery and filed for bankruptcy in July after a fire destroyed part of the plant.

Texas was the hardest-hit state, with six refineries exceeding the federal benzene standard, the report said. These are Total SA’s Port Arthur refinery, Chevron Corp’s Pasadena Refinery, Flint Hills Resources’ Corpus Christi East refinery, Valero Energy Corp’s Corpus Christi East, Royal Dutch Shell Plc’s Deer Park and Marathon Oil Corp’s Galveston Bay Texas refinery.

Two other refineries listed are Chevron’s Pascagoula in Mississippi and PBF Energy Inc’s (PBF.N) Chalmette Refining in Louisiana.

In a statement, Chevron said it had taken steps to improve performance and added that its Pascacoula and Pasadena refineries were in compliance with EPA requirements.

Marathon spokesman Jamal Kheiry said in an emailed statement that a relief valve at its refinery’s dock was the source of a benzene release in March 2019. The company took steps to fix the problem, he said.

"We are committed to comply with EPA rules," Total spokeswoman Marie Maitre said in an email. "Our refinery employees live and have families in this community and the Total Port Arthur Refinery works hard at being a good neighbor."

Flint Hills spokesman Andy Saenz said the EPA’s fenceline monitoring program "is not an accurate measurement of ambient air conditions in a community." He said benzene levels in Corpus Christi were "much lower than this report would suggest and well within public health standards."

Owners of the other refineries did not immediately comment on the report.

We remind that in March 2018, Chevron Phillips Chemical Company LP successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year.

As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- McDermott International, Inc. announced it has been awarded a contract by a major oil and gas operator for six crude oil storage tanks in Texas, according to Hydrocarbonprocessing.

The storage tanks will be part of an energy infrastructure project linking the Permian Basin in West Texas to the Texas Gulf Coast.

The scope of the project, which will be executed by CB&I Storage Solutions, includes the engineering, procurement, fabrication and construction (EPFC) of six floating roof crude oil tanks - four with a 500,000-barrel capacity each and two with a 250,000-barrel capacity each. Engineering, procurement and fabrication will be performed at the company's Houston Fairbanks office and fabrication facility.

"We have a strong track record of providing world-class storage solutions for major energy infrastructure projects all over the world," said Cesar Canals, Senior Vice President of CB&I Storage Solutions. "This new award is a testament to our service offerings and capabilities, including our vast experience in engineering, fabricating and constructing complex, large-scale storage tanks."

The award will be reflected in McDermott's fourth quarter 2019 backlog.

The contract range for this award is between USD1 million and USD50 million.

As MRC informed before, in late November 2019, McDermott International, Inc. was awarded a sizeable technology contract from Baltic Chemical Company (BCC) and a sizeable Extended Basic Engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company Limited (CC7). The ethane cracking project is owned by Baltic Chemical Complex LLC, a subsidiary of RusGazDobycha. McDermott's Lummus Technology will provide both the Process Design Package (PDP) Engineering and the license for its olefin production and recovery technology. Lummus Technology's proprietary ethylene steam cracking process is the most widely-applied process for the production of polymer-grade ethylene, representing approximately 40 percent of the world's capacity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
MRC

MOSCOW (MRC) -- Overall imports of polyethylene (PE) into the Ukrainian market dropped in the first month of 2020 by 8% year on year to 19,400 tonnes. Linear low density polyethylene (LLDPE) accounted for the greatest reduction in imports, according to MRC's DataScope report.

Last month's PE imports into Ukraine fell to 19,400 tonnes from 21,100 tonnes in January 2019 and 20,300 tonnes in December 2019. Shipments of all grades of ethylene polymers decreased, with high density polyethylene (HDPE) being the exception and LLDPE accounting for the greatest cut. Overall PE imports into the country reached 268,700 tonnes in 2019.

The structure of PE imports by grades looked the following way over the stated period.

Last month's HDPE imports rose to 7,800 tonnes from 7,000 tonnes in January 2019 and 7,400 tonnes in December 2019. Local companies significantly raised their purchasing of film grade PE. Overall HDPE imports exceeded 95,000 tonnes last year year.

January LDPE imports were slightly over 6,000 tonnes, compared to 6,100 tonnes and 5,800 tonnes in January and December 2019, respectively. Overall LDPE imports reached 79,700 tonnes last year.

Last month's LLDPE imports totalled 4,300 tonnes versus 6,600 tonnes in January 2019 and 6,000 tonnes in December 2019. Overall LLDPE imports grew to 81,500 tonnes in 2019.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 1,200 tonnes over the stated period, compared to 1,300 tonnes in January 2019 and 1,000 tonnes in December 2019.

MRC

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in March 2020, according to the company's press release.

Thus, on 12 February the company said ACP for MEG will be USD680/MT CFR Asian main ports for arrival in March 2020, down by USD 60/MT from February.

The March 2020 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its February ACP for MEG at USD740/MT CFR Asian main ports, up by USD20/tonne from January.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, supply of PET continued to exceed demand for it in the Russian domestic market. A possible increase in PET chips processing volumes before the preform season is expected in March.
Export prices in China fell and fixed at a lower level after the end of the holiday period in the country because of limited shipments and partial quarantine in ports. It is expected that the upward trend of the dollar against the rouble, on the one hand, and a decline in Chinese prices, on the other, will lead to a slight change in the contract prices of PET chips next month.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC

MOSCOW (MRC) -- Ascend Performance Materials (Houston, Texas) says it has recently finalized an agreement with the state of Alabama on economic incentives for a planned USD175 million adiponitrile expansion at Decatur, Alabama, according to Chemweek.

The agreement, which satisfies a condition stipulated by Ascend’s board of directors when it approved the project, allows the company to begin construction during the second quarter of 2020.

Ascend expects to complete the project in late 2021.

As MRC wrote previously, in May 2016, Ascend Performance Materials said it had put plans to build a propane dehydrogenation (PDH) plant on hold because of market conditions. The two-train project at Chocolate Bayou, TX, with a combined capacity of more than 1 million m.t./year of propylene, was expected to become the largest such facility in the United States and cost an estimated USD1.2 billion. It has already been delayed once from the original onstream date of 2016 to mid-2019. Ascend is expected to use the UOP Oleflex PDH technology.

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

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Ascend Performance Materials is a global leader in the production of Nylon 6,6.
MRC