Fluor starts up two boilers at Al-Zour refinery complex

MOSCOW (MRC) -- Fluor Corporation announced that its joint venture with Daewoo Engineering & Construction and Hyundai Heavy Industries, FDH JV, has successfully started up two boilers and they began generating steam in the new Al-Zour Refinery at the Kuwait Integrated Petrochemicals Industrial Company’s (KIPIC) Package 2 and 3 Project in Kuwait, said the company.

"Working together with the Fluor-led joint venture to achieve this important milestone for the ZOR Program is a true success – not only for KIPIC, but for the State of Kuwait – and will help bring energy self-sufficiency and further prosperity for all of us."

Fluor is leading a joint venture that is working to deliver two engineering, procurement, fabrication and construction packages for key process support units, utilities and infrastructure for the highly complex, mega-sized Al-Zour Refinery project in Kuwait. Upon completion, the grassroots complex is expected to be one of the largest refineries in the world and process 615,000 barrels of oil per day.

"This significant milestone marks the completion of several critical utility systems to start up and advance the refinery into commercial operations with our ongoing support,” said Mark Fields, president of Fluor’s global Energy & Chemicals business. “Timely delivery of the new Al-Zour Refinery is critical to the Kuwait economy. Our team worked closely with KIPIC to continue with about 15,000 workers on site to maintain progress throughout the COVID-19 pandemic. This accomplishment was made possible through the joint venture team’s well-conceived health and safety strategy that was implemented with rigorous discipline."

"Working together with the Fluor-led joint venture to achieve this important milestone for the ZOR Program is a true success – not only for KIPIC, but for the State of Kuwait – and will help bring energy self-sufficiency and further prosperity for all of us," said Khaled Al-Awadhi, deputy CEO of KIPIC.

Leading up to this achievement, various enabling facilities were successfully completed and handed over including the central control room building and other associated buildings, fire water systems, communication systems and other refinery infrastructure. COOEC Fluor Heavy Industries Co., Ltd. – Fluor’s joint venture fabrication yard in Zhuhai, China – also delivered 188 modules with a combined weight of 65,000 metric tons to support the project’s large-scale, onshore modular execution strategy.

The Fluor joint venture has executed more than 154 million work hours on site, and at peak, employed more than 20,000 craft workers backed by joint venture team members spread across three continents.

As MRC informed earlier, Fluor Corporation has announced that it was recently awarded a contract to provide engineering, procurement and construction for a new 400 kilo-ton-per-annum adiponitrile (ADN) plant in Shanghai, China. The new ADN plant is part of INVISTA’s ongoing work at the Shanghai Chemical Industry Park where the company recently completed a 215 kilo-ton-per-annum hexamethylenediamine (HMD) plant and a 150 kilo-ton-per-annum nylon 6,6 polymer plant. Fluor booked the undisclosed contract value in the fourth quarter of 2019.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Fluor Corporation is a global engineering, procurement, fabrication, construction and maintenance company with projects and offices on six continents. Fluor’s 47,000 employees build a better world by designing, constructing and maintaining safe, well-executed, capital-efficient projects. Fluor is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has served its clients for more than 100 years.
MRC

MOSCOW (MRC) -- Chevron Phillips Chemical has deferred a final investment decision on a USD8 billion joint venture petrochemical complex project along the US Gulf Coast that was expected in 2021, reported S&P Global with reference to Phillips 66's statement.

Company executives did not mention the project or its FID deferral during a second-quarter 2020 earnings call, as discussions focused largely on coronavirus pandemic fallout on Phillips 66's crude oil and refined fuels businesses.
The company's earnings release noted the FID deferral, but did not specify a new target date.

The project, in partnership with Qatar Petroleum (QP), was announced in July 2019. It is slated to include a 2 million mt/year cracker and two 1 million mt/year high density polyethylene plants. The FID delay will also push the original target startup date past 2024.

Documents filed in January 2019 with the Texas Comptroller's office said CP Chem, a joint venture of Phillips 66 and Chevron, was evaluating the purchase of 1,700 acres in Orange, east of Beaumont in far southeastern Texas, as a possible site for the project.

Phillips 66 reported a net loss of USD141 million in Q2, compared with a USD1.4 billion profit in the year-ago period.

The company said it operated its chemical segment at 103% utilization and recorded record polyethylene sales volumes.

CEO Greg Garland said polyethylene prices have risen in the US, Europe and Asia, in part because of a rebound in crude prices on top of strong demand for consumer plastics amid the global coronavirus pandemic.

"The consumer part is doing really well," he said. "The durables is still challenging, but improving, so think automotive and others."

Consumer plastics include single-use items made with polyethylene like grocery bags, milk jugs, shampoo bottles and diapers. Durables include plastics in vehicles, appliances and other items used longer term.

Garland said consumer markets are seeing two top trends, hygiene and "nesting," or consumers who are buying more products for in-home use.

"They're cooking more. They're using more disposables. They're using more trash bags. They're buying more bottled water that's wrapped in plastic," he said.

In addition, consumers are buying more kayaks and coolers for outside activities as well as home improvement products packaged in plastics, both of which boost demand for high density polyethylene (HDPE).

"I think we're constructive on the demand side. And I would say strong demand, weak to improving margins, and that's what we're running into," Garland said.

As MRC reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, declared force majeure Sept. 1 on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. HDPE accounted for the main decrease in imports.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- Valero Energy Corp has restarted the large crude distillation unit (CDU) at its 335,000-bpd Port Arthur, Texas, refinery, reported Reuters with reference to sources familiar with plant operations.

The 268,000-bpd CDU was shut with all other units at the refinery on Aug. 25 because of the threat from Hurricane Laura, the sources said.

As MRC reported earlier, in June 2020, Valero Energy Corp’s Memphis, Tennessee, crude oil refinery was operating at two-thirds of its 180,000 barrel-per-day (bpd) capacity because of low demand in the COVID-19 pandemic. The Memphis refinery cut production by as much as 50% in early April and has been raising production gradually since then.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Elkem (Oslo, Norway) says it will invest 180.0 million Norwegian krone (USD19.7 million) in a new plant in Canada to pilot an industrial biocarbon process specifically for silicon and ferrosilicon production, said Chemweek.

The plant will be constructed near Elkem’s production site at Chicoutimi, Quebec, with start of construction planned for the second half of 2020, the company says. The project has received financial support from the Canadian government, the Quebec government, and the city of Saguenay, reducing Elkem’s net investment to NKr60 million, it says.

The aim of the initiative is to secure industrial verification of Elkem’s technology for renewable biocarbon, with a long-term goal of contributing to climate-neutral metal production, the company says. The technology has the potential for application in other industry sectors, contributing to reduced CO2 emissions, Elkem says. Based on conclusions from the pilot plant, Elkem will evaluate the basis for a full-scale plant.

“With this new biocarbon pilot plant in Canada, we aim to secure long-term access to low-cost, high-quality renewable biocarbon to replace fossil coal, and further improve our competitive position for a sustainable future. In addition, we see a potential for scaling up this technology to other industries—helping reduce emissions,” says Michael Koenig, CEO of Elkem.

Elkem already uses about 20% biocarbon in its production in Norway and the company is working toward increasing this to 40% by 2030, it says. Meanwhile, the company sources 83% of its of electricity consumption from renewable energy. The pilot plant will source raw materials from local sawmills in Canada, including recycled bark, wood chips, sawdust, and wood shaves, with more than 2 million green tons (Gt) of potential raw material already produced within 100 kilometers of the Chicoutimi area in Quebec, the company says.

Elkem also sees potential for biocarbon technology to be customized for use in the steel industry as a replacement for coke as a reduction agent, it says. "Studies have shown that biocarbon can perform even better than fossil coal in production, and at the same time reduce the carbon footprint,” says Jean Villeneuve, head/biocarbon business at Elkem.

The company is also involved in several activities related to biocarbon, in Norway and other countries around the world, to develop competitive and sustainable sources of biocarbon, as well as longer-term R&D projects, Elkem says. Its plant in Paraguay achieved 100% sustainable biocarbon in its production of ferrosilicon in 2019, the company says.

As MRC informed earlier, a consortium of industrial companies, including BASF, universities and research institutes recently launched project RECOBA (Cross-sectorial REal time sensing, advanced COntrol and optimization of BAtch processes, saving energy and raw materials). Under the project coordination of BASF SE, the RECOBA partners include ThyssenKrupp Steel Europe AG, Germany; ELKEM AS Technology, Norway; University of Cambridge, United Kingdom; RWTH Aachen University, Germany; University of Chemistry and Technology Prague, Czech Republic; the University of the Basque Country UPV/EHU, Spain; VDEh-Betriebsforschungsinstitut GmbH, Germany; Cybernetica AS, Norway; and Minkon Sp. z o.o., Poland.

As MRC reported before, in early December 2019, on the margins of the meeting at SIBUR’s PolyLab R&D Centre, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, signed a Memorandum of Understanding (MOU) formalizing their partnership on sustainable development and circular economy agenda further to the companies’ environmental talks held back in June 2019. The memorandum is set to strengthen the partners’ commitment to long-term sustainable development goals. BASF and SIBUR agreed to collaborate more closely on water efficiency, carbon footprint management and chemicals recycling along with joining forces in implementing international environmental initiatives.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 367,720 tonnes in the first six months of 2020, up by 19% year on year. Russian companies processed 62,910 tonnes in June. Russian plants reduced their PET output in January-June 2020 by 25% year on year. Overall PET chips production at four Russian plants reached 281,100 tonnes in January-June 2020.
MRC

MOSCOW (MRC) -- Motiva Enterprises has restarted the largest and second-largest crude distillation units (CDUs), coker and hydrocracker at its 607,000 barrel-per-day (bpd) Port Arthur, Texas, refinery, reported Reuters with reference to sources familiar with plant operations.

The 325,000-bpd VPS-5 and 195,000-bpd VPS-4 CDUs, 110,000-bpd DCU-2 coker and 105,000-bpd HCU=2 hydrocracker are the first units to restart as Motiva continues to bring the entire refinery, which is the nation’s largest, back into production following an Aug. 25 shutdown because of Hurricane Laura, the sources said.

As MRC wrote before, Motiva Chemicals at Port Arthur, Texas, began shutting down light olefin operations last Monday to prepare for the arrival of Tropical Storm Laura.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Motiva Enterprises, LLC, is a fully owned affiliate of Saudi Refining Inc. and headquartered in Houston, Texas, United States with revenue of USD24 billion. Previously, it was a 50–50 joint venture between Shell Oil Company (the wholly owned American subsidiary of Royal Dutch Shell) and Saudi Refining Inc. (controlled by Saudi Aramco).
MRC