Aruba refinery plans to to build an LNG import terminal with Eagle LNG

MOSCOW (MRC) -- Aruba's state-owned refining company Refineria di Aruba (RdA) plans to sign a deal with Houston-based Eagle LNG Partners to build an LNG import terminal on the site of its idled refinery as soon as next month, said Hydrocarbonprocessing.

The terminal would allow Eagle to supply the Dutch Caribbean island's power company with natural gas, replacing high-sulfur fuel oil as the country's main fuel for generation, Reynold Arends said in a recent interview at RdA's headquarters in the town of San Nicolas at Aruba's southeastern tip.

Aruba has been seeking new partners for the 235,000 barrel-per-day refinery, which has been largely idled since 2012. Last year, U.S. refiner Citgo Petroleum Corp PDVSAC.UL - a unit of Venezuelan state oil company Petroleos de Venezuela PDVSA.UL - handed control of the site back to the government after abandoning an ambitious USD1.1 billion refurbishment plan.

RdA is also in talks with a consortium led by San Jose-based Quanten Llc over a USD3.5 billion plan to restart the refinery itself. Quanten's chief executive, Jeff Meyers, said in a recent interview alongside Arends the group would be ready to begin demolition in August and make the refinery fully operational within three years.

Quanten specializes in electrical services for large projects. Meyers said the consortium also includes KBR Inc KBR.N, energy services provider McDermott International Ltd MCDIF.PK and technology company Cisco Systems Inc CSCO.O. Those three companies did not respond to requests for comment. Gas imported by Eagle could also power the refinery, Arends said, and Eagle is considering using Aruba as a hub to export LNG elsewhere in the Caribbean region.

Eagle spokeswoman Linda Berndt said the company "continues to work with RdA and appreciates their support toward ultimate completion of the project."

As per MRC, U.S. refiner Citgo reached an agreement with Aruba to transfer control of the San Nicolas refinery to the island’s government, Citgo said, after the two parties last year suspended a contract to overhaul the facility. Citgo, a unit of Venezuelan state oil company Petroleos de Venezuela PDVSA.UL, has been under the control of the South American country’s opposition for more than a year after Washington slapped sanctions on PDVSA in a bid to oust socialist President Nicolas Maduro.

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

According to MRC's ScanPlast report, Russia"s estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

SIIG, Petrochem decided to commence reciprocal on merger

MOSCOW (MRC) -- Saudi Industrial Investment Group (SIIG) and National Petrochemical Co. (Petrochem) decided to commence reciprocal due diligence on merger following the completion of the initial economic feasibility study, the companies said in separate statements to Tadawul on April 15, 2021, said Argaam.

The companies will also negotiate the terms and conditions and share information regarding the proposed transaction. SIIG appointed HSBC Saudi Arabia as financial advisor and Khoshaim & Associates as legal advisor concerning the proposed transaction.

On the other hand, Petrochem appointed GIB Capital as financial advisor and Abuhimed Alsheikh Alhagbani Law Firm as legal advisor. The companies aim to meet the requirements of the proposed merger before year-end, as well as present the proposed deal to their respective shareholders under applicable laws and regulations. The completion of the proposed merger is subject to several conditions, including obtaining approvals from the competent authorities.

SIIG and Petrochem are under no obligation to proceed with the proposed transaction, the statement noted. Therefore, the commencement of due diligence does not necessarily mean that the parties will reach a final and binding agreement or complete the proposed deal.

It is not possible to determine the event’s expected completion date and associated costs as it is subject to discussions between the companies and the due diligence results, the statements stated, adding any material developments will be disclosed in due course.

SIIG owns 50% of Petrochem. In September 2020, SIIG and Petrochem received approval from their respective boards to start initial discussions to study the economic feasibility of a merger.

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

According to MRC's ScanPlast report, Russia"s estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

S-Oil to enter hydrogen business by investing in next-generation fuel cell company

MOSCOW (MRC) -- South Korea's S-Oil has made an equity investment in a next-generation fuel cell company in a move to enter the hydrogen business, according to BusinessKorea.

Thus, S-Oil has acquired a 20% stake in Fuel Cell Innovations (FCI), a company that provides clean energy solutions based on fuel cells.

With the investment, S-Oil became the largest Korean shareholder of FCI, a Korea-Saudi Arabia joint venture. S-OIL is planning to promote the hydrogen business by forging a strategic partnership with FCI.

FCI has about 40 patents on solid oxide fuel cells (SOFCs). It has been cooperating with various companies and research institutes, including Solid Power, an Italian fuel cell company with which it cooperated to develop products suitable for the Korean and foreign markets.

FCI will invest 100 billion won by 2027 to expand its business areas into green hydrogen and set up production facilities with a capacity exceeding 100MW.

S-Oil is studying ways to cooperate when FCI enters overseas fuel cell markets such as the Middle East. S-Oil is also studying ways to enter the entire value chain of the hydrogen industry from hydrogen production to distribution and sales. In cooperation with Aramco, its largest shareholder, the company is considering launching businesses based on green hydrogen and ammonia and liquefied hydrogen production and distribution businesses.

As MRC reported earlier, S-Oil, South Korean petrochemical major, took off-stream its residue fluid catalytic cracker (RFCC) unit for a turnaround in June, 2020. The company undertook a planned shutdown at the unit by early-July, 2020. The unit remained off-line for about two weeks. Located at Onsan, South Korea, the RFCC unit has a propylene capacity of 705,000 mt/year.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

India aims to diversify crude oil supplies, which maybe hard to achieve due to harsh realities of the global market

MOSCOW (MRC) -- India’s obvious displeasure with restrictions on output imposed by OPEC and its allies, and its aim to diversify crude oil suppliers, may run into the harsh realities of the global market, reported Reuters.

The world’s third-biggest oil importer and consumer has told state-owned refiners to speed up the diversification of crude imports in order to cut dependence on its main source of supply, the Middle East, reported Reuters in March, citing two sources with knowledge of the plan.

India’s supply is dominated by members of the group known as OPEC+, which includes the long-standing producer group and allies such as Russia. The OPEC+ decision to continue its output cuts of around 7 million barrels per day (bpd) into April was met with anger in India, which imports 84% of its crude needs, with more than 60% coming from the Middle East.

Buying crude from the Middle East has made sense for India, given its close proximity to the region, which cuts down on shipping time and costs and allows Indian refiners to be flexible in their purchases. But with the output restrictions helping drive crude oil prices to a 14-month peak, India is worried that its recovery from the economic hit from the coronavirus pandemic may be hurt by high fuel prices.

Brent has been climbing steadily in recent months and the futures contract has gained 30% since the end of last year. Already, the rising prices are starting to affect demand in India, especially since the reform of the fuel taxation and subsidy system means consumers are now more directly exposed to changes in crude prices.

India’s oil imports appear to have fallen sharply in February, with Refinitiv Oil Research estimating that 4.1 million barrels per day (bpd) were discharged in the month, a four-month low and down from 4.39 million bpd in January and 4.75 million bpd in December. India’s biggest supplier in recent months has been Iraq, with Refinitiv shipping and port data pointing to imports of 900,000 bpd in February, in line with December’s 890,000 bpd.

However, imports from Saudi Arabia, the leading member of the OPEC+ group, have slumped, with just 590,000 bpd arriving in February, down from 730,000 bpd in January and 910,000 bpd in December. India has made up some of the losses from Saudi Arabia from Russia, with February imports pegged at 180,000 bpd, up from just 60,000 bpd in January and 130,000 bpd in December.

India is also buying more from the United States, with February arrivals estimated at 590,000 bpd, up from 480,000 bpd in January and 260,000 bpd in December.

However, if India is to meaningfully diversify away from the Middle East, it will run into the problem of sourcing the medium to heavy grades of crude preferred by many of its refineries. There is plenty of crude available from west African exporters such as Nigeria and Angola, but this tends to be lighter grades, which yield more gasoline and less diesel.

There is an opportunity to buy crude from emerging exporter Guyana, with the South American nation ramping up output of its medium to light crude, but it’s unlikely India could obtain sufficient volumes to make much of an impact. In reality, the best sources of alternative supplies for India are both OPEC producers, but both outside the current output restrictions, and both subject to political considerations.

The two exporters in question are Iran and Venezuela, which are both subject to US sanctions on their crude exports, measures which India has so far observed. India hasn’t officially imported any Iranian crude in more than a year, and it last imported cargoes from Venezuela in November. Both these countries supply the heavier crude grades preferred by India, and both are capable of shipping volumes large enough to allow the South Asian nation to cut reliance on Saudi Arabia and other Middle East producers such as Kuwait.

But resuming purchases from Iran and Venezuela would likely require some kind of understanding to be reached between New Delhi and the administration of new US President Joe Biden. Until this is reached, and it’s by no means certain that an accommodation can be reached, India may find itself scrambling to source suitable crude grades from a limited pool of suppliers, and paying handsomely for the privilege.

As MRC informed before, earlier this month, Mammoet completed the lifting of three columns for the Guru Gobind Singh Polymer Expansion Project in Bathinda, Punjab, India. Thus, the team lifted a 1,305t ethylene fractionator, and 2 propylene fractionators weighing 1,200t and 2,490t - the second of which was lifted in two sections. The completed project is part of an expansion plan to build an integrated petrochemical manufacturing site within Guru Gobind Singh’s current refinery complex. The refiner aims to increase India’s refined hydrocarbon product 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 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

Technip Energies completes modernization of Socar petchems complex

MOSCOW (MRC) -- Technip Energies (Paris, France) announced that its work on the Azerikimya modernization project in Azerbaijan has been completed on time, said Chemengonline.

The overhaul of the Socar petrochemical complex near the nation’s capital, Baku, is now complete and the plant has been handed over and is fully in operation. It has been producing ethylene and propylene on demand since October 2020.

Testing has shown that all the technological modifications introduced as part of the project execution are functioning properly. The contractual performance test was successfully completed in February and the plant met the ethylene and propylene production capacity and quality specification.

Stefano La Femina, Project Director, said: “This is another result that demonstrates the reliability of our design in this technology. Technip Energies’ high quality standards, followed in all phases of the project from engineering, procurement, construction and commissioning to start-up, allowed us to achieve the performance targets without any problem."

Technip Energies now confirms it also completed commissioning and startup activities for the project.

Neither Socar nor Technip Energies disclosed details regarding current capacity rates of APU’s modernized ethylene and PE plant.

Socar let a contract to the service provider in November 2016 for delivery of engineering, procurement, and construction (EPC) services for the revamp project, the scope of which included modernization of the EP-300 steam cracker, including construction of cracker furnaces licensed by Technip Energies, as well as installation of a refinery dry gas treatment unit, ethylene and propylene storage, and related utilities and off sites.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC