Saudi Aramco, Sinopec to start Yanbu refinery hydrocracker in 2015

MOSCOW (MRC) -- Saudi Arabian Oil Co. and partner Sinopec Group plan to start a main refinery unit for making gasoline from crude at a joint venture plant at Yanbu on the Red Sea next year, reported Hydrocarbonprocessing with refrence to people familiar with the situation.

The partners will start the plant’s hydrocracker by mid-2015 and begin producing gasoline next year, said two people with knowledge of plant operations, who asked not to be identified because they aren’t authorized to speak with media.

Yasref, as the joint-venture refinery is known, will produce low-sulfur diesel for export and have the fuel available for sale next year, the people said.

Yasref’s diesel will meet European specifications, the people said. Yasref media officials were unable to comment.

Middle Eastern oil producers such as Saudi Arabia are expanding refining capacity to reduce costly imports of fuel needed to meet rising domestic demand and to produce cleaner-burning diesel that fetches premium prices in other markets like Europe.

Abu Dhabi in the United Arab Emirates is doubling its largest refinery, the 400,000-bpd plant at Ruwais on the Persian Gulf. State-run Abu Dhabi National Oil Co. is pushing back the start of the new units being built there until the first quarter of 2015 at the earliest, two people with knowledge of the facility’s progress said.

Yasref will produce its first products sale in the fourth quarter this year, the people said. The first shipments from the plant, which is already processing Arab Light crude in test runs, will probably be naphtha, the people said. The plant on Saudi Arabia’s Red Sea coast will have crude-processing capacity of 400,000 bpd.

Saudi Aramco, along with partner Total of France, built a refinery of the same size at Jubail on the Persian Gulf. That plant, known as Satorp, has been running at its full capacity since Aug. 1, Total officials said.

As MRC informed previously, in May 2014, Saudi Aramco announced that its downstream investments would exceed USD100 billion over the next decade, as global demand for oil rises by a quarter in the next 25 years.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.

China Petroleum & Chemical Corporation (SINOPEC) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Sinopec is the worlds seventh biggest company by revenue.
Sinopec is China's largest manufacturer and supplier of major petrochemical products. It is the second largest producer of crude oil in China. Its refining capacity and ethylene capacity rank No.2 and No.4 globally.
MRC

MOSCOW (MRC) -- Dow Chemical and ExxonMobil Chemical announced an agreement Thursday to restructure the ownership of Univation Technologies, currently a 50/50 joint venture between affiliates of Dow and ExxonMobil, reported Hydrocarbonprocessing.

This transaction will result in Univation Technologies becoming a wholly-owned subsidiary of Dow aligned to its performance plastics operating segment.

"Univation Technologies is a global leader serving a growing, high-margin market," said Cindy Shulman, president of Univation Technologies.

"Univation remains committed to reliably serving our customers and licensees with the world’s leading gas phase polyethylene process technology and associated catalysts and looks forward to being aligned with Dow’s performance plastics franchise," she added.

Univation Technologies is the licensor of UNIPOL PE process technology and the leader in the development, manufacture and sales of PE catalysts for the UNIPOL PE process.

The transaction is expected to close by the end of 2014, pending regulatory approval. Dow and ExxonMobil say they are committed to working closely together to ensure a seamless transition for all stakeholders.

As MRC wrote before, in late 2013, Grace completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company for a cash purchase price of USD500 mln. The acquisition includes UNIPOL Polypropylene Process Technology and makes Grace the second largest polypropylene licensor in the world based on installed capacity, advancing Grace's leadership in the broader polyolefin sector.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Ineos Industries Holdings Ltd has agreed to acquire the Combined Heat and Power Plant (CHP) from Fortum, that serves the Grangemouth site, for GBP54 million, as per the company's press release.

Grangemouth CHP, currently owned and operated by Fortum, is a natural gas-fired combined heat and power (CHP) plant located at the Grangemouth petrochemical site and refinery in Scotland.

Competitive, efficient energy is a critical element necessary to secure the long term future of the Grangemouth site. The acquisition sits hand in hand with the GBP300 million infrastructure project at the site to import and store ethane, an essential raw material for the petrochemical plant.

John McNally , CEO Ineos Olefins & Polymers UK, Grangemouth, says: "These investments demonstrate what is possible at Grangemouth and represent another key milestone in creating a successful future for the site and those businesses that depend upon its continued presence in Scotland."

Commissioned in 2001, the Grangemouth power plant's power generation capacity is 145 megawatts (MW) and heat generation capacity of 257 MW. It provides electricity and steam to INEOS’ petrochemical operations. Excess electricity is sold to the National Grid. Fortum will continue to provide operations and maintenance (O&M) services at the power plant in the future.

As MRC reported earlier, Ineos had announced plans to give 6% of its shale gas revenues to homeowners, landowners & communities who live above its shale gas operations. Ineos anticipates being a major player in the shale gas industry and believes it will give away over GBP2.5 billion over the life of its business.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

MOSCOW (MRC) -- Hanwha Chemical is likely to shut a phthalic anhydride (PA) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in October 2014. It is likely to remain off-stream for around one month.

Located at Ulsan in South Korea, the plant has a production capacity of 80,000 mt/year.

As MRC informed before, in July 2014, Hanwha Chemical created a task force to manage the process of bidding for Dow Chemical's chlorine business. Hanwha retained Credit Suisse earlier this year to advise on the possible purchase, which involves about 40 production facilities at 11 sites, including Dow's chlor-alkali and chlor-vinyl units in Plaquemine, La., and Freeport, Texas, as well as Dow’s interest in the Dow Mitsui chlor-alkali joint venture in Freeport.

Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
MRC

MOSCOW (MRC) -- Foster Wheeler AG's subsidiary of its Global Engineering and Construction Group has been awarded a contract by Petron Corporation to provide operator training, commissioning, and start-up assistance services for the new delayed coking unit at Petron’s Bataan Refinery in the Philippines, said Plastemart.

The new delayed coking unit at the Bataan Refinery is based on Foster Wheeler’s leading SYDECSM delayed coking technology and includes a Foster Wheeler delayed coker heater. The company also undertook the detailed engineering and procurement services for the new coker. Foster Wheeler’s scope of work is scheduled to be completed by the end of 2014.

"Following the execution of the process design package and the detailed engineering, we are pleased to receive this subsequent award and the opportunity to continue to work with Petron Corporation," said Roberto Penno, Chief Executive Officer, Global Engineering and Construction Group. "We believe this is a reflection of Petron’s continued confidence in the added value Foster Wheeler delivers in the implementation, commissioning, start-up and operational phases of delayed coker projects based on our leading SYDECSM delayed coking technology."

As MRC wrote before, Foster Wheeler AG announced that a subsidiary of its Global Engineering and Construction (E&C) Group has been awarded a contract by STAR Rafineri A.S., a subsidiary of SOCAR Turkey, for project management consultancy (PMC) services for its grassroots Aegean Refinery to be built within the Petkim Petrokimya A.S. (PETKIM) facilities at Aliaga, Turkey.

Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, minerals and metals, environmental, pharmaceuticals, biotechnology and healthcare industries.
MRC