Samsung Engineering receives FEED contract for Saudi Petrochemical Project

Samsung Engineering, a world leading engineering solutions and project management company, announced today that it received the NoA(Notice of Award) for the FEED (Front End Engineering Design) contract of a PDH, PP, UTOS plant from Alujain National Industrial Co.(LNIC) in Saudi Arabia, said Hydrocarbonprocessing.

The contract amount is $19.428 MM and the FEED work is expected to be carried out in Samsung Engineering’s offices in Seoul, Korea until May 2024.

This project will take place at the Yanbu Industrial Complex in Medina Province, western Saudi Arabia. This project is to carry out basic design for a propane dehydrogenation (PDH) plant with an annual capacity of 600,000 tons, a polypropylene (PP) plant with an annual capacity of 500,000 tons, and Utilities & Offsite (UTOS) required for the plant.

Samsung Engineering said the key to winning this work was its extensive experience in the PDH, PP field and its competitiveness in the FEED engineering technology market. Alujain has expressed its confidence in Samsung Engineering by awarding FEED after previously awarding Samsung Engineering with the Pre-FEED contract. Samsung Engineering plans to successfully carry out and execute this FEED project and has expressed its intent to win the EPC contract once it is released in mid-2024.

The regional experience in Saudi Arabia is also one part where Samsung Engineering is confident that it will lead to the success of this project. Samsung Engineering executed 32 projects in Saudi Arabia, five of those were PDH, PP projects. In addition, Samsung Engineering expects that it will be able to actively utilize the existing infrastructure and know-how in the region having successfully completed the Luberef lube base oil plant in Yanbu, where this project will be executed.

We remind, Russian government has approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels as well as diesel with high content of sulfur. It also lifted restrictions on the export of fuel already accepted for export by the Russian Railways and Transneft before the initial ban had been announced last week. The ban on all types of gasoline and high-quality diesel remains in place.

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Taiwan's CPC Corp is seeking to procure a jet fuel cargo for delivery between mid-October and early November via a spot tender, a second such purchase this year, as per Reuters.

The state-owned refiner is looking to buy at least 300,000 barrels of jet fuel for Oct. 15-Nov. 5 delivery, the document showed.

The tender closes on Sept. 26, with validity to Sept. 28. The purchase was attributed to inventory replenishment as CPC's current refinery production is curtailed, with a portion of its Talin refinery under maintenance from Sept. 18 to around a month later, two sources familiar with the matter said.

CPC Corp's previous jet fuel purchase was for an August delivery cargo at a premium of more than $1 a barrel to free-on-board Singapore quotes, Reuters records showed.

We remind, Moscow has found new markets for its oil despite sanctions imposed by G7 countries since the start of the war in Ukraine, which Moscow calls a special military operation. The world's third largest oil exporter, Russia has rerouted most of its oil to China, India and Turkey over the past year, and has also sent cargoes to countries including Brazil, Sri Lanka and Pakistan.

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PPG announced that its Board of Directors has unanimously elected PPG president and chief executive officer (CEO), Tim Knavish, 58, as chair of the company’s Board of Directors and CEO, effective Oct. 1, 2023, said the company.

Knavish succeeds Michael McGarry, 65, who served as chairman and CEO from 2016 to 2022 and is retiring as executive chairman, also effective Oct. 1, 2023.

“On behalf of the PPG board of directors, we want to congratulate Tim and recognize the significant contributions Michael has made in leading PPG through some of the most challenging periods in its 140-year history,” said Hugh Grant, PPG independent lead director and retired chairman and chief executive officer, Monsanto Company. “Michael’s leadership has made a significant impact on expanding the company’s portfolio and reach in key growth markets, strengthened PPG’s position, and set the company on a solid path for future growth and success. We wish him the very best. As we look ahead, the board fully supports Tim and the entire PPG team as they work to achieve future growth and increased value for our shareholders.

“After a thoughtful and deliberative process, the board of directors agreed that appointing Tim as chair and CEO enhances the alignment between PPG management and the Board in implementing PPG’s enterprise growth strategy. Tim has an intimate knowledge of the business, can quickly identify and implement strategic priorities, and has demonstrated the ability to serve as an effective bridge between the Board and management,” added Grant.

Knavish joined PPG in 1987 at PPG’s global headquarters in Pittsburgh and he has held roles of increasing responsibility during his 36 years with the Company. Knavish has served in his current role as president and CEO since Jan. 1, 2023 and previously served as chief operating officer beginning in March 2022. Prior to being named chief operating officer, Knavish was executive vice president beginning in October 2019.

We remind, PPG announced that Hugh Grant, 65, PPG independent lead director, has informed the board of directors of his decision to end his tenure as independent lead director, effective Oct. 1, and retire from the board at the end of the year. Grant joined the board in 2005 and has served on the Nominating and Governance Committee and the Human Capital Management and Compensation Committee, serving the last nine years as independent lead director.

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Kuwait’s oil exports are shifting from crude oil to refined petroleum products following the addition of new refining capacity, according to data in our recently updated Country Analysis Brief, said Hydrocarbonprocessing.

In June and July 2023, Kuwait exported more than 1 million barrels per day (b/d) of petroleum products and liquified petroleum gas, the highest volume of products the country has exported. By contrast, crude oil exports averaged about 1.6 million b/d in June and July, down from an average of 1.8 million b/d in the same period of 2022.

As of July 2023, refineries in Kuwait had the capacity to process 1.4 million b/d of crude oil, more than double the refinery capacity in January 2021 of 600,000 b/d. The increase in capacity comes from the new Al Zour refinery and an expansion project at existing refineries over the past two years. Kuwait’s new Al Zour refinery is the Middle East’s largest with a capacity of 615,000 b/d among three units. The plant’s first crude oil distillation unit came on line in November 2022, followed by the second in March 2023 and the third in July 2023. The Al Zour refinery can produce significant amounts of low-sulfur fuel oil, around 220,000 b/d at full capacity.

n late 2021, national refining company Kuwait National Petroleum Corp. (KNPC) completed its Clean Fuels Project (CFP). The CFP upgraded and integrated the company’s Mina Al-Ahmadi and Mina Abdullah refineries to be able to process petroleum products with low levels of sulfur and nitrogen oxide. The upgrade allowed production of fuels that meet the Euro 4 and 5 standards for products with lower emissions. The CFP increased Kuwait’s crude oil refining capacity by around 60,000 b/d.

Kuwait’s crude oil exports fell from an average of 1.9 million b/d in 2022 to less than 1.8 million b/d for the first 7 months of 2023. By July 2023, crude oil exports dipped to 1.5 million b/d, according to Kpler tanker tracking service.

In July 2023, Asia remained the top destination for Kuwait’s petroleum product exports, receiving 46%. However, Europe received 29% in July 2023, up significantly from 2021. In July 2021, Europe received 11% of Kuwait’s petroleum product exports. Increased exports to Europe resulted from Europe’s ban on imports from Russia as EU countries look to replace diesel and other products that they used to receive from Russia.

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Tecnicas Reunidas, S.A. and Sinopec Engineering Group Co. Ltd. have signed in Beijing a Strategic Alliance Cooperation Agreement for the joint execution of Refining, Petrochemicals, Natural Gas and Transition Projects worldwide, said Hydrocarbonprocessing.

Both Companies have successfully cooperated in close to 20 projects since 2006 and are presently bidding together for several business opportunities in different countries.

With the signature of this long- term global business Agreement both Companies will jointly look for future opportunities to strengthen the collaboration in projects and markets where their experience will foster a synergy for the development of new joint business.

We remind, Peacock will sell all of the electricity it generates under a long-term power purchase agreement to Gulf Coast Growth Ventures (GCGV), a joint venture between ExxonMobil and SABIC, which produces materials used to manufacture clothes, food containers, packaging, agricultural film and construction materials.

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