The downstream run down: In case you missed it
In case you missed any downstream news, this piece will give you a summary of some of the top stories from last week.
ABB releases results of industrial transformation study looking at the intersection of digitalization and sustainability
ABB released the findings of a new global study of international business and technology leaders on industrial transformation, looking at the intersection of digitalization and sustainability. The study, “Billions of better decisions: industrial transformation’s new imperative,” examines the current take-up of the Industrial Internet of Things (IoT) and its potential for improving energy efficiency, lowering GHG emissions and driving change. The goal of the new ABB research is to spur discussion within industry regarding opportunities to leverage the Industrial IoT and empower companies and workers to make better decisions that can benefit both sustainability and the bottom line.
Pemex sharply cuts oil supply to India as it readies new refinery
Pemex has sharply reduced crude exports to India, the third largest market for its oil, amid preparations for a new refinery expected to absorb more of its output. Pemex is prepared to sacrifice a large portion of this year's crude sales to Asia, according to analysts and traders, with the expansion of its downstream business. In January, it took complete ownership of the 340,000 bpd Deer Park, Texas, refinery, and agreed to supply it with over 100,000 bpd of its flagship Maya heavy crude.
Essar to build the UK’s first refinery-based hydrogen furnace
Essar Oil UK, the leading UK-focused downstream energy company, announces plans to install a new £45 MM ($60.8 MM) furnace at Stanlow that’s capable of using hydrogen as its fuel source, which is a first for the UK. The scheme (which is subject to planning approval) comprises the decommissioning of three existing furnaces and their replacement with a single, highly efficient furnace, which includes a chimney of approximately 71 m. Set to be installed in 2022, the furnace will become fully operational next year. From 2026 onwards it will be fueled by hydrogen produced at Stanlow as part of the HyNet Northwest decarbonization cluster.
Honeywell introduces new technology to produce key feedstock for plastics
Honeywell announced that it has introduced a new solution for producing renewable naphtha for petrochemical production using their Honeywell UOP Ecofining technology. The new pathway can produce high yield of naphtha from sustainable feedstocks like used cooking oil and animal fats. Prior to the introduction of renewable naphtha solution, the UOP Ecofining technology has been used to produce predominantly green diesel and green jet fuel, with small amounts of bio-naphtha being produced as a secondary product. The same Ecofining technology can be adapted to produce high yields of renewable naphtha as its predominant product, reflecting the versatility of the Ecofining design and ability to produce a range of products based on market needs.
PetroChina starts $5.3 B unit revamp to boost petchem output, cut fuel
PetroChina has started a 33.9 B yuan ($5.33 B) program to expand the petrochemical capacity at a subsidiary plant in northeast China and cut refined fuel production, according to a company post and state media report. Under the revamp, PetroChina's Jilin Petrochemical Corp plans to add 21 more facilities - including a 1.2-MMtpy ethylene unit - and mothball seven units, parent company CNPC said on Wednesday, without providing further details. After the revamp, the Jilin province-based subsidiary will produce 2.63 MM tons less of refined fuel a year but 2.8 MM tons more of petrochemicals.
SC&T supports seamless startup at Hyundai Chemicals HPC
Using Shell Catalysts & Technologies (SC&T) C2 FE selective hydrogenation catalyst, the heavy-feed petrochemical complex (HPC) operated by Hyundai Chemicals achieved a fast and successful startup in December 2021. Located in Daesan, South Korea, the facility is Hyundai Chemicals’ first heavy-feed grassroot 750 KTA ethylene cracker. It is capable of processing various feedstocks such as naphtha, treated de-asphalted oil and refinery off gas introduced from Hyundai Oilbank’s existing refinery process.
Samsung Engineering receives 1 B euro contract for its first petrochemical project
Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management companies, announced that it had signed a 1 B euro contract with China National Chemical Engineering & Construction Corporation Seven (CC7), a Chinese state-owned construction company, for the engineering and procurement for the ethane cracker in gas to chemicals project in Russia. Baltic Chemical Complex, the original owner of the contract, previously signed an EPC contract with CC7 in 2019. The project is located at the Gulf of Finland near the seaport of Ust-Luga, Leningrad Oblast, 110 km southwest of St. Petersburg, Russia.
Idemitsu has no plan for financial aid to Vietnam's Nghi Son refinery
Japan's No. 2 oil refiner, Idemitsu Kosan, has no plan at the moment to give fresh financial aid to Vietnam's Nghi Son Refinery and Petrochemical (NSRP), which has cut production to 80% of capacity due to a funding problem, an official said. Vietnam's largest refinery avoided a lengthy shutdown last month after a major shareholder secured short-term funding following a disagreement between shareholders about financing for crude, having earlier cut its run rate. NSRP has been struggling because of system trouble that delayed its 2018 launch while oil product margins slumped during the COVID-19 pandemic, but the loss has shrunk, as oil prices have soared since, Onuma said.
Eni, SEA signs agreement on biofuels for commercial flights
Eni and SEA, the Milan Malpensa and Milan Linate airports operator, have signed an agreement to promote decarbonization initiatives in the aviation sector and accelerate the ecological transition of the two airports. The agreement stems from a collaboration that first began in December 2021 with the supply of sustainable aviation biofuels for private flights. The collaboration has been extended to commercial flights too and includes the supply of pure hydrotreated vegetable oil (HVO) biofuel for ground transportation, as well as a joint development program for smart mobility services. These products and services support the reduction of emissions from airport operations (scope 1 and scope 2) and the decarbonization of airport-related air and ground transport (scope 3).
South Korea orders workers off petchem plant after blast kills four
South Korean authorities have ordered workers off one of petrochemical company Yeochun NCC's (YNCC) naphtha crackers in the city of Yeosu after a blast killed four people and injured four. The incident at YNCC's third plant in Yeosu comes as businesses brace for greater scrutiny under a new South Korean law punishing management for incidents involving worker death. The regional office of South Korea's labour ministry told Reuters that the ministry ordered workers to halt work at the entire third plant.
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