Downstream industry news: 3 September 2014
Indian Oil Corporation Ltd (IOCL) has announced that 96% of the construction work at the Paradip refinery is complete. The company has also announced that it is expecting to commission the refinery soon due to the speed of progress being made. The 15 million tpy facility is going to have a Nelson Complexity Index of 11.3.
Ruchi Soya Industries have announced the purchase of the oil refining business from group company Ruchi Infrastructure. The purchase in Kakinada, Andhra Pradesh includes the refinery, land, buildings, associated facilities, oil storage tanks, net current assets and long term foreign currency loans. The facility was bought for Rs 44 crore and has been in the possession of Ruchi Soya as of the beginning of this month.
Since March 21, the start of the Iranian calendar year, Petrochemical Commercial Company (PCC) has announced that it has exported 928 000 t of petrochemical products. This volume is reported to be worth US£ 950 million. PCC has also said that it has exported 459 t of liquid gas including propane and butane.
It has been reported that over the weekend a fire broke out at the Kuwait National Petroleum Company (KNPC) owned Al Ahmadi refinery. The fire was in the plant’s sulfur warehouse and did not affect operations at the plant. An investigation is now underway to find out the cause of the blaze and the company is looking in to precautionary measures to prevent this occurring again.
A new fuel storage facility is expected to be in operation within the next year at the Salalah Port. Mina Petroleum of Dubai is investing US$ 75 million in the 230 000 m3 storage facility that will initially serve naval ships from visiting countries. This is the first of an anticipated nine storage facilities at the port to be built in the future.
Production of key oil products has resumed at the Anchinsk oil refinery following a fire in June this year. The plans are set for the refinery to produce 400 000 t of finished petroleum products which will equal 70% of the pre fire performance of the plant. As the refinery returns to more normal levels and repairs are finalised in the coming months, processing capacity will of course increase to normal running standards.
Morgan Stanley has reportedly filed plans for a compressed natural gas (CNG) export facility. The company are looking to own and operate the project and it will be one of the first of its kind in the US. Morgan Stanley apparently submitted the initial application to the US DoE’s Office of Fossil Energy in May of this year. The proposed facility will be built in Freeport, Texas and have a shipping capacity of 60 million ft3/y of CNG.
US VIRGIN ISLANDS
The owners of the Hovensa oil refinery on St. Croix have been granted a short extension in which to attempt to sell the facility by the Government House. This is the second extension given to the owners as they attempt to sell the shuttered facility. The plant is currently equally owned by PDVSA and Hess Oil Virgin Islands Corp.
PTT Plc of Thailand is expected to shortly make a proposal to the Vietnamese government for the construction of a new refinery in the country. PTT are reportedly going to propose to build a US$ 20 billion refinery and petrochemical complex which has been revised from plans that were discussed between the countries two years ago. If built, the plant is expected to boost domestic production of oil in the country and help bolster exports.