2nd June: Global LNG and refining update

India

For maintenance, Reliance Industries is going to shut a vacuum gas oil hydrotreater for a month. The unit at the 580 000 bpd facility is being taken offline for a catalyst change, according to undisclosed sources. The unit has an approximate processing capacity of 110 000 bpd.

Nigeria

The Niger Delta Joint Military Task Force has announced that under Operation Pulo Shield it has arrested 11 people suspected of illegal oil refining, recovered a stolen barge and destroyed illegal refineries. The operations, which resulted in the arrests, were carried out in Bayelsa, Delta and Edo states.

The Lagos State government has assigned 250 hectares of land for the construction of a 100 000 bpd refinery in Ejirin, Epe Local Government Area. The refinery will be built by the Mid Oil Refining and Petrochemical Company limited and acquisition of the land means the next step of project approval from the Department of Petroleum Resources can be taken.

Peru

The President of Peru has signed a FEED contract with Tecnicas Reunidas to upgrade the Talara refinery. The facility is a condensate oil refinery and once work is completed, is expected to secure the country’s energy sector for the future. The upgrade is expected to cost US$ 3.5 billion with Petroperu investing US$ 2.7 billion.

Russia

As part of a long term strategy, Gazprom Neft has said it plans to gain access to approximately 30 million tpy of refining capacity outside of Russia. Further details are yet to be given by the company.

It has been announced that the shuttered Mariysky refinery will restart production in June. The plant was taken offline approximately a year ago due to financial problems but now has a change of owner. The ownership of the bank was transferred to VTB Bank in November last year following unpaid arrears.

USA

Cheniere Energy, Inc. has announced that its subsidiary, Corpus Christi Liquefaction, LLC, has entered into an LNG sale and purchase agreement with Gas Natural Fenosa LNG SL under which Gas Natural Fenosa has agreed to purchase approximately 1.5 million tpy of LNG upon the commencement of operations of Train 2 from the LNG export facility bing developed near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5 million tpy of LNG.

LNG America and Liquiline have announced an agreement to jointly develop commercial offerings for LNG marine fuel markets in the North American Pacific Northwest and the transport of LNG in ISO containers to remote markets in Hawaii and Alaska. Under the agreement, Liquiline and LNG America will jointly develop specific proposals for prospective LNG customers in Hawaii and Alaska as well as marine fuel markets in the pots of Seattle and Tacoma.

Calumet Speciality Products Partners, LP has eared a position as No. 467 on the 2014 ‘Fortune 500’ list of the largest US companies. According to Fortune, Calumet is currently among the largest US companies, based on total annual sales. In 2013, Calumet ranked as No. 514. Calumet’s total sales exceeded US$ 5 billion for the first time last year, an increase of more than 16% from 2012.

Venezuela

Venezuela is to appeal against a ruling which allows Phillips 66 to acquire PDVSA’s 50% share in the delayed coking unit at the Sweeny refinery. The 70 000 bpd facility was originally a joint venture between PDVSA and Phillips. The ruling has been granted following PDVSA’s violation of a supply agreement with the refinery.

Edited from various sources by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/02062014/02_june_refining_lng_news/