Early October: Global downstream update

Europe

Vitol’s head of research has said that more European refineries are likely to shutdown as other parts of the world have subsidies to help keep oil demand buoyant. Steve Terry from Vitol told Reuters that the world has a surplus of refining capacity and that Europe doesn’t have sufficient competitive advantages to keep the industry as afloat as elsewhere. Terry also said that the rising diesel imports from areas such as the Middle East is having a negative impact on the European industry.

India

Lotus Refineries has filed a Rs 2773.29 crore claim against National Spot exchange Limited (NSEL). The filing was made in the Bombay High Court against NSEL for goods that are currently residing in NSEL warehouses but have not yet been received by Lotus Refineries.

Iran

An Iranian oil official has said that the country is in the final stages of negotiation in securing credit from China to develop projects at the Abadan refinery. There are also negotiations underway to increase production capacity at the Iman Khomeini refinery and improve processes at the Tehran refinery.

Japan

Cosmo Oil Corp and Kyokuto Petroleum Industries Ltd. have said that they are considering operation cooperation with regards to the Chiba refineries. The companies are looking to work together to improve efficiency at their plants as Japanese refiners are put under ever increasing pressure to become more competitive with refineries in South Korea, China and elsewhere in Aisa. The companies are looking to build a pipeline between their plants as well as form a joint venture.

Trinidad & Tobago

Trinidad & Tobago is currently discussing the possibility of building a National Energy Skills Centre. The centre will hopefully function as a hub for training locals in the areas of petrochemicals and the energy sector as a whole.

USA

During the first quarter of next year, Citgo Petroleum Corp is planning on carrying out maintenance at the Lake Charles refinery in Louisiana. The work will focus on the facility’s FCC unit and take place in January and February.

Evergreen Oil has warned that maintenance work on its Newark refinery in California may cause odours to be released. The smell had apparently been in circulation before the announcement was made. An oil processing line has been shutdown form maintenance work and will be offline for approximately nine days.

Edited from various sources by Claira Lloyd.

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