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4th November: Global downstream roundup

Hydrocarbon Engineering,

The coop refinery in Western Canada has to ration its fuel due to diesel shortages. The reasons for this shortage is the bumper harvest for the farming community which has increased demand and the closure of refineries in Alberta.

The independent teapot refineries located in Shandong province have been significantly expanding their processing capacities ahead of the end of year deadline set by the government to close smaller plants. Plants under 2 million tpa will be closed at the end of this year as the government looks to promote efficient energy use in the country. There is also to be a restriction on building refineries with a processing capacity of less than 10 million tpa.

Sinochem Corp is expected to become on of Iraq’s top oil buyers next year. The company is going to open its first wholly owned refinery and Iraq beat Kuwait to the post in a deal to supply the facility with feedstock. 40% of the processing capacity will be fuelled by Iraqi oil.

Sinopec Corp has won approval to build a refinery and petrochemical complex in Shanghai. The US$ 10 billion plant is expected to have a processing capacity of 400 000 bpd and 1 million tpa ethylene unit. The plant will be build in Caojing industrial park and will process mainly imported crude.

In a freak accident at the Mathura refinery, production manger Salauddin Khan was killed. He has run over by a Hydra carrier in the plant when inspecting cleaning work. The plant is closed at the moment for annual maintenance.

In Pemex’s latest five year plan, there was no mention of the US$ 10 billion Tula refinery project. The plant was expected to have a processing capacity of 250 000 bpd and was first announced in 2008, but has been subject to many delays. Despite not being included in the plan, Pemex have said that plans to build the plant have not been formally terminated.

Murphy Oil has failed to find a buyer for the 130 000 bpd refinery in Milford Haven, Wales. The company have now announced that they may close the facility. This is one of two refineries in Wales and is another victim to the low demand and increased competition from the Middle East and Asia.

Edited from various sources by Claira Lloyd

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