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5th November: Global downstream roundup

Hydrocarbon Engineering,

On Monday 18th October a disturbance was experienced at the Suncor refinery in Edmonton, Alberta. The incident is the second of its kind this year and resulted in a yellow/green gas being emitted from the facility for a short period of time. The upset was unplanned the release did not trigger anything on the air quality index according to Alberta Environment.

Jacobs Engineering Group Inc. has announced that its subsidiary, Jacobs Projects (Shanghai) Co., Ltd., has signed an option agreement with Suzhou Han’s Chemical Engineering Co., Ltd. (SHCE) in China in which Jacobs has the opportunity to acquire SHCE upon the satisfaction of certain conditions.

SHCE has two specialty Class A design licenses in China’s chemical, petrochemical and pharmaceutical (CPP) industry, which allow the firm to provide engineering design, procurement and project management services for all chemical and petrochemical projects in China. Jacobs’ Shanghai operation currently has an industry Class B design license for the CPP industry in China, and has successfully executed a substantial number of EPCM projects for global clients investing in China.

It has been announced that Malaysia expected to have the world’s second biomass refinery to convert biomass waste to useable products by the end of 2016. Construction work in Johor is expected to begin next year and is being developed by MYBiomass Sdn Bhd in partnership with Malaysian Industry-Government Group for High Technology and Sime Darby Bhd and Felda Global Ventures Bhd.

Chevron Phillips Chemical Company LP has announced the completion of its study to expand normal alpha olefin capacity at the Cedar Bayou plant in Baytown, Texas, as well as receipt of approval to proceed with detailed engineering, design and procurement of long lead equipment. The capacity expansion is targeting a 20% minimum increase in a phased approach. The final approval will be sought in the first quarter of next year. Construction would be targeted to commence in the first quarter of 2014, and the project would be completed in the second quarter of 2015.

PBF Energy, owners of the Delaware City refinery are looking to increase crude by rail delivery capacity. The project will require investment of US$ 10 million and will increase the plant’s offloading capacity for Midwestern Bakken crudes to 125 000 bpd. At the moment, capacity is at 105 000 bpd.

Roseneft, Russia, has decided to partner with PTT Public Company Limited, Thailand on construction of the Nhon Hoi oil refinery complex planned for Binh Dinh, Vietnam. The project is going to need approximately US$ 25 billion of investment and up to 30 000 regular workers as well as support from the Vietnamese government and local authorities. It has been suggested that the project will come online in 2018. PTT is currently working to a deadline of 2014 to gain all approvals and study procedures complete.

Edited from various sources by Claira Lloyd

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