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Beginning of June global downstream news update

Hydrocarbon Engineering,



Approximately 200 workers at east Africa’s only oil refinery have protested against its closure and possible conversion into a storage facility. Participating individuals refused to report for the morning shift in the hope that their action would draw attention to the fact that their jobs could be lost should the plant be shut.



Idemitsu Kosan Co. has reached an investment decision with Mitsui Chemicals Inc., Kuwait Petroleum International, and PetroVietnam, and will now continue with its plans to build a US$ 9 billion oil refinery in Vietnam.

Construction of the 200 000 bpd Nghi Son refinery and chemical plant, located just outside of Hanoi, will begin next month, with work anticipated for completion in 2017.

An engineering, procurement and construction (EPC) contract has already been appointed to a consortium of Chiyoda Corp., JGC Corp., Technip SA, GS Engineering & Construction Corp, and SK Engineering and Construction Co.


Royal Dutch Shell’s proposed sale or closure of the Geelong refinery has led to a further AUS$ 203 million writedown there, contributing to a third straight annual loss from the company’s Australian refining and fuel marketing assets.



The shareholders of the Odessa petroleum refinery have preapproved the decision to acquire US$ 1.98 billion worth of crude oil from Lukoil Oil Company, Russia by May 2014.In addition, the refinery plans to enter into contracts for sale of petroleum products worth about $US 2.3 billion from May 2013 – April 2014.

The petroleum refinery will also sign a contract worth US$ 1.04 billion with Swiss based Litasco SA, a contract worth US$ 91 million with the Lukoil Moldova company, and a contract worth US$ 42 million with the Kyiv based Luk Avia Oil Company.



Independent refinery, Tesoro, has acquired BP’s Southern California Refining and Marketing business for US$ 1.075 billion. The business includes the 266 000 bpd Carson refinery and over 800 dealer operated retail stations.

Also in California, Applied Natural Gas Fuels, Inc. (ANGF) has announced that it has entered into a long term supply agreement with the Orange County Transportation Authority (OCTA) to provide LNG to its fleet of 282 LNG buses.


ExxonMobil’s Baytown Chemical Plant has earned the American Fuel & Petrochemical Manufacturers (AFPM) Distinguished Safety Award for superior safety performance in the US refining and petrochemical manufacturing industries.

1350 employees and contractor at the plant received AFPM’s highest honour for superior safety performance during more than five million work hours in 2011 and 2012 with no recordable injuries.

Also in Texas, Kinder Morgan Energy Partners, L.P. have announced a 900 000 bbl expansion at the Battleground Oil Specialty Terminal Company, LLC (BOSTCO) currently under construction on the Houston Ship Channel. The expansion will cost approximately US$ 54 million and is supported by a long term leased storage and handling services contract with Morgan Stanley Capital Group Inc.

Edited from various sources by Emma McAleavey.

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