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Downstream news from the Americas

Hydrocarbon Engineering,

Alon USA Energy Inc.
The fate of the Big West refinery, Rosedale Highway, California is still unknown. However, Alon USA Energy Inc. who wants to buy the facility has recently reiterated plans for the refinery if its bidding is successful.  The company plan on resuming refining operations at the complex as it would be relatively inexpensive as the plant has only been idle for a year.

Alon also hopes to integrate Big West by pipeline with other Alon owned facilities in the Los Angeles area. Alon have offered US$ 40 million for the refinery and is currently lead bidder in the auction, which will take place on 19th March 2010.

Refinery of the Pacific
Petroecuador and Petroleos de Venezuela SA have contracted Korean firm SK E&C for basic engineering studies at the Refinery of the Pacific. The petrochemical complex will be constructed in Manabi.

The US$ 260 million contract is for basic engineering studies and will be completed in 18 months. SK E&C will also carryout environmental baseline and conceptual engineering studies for the facility. The plant is expected to come onstream in 2013 and process 300 000 bpd.

Newfoundland facility
The Come by Chance, Newfoundland, Canada refinery owned by Korea National Oil Corp. is expected to be back online by the end of March. The 115 000 bpd facility was taken offline in January after a fire. The facility is expected to process 90 000 bpd throughout 2010 and the Korean company plans on investing US$ 146 million on capital projects at the complex.

Honeywell and Shell
Honeywell International and Shell have signed a five year agreement. Shell will standardise its facilities worldwide with Honeywell automated technology. Shell hopes to improve reliability, efficiency, safety and reduce costs by doing so. This agreement furthers the 30 year relationship between the two companies.

Exclusive distributor
Harper Oil Products Inc. has announced that it will now exclusively distribute gasoline products from Marathon Oil. The company has previously been a distributor of Chevron products. The switching has been fuelled by Chevron’s decision to withdraw from the Kentucky market completely by the end of July 2010. In total, Chevron is withdrawing from 11 US state markets.

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