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13 June: global refining news

Hydrocarbon Engineering,


Paulo Roberto Costa, the former head of refining and transport at Petrobras has denied all allegations that have been brought against him in part of the trial accusing him of being part of criminal network that laundered money from construction contractors. Costa has denied that prices at the Abreu e Lima refinery were inflated. The project originally had a budget of US$ 2.5 billion and has so far cost the US$ 18.5 billion.


As of 11 June, a fire at a refinery in the city of Nanjing had not been extinguished following the start of the blaze on Monday 9th June. The fire at the Sinopec Yangzi Petrochemical Co. plant began after the explosion of the sulfur recovery unit at the plant. The storage tanks at the facility which contain significant volumes of oil are apparently causing problems with fighting the blaze. The city’s Environmental Protection Bureau has reported that the fire is releasing hydrogen sulfide but the levels of toxic gas remain within national standards.


Hindustan Petroleum Corporation. Ltd (HPCL) has begun a feasibility study for the proposed 15 million tpy crude oil refinery for construction in Andhra Pradesh. The facility, once complete will provide a major boost to the economy in the state. The refinery is expected to house one cracker unit and cost Rs 60 000 – 70 000 crore to build. The study is expected to take six months to complete.


It was announced on Thursday 12 June that the Baiji refinery is under government control following Sunni rebels’ offensive through the area. Iraqi special forces secured the facility. It has also been announced that Iraq is not importing ant additional fuels as stored supplies of gasoline and diesel are adequate.


It has been reported that youths under the guide of Crusaders against Oil Theft (COT) have destroyed 10 000 t of stolen crude oil in Bayelsa State. It has been said that the group set fire to two legal refineries that had operations in creeks in the area.

It has also been reported that the Joint Task Force (JTF) has reported successes over the last 10 days. The JTF discovered an illegal oil refinery in the Warri South West Local Government Area of Delta and recovered many items related to illegal refining including boats, pumping machines and hoses.


In April, Muscat refinery reported strong production growth across all fuel varieties. The plant specifically reported an increase in the year to date production of regular and super gasoline grades. Aviation fuel production increased by 25.9% by the end of April compared with April 2013. Petrol increased 5.9 million bbls.


Due to the political crisis in Thailand, PTT Pcl has asked for permission to hold the feasibility study for a new refinery in Binh Dinh. The US$ 21.5 billion Nhon Hoi refinery was meant to be one of the world’s largest with a processing capacity of 660 000 bpd. The study was close to being complete and was due for submission next month.


It has been reported that Essar is planning to sell the Stanlow refinery. The company is said to be looking to sell the plant for between US$ 500 – 600 million. This has not been confirmed by Essar as the company has refused to comment.

Edited from various sources by Claira Lloyd

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