Oil and gas industry news: 16 December 2014

CB&I

CB&I is pleased to report the US Congress’ continued funding for the Mixed Oxide Fuel Fabrication Facility (MOX) project located at the Savannah River Site near Aiken, South Carolina. Congress’ 2015 omnibus bill calls for US$345 million for continued construction of the MOX project and ensures that the funding must be used for continued construction of the facility in fiscal year 2015.

Philip K. Asherman, CB&I’s President and CEO said, “CB&I commends Congress for providing adequate funding for the MOX project and for ensuring its construction next year. MOX is one of the most significant nuclear non-proliferation projects currently underway in the world, and support from Washington is critical for project execution and completion.”

Clean Energy

Clean Energy Fuels Corp. has announced that it will design, build and operate a compressed natural gas (CNG) fuelling station for the Jacksonville Transportation Authority (JTA). The deal, valued at US$8.1 million, will also include facility modifications to accommodate the conversion of JTA’s buses from diesel to CNG. Clean Energy also reported 5510 additional natural gas vehicles began fuelling throughout Clean Energy’s nationwide network year to date in 2014 which is a 23% increase in vehicles fuelling compared to the same period in 2013. Additional agreements representative of Clean Energy’s growing portfolio of natural gas fuelling customers were also announced.

CLG

Chevron Lummus Global LLC (CLG), a joint venture between Chevron USA Inc. and CB&I Technology Ventures, Inc., has announced the successful startup of an integrated hydrocracker and base oil plant using CLG ISOCRACKING ISODEWAXING and ISOFINISHING technologies by OJSC TANECO, a Russian petroleum refining industry project under JSC TATNEFT group of companies. The integration design of the two units offered excellent opportunity to minimise the investment.

The hydrocracker unit was commissioned in January 2014 and the base oil unit in December 2014. The commissioning of the two units enabled OJSC TANECO to produce 1.2 million tpy of Euro V diesel fuel, 500 000 tpy of aviation kerosene and 190 000 tpy of Group II/III base oil. The high quality base oil production was possible by processing excellent quality lube oil feedstock from the hydrocracker.

Edison Investment Research

Will Forbes, Analyst, Edison Investment Research has commented on the back of continuing falls in the oil price and recent falls in the equity markets saying, “regardless of where crude oil finds support, if history is to be delivered, the equity markets are likely to overreact. On this basis, dependent on timing, the current weak oil price environment could represent an investment opportunity for investors and corporate alike. Investors looking to profit from this point in the cycle should be selective along strict criteria. Along with exposure to the downstream market and natural gas, investors should target companies with balance sheet strength, particularly large cash balances and serviceable debt; long term performance will be determined by low cost operators with disciplined management teams in addition to adequate financing. In particular, we would highlight E&P companies with fully funded exploration programs in place, as rig rates are likely to fall further in response to the continued cut back in spending.

“One sub sector of the energy industry bracing itself for a tough ride is the global oilfield service sector. With spot oil prices galling precipitously below critical levels associated with long term planning assumptions for new projects, US$100 /bbl, then US$90 /bbl and now below US$70 /bbl, there is likely to be a dramatic slowdown in oilfield development activity. This slowdown will be exacerbated, in our view by a requirement among the smaller E&P names to remain liquid and hence conserve cash, in addition to suspending projects in response to weakening economics.”

Quantum

Quantum Fuel Systems Technologies Worldwide, Inc. in partnership with Linde North America, has announced the first hydrogen dispensing system that measures hydrogen mass with connectivity to retail interface and user friendly payment features. The system was installed in West Sacramento and was unveiled at a grand opening hosted by the California Fuel Cell Partnership, Ramos Oil and Linde.

Renewable Energy Group

Renewable Energy Group, Inc. has celebrated the completion of upgrades to its 30 million gal. nameplate biorefinery in Newton, Iowa, which allows the plant to produce an even higher purity biomass based diesel from a wider variety of raw materials. Iowa US Rep. Dave Loebsack and Mike Naig, Deputy Secretary of the Iowa Department of Agriculture and Land Stewardship, joined community and business leaders to mark the occasion. REG broke ground on the US$ 13.2 million project in February and completed it in November, four months ahead of schedule and on budget. In addition to the production process upgrades, a further SU$ 2.6 million was invested to expand storage capacity by 2 million gal. and enhance logistics, for a total investment of US$ 15.8 million.

Edited from various press releases by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16122014/oil-gas-industry-news-16-dec-14/