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Downstream news update: 27th January 2014

Hydrocarbon Engineering,


Alfa Laval has secured a SEK 65 million (US$ 10.07 million) contract to supply its Packinox heat exchangers to a refinery petrochemical complex in the Middle East.

The Packinox exchangers will be used in a process to remove non-desirable substances such as sulfur from feedstock. The order is scheduled to be delivered in 2014 and 2015.


VETEK Group of Companies has signed a long term contract with Vitol for the supply of vacuum gasoil produced at the Odessa oil refinery.

VETEK has also signed a long term contract with Trafigura for the supply of high sulfur fuel produced at Odessa.


Data released on Saturday by Iran Customs Administration shows that Iran’s petrochemical industries earned approximately US$ 9.19 billion from exporting petrochemical products to the international markets in the first 10 months of the current Iranian calendar year.

Gas condensate made up US$ 8.52 billion of exports.


Kenya Petroleum Refineries (KPRL) Limited said on Friday that it would be a lot cheaper to modernize the Changamwe refinery, rather than building a new one.

The facility would need Sh 94 billion (US$ 1.1 billion), whereas a new refinery would cost Sh 344 billion (US$ 4 billion).

In a statement, KPRL said that while the facility has been operating way below capacity, if modernized the facility could serve the needs of Kenya and the region.



Aegion Corporation has announced that its subsidiary, Brinderson L.P., has received a long term contract extension for work at the Los Angeles refinery operated by Tesoro Refining & Marketing Company LLC.

In addition, Tesoro has renewed its contract with Brinderson for its Golden Eagle refinery in Martinez, California.


ExxonMobil Corp. has reported equipment failure at its 238 600 bpd Joliet refinery in Channahon. The failure led to a release of hydrogen sulphide.

It is not clear whether failure was associated with or if it impacted production.


The former Zephyr Oil site is now on the verge of being cleaned up after decades of petroleum pollution.

The speeded cleanup has been enabled by a US$ 6 million Michigan Department of Environmental Quality grant approved by the Legislature in 2011. The state money is being matched with federal funding from the US Army Corps of Engineers and the Environmental Protection Agency in a 35/65 state-to-federal ratio.

None of the available US$ 17 million has yet been utilized. The past two years has been spent mapping hotspots of soil and groundwater contamination, and of contaminated sediment below wetlands and surface water. This mapping is now complete and will facilitate a targeted, cost effective clean up of both problems.

Edited from various sources by Emma McAleavey.

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