Local member of parliament, Balkrishna Shukla, has written to the Prime Minister, Manmohan Singh, and Petroleum Minister, Veerappa Moily, in regards to frequent fire mishaps at the Indian Oil Corporation (IOC) Gujarat refinery.
Shukla is seeking a thorough probe into the fire accidents that have taken place at the facility, the latest having occurred last week.
Meanwhile, Union Minister for Petroleum and Gas, M Veerappa Moily, has announced that the IOC Paradip oil refinery is likely to be completed by March next year.
Moily expressed satisfaction at the rate of work, adding that some of the country’s best talents have been hired to commission the project.
Terrorists have targeted a Homs refinery with mortar shells, causing damages to pipelines.
Director of the refinery, Akram Sultan, has described how one of the shells fell in the area of a gas collection unit, causing damage to the unit and to the pipelines.
There were no casualties among the workers.
Indus Refinery Limited (IRL) is now in talks with potential investors in regards to the revival of the deep conversion oil refinery.
The 93 000 bpd capacity facility has been dormant for the last five years, following the 2008 global financial crisis. The main sponsor has struggled to attract suitable partners in the face of tough economic conditions, law suits and a deteriorating security situation.
IRL Chairman and CEO, Sohail Shamsi, has indicated that he is now engaged with a German firm who want to utilise IRL’s land and permits while financing a completely new refinery. Anticipated capacity is between 100 000 and 150 000 bpd.
MPs have urged the government to take measures to boost the oil refining industry, as it struggles to compete under the burden of excessive regulations.
The Energy and Climate Change Committee have highlighted evidence indicating that the industry is in decline, with refineries disadvantaged against European and global competitors.
The Committee emphasised that the majority of investment is spent on compliance with legislative and regulatory requirements. According to their report, ‘the scale of legislative and regulatory burdens on the industry may undermine long term sustainability’.
Sasol and Ineos have announced plans to form a joint venture to build a high density polyethylene (HDPE) plant. The final investment decision will be made in the first half of 2014, with start up anticipated for the end of 2015.
LlyondellBasell, which operates a 280 000 bpd Houston refinery, has announced that its ethanol credit obligations (RINs) could reach US$ 200 million in 2013, up from US$ 30 million last year, an increase that could pressure its refinery margins.
Refiners require ethanol credits, or renewable identification numbers (RINs), to prove they have blended their share of renewable fuels into gasoline and diesel. If they do not blend, they need to buy an RIN for each gallon of ethanol.
The company’s CEO, Jim Gallogly, said rising RIN prices have almost doubled LlyondellBasell’s spending on credits to US$ 50 million in the second quarter of this year.
Edited from various sources by Emma McAleavey.
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