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Global downstream news: Final October installment

Hydrocarbon Engineering,


Two Memorandums of Understanding have been drawn up for the expansion planned at the Numaligarh Refinery Limited plant in India. Dhamra Port Company Limited’s MoU is for the import of crude oil and LPG and Cement Corporation of India have been signed to set up a power plant. The work is expected to cost Rs 14 000 crore and increase processing capacity at the plant from 3 million tpy to 9 million tpy.


Over the next three years Rosneft will apparently invest US$ 18 billion in refinery infrastructure. This is part of a larger plan, recently announced, to invest US$ 25 million in modernising its Soviet era refineries. US$ 7 billion has already been invested on the refineries and US$ 18 billion is scheduled for investment before 2016.

Far Vista Petroleum Corp. is going to acquire the Usink refinery in Russia. The company has received full permission form all government agencies and will be able to be an oil producer as well processor.

South America

Petrobras have officially announced that the long running negotiation with PDVSA to construct the Abreu e Lima refinery in Brazil have come to an end. Petrobras will now build the refinery alone. US$ 17 billion has already been invested in construction of the plant which is expected to have a processing capacity of 230 000 bpd. Negotiations began in 2005 and construction started in 2007


McJunkin Red Man Corporation, a subsidiary of MRC Global, has been awarded a contract by Chevron Phillips Chemical Company LP. The framework agreement is for the supply of pipes, valves and fittings and valve automation for Chevron Phillips Chemical’s US Gulf Coast petrochemical project.

The Occupational Safety and Health Administration Division (OSHA), part of the Wyoming Department of Workforce Services has served Sinclair Wyoming Refinery Company with US$ 707 000 work of fines for 22 violations at the Sinclair refinery. The fines are the result of an OSHA inspection at the plant during May of this year, which followed an employee complaint, and gas releases that were reported by the company. The releases were of hydrogen sulfide and sulfur dioxide and caused sickness in 20 employees. This is the largest penalty fine ever given out by Wyoming OSHA. Violations found during the inspection include holes in the floor, not having a set of operation and safety guides available, wilfully ignoring previous citations for hazardous work environments and refusing to fix cited problems.

The cause of a fire at Citgo Petroleum Corp’s Lemont refinery has been blamed on the leak of combustible fluid from extremely hot machinery. The leak was found on Wednesday of last week when workers were replacing a pump in the plant’s distillation unit. Water was sprayed on the leak but an ignition source was still found and the fire burnt for three hours. The damage is likely to take 6 months to repair and will result in reduced production rates at the facility.

The timetable for reaching full production at the Whiting refinery after upgrade work has fallen to the first quarter of next year. The BP owned plant has undergone US$ 4 billion worth of work and encountered problems with the construction of a coking unit earlier this year.

Marathon Petroleum has announced plans to make major upgrades to the Catlettsburg, Kentucky refinery over the next few years. The company is looking to spend US$ 145 million on technology what will allow the plant to process feedstock from Utica Shale. The investment will also expand processing capacity to 35 000 bpd by April of 2014. 

Edited from various sources by Claira Lloyd.

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