Gas Turbine after Market is both substantial and Concentrated
As the U.S. switches from coal to gas a very large after market is developing
for intake filters, valves, pumps, turbine and HRSG components. McIlvaine
quantifies and tracks all the activity in Gas Turbine and Combined Cycle
Supplier Program.
Of the 440 GW of gas turbine-generated power operating in the U.S. as of the end
of 2015, 170 GW or over one-third is produced by the top ten producers.
Largest Gas-Turbine Power Producers in the U.S.
Based on Capacity as of the end of 2015
Rank Power Producer Gas-Turbine Power Production
Total Capacity (MW) Number of Facilities Total Number of Units
1 Calpine 27,894 63 190
2 Duke Energy 25,061 42 242
3 NextEra Energy 20.735 18 132
4 Southern Co 19,919 30 138
5 NRG Energy 18,946 57 238
6 Dynegy 14,022 23 96
7 TVA 12,201 15 118
8 Berkshire Hathaway 11,812 24 107
9 Engie 10,260 19 57
10 LS Power 9,492 17 70
Note: “Total Number of Units” includes both combustion and steam turbines.
Most of these producers are large, U.S.-based energy companies. However, Engie
(known as GDF Suez until April 2015) is a France-based multinational energy
company and one of the largest independent power producers in the world. In 2011
and 2012, Engie doubled its U.S. power generation capacity through acquisitions.
Berkshire Hathaway is essentially a holding company with an energy division
which includes MidAmerican Energy (acquired in 1999), PacifiCorp (2005) and NV
Energy (2013).
Identifying key decision makers has become particularly difficult over the last
decade due to electricity restructuring in the U.S. The distinction between
regulated and deregulated companies has become blurred. Power plants are bought
and sold frequently as companies and utilities seek to make a profit in the new
market-oriented environment.
McIlvaine has been tracking ownership changes and reports on them regularly
along with identifying every new and existing power plant and project worldwide.
For more information on 59EI Gas Turbine and Combined Cycle Supplier Program
click on: http://home.mcilvainecompany.com/index.php/markets/28-energy/610-59ei
Flow Control and Treatment Mining Market Tops $13 Billion in 2017
The mining industry will spend $13 billion for flow control and treatment
equipment and services in 2017. The forecast appearing in N064
Air/Gas/Water/Fluid Treatment and Control: World Market includes the following
fluids: air, water, gas, oil, slurries and other. Movement of gases and air with
fans and compressors is a big segment. Three billion dollars will be spent for
pumps and valves.
The air and water monitoring expenditures can be further segmented based on how
the equipment is used. Online continuous measurement makes up the bulk of the
expenditures.
The mining market is characterized by very large projects which are few in
number but comprise a significant portion of the market. So the market is
volatile. Presently there are a number of large potash projects in Saskatchewan,
Canada which represent a potential sale of flow control and treatment equipment
of close to $1 billion or over 7 percent of the entire annual market. A very
large copper mining project in Ecuador will significantly impact the total
market.
The U.S. represents only 6 percent of the mining potential for the largest
segments which include iron ore, coal, bauxite, copper and phosphate. China on
the other hand represents 23 percent of the total based on domestic production.
When you consider that China is a major investor in the rest of the Americas
which will account for 19 percent of the production and Africa with 13 percent
of the production, its influence on mining flow control and treatment is
considerable.
China and the Americas will account for over 33 percent of the bauxite
production in 2017.
China will account for nearly 42 percent of coal production in 2017.
Central and South America will produce 43 percent of the copper in 2017.
Twenty-five percent of the iron ore will be produced in the Americas in 2017.
China and Africa will account for 69 percent of 2017 phosphate production.
For more information on specific mining markets click on:
N021 World Fabric Filter and Element Market
N008 Scrubber/Adsorber/Biofilter World Markets
N028 Industrial Valves: World Market
N019 Pumps World Market
N006 Liquid Filtration and Media World Markets
N005 Sedimentation and Centrifugation World Markets
N020 RO, UF, MF World Market
N031 Air and Water Monitoring: World Market
Power Plant Valve Market Shifting to Asia
A number of factors are causing major shifts in power plant valve purchases.
These changes are being continually evaluated in N028 Industrial Valves: World
Market.
The market for valves in the power industry is being shaped by:
• Increasing need for energy in developing countries
• Changes in fuel availability and price
• Regulations which impact the valve expenditures per unit of electricity
capacity
• Changes in the mix of generation technologies
Developing countries are moving ahead with coal-fired power plants. The U.S. is
building a number of gas turbine-fired power plants while Europe is relying on
growth in renewable energy. So the result of this activity is a regional shift
in valve markets.
Regulations are impacting valve expenditures. Limits on water discharges are
generating markets for zero liquid discharge (ZLD) systems. Concentrated
wastewater is processed in evaporators. Steam is regenerated with compressors,
so a number of high performance valves are needed.
Limits on SO2 emissions are creating large markets for knife gate valves used
with lime and gypsum slurry transport.
The long term market outlook is most impacted by the trend toward generation
technologies which needed lower investments in valves. Nuclear power plants need
a greater valve investment than any alternative. They require as much ultrapure
water for steam generation as do coal-fired power plants. They outstrip
alternatives relative to combustion valve requirements due to highly critical
control of the nuclear reaction process. Substantial investment in valves is
also required for water intakes, cooling water and wastewater treatment. The
fact that nuclear power is being phased out in some countries reduces the valve
potential in those countries.
The valve investment per MW has been compared for each power generation
technology and for each type of fluid being controlled. This ranges from
lubrication valves where flows are measured in fractions of a liter per hour to
large valves in scrubber recycle systems in coal-fired power plants where the
individual valve must handle 50,000 gpm and where one system may need eight of
these valves.
Selection of valves for water intakes and cooling is essentially the same
regardless of the generation type. However, the nuclear sites need special
safety protection.
Similar valves are used in the steam cycles of coal, nuclear, CCGT and biomass
power plants. The difference is that gas turbine power plants generate only 40
percent of the power with steam.
Depending on the generator selection, the valve expenditure can vary by 400 to
1. With the trend toward renewables in Europe the power plant valve market in
this region will shrink. On the other hand, the Asian predilection for coal will
result in good growth in this region over the next decade. For more information
on N028 Industrial Valves: World Market, click on:
http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028
The Flow Control Future Belongs to International Companies with Holistic and
Proactive Development, Supply and Sales Programs
The $350 billion flow control and treatment market is undergoing a steady change
caused by:
• Growth disparity between regions
• Expansion of international companies in the high growth regions
There have been many acquisitions in recent years as international companies
seek to adjust to these changes. However, acquisitions are only part of the
adaptation process. Some international companies are very successful in their
expansion efforts. Others are not doing as well. The differences can be
attributed to six factors.
1a Holistic product development 1b Proactive product development
2a Holistic supply 2b Proactive supply
3a Holistic sales 3b Proactive sales
Product development is much more important in flow control and treatment than in
some other industries where the pace of change is slow. A holistic program takes
into account the range of opportunities whereas a myopic program is the victim
of an existing culture e.g., IBM and personal computers. W.L. Gore has developed
unique products in retail clothing as well as flow control and treatment where
it supplies pump packings, liquid filtration bags, gas turbine filters, dust
collector bags, NOx and VOC removal technologies and most recently a novel
device for mercury removal. The company shows the holistic strength by the
breadth of industries and products. It has demonstrated its proactive strength
by unique approaches which take an industry in a different direction.
Companies without strong product development programs complain that the Chinese
are stealing their designs. Thermo Fisher, with a strong development program,
has built its main air pollution research center in China.
Supply includes manufacturing, purchasing, engineering and service.
International flow control companies have been investing in manufacturing
facilities in Asia. Filtration media companies have been generally successful in
setting up plants in China. The biggest opportunity lies in a holistic approach
which combines manufacturing with service. Pentair, for example, has worked on a
repair business based on expensive valves which can be repaired rather than
replaced. This initiative combines the holistic manufacturing/repair combination
plus the proactive concept to take the industry in a new direction.
The potential for remote monitoring, service and then maintenance support can be
realized with holistic and proactive approaches. This potential is highest in
developing countries moving to high tech production e.g., pharmaceuticals in
India, semiconductors in China and ultrasupercritical coal-fired power plants in
Vietnam.
Most international companies are failing to take the proper holistic approach to
sales. Divisions are not sharing intelligence or collaborating. Management has
initiated top down approaches to take advantage of synergies but efforts have
often been unsuccessful. There is considerable potential for multi-company
initiatives. Various governments are helping. The Italian government has a
strong initiative to promote industrial valve exports. The Industrial Valve
Summit held last year in Bergamo, Italy was an effective promotional aid to the
Italian valve manufacturing industry.
The McIlvaine Company is focused on helping international companies with all six
of the important factors for international success. In addition, McIlvaine is
creating unique tools which can be shared by suppliers and end users around the
world. They include:
• Decision guides with classification of options for each industry.
• Cross pollination among industries: McIlvaine conducted a cross industry
pollination webinar on mercury removal for sewage sludge incinerators,
coal-fired boilers, cement plants, waste-to-energy plants and natural gas
pipelines. New developments applied to natural gas pipelines may be applicable
to the other industries. Decision guides on NOx, hot gas filtration and acid gas
removal in multiple industries will be discussed in a series of webinars in
March and April.
• White papers and analyses on products focused on the total cost of ownership.
• Identification of all supplier and end user parent companies by a corporate
identification number with spelling in Chinese and English.
• Supplier programs including many market reports and databases along with KOC
Sales Strategy, 4 Lane Knowledge Bridge, and Detailed Forecasting of Markets,
Prospects and Projects.
For more information click on: N064 Air/Gas/Water/Fluid Treatment and Control:
World Market
A Complex Multitude of Air Quality Decisions Need to Be Made by the World’s
Coal-fired Power Plants
Coal-fired power generators supply more electricity than gas, wind or solar.
Expenditures for new power plants continue at a rate in developing countries
sufficient to ensure that the net world coal-fired generating capacity will
continue to increase. Both existing power plant operators and new power plant
developers have a large number of complex decisions to make about achieving air
quality.
Power Plant Air Quality Decisions is a combination of alerts and decision
systems, which helps the power plants make the best decisions and helps
suppliers understand the issues and options.
Here are some of the options:
Option A Option B Option C
Mercury Reduction
Activated Carbon Chemicals in Fuel Absorber Module
Mercury CEMS Sorbent Traps Both
DeNOx
SCR SNCR Catalytic Filter
SO2
Wet Scrubbers Dry Scrubbers Direct Injection
Lime/Limestone Sodium Ammonia
Particulate
Precipitator Fabric Filter Hybrid
Opacity monitor Mass Monitor with Physical Capture Mass Monitor with Electronic
Measurement/ Conversion
Discrete Particles Condensibles Total particulate
Hourly limits Daily limits Yearly Limits
Selenium Capture
Activated Carbon Scrubber Not Captured
HCl Capture
Chloride Salts in Dry Mix Chloride Salts Washed from Gypsum 30% Grade
Hydrochloric Acid
There are a number of other decisions which influence the above choices. If
there is a market for flyash, it will impact the choice of mercury and SO2
capture technologies. If the expected plant life is long, then the particulate
and SO2 technology selections will be different than if the remaining life is
short.
There are many new developments which are likely to change future decision
making. The catalytic filter with direct sorbent injection combines three
devices into one. More importantly, it provides clean hot gas at 850°F and
facilitates maximum heat recovery and energy efficiency.
The use of gasified waste as a “reburn” fuel reduces operating costs and reduces
the CO2 footprint. The use of treated municipal wastewater plus zero liquid
discharge (ZLD) technology makes the plant a positive contributor to improved
water quality in the region.
The extraction of rare earths and valuable metals from the ash promise to make
coal-fired power an important resource.
For more information on 44I Power Plant Air Quality Decisions click on:
http://home.mcilvainecompany.com/index.php/other/2-uncategorised/86-44i
Daily Project Posting in McIlvaine Oil, Gas, Refining Supplier Program
Oil/Gas/Shale/Refining E-Alert
February 2016 – No. 1
This alert is being issued twice per month for suppliers in flow control and
treatment who are coordinating market research with targeted pursuit of the
larger and longer term orders.
PROJECTS
The following projects each will result in millions of dollars of orders for
flow control and treatment products. Each project has been rated. The
opportunity size is rated from 1-10 with 1 being small and 10 being very large.
The timing for flow and treatment orders has been provided by year e.g., T 16 =
timing of order is 2016.
Shell Offshore Awards Yokogawa Contract to Deliver Process Control and Safety
Equipment for Appomattox Development
Yokogawa Corporation of America was recently awarded a contract by Shell
Offshore Inc. to deliver the process control/process safety equipment and
associated software for its Appomattox development located in the Mississippi
Canyon in the deep water Gulf of Mexico. Yokogawa’s CENTUM VP DCS will be used
for managing Topsides Process Control and Subsea Sequence of Operations, and the
ProSafe-RS Logic Solver will be used to ensure Process Safety. This is
Yokogawa’s second integrated Topsides/Subsea Kit delivered to support Shell’s
Gulf of Mexico portfolio, and this kit will be developed and delivered from its
North American Headquarters in Sugar Land, Texas. Yokogawa’s approach continues
its position as an Integrated Team with its Oil and Gas customers. The project
is located in the Gulf of Mexico’s deep Norphlet geologic trend, where Shell is
currently the first to achieve commercial discoveries. The Appomattox project
will consist of a semi-submersible, four-column production host platform, a
subsea system featuring six drill centers, 15 producing wells, and five water
injection wells.
________________________________________
Jacobs Awarded Pre-FID Study Contract for Baltic Gas Project (T17)
Jacobs Engineering Group Inc. announced February 2 it was awarded a contract to
conduct a pre-final investment decision (Pre-FID) study for the onshore gas
treatment plant of the Baltic Gas Project in the Polish sector of the Baltic Sea
for Baltic Gas Sp. z o.o. i wspólnicy sp. k (“Baltic Gas”). The project is being
undertaken on behalf of Baltic Gas by a partnership established specifically for
the Baltic Gas Project between CalEnergy Resources Poland Sp. z o.o. (“CalEnergy”)
and LOTOS Petrobaltic S.A. CalEnergy is the operator for the project development
phase. The Baltic Gas Project involves the concurrent development of the B4 and
B6 gas fields via offshore production facilities in the Baltic Sea; some 110
kilometers of subsea export pipelines to shore; and an onshore gas treatment
plant. The gas is to be processed through the onshore gas treatment plant to
remove LPGs and condensate and produce sales gas to the required sales
specification. In conducting the Pre-FID study, Jacobs’ role includes developing
the design for the onshore gas treatment plant and associated facilities and
generating a robust capital cost estimate based on vendor quotations for high
value and long lead items to underpin the final investment decision during the
second half of 2016. The company is utilizing its workshare capabilities to
complete the work, coordinating the project from its Melbourne office.
________________________________________
Ahdi Field Gas Plant Starting in Pakistan with Additional Wells
Pakistani government officials have inaugurated a third natural gas processing
plant at Adhi oil and gas field operated by Pakistan Petroleum Ltd. about 70 km
south of Islamabad. The plant will support production from eight development
wells planned after a reservoir study indicated further potential from the
field. Six of the wells have been drilled. The plant has capacities of 25 MMscfd
of gas, 150 tonnes/day of LPG, and 5,500 b/d of crude oil and condensate.
Average Ahdi production from 16 wells is 50 MMscfd of gas, 2,000 b/d of NGL,
4,500 b/d of NGL, and 155 tonnes/day of LPG. Pakistan Petroleum’s partners in
the field are Oil & Gas Development Co. Ltd. and Pakistan Oilfields Ltd.
________________________________________
Alaska’s Walker Presses ANS Producers for more Progress on LNG Export Project
Alaska Gov. Bill Walker (I) notified three Alaska North Slope oil and gas
producers that he will consider other ways to generate revenue for the state if
more progress is not made on reaching operating milestones for the Alaska
Liquefied Natural Gas Project before the legislature completes its regular
session.
________________________________________
BHP Billiton Says Trinidad and Tobago Deep Water could Contain Top-tier Prospect
(07)
The deep water offshore Trinidad and Tobago represents the possibility of a
“Tier 1” prospect for BHP Billiton Petroleum (BHPB), David Rainey, president of
exploration, told delegates at the annual Trinidad & Tobago Energy Conference
hosted by the Energy Chamber of Trinidad & Tobago in Port of Spain. Rainey said
BHPB defines a Tier 1 prospect as a petroleum system that has at least 5 billion
bbl of oil in place and is able to deliver at least 100,000 boe/d to the
company. Rainey said the company recently completed a seismic acquisition
campaign in its deepwater acreage. He showed a cross-section of the seismic
survey, calling attention to the first prospect—Le Clerc—which is a very large
geological structure that BHPB suspects could be oil-prone based on the results
of a piston core test. Rainey said, “That red patch at the top of the structure
likely indicates the presence of hydrocarbons. It doesn’t say anything about the
type of hydrocarbon, or the thickness or quality of the reservoir, but it is
certainly an encouraging observation.” BHPB plans to drill two wildcats with the
possibility of a third well, depending on results of the first two wells, Rainey
said. Each well will cost $100-200 million to drill. Rainey explained that the
decision to pursue seven deepwater blocks offshore Trinidad and Tobago is
because the company believes it has a good chance of making Tier 1 finds. “We
are not looking for one-off opportunities. We are looking for opportunities we
can explore for a decade, and produce for half a century,” Rainey said.
________________________________________
Oman Reveals List of Approved Bidders for Proposed Refinery Project
Duqm Refinery & Petrochemical Industries Co. LLC (DRPIC), Muscat, a joint
venture of state-owned Oman Oil Co. and the United Arab Emirates’ International
Petroleum Investment Co. (IPIC), has revealed its shortlist of prequalified
tenderers selected to bid on design and construction of a grassroots 230,000-b/d
refinery to be built in Oman’s Duqm Special Economic Zone (SEZAD) in Duqm.
Selected in November 2015, the list of preapproved entities includes a
combination of seven joint ventures, alliances, and sole entities composed of 15
international companies that have been invited to submit bids for engineering,
procurement, and construction (EPC) of the planned refinery, DRPIC said. The
prequalified bidders, which were invited to a late-December 2015 open forum and
briefing session in Duqm to clarify the tender process and tour the construction
sites, include the following: • A JV of CB&I BV, The Hague, and Taiwan’s CTCI
Corp., Taipei. • A JV of South Korean firms Daelim Industrial Co. Ltd., Hyundai
Engineering & Construction Co. Ltd., and Hyundai Engineering Co. Ltd., all of
Seoul. • Fluor Corp. subsidiary Fluor Transworld Services Ltd., Hoofddorp,
Netherlands. • A JV of JGC Corp., Yokohama; South Korea’s GS Engineering &
Construction Corp., Seoul; and Italy’s Saipem SPA, Milan. • A JV of Petrofac
International Ltd., Sharjah, United Arab Emirates; South Korea’s Samsung
Engineering Co. Ltd., Seoul; and Chiyoda Corp., Yokohama. • South Korea’s SK
Engineering & Construction Co. Ltd., Seoul. • A JV of Tecnicas Reunidas SA,
Madrid, and South Korea’s Daewoo Engineering & Construction Co. Ltd., Seoul.
DRPIC plans to award a total of two EPC contracts for the project this year,
including a larger package for all equipment and structures required for main
crude oil processing units, as well as a second package to cover all supporting
installations, utilities, tankage, and buildings. While the company has yet to
reveal timelines for either construction or possible startup of the refinery,
DRPIC last year awarded a contract to Galfar Engineering & Contracting SAOG,
Muscat, to provide site preparation work for the project, which now under way,
is due to be completed in this year’s second quarter. Primarily designed to
produce and recover naphtha, jet fuel, diesel, and LPG, the refinery, once
completed, will include units for hydrocracking, hydrotreating, delayed coking,
sulfur recovery, hydrogen generation, and Merox treating.
________________________________________
Colombia’s Ecopetrol Forms Offshore E&P Unit
Ecopetrol SA reported that its wholly owned subsidiary Hocol Petroleum Ltd. has
formed a new company, Ecopetrol Costa Afuera Colombia SAS, which will be
responsible for offshore exploration and production activities in Colombia.
Currently, offshore E&P work is being carried out by Ecopetrol, both as operator
and non-operator. The new unit will benefit from the tax, tariff, and other
benefits of Decree 2682 of 2014, as recently modified by Decree 2129 of 2015,
which establishes the conditions and requirements for forming permanent offshore
free trade zones in Colombia, the company said. Ecopetrol Costa Afuera Colombia,
which is an indirect subsidiary of Ecopetrol, will be based in Colombia.
________________________________________
Norway Awards 56 Licenses Offshore Norway in APA 2015 Licensing Round
Norway's Ministry of Petroleum and Energy has offered 56 exploration licenses on
the Norwegian Continental Shelf (NCS) in the Awards in Pre-defined Areas 2015
(APA 2015) licensing round. 'Access to prospective exploration acreage is a
central element in the Government's policies and vital for the long-term
activity on the Norwegian Continental Shelf. It is a very positive sign that the
oil companies show such high interest in our most well-known areas, this enables
me to offer awards in 56 exploration licenses. This year's APA round is among
the largest ever awarded on the NCS,' says Minister of Petroleum and Energy Tord
Lien. The 56 exploration licenses are distributed over the North Sea (27), the
Norwegian Sea (24) and the Barents Sea (5). 36 different oil companies, ranging
from the international majors to small domestic exploration companies, are
awarded ownership interests in one or more production license. 22 of these
companies will be offered one or more operatorships. Every license awarded
includes work-program commitments. The APA licensing rounds cover the most
explored areas on the Norwegian shelf. One of the primary challenges in mature
areas is the expected decline in discovery size. Minor discoveries will not be
able to carry standalone developments, but may have good profitability when they
can exploit existing and planned processing equipment and transportation
systems, or be seen in context with other discoveries or planned developments.
Timely discovery and exploitation of such resources is therefore important.
Offer to 22 operators (operatorships in brackets): Bayerngas (1); BP (1);
Capricorn (1); Centrica (1); ConocoPhillips (2); Det norske oljeselskap (6);
Dong (2); Edison (3); ENI (2); Faroe (2); GdF SUEZ (1); Lundin (2); MOL (2); OMV
(2); PGNiG (1); Pure (2); Shell (1); Statoil (13); Suncor (2); Total (2); Tullow
(3); Wintershall (4). Offer to 36 licensees (number of shares (including
operatorships) in brackets): Bayerngas (2); BP (1); Capricorn (5); Centrica (6);
Concedo (6); ConocoPhillips (2); Core Energy (5); Det norske oljeselskap (10);
Dong (4); Edison (5); E.ON (5); ENI (4); Faroe (6); Fortis (4); GdF SUEZ (1);
KUFPEC (1); Lime (5); Lundin (4); MOL (5); OMV (6); Origo (3); Petrolia (1);
PGNiG (4); Premier Oil (1); Pure (3); Repsol (4); Shell (3); Skagen44 (3); Spike
(3); Statoil (24); Suncor (3); Total (3); Tullow (8); VNG (4); Wellesley (1);
Wintershall (7).
________________________________________
Tanzania Finalizes Land Deal for Delayed LNG Project (08, T18)
Tanzania said on January 29 it had finalized a land acquisition for the site of
a planned liquefied natural gas (LNG) plant and was now working to compensate
and resettle villagers to move forward on a long-delayed project. Tanzania's
natural gas reserves are estimated at more than 55 trillion cubic feet (tcf) and
the central bank believes 2 percentage points would be added to annual economic
growth of 7 percent simply by starting work on the huge plant that would draw in
billions of dollars of investment. BG Group, being acquired by Royal Dutch
Shell, along with Statoil, Exxon Mobil and Ophir Energy plan to build the
onshore LNG export terminal in partnership with the state-run Tanzania Petroleum
Development Corporation (TPDC). They aim to start it up in the early 2020s. But
their final investment decision has in part been held up by delays in finalizing
issues related to the site. 'After securing the title deed, the law requires the
owner to pay compensation to the relevant parties based on a valuation done by
the chief government valuer,' TPDC said in a statement. TPDC now owns title deed
for some 2,071.705 hectares of land that have been set aside for the
construction of the planned two-train LNG terminal at Likong'o village in the
southern Tanzanian town of Lindi, which is located close to large offshore gas
finds. Another 17,000 hectares of land around the site for the proposed LNG
terminal has been allocated for an industrial park. Oil companies were unable to
gain access to the site until the land purchase, analysts say. East Africa is a
new hotspot in hydrocarbon exploration after substantial deposits of crude oil
were found in Uganda and major gas reserves discovered in Tanzania and
Mozambique. Mozambique's plans to build an LNG plant have moved more swiftly.
With other LNG projects moving ahead around the world, the best deals for long
term gas sales contracts will likely be secured by those who come on stream
first, analysts say.
________________________________________
Argentina’s Andes Energia Provides Chachahuen Operational Update
Andes Energia, the producer and explorer in Argentina and Colombia, has provided
an update on current production, development and exploration operations in the
Chachahuen block in the Province of Mendoza, Argentina based on the December
2015 sales and production reports, provided by YPF, the operator of the block.
________________________________________
Sweden’s Preem Lets Contract for Lysekil Refinery (08, T17)
Swedish refiner Preem AB, a wholly owned subsidiary of Corral Petroleum Holdings
AB, Stockholm, has let a contract to Amec Foster Wheeler (AFW) for the planned
expansion of vacuum distillation capacity its 11 million-tonne/year refinery in
Lysekil, Sweden. AFW will deliver engineering, procurement, and construction
management (EPCM) for a new vacuum distillation unit (VDU) at the refinery, the
service provider said. The VDU, which will be in addition the refinery’s
existing 64,600-b/d VDU, will be used to boost the plant’s production of vacuum
gas oil (VGO) in order to help reduce Preem’s need for imported volumes, AFW
said. While it revealed neither the value of the latest contract value nor the
new unit’s proposed capacity, AFW confirmed it previously completed feasibility
studies and front-end engineering design for the project in 2014 and 2015,
respectively. Alongside enabling reductions to Preem’s current VGO imports of
about 50,000 cu m/month, the planned VDU expansion at Lysekil also will position
the refinery to maximize its current crude capacity, as well as upgrade residual
oil from the company’s 7 million-tpy Gothenburg refinery, the Swedish operator
told investors in April 2015. Preem said it expects to invest about 1.5 billion
kronor (Swedish) for the VDU expansion, which is due to be completed by yearend
2018.
________________________________________
Rosneft, BP to Restructure German Refining JV
Russia’s OJSC Rosneft has entered a deal with BP PLC to dissolve their Ruhr Oel
GMBH (ROG) joint venture as part of a plan by the companies to restructure their
refining and petrochemical businesses in Germany.
________________________________________
Kosmos Energy Makes Gas Discovery Offshore Senegal
Kosmos Energy has made a major gas discovery at its Guembeul-1 exploration well
located in the northern part of the St Louis Offshore Profond license area in
Senegal. The well, which is located about 5km south of the basin-opening
Tortue-1 gas discovery in water depths of 2,700m, was drilled to a total depth
of 5,245m using the Atwood Achiever drillship. The well encountered 101m of net
gas pay in two quality reservoirs, including 56m in the Lower Cenomanian as well
as 45m in the underlying Albian. Guembeul-1 has de-risked adjacent prospectivity
and proved that quality reservoirs exist in the Albian. Kosmos Energy said that
its mean gross resource estimate for the Tortue West structure has increased to
11 trillion cubic feet (Tcf) from 8 Tcf based on the integration of the
Guembeul-1 well results. The gross resource estimate for the Greater Tortue
Complex has also increased to 17 Tcf from 14 Tcf. Kosmos Energy chairman and CEO
Andrew Inglis said: "Guembeul-1 confirms the presence of a world class gas
resource that extends into both Senegal and Mauritania. "The Guembeul-1 well
continues our 100% success rate in the outboard Cretaceous petroleum system
offshore Senegal and Mauritania, which we believe is a strategically important
new oil and gas province and we are focused on unlocking the basin's full
potential." The drillship delivered by Daewoo Shipbuilding and Marine
Engineering will now proceed to Mauritania and drill the Ahmeyim-2 delineation
well in the southern part of Mauritania's Block C-8 to test the downdip limits
of the field. Kosmos owns a 60% interest in the Guembeul-1 well, along with
Timis (30%) and Petrosen (10%).
________________________________________
Iran Plans New Drilling Campaign from Persian Gulf Platforms
Iranian Offshore Oil Co. plans to tender drilling of new wells at the Ilam and
Nasr platforms over the Siri region of the Persian Gulf. According to news
service Shana, operations will also include overhauls of the platforms. In the
northern part of the Persian Gulf, Russian company Lukoil has started looking
for oil and gas reserves, according to Hormoz Qalavand, director for exploration
affairs at National Iranian Oil Co. As for South Pars, Iran’s biggest ongoing
offshore field development, two platforms are expected to come onstream in the
next two months at Phase 14, official Morteza Zarrin Gol told Shana. Platforms
14C and 14A will have 22 wells operational, with the gas exported to refineries
onshore for treatment. Phase 14 is under development by a consortium of Iran’s
Industrial Development and Renovation Organization, National Iranian Drilling
Co., Iran Shipbuilding & Offshore Industries Complex Co., and IOEC. Facilities
are designed to extract 56.5 MMcm/d of sour gas, 75,000 b/d of gas condensate, 1
MM tons/yr of liquefied gas, 1 MM tons/yr of ethane, and 400 tons/d of sulfur.
________________________________________
Hess to Focus on Deepwater Gulf of Mexico, Offshore Malaysia Projects
Hess Corp. has reported an exploration and production capital and exploratory
budget of $2.4 billion for 2016, a 40% reduction from its 2015 actual spend of
$4.0 billion. The $2.4-billion budget is allocated as follows: $610 million
(25%) for production, $820 million (34%) for developments, $500 million (21%)
for exploration and appraisal activities, and $470 million (20%) for
unconventional shale resources.
________________________________________
Aker Solutions to Conduct Johan Castberg FPSO Concept Study
Statoil has contracted Aker Solutions to provide a concept study for an FPSO
facility for the Johan Castberg oil field development in the Barents Sea. The
order is a call-off by Statoil on an engineering contract for the field
development won by Aker Solutions in 2013. The value of the contract was not
disclosed. The Johan Castberg field is located about 240 km (149 mi) northwest
of Hammerfest, northern Norway. Per Harald Kongelf, head of Aker Solutions’
Norwegian operation, said: “We’ve worked with Statoil for two years on finding a
cost-effective solution that will enable development of this strategically
important oil field in northern Norway. The costs have been significantly
reduced and we look forward to continuing to work with Statoil to optimize this
development.”
________________________________________
Chevron Announces First Gas from the Chuandongbei Project in Southwest China
Chevron Corporation announced January 26 that its fully-owned subsidiary Unocal
East China Sea, Ltd. began natural gas production from the first stage of the
Chuandongbei Project in southwest China. Chuandongbei is one of the largest
onshore gas projects developed by an international oil company and a national
oil company in China.
________________________________________
Total Lets Contract for Antwerp Refining Operations
France’s Total SA has let a long-term contract to Praxair Inc., Danbury, Conn.,
to supply industrial gases to its refining and petrochemical platform in
Antwerp, Belgium. Praxair will deliver oxygen and nitrogen to Total’s operations
at the Port of Antwerp to meet the company’s increased demand for industrial
gases required for several applications and processes in its 338,000-b/d Antwerp
refinery and adjoining petrochemical businesses, Praxair said. Praxair, which is
expanding its recently built oxygen pipeline an additional 3 miles to connect
with the Antwerp refinery, also plans to extend its nitrogen pipeline on the
west bank of the Scheldt river to improve service to both new and existing
petrochemical customers in the area, the service company said. Extension of the
nitrogen pipeline comes alongside large capacity and infrastructure investments
made at the port over the past several years, which has increased demand for
nitrogen to be used for blanketing and inerting of chemicals in storage, Praxair
said. The oxygen and nitrogen pipeline extensions are due to be operational in
this year’s second half, Praxair said. While Praxair did not disclose a value of
its contract with Total, the service company did confirm the oxygen and nitrogen
supply agreement comes as part of the French operator’s more than €1-billion
modernization project under way at its Antwerp production sites (OGJ Online, May
23, 2013). Since announcing the modernization program in 2013, Total has let a
series of contracts for upgrading and integration projects, which include
additions of a solvent deasphalting unit, a mild hydrocracking unit, as well as
a plant to convert refinery fuel gases into petrochemical feedstock.
________________________________________
Pipeline MoU signed between Saipem and National Iranian Gas Company
Saipem also has signed an MOU with National Iranian Gas Co. (NIGC) for possible
cooperation on NIGC’s proposed Iran Gas Trunkline IX (IGAT 9) and Iran Gas
Trunkline XI (IGAT 11) pipeline projects, which combined, would cover a distance
of 1,800 km (OGJ, Feb. 2, 2015, p. 72), Saipem said. Saipem did not disclose
details regarding timelines or estimated values for projects under the MOU.
Signed during Iranian President Hassan Rouhani’s visit to Rome, the MOU follows
the recent suspension of long-standing international sanctions on Iran that
prohibited US and many European firms from participating in development of the
country’s energy sector.
________________________________________
Athabasca Oil and Murphy Oil Agree to Joint Development in Alberta (06)
Athabasca Oil Corp. has agreed with the Canadian unit of Murphy Oil Corp. to
jointly develop the Duvernay and Montney in the Kaybob area in west-central
Alberta. The transaction is valued at $475 million (Can.)
________________________________________
Subsea Engineering Associates to Design Pipelines for Baltic Gas Project
Baltic Gas has contracted Subsea Engineering Associates (SEA) to provide
detailed design, procurement, and construction management for the Baltic gas
project in the Polish sector of the Baltic Sea. Baltic Gas is a partnership
established specifically for the Baltic gas project between CalEnergy Resources
Poland (CalEnergy) and LOTOS Petrobaltic. CalEnergy is the operator for the
project development phase. The SEA scope of work includes more than 110 km (68.5
mi) of subsea pipelines, HDD shore crossing, pre- and post-lay trenching, risers
and platform tie-ins, as well as system engineering including reservoir to gas
plant flow assurance. The work will be executed from the company’s Perth office.
Adam Czajko, director at SEA, said: “Our focus this year is to lock-in the value
generated during FEED by completing the design and going out to the market with
tender packages for the main scopes. We expect significant interest from
contractors and suppliers given the current state of the market. With tendered
costs, the project should be in a strong position for final investment decision
during second half of 2016.” The company recently opened an office in Gdansk,
Poland, to support the Baltic gas project.
________________________________________
Oil Giants Start Losing Safety Net as Refining Margins Squeezed
Refining profits that buttressed earnings for Exxon Mobil Corp. and Royal Dutch
Shell Plc as crude prices plunged are now slumping, further pressuring all of
the world’s biggest oil companies as they move into 2016.
________________________________________
Praxair Signs Long-Term Contract with Total to Expand Pipeline Network in Port
of Antwerp (08, T16)
Praxair, Inc. announced January 26 it has signed a 15-year contract to supply
oxygen and nitrogen to Total in the Port of Antwerp. Total is currently
investing one billion euro in the port to upgrade its largest refining and
petrochemicals platform in Europe. As a result, the company will require
increased quantities of industrial gases for several applications in its
refinery and petrochemical processes. Praxair is expanding its recently built
oxygen pipeline an additional three miles to connect with Total’s refinery.
Praxair will also extend its nitrogen pipeline on the west bank of the river to
efficiently serve existing and new petrochemical customers. Given the
significant capacity and infrastructure investments made in the port over the
past several years, there is growing demand in this region for nitrogen for
blanketing and inerting of chemicals in storage. Praxair expects the oxygen and
nitrogen pipeline supply to be operational in the second half of 2016. “Our
pipeline network expansion provides us the enhanced ability to efficiently and
effectively meet the nitrogen and oxygen needs of companies in this growing
chemical park,” said Frank Wegmann, managing director of Praxair Germany and
Benelux. “Integrated petrochemical ports such as Antwerp remain highly
competitive, continue to attract billions of dollars of investment and are
positioned for growth for years to come.”
________________________________________
FMC Technologies Awarded $180 Mln Subsea Systems Contract from Woodside (T16)
FMC Technologies, Inc. (FTI) announced January 25 that it signed an agreement
with Woodside for the design, manufacture and supply of subsea production
systems for the Greater Western Flank Phase 2 (GWF-2) Project as part of the
North West Shelf (NWS) Project in Western Australia. The contract is valued at
approximately $180 million for FMC Technologies and includes: subsea production
trees, wellheads, manifolds, subsea and topside controls, and flowline
connection systems. Deliveries are expected to begin in 2016 and continue
through 2018. The GWF-2 Project is the fourth major gas development for the NWS
Project in the last seven years and is expected to develop 1.6 trillion cubic
feet of raw gas from its combined six fields using subsea infrastructure and
21.7 miles (35 kilometers) of 16 inch pipeline connecting to the existing
Goodwyn A platform.
________________________________________
Trudeau Set to Tack Extra Review onto Kinder Morgan Pipeline
Prime Minister Justin Trudeau’s cabinet is preparing to detail “transition
plans” for existing pipeline proposals as it moves to strengthen environmental
review laws and give new marching orders to the National Energy Board.
________________________________________
BP to Spend $150 Mln on Baku-Supsa Pipeline Upgrade from Azerbaijan to Georgia
(06, T16)
British oil company BP plans to spend $150 million to upgrade some parts of the
Baku-Supsa oil pipeline which runs from Azerbaijan to Georgia, the Georgian
government said on January 21. The issue was discussed during the Georgian Prime
Minister's meeting with BP's CEO Bob Dudley at the World Economic Forum in Davos,
the Georgian government's press service said in a statement. Dudley said the
Baku-Supsa pipeline upgrading works would be completed in 2018. "BP will spend
$150 million on modernization of some stretches of the pipeline and improvement
of ecological standards," it said, without providing any other details. The
Baku–Supsa Pipeline is an 833 km long oil pipeline which runs from the Sangachal
Terminal near Baku, Azerbaijan to the Supsa terminal in Georgia. It has been in
operation since January 1999 and the first tanker was loaded in April 1999. The
total cost of the construction of the pipeline and terminal was $556 million
USD. Azerbaijan exports oil via the Baku-Supsa pipeline from the Chirag oilfield
operated by BP. Exports through the Baku-Supsa pipeline rose to 3.9 million
tonnes in January-November 2015 from 3.8 million tonnes in the same period a
year earlier.
________________________________________
Magellan Midstream, TransCanada to Link Houston Oil Terminals (T16)
Magellan Midstream Partners, L.P. and TransCanada Corporation announced January
13 definitive plans to connect TransCanada’s Houston tank terminal to Magellan’s
East Houston terminal. HoustonLink Pipeline Company, LLC (“HoustonLink”), a new
company owned 50/50 by Magellan and TransCanada, will construct, own and operate
a nine-mile, 24-inch diameter crude oil pipeline connecting the terminals. The
new pipeline will provide TransCanada’s Keystone and Marketlink customer’s
access to Magellan’s Houston and Texas City crude oil distribution system. The
joint project, first announced in April 2015, is estimated to cost approximately
US$50 million. In addition, Magellan and TransCanada plan to develop additional
infrastructure at their respective Houston-area terminals to accommodate
shipments from the new pipeline. Magellan will serve as construction manager and
operator for HoustonLink. The HoustonLink pipeline is expected to be operational
during the first half of 2017, subject to the receipt of all necessary
rights-of-way, permits and regulatory approvals.
________________________________________
Westlake Chemical to Expand Calvert City Ethylene Capacity (T16)
Westlake Chemical Partners LP, a Westlake company, announced that it has
approved plans to expand ethylene capacity at the Calvert City, Kentucky
facility owned by its affiliate, Westlake Chemical OpCo LP. This expansion will
add 70 million pounds of stated annual ethylene capacity to the Calvert City
facility during the first half of 2017. "We are pleased about the ethylene
expansion at the Calvert City, Kentucky facility. This expansion, which combined
with incremental capacity increases will total 100 million pounds of annual
capacity, is in addition to the 250 million pound ethylene expansion at the
Petro 1 facility in Lake Charles, Louisiana, which is expected to begin in the
second quarter of 2016. The additional production of ethylene at both facilities
will be sold under the terms of the long-term, fixed-margin ethylene sales
agreement in which 95% of OpCo's production is sold to our sponsor, Westlake
Chemical Corporation, at a price designed to generate a margin of ten cents per
pound. We believe the incremental earnings from these expansions will allow us
to continue to grow our distributions at a low double-digit rate," said Albert
Chao, President and Chief Executive Officer.
________________________________________
Canada Expects to Announce Environmental Pipeline Review Process Soon
The Canadian government expects to announce "very soon" the new transitional
rules that will apply to the environmental review of pipeline projects that are
currently being evaluated, Natural Resources Minister Jim Carr said on January
25.
________________________________________
Saudi Aramco in Advanced Talks to Buy China Refinery Stakes (08)
Saudi Aramco is in advanced talks to invest in refineries in China and the
company was also in talks with CNPC and Sinopec for investment opportunities in
refining, marketing and petrochemicals, the chairman of the state oil company
said. Saudi Aramco Chairman Khalid al-Falih also told reporters on the sidelines
of the official inauguration of Yasref, a 400,000 barrels per day oil refinery,
that there may be opportunities for further expansion of the plant. The
refinery, which began operations at full capacity in July, is a joint venture
between Saudi Aramco, the world's biggest oil company, and China's Sinopec. "Aramco
would like to invest more in China ... We look forward to have other projects
with Sinopec in China specifically, so that Aramco expands in its investments in
refining, marketing and petrochemicals in China," he said. Aramco and Sinopec on
January 19 signed a framework agreement for strategic cooperation. The agreement
was one of 14 deals and memoranda of understanding signed between Saudi Arabia
and China on the first day of a state visit by Chinese President Xi Jinping to
Riyadh. Aramco had been in talks to acquire a stake in a CNPC refinery and
retail assets, people familiar with the matter said last October - a deal that
would help it sell more of its output to China amid growing competition. The
deal is estimated to be worth around $1-$1.5 billion, although final valuations,
assets and stakes were subject to change, they said.
________________________________________
Pertamina Scraps JX Nippon Refinery Deal on Cost, Timing Concerns
Indonesia's state-owned energy company Pertamina has cancelled a deal with JX
Nippon Oil & Energy Corp to upgrade its Balikpapan refinery because of concerns
of high costs and the length of the project, Pertamina's chief executive said.
Pertamina's planned upgrade to the 220,000-barrel-a-day Balikpapan facility,
Indonesia's second-largest, was expected to increase its capacity by about
one-third. The expansion is part of efforts ramp up the country's fuel output,
process more domestic crude and reduce expensive imports. "We cancelled our
cooperation with JX Nippon because there was no deal on the investment target,"
Pertamina CEO Dwi Soetjipto told reporters, noting that now Pertamina will
complete the first stage of the project by itself. Pertamina expects the $2.6
billion first stage of the upgrade to be completed in 2019, Soetjipto said,
without elaborating on the details. The company will later review whether to
form another joint venture to complete the $2 billion second stage to meet Euro
IV emission standards, he said. Under its Refinery Development Master Plan,
Pertamina aims to roughly double Indonesia's crude processing capacity to 1.68
million barrels per day, part of sweeping energy reforms launched by Indonesian
President Joko Widodo. JX Nippon was among three international energy companies
that signed memoranda of understanding (MOU) with Pertamina to upgrade
Indonesia's refineries in late 2014. Late last year, Pertamina and another of
its refinery development partners, Saudi Aramco, formed a joint venture for a $5
billion upgrade to Indonesia's largest refinery complex at Cilacap.
________________________________________
Kuwait Petroleum Borrowing $10 Bln for Refineries (08)
Kuwait Petroleum Corp. expects to arrange a $10 billion loan to expand
refineries to produce cleaner burning fuel. The loan is expected by the end of
January, Nizar Al- Adsani, chief executive officer of the state-run company,
said January 19. He didn’t say which banks are involved. The refineries will
produce fuel that produces less pollution than diesel and gasoline currently
made in Kuwait. KPC is expanding its use of renewable energy even though the
technology isn’t economical for the time being because of subsidies in the
nation, the CEO said. Kuwait will show “some action” early this year in cutting
fuel and power subsidies, he said. Bahrain, Oman and the United Arab Emirates
have already cut some subsidies. Kuwait is evaluating subsidy policy as one
option to reduce the government deficit, and has no firm plans to cut subsidies
according to KPC spokesman Talal Khaled. Kuwait wants 15 percent of its total
energy production to come from renewable energy by 2030, Adsani said. KPC is
investing in solar panels and “energy efficiencies” to help meet the target, he
said. Kuwait is upgrading two of its three refineries to produce clean fuel
while planning to shut the third, its smallest, next year. The nation will again
have three refineries by 2019, with the opening of the Al Zour refinery.
________________________________________
Egyptian Refining to Start Output at Country's Largest Refinery in Q1 2017
The Egyptian Refining Company, a subsidiary of one of Egypt's largest investment
companies Qalaa Holdings, will start production at its $3.7 billion oil refinery
in the first quarter of 2017.
________________________________________
Hefty Maintenance Schedule Looms for Canada Oil Sands Producers
Canada's biggest oil sands producers, which have stubbornly resisted halting
output even as the price of their crude hits record lows, are planning a
higher-than-normal maintenance schedule this year.
________________________________________
Once in High Demand, N.Dakota Oil-by-rail Shunned on East Coast
Shale production from North Dakota has been shrinking and those refiners have
resumed buying imported crude. The 140,000 barrel-per-day rail terminal at
Yorktown, Virginia has been sitting idle, according to two sources familiar with
its operations.
________________________________________
Saipem Might Work on Revamp, Upgrade Projects in Iran
Parsian Oil & Gas Development Co. (POGDC), Iran’s largest nongovernmental
petrochemical holding, has entered an agreement with Italy’s Saipem SPA, Milan,
to collaborate on future projects involving major overhauls designed to
modernize two Iranian refineries under POGDC’s management. POGDC and Saipem on
Jan. 25 signed a memorandum of understanding (MOU) under which the companies
have agreed to maintain an ongoing dialogue regarding Saipem’s potential
cooperation in the revamp and upgrade of Tabriz Oil Refining Co.’s 110,000-b/d
refinery, southwest of Tabriz City, and Shiraz Oil Refining Co.’s 60,000-b/d
refinery on the outskirts of Zarghan province, about 22 km from Shiraz City, the
service company said. Established in 2008 as a specialized holding company,
POGDC manages a portfolio of subsidiaries that make it the Middle East’s largest
producer of ammonia (2.5 million tpy) and urea (3.9 million tpy), according to
the company’s web site. POGDC also manages Iran’s Zagros Petrochemical Co.,
which produces 3.3 million tpy of methanol at its petrochemical complex in Pars
Special Economic Energy Zone from feedstock supplied by Phases 1, 2, and 3 of
South Pars gas field.
________________________________________
Shell to Deploy KBR Tech at Netherlands Refinery (T16)
KBR, Inc. announced January 25 it has been selected by Shell to utilize KBR's
ROSE® solvent deasphalting technology for use at their Pernis refinery in
Rotterdam, the Netherlands. The ROSE® unit is expected to remove heavier
fractions from crude oil, allowing the refinery to upgrade a larger proportion
of its oil intake into lighter, high-grade products and significantly enhance
Pernis' refinery performance and competitiveness. Construction work is planned
to start next year, subject to permit approvals, with completion expected by
2018. The ROSE® technology will split residue from a mix of crude oils into
deasphalted oil (DAO) and asphaltene. The new unit will not change the
refinery's total processing capacity, but will allow a different product mix and
will give the refinery more flexibility to respond to market developments and
reduce the environmental footprint of its products. KBR has licensed over 55
ROSE® units globally, with a combined capacity of nearly 1.3 million barrels per
day.
________________________________________
Sudan Offers Three Oil and Gas Blocks to ONGC Videsh
Sudan has offered three oil and gas blocks for exploration and development to
India's ONGC Videsh as part of efforts to increase the country's oil revenue,
oil minister Mohamed Zayed Awad said. The African nation lost three quarters of
its oil revenue when South Sudan seceded in 2011 and currently produces about
100,000 barrels per day (bpd). Three areas have been offered to the Indian
company, comprising blocks 8, 15 and 24, the last of which is in the development
stage, Awad told Reuters after meeting his Indian counterpart Dharmendra Pradhan
ahead of a two-day India-Africa Hydrocarbon summit. Awad also asked ONGC to
consider buying a stake in Sudan's Block 17, which is producing about 7,000 bpd
oil. Block 17 is operated by Star Oil, in which Yemen's Ansan Wikfs owns a 66
percent stake and Sudan's Sudapet holds the remainder. Awad said the Yemen
company wants to sell its stake in the venture. ONGC Videsh, the overseas
investment arm of Oil and Natural Gas Corp, already has a 25 percent stake in
onland blocks 1, 2, and 4, which together produce about 50,000 bpd.
________________________________________
Mubadala & PEMEX Sign Memorandum of Understanding and Cooperation
Mubadala Petroleum, a wholly-owned subsidiary of Mubadala Development Company (Mubadala),
and Petroleos Mexicanos (PEMEX) have signed an agreement, to provide the basis
for discussions between the two companies and their affiliates about potential
opportunities in Mexico’s energy sector.
________________________________________
Egypt to Hold International Tender for 11 Oil & Gas Blocks
Egypt will hold an international tender for 11 oil and natural gas exploration
blocks in the Mediterranean Sea and Nile Delta during the second half of fiscal
year 2015-2016, the oil ministry said. Egypt has been seeking to boost domestic
production, as increased consumption and declines in production have transformed
the country from a net exporter to an importer of energy.
________________________________________
India Oil Refiners Plan One of World’s Largest Oil-processing Plants on
Country’s West Coast
Indian Oil Corp., the nation’s biggest refiner will build a 60
million-metric-ton-a-year (1.2 million-barrel-a-day) oil refinery in Maharashtra
together with Bharat Petroleum Corp., Hindustan Petroleum Corp. and Engineers
India Ltd., Oil Minister Dharmendra Pradhan said in a Twitter post January 25.
The companies will develop the project in two phases, with the first 800,000
barrel-a-day facility costing more than 1 trillion rupees ($14.7 billion),
according to Pradhan. Prime Minister Narendra Modi is pushing for new investment
while energy companies around the world cut spending to protect their balance
sheets from oil’s collapse. India will drive global energy demand in the next
quarter century, with oil consumption over that period growing faster than any
other country, according to the International Energy Agency. India will account
for a quarter of global energy demand growth by 2040, the IEA forecast in
November in its annual energy outlook. The country’s oil demand is expected to
reach 10 million barrels a day over that period, marking the fastest growth in
the world, the Paris-based agency said. India’s consumption will average almost
4 million barrels a day this year, the IEA said last month. The country has 4.3
million barrels a day of refining capacity, according to the oil ministry. The
planned refinery will produce gasoline, diesel, liquefied petroleum gas, jet
fuel and supply feed stock for petrochemical plants in Maharashtra, Pradhan
said. Reliance Industries’ twin refineries at Jamnagar in neighboring Gujarat
state have a combined capacity of 1.24 million barrels a day, making it the
world’s biggest refining complex. Pradhan didn’t provide a time line for the
refinery. The project may take six to 10 years for design, land acquisitions and
construction, according to Mahurkar.
________________________________________
Linde Selected by Gazprom for Major Gas Processing Project in Russia (T17)
The technology company The Linde Group has been selected by Gazprom, Gazprom
Pererabotka Blagoveshchensk and its general contractor NIPIgas as the licenser
for cryogenic gas separation technology at the Amur Gas Processing Plant (Amur
GPP), located in the far east of Russia. Linde will engineer and supply units
for ethane and natural gas liquids (NGL) extraction and nitrogen rejection, as
well as for helium purification, liquefaction and storage. The plant is part of
Gazprom’s project for the supply of Russian gas to China via the ‘Power of
Siberia’ pipeline from eastern Siberian gas fields and will be built in five
phases ending in 2024. In late December 2015, Linde and NIPIgas entered into a
binding engineering and supply contract in respect of the above-mentioned units
for all five construction phases of the Amur GPP. Phase one will consist of two
ethane and NGL (propane, butane, pentane, hexane) extraction and nitrogen
rejection units, as well as one helium production unit. Related engineering
works are in progress. When completed, the Amur GPP will be one of the largest
gas processing plants in the world with a capacity of up to 49 billion cubic
metres of natural gas per year. Alexey Miller, Chairman of the Management
Committee of Gazprom, and Dr Wolfgang Büchele, Chief Executive Officer of Linde
AG, also recently signed a strategic cooperation agreement stipulating the
intention to cooperate and jointly carry out existing and future projects
related to the natural gas value chain. The cooperation agreement covers process
technologies, engineering and services related to the treatment and liquefaction
of natural gas, as well as localization of the respective equipment production
in Russia. Furthermore, the agreement also addresses the field of helium
production, including the investment in, production and operation of helium
plants.
________________________________________
Gazprom Neft Successfully Tests New Russian Technology for Processing Associated
Petroleum Gas
Gazpromneft-Vostok has successfully completed pilot testing of an innovative new
domestic mild steam reforming technology for processing associated petroleum gas
(APG).
________________________________________
CPP Wins Front End Consultancy Service in Ghana
On November 11, CPP West Africa Company received letter of award for front end
design consultancy service for Waterway tanks project in Tema, Ghana. The
project locates in Tema, a port and heavy industry city, and includes six
product oil tanks with total capacity of 100000 cubic meters complete with
pipelines and loading system. The front end design firm for this project is
Chemietech of India.
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Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a
Weekly Basis
Here are some headlines from the Utility E-Alert.
UTILITY E-ALERT
#1262 – March 4, 2016
Table of Contents
COAL – US
Supreme Court bars Coal Industry Petition for unlimited Mercury Emissions
COAL – WORLD
POSCO Energy to build Coal-fired Power Plant in Vietnam
China and Pakistan sign Contract to build a Coal-fired Power Plant in Pakistan
Edenville Energy to invest in Coal-fired Power Plant and Coal Mine in Tanzania
Marubeni may build a Coal-fired Power Plant in Egypt
Meubolah Coal-fired Power Station Two Unit expansion in Aceh Province,
Indonesia
Proposed 625 MW Unit 9 planned for Banten Suralaya Power Station in Banten
Province, Indonesia
300 MW Unit 3 Kaltim Teluk Balikpapan Power Station expansion announced in
East Kalimantan Province, Indonesia
PLN to build $2 Billion Coal-fired Power Plant in Banten, Indonesia Next Year
BHEL wins $822.9 Million Contract to build thermal power plant in Tamil Nadu,
India
The 41F Utility E-Alert is issued weekly and covers the coal-fired projects,
regulations and other information important to the suppliers. It is $950/yr. but
is included in the $3020 42EI Utility Tracking System which has data on every
plant and project plus networking directories and many other features.
----------
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