Innovations Changing the Industrial Scrubber Industry
End users and suppliers are both challenged to keep up with the rapid
developments in particulate scrubbing, gas absorption, gas adsorption, dry
scrubbing, condensation separation and biofiltration in industrial processes
such as iron and steel, cement, waste-to-energy, natural gas treatment and
sewage sludge incineration (scrubbers in coal-fired power are analyzed
separately).
The drivers behind this rapid pace are regulations and innovations. The
regulations in one country soon are copied in others. The innovations in
one industry are eventually embraced by other industries but not as quickly as
they should be. It is highly
desirable to continually determine how the successes in one application can be
applied to others.
Regulations:
Foundry cupolas, BOF furnaces, and waste-to-energy plants can no longer rely on
particulate scrubbers to meet the stringent emission standards.
Instead fabric filters are the leading choice. This has led to the
development of dry scrubbers which can be used in combination with fabric
filters. So the dry scrubber
segment has grown robustly while the particulate scrubber segment has stagnated.
However, even newer regulations identifying condensibles as a component of total
particulate has opened the door to the wet approach.
Regulations addressing liquid and solid waste have favored dry scrubbing.
However, some new wet approaches resulting in usable byproducts have caused
growth in the wet scrubbing segment.
Condensation scrubbing is a growing segment thanks to the concern with
greenhouse gases and the potential for extracting heat from exhaust gases.
Innovations:
The air pollution control systems in waste-to-energy plants in Europe
incorporate a number of innovations.
Four stages of scrubbing result in hydrochloric acid, gypsum, precious
metals, salable ash and capture of the exhaust gas heat.
The development of highly reactive lime particles coupled with catalytic filters
allow acid gas, NOx and particulate removal at 850°F.
The heat from the clean gas is then easily extracted.
Glass furnaces, biomass combustors and other sources have embraced this
technology.
There are innovative ways to remove mercury. The non-ferrous
smelting industry is using unique chemistry in wet absorbers. A number of
sewage sludge incinerator operators in the U.S. have incorporated mercury
adsorber modules into their scrubbers. The modules can handle
the wet gas leaving the mist eliminators.
Membrane contactors are proving to be an improvement for separating gases such
as CO2 and H2S.
The cutting edge technology is ionic liquids being used in mercury removal from
natural gas. This promises to have wider application for pollutant removal
in many combustion sources.
A gas bubble encapsulation technology is still in the pilot stage but the
conversion of the gas stream into bubbles one-thirtieth of one inch in
diameter creates mass transfer surfaces thousands of times greater than packed
towers on plate columns. The problem is the physical separation of the gas and
liquid components after the absorption takes place. The company which
solves this problem will change not only pollution control but many chemical
processes.
The venturi scrubber which has been rejected for particulate scrubbing, may find
a revival as a critical component of rare earth recovery from flyash. It
can capture both HCl and particulate and start the leaching process of the rare
earths all in one step. Additional
particulate removal then takes place in wet precipitators.
McIlvaine is conducting cross pollination webinars.
Decision guides in a number of industries are displayed and discussions
regarding wider use of innovations encouraged. These discussions are free to
everyone. The decision guides are included in the following two services:
2ABC
Scrubber/Adsorber/Biofilter Knowledge Systems
N008
Scrubber/Adsorber/Biofilter World Markets
Daily Project Posting in McIlvaine Oil, Gas, Refining Supplier
Program – February 2016
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 customers 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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