The updated API Compendium of Greenhouse Gas Emissions Estimation Methodologies for the Oil and Natural Gas Industry (known as the Compendium) provides oil and natural gas companies with standardized methodologies for estimating carbon dioxide and other GHG emissions from all common sources, such as combustion, venting, and fugitive, throughout the entire oil and natural gas value chain. Although the methods are aimed at oil and natural gas operations, many have direct applicability to other sectors, especially those pertaining to GHG emissions from combustion sources.

The ability to accurately estimate GHGs is critical to tracking progress toward reducing emissions. "Unless there's a consistent, reliable way to measure GHG emissions, it's hard to assess progress," said API's Karin Ritter who led the industry team that updated the Compendium. "API has been cataloging estimation methods for a decade. Ideally these industry best practices for quantifying GHG emissions would be reflected in emerging regulatory and voluntary GHG programs."

The Compendium is one of a suite of tools for estimating emissions in the oil and natural gas industry provided by API. Besides the Compendium, other tools include software for emissions estimation and inventory guidelines (created in conjunction with the International Petroleum Industry Environmental Conservation Association) to assist in the accounting and reporting of GHG emissions.

AMERICAS

U.S.

EPA Continues to Monitor BP Whiting Refinery

The BP Whiting Refinery has been closely monitored by the U.S. EPA since the uproar two years ago over its plans to release increased amounts of ammonia and suspended solids into Lake Michigan, U.S. EPA chief Lisa Jackson said September 1.

"We certainly heard the call from citizens and elected officials to constantly monitor the facility, and we have committed to doing that," Jackson said just after meeting with public officials, environmentalists and businesses at Purdue University Calumet.

Jackson said the Environmental Protection Agency cited the refinery in June for Clean Air Act violations, and the agency continues to oversee activity there under a previous consent agreement.

When BP was cited in June, company spokesman Scott Dean said BP had reported the emissions to the EPA and that the company moved quickly to stem the releases.

In a recent interview, Jackson affirmed Indiana's voice is being heard when it comes to climate change and energy policy.

After a meeting between the two on June 5, Jackson called Sen. Dick Lugar, R-IN, an "important and influential voice" when it comes to U.S. energy policy.

"He knows how vital it is for our security as a country that we really stop sending our money overseas for oil to nations that are not necessarily friendly to our interests," Jackson said.

On the more contentious issue of limiting greenhouse-gas emissions through a carbon cap-and-trade policy, Jackson said there will be safeguards for states like Indiana.

Indiana relies on coal-fired power plants for electricity, and regions like Northwest Indiana rely on heavy industry for their economic well-being. But both could see increased costs under a carbon cap-and-trade system.

She said calls from U.S. Rep. Pete Visclosky, D-IN, and the Congressional Steel caucus that foreign producers also pay carbon costs have been heard at the EPA.

"The most important thing here is that this be part of a larger strategy, which is an international agreement," Jackson said. "Our trading partners have to be part of an agreement to limit carbon dioxide pollution as well."

Consumer rebates contained in the U.S. House version of the climate-change bill would protect Indiana energy consumers from price hikes that may come from a carbon cap-and-trade regimen, Jackson said. Free carbon dioxide allowances for heavy industry, which also are part of the bill, should buffer the effect on heavy emitters like steel mills, she said.

NPRA Reports Domestic Refiners Continue To Expand Capacity

NPRA, the National Petrochemical & Refiners Association, on September 2 released its annual United States Refining and Storage Capacity Report. The report contains data supplied by the Energy Information Administration on the crude oil capacity of U.S. petroleum refiners.

From 2008 to 2009, total domestic crude distillation capacity increased from roughly 17.6 million barrels per calendar day (BPCD) to 17.7 million BPCD, a 0.44 percent expansion in capacity over the previous year's level. As of January 1, 2009, there were 150 operable refineries in the United States, not including facilities in Puerto Rico and the U.S. Virgin Islands. One new refinery began operation earlier this year (Northcut Refining in Wyoming with 3,000 BPCD), and one refinery was permanently shut down (Paramount Petroleum in Oregon, which was last operated in 2006).

"Despite an uncertain economy and pending legislation that threatens the domestic refining community, American refiners continue to expand capacity to meet consumers' needs for a safe and reliable supply of fuels and other petroleum-based products," said NPRA President Charles T. Drevna. "Our members are committed to helping our nation's economy recover, and the products they supply are critical to expanding domestic manufacturing and the transportation of goods and services.

"Policymakers must understand that counterproductive legislation such as cap-and-trade bills or low-carbon fuel standards would only benefit foreign businesses that already are aiming at U.S. markets with their own refined products. Jobs are not created by targeting American businesses for punitive measures and consumer costs will not be contained if our nation’s energy future is outsourced to foreign entities."

Data is compiled from information reported by the DOE Energy Information Administration in its 2009 Petroleum Supply Annual.

EPA Announces $734,008 NM Western Refining Settlement

The U.S. Environmental Protection Agency (EPA) and the New Mexico Environment Department (NMED) have jointly entered into a Consent Agreement and Final Order (CAFO) with Western Refining to resolve violations of federal hazardous waste rules.

Western operates a petroleum refinery in Jamestown, New Mexico, approximately 17 miles east of Gallup. The refinery had multiple violations stemming from its storage and treatment of hazardous waste containing benzene, a human carcinogen present in petroleum. EPA and NMED together brought these violations to the attention of Western and the facility engaged in meetings with EPA and NMED to resolve the violations.

"The Environmental Protection Agency will continue to vigorously enforce our nation's environmental laws," said EPA Acting Regional Administrator Lawrence E. Starfield. "Our enforcement staff worked very closely and effectively with the New Mexico Environment Department to ensure a cleaner and healthier environment for New Mexico residents."

"This agreement signals Western's commitment to make significant and much-needed improvements in how the company handles and treats wastes at the refinery," added New Mexico Environment Department Secretary Ron Curry. "The Environment Department will continue to provide careful oversight of these improvements to ensure Western backs up its commitments with action."

Western Refining has agreed to pay a fine of $734,008, cease all discharges of benzene in the aeration lagoons, and close the two aeration lagoons that received hazardous waste. Western has further agreed to construct an upgraded waste water treatment facility, and dismantle all benzene air strippers once the waste water treatment facility is complete. Western will provide financial assurance for the closure of both aeration lagoons and the removal of all benzene strippers at the facility.

EPA Says Texas Permitting Program Doesn't Comply with Clean Air Act

EPA on September 8 proposed to disapprove key aspects of the Texas clean-air permitting program that do not meet federal Clean Air Act requirements followed by other states.

Final decisions about changing the program will be made under an expedited schedule agreed to under a recent settlement with Texas businesses. During that time EPA intends to work with the state and interested parties to quickly identify and adopt changes that will better protect air quality for all Texans.

"Plans are already underway to bring together state regulatory officials, industry representatives and community leaders to find ways to address concerns with the air permitting program. Texas' air permitting program should be transparent and understandable to the communities we serve, protective of air quality, and establish clear and consistent requirements," said Acting Regional Administrator Lawrence Starfield. "These notices make clear our view that significant changes are necessary for compliance with the Clean Air Act."

The Clean Air Act ensures that businesses across the country operate efficiently and cleanly. States have flexibility in carrying out the Act's requirements, but states must still adhere to standards of public process, transparency, and public health protection. The Act does not allow an undue advantage for one state over another, ensuring a level playing field among industry.

Under the Clean Air Act, all states must develop plans approved by EPA for meeting federal requirements to protect public health. Since EPA approved Texas' major clean-air permitting plan in 1992, the state has submitted over 30 regulatory changes to the EPA approved plan. The proposals being made by EPA represent some of the agency's main concerns with the state's air-permitting program and the need to more effectively work toward improved air quality as required by law.

Also, in November 2008, EPA issued a Federal Register Notice proposing to disapprove some of the state's public participation program. The state's proposed program provided inadequate opportunities for the public to review permit decisions in Texas, as compared with public participation opportunities provided by other states. EPA will issue its final decision on this proposal by November 30, 2009.

EPA has less than one year to issue its final decisions on the three remaining proposals outlined above, finalizing the Qualified Facilities revision, Flexible Permit revision, and New Source Reform revision no later than March 2010, June 2010, and August 2010, respectively.

EPA is required to complete action on all 30 of the state's proposed regulatory changes by December 31, 2013.

Sunoco Plans Pipe Inspection across its Refineries after Marcus Hook Incident

Sunoco Inc. said September 8 that it will be examining piping systems across its refineries after a fire was started May 17 at its Marcus Hook, PA, refinery when a pipe failure released combustible gas.

"We have begun a short-term effort at all facilities to examine piping systems and identify locations of possible concern so they can be addressed immediately," said Sunoco spokesperson Thomas Golembeski in a written statement.

The May 17 pipe failure was caused by external corrosion at the bottom of the pipe due to moisture trapped between the pipe and the loose steel sleeve on which it rested, according to Golembeski, which released combustible ethylene unit feed gas. The cause was determined by investigations conducted by Sunoco and the Delaware state fire marshal. The 178,000-barrel-a-day refinery is located along the Delaware-Pennsylvania border.

The fire forced Sunoco to cut utilization at the chemical complex for several weeks. In July, the company shut production at the fire-damaged unit "after we determined insufficient customer demand didn't justify repairing or replacing the equipment," Golembeski said in an email.

Meanwhile, Sunoco said it is revising its standard inspection practices, and it will bring in a third party to identify areas of improvement.

The Philadelphia-based company also said it has stepped up communications efforts with local authorities and residents about incidents and emergency procedures.

Valero Cuts Back at Delaware City, Aruba Refineries and Trims Headcount

Valero Energy Corp. announced September 8 that the company is continuing to take action to improve its profitability by rationalizing underperforming operations.

As a result, the company's subsidiary, The Premcor Refining Group Inc., intends to shut down the coker and gasifier complex at the Delaware City refinery. The coker is expected to be idle at least until the outlook for coking economics improves, while the closure of the gasifier complex is for an indefinite period. The company also noted that the plant-wide shutdown of the Valero Aruba refinery is now expected to be for an extended period, and, as announced earlier this year, the shutdown of a coker and a fluid catalytic cracking unit at the Corpus Christi refinery continues, and that cokers at certain of its refineries would run at reduced rates until coking margins improve.

The company expects that these decisions will reduce headcount at the Delaware City refinery by at least 150 employees and 100 contract workers. Valero has notified its employees and contractors along with the appropriate regulatory agencies and union officials. At the Aruba refinery, the company expects that more than 700 contract workers will be released in September.

"These moves, while difficult, are necessary to improve the profitability of Valero's refining system," said Valero Chairman, President and CEO Bill Klesse. "Shutting down the coker and the gasifier complex at Delaware City will reduce costs, improve reliability, and allow the refinery to run a lighter crude slate and shift production to higher-margin products. The decision for Aruba will lead to a substantial reduction in the refinery's operating expenses. We're taking the correct steps to navigate through these tough conditions and to position our assets for economic recovery."

Both the coker and the gasifier complex at the Delaware City refinery have been unprofitable, a situation resulting from the economic recession, declining demand for refined products, and poor coking margins due to a decreased price differential between heavy sour and light sweet crude oils. The gasifier complex has also been unprofitable due to poor reliability and low operating rates attributable to its original design and low natural gas prices, which affect costs of electrical power and steam. In addition, regulatory issues and potentially significant capital expenditures contributed to the decision to shut down the gasifier complex at Delaware City.

Due to its configuration as a heavy crude oil upgrading facility, the Aruba refinery was generating losses mainly because of the narrow price differential between heavy sour and light sweet crude oils. The Aruba refinery is further impacted by looming local tax burdens, including a disputed tax on revenues and the December 2010 expiration of the current 20-year tax holiday.

In the third quarter of 2009, Valero expects to report special charges related to these decisions, including charges for asset impairment, employee costs, and asset retirement obligations. Estimates for the special charges should be completed in the next few weeks. The company has revised third-quarter guidance for the Northeast region throughput volume, which is now expected to average between 480,000 and 490,000 barrels per day, but throughput volume for the Gulf Coast region is expected to remain approximately the same as previous guidance of 1.2 million to 1.25 million barrels per day.

OSHA Questions Safety at Texas City Refinery

Federal regulators say BP has failed to make certain agreed-upon safety upgrades to its Texas City refinery, reviving questions about safety at the plant where a blast killed 15 workers in 2005.

The Occupational Safety and Health Administration said the London-based oil giant missed a September 23 deadline for making the safety improvements at the plant, one of the world's largest refineries.

OSHA said it had received a request by BP that could delay any enforcement action. The agency said it is taking the request under advisement.

OSHA had warned BP in August that if it did not make the safety upgrades in Texas City by September 23, the company would be in violation of a settlement agreement the two parties struck in September 2005, which also included a $21 million fine.

If OSHA decides BP has broken the agreement, the agency will be allowed to take "appropriate action" to enforce compliance, according to the original settlement, which does not outline specific remedies.

Brent Coon, a Galveston lawyer who represented workers and families affected by the BP accident, said OSHA has a range of enforcement options, including extending the agreement until the fixes are made, levying additional fines or even closing the plant temporarily.

BP also could face more penalties from the Department of Justice, with which it made a separate plea agreement in 2007. As a condition of that deal, BP pleaded guilty to a felony violation of the federal Clean Air Act and agreed to fully comply with the OSHA pact.

Breaking the pledge could void the plea agreement and spur the Justice Department to slap BP with more fines on top of the $50 million it already has paid, as well as extend BP's existing three-year probation, Coon said.

OSHA did not indicate its next step in the BP case, but agency spokeswoman Diana Petterson said the office takes worker safety "very seriously" and will "enforce the law to ensure such tragedies are avoided." A spokeswoman for the U.S. Attorney's Office in Houston did not respond to an e-mail seeking comment.

The compliance issues first were outlined in a letter to BP early last month from Mark Briggs, area director of OSHA's Houston South Area Office, which highlighted "certain areas of concern" about the Texas City plant.

An outside audit of pressure relief systems at the Texas City plant identified problems that BP has still not addressed, Briggs said in the letter. The company also has fallen short on other items, including full installation of proper safety instruments in some areas of the plant, he said.

"Based upon the information that we have so far, it is our understanding that BP has identified a large number of uncontrolled or unmitigated hazards involving instrumentation that has resulted in substantial 'residual risk' in affected systems throughout the refinery," Briggs said.

Raymond Brandes, a private consultant and expert witness on refining safety, reviewed the letter and said it's difficult to draw many conclusions about the seriousness of the alleged violations.

But he noted one example in which OSHA pointed out just two missing "thickness measurement locations" for pipes in a processing unit. He called that "superb performance" by BP.

BP spokesman Daren Beaudo said the company has made "substantial" investments in Texas City since the 2005 accident and is working with OSHA "through the appropriate processes to resolve any expressed concerns."

The March 2005 explosion at the plant occurred after a piece of equipment called a blowdown drum overfilled with highly flammable liquid hydrocarbons. The excess liquid and vapor hydrocarbons were vented from the drum and ignited at the startup of the isomerization unit -- a device that boosts the octane in gasoline. Alarms and gauges that were supposed to warn of the overfilled equipment did not work properly.

In a 2007 report, the U.S. Chemical Safety and Hazard Investigation Board found BP fostered bad management at the plant and that cost-cutting moves by BP were factors in the explosion.

The office expects to release a separate report early next year about a 2008 accident at the Texas City refinery that killed another worker, said Don Holmstrom, the board's investigations supervisor. The report will also examine any possible links between safety issues identified after the 2005 blast.

In June, Texas Attorney General Greg Abbott accused BP of 46 violations of the Clean Air Act, including unlawful emissions linked to the 2005 explosion. That case is pending.

Senate Dems Block Attempt to Consider EPA CO2 Amendment

An attempt to temporarily prohibit the U.S. Environmental Protection Agency from regulating carbon dioxide emissions from power plants and other stationary sources failed in the Senate September 24.

The Democratic majority didn't allow the amendment to the Department of the Interior, Environment, and Related Agencies Appropriations Act to be considered on the Senate floor, leaving the door open for the EPA to continue with its plans to regulate greenhouse gases.

Alaska Republican Sen. Lisa Murkowski's amendment would have prevented EPA action for one year, allowing Congress time to write their own greenhouse gas legislation.

EPA Administrator Lisa Jackson said the measure would have also prevented promulgation of a new emissions rule for vehicles, which the agency hoped to finalize soon.

Murkowski's staff said the measure wouldn't be the last legislative attempt to prevent EPA action on emissions.

Environmentalists applauded the majority's decision. Auto manufacturers, preferring a national standard to a patchwork of state regulations that could be mandated if the EPA halted its new vehicle rule, also supported blocking the amendment.

The National Association of Manufacturers and the U.S. Chamber of Commerce, meanwhile, warn that EPA regulation of greenhouse gases under the Clean Air Act could harm the economy.

Many lawmakers and analysts on Capitol Hill see the EPA's move toward greenhouse gas regulation as political leverage to prompt Congressional action.

"The regulation of carbon dioxide under the Clean Air Act is being used as a thinly veiled threat to force the Senate to act on (greenhouse gas) legislation," Murkowski said in a floor speech.

Even the Obama administration has said that it would rather Congress write a more finely honed set of rules governing greenhouse gas emissions than a more blunt regulator tool crafted under the Clean Air Act. While the House has passed a climate bill earlier this year, the Senate is increasingly unlikely to vote on the bill with health care reform blocking action and many in the majority divided on how to forge a climate bill.

The EPA earlier this month issued proposed new emission standards for automobiles. Before that rule can be finalized, the agency will have to officially declare that greenhouse gases are a danger to the public. Such an endangerment finding is the precursor for a raft of new emission regulations on other mobile and stationary sources such as refineries, power plants, ships, cement kilns, metal smelters and chemical plants.

In a letter sent to Senators, NAM Executive Vice President Jay Timmons urged legislators to support the amendment offered by Murkowski, the ranking member of the energy committee.

If the EPA is allowed to move forward on emissions regulation, NAM said, it "will establish disincentives for the long-term investments that would be necessary to grow jobs and expedite economic recovery."

Murkowski said Clean Air Act regulation "would be absolutely unworkable and at the same time economically devastating."

The EPA says it's tailoring of the Clean Air Act rules to a 25,000 ton emission threshold for regulation will limit burdensome rules, and yet still cover 85% of the nation's man-made greenhouse gases.

But some legal analysts - including one of the agency's top political appointments - say the EPA is leaving itself open legal challenges. The Clean Air Act states a 250 ton a year threshold for regulated pollutants.

At least one environmental group - the Center for Biological Diversity - has said it's prepared to sue the EPA to enforce lower emission thresholds.

LA Senator Introduces Carbon Fairness Amendment to EPA Bill

U.S. Sen. David Vitter, R-La., on September 21 offered an amendment to the Interior and Environmental Protection Agency spending bill that would prevent the EPA from developing regulations for carbon dioxide until China and India have signed international agreements to reduce their own CO2 emissions at a rate equivalent to that of the United States.

"We can pass the world’s most stringent and economically destructive carbon regulations for ourselves, but the effect of global climate change would not even be noticeable until China and India join in the fold," said Vitter.

Both China and India have indicated that they have no intention of agreeing to any cap on carbon emissions. If the United States moves on its own with such regulation, the economic impact could be severe as energy-intensive industries are forced out of the United States. There is strong bipartisan concern that unilateral regulation of CO2 emissions would cripple our national economy.

"Our competitors around the world must be perplexed by our actions here in Congress as we try to handcuff an already-fragile economy while simultaneously giving them an enormous competitive advantage," added Vitter. "My amendment ensures that we don't put ourselves at that unfair advantage."

NPRA Says Refiners May Fare Worse Under Senate Cap-and-Trade Proposal

Charles T. Drevna, President of NPRA, the National Petrochemical & Refiners Association, commented September 30 on new legislation proposed in the Senate as a counterpart to H.R. 2454, the "American Clean Energy and Security Act," which the House of Representatives approved June 26th. Like H.R. 2454, the Kerry-Boxer legislation would impose costly cap-and-trade carbon regulations on the American economy, with an even more stringent and unrealistic emissions reduction timetable.

"The draft legislation unveiled in the Senate today ignores the critical lessons learned from a similar bill narrowly passed by the House last June," Drevna said. "While the bill passed in the House was controversial enough given its ambitious reduction targets, the Senate bill goes even further in seeking more unrealistic reductions that will impose onerous regulatory burdens on domestic refiners amidst fierce global competition and increased costs on the driving public, farmers and truckers. The Senate proposal also fails to harmonize existing federal laws specifically by removing the preemption of New Source Performance Standards for capped sources, which means that large facilities will be subject to both the emissions cap and EPA NSPS regulations. Like its House counterpart, this bill will only further weaken our nation’s energy security.

"H.R. 2454 represents an abject policy failure, and what we see in the draft Senate legislation is no better. In some cases, the Senate draft is worse for refiners, American consumers and our nation’s economic health."

NPRA members include more than 450 companies, including virtually all U.S. refiners and petrochemical manufacturers.

Hyperion Refining Accepts All But One Air Permit Restriction

Hyperion Refining, LLC announced September 28 that it will accept all the restrictions except one of those mandated by regulators in the air permit for Hyperion's Union County, S.D., refinery.

"In a permit as all-encompassing and detailed as this, there's bound to be an area of disagreement, and we're pleased there's only one aspect we are appealing," said Hyperion Vice President Preston Phillips.

Hyperion's appeal is based solely on the numeric emission limit achievable through the application of Best Available Control Technology (BACT) for emissions of carbon monoxide from large process heaters. Hyperion and DENR are in full agreement as to the technology to be applied.

The South Dakota Department of Environment and Natural Resources (DENR) drafted the air permit to require Hyperion to meet a BACT limit of 0.007 pounds of carbon monoxide per million BTU heat input. While there are currently technologies available that will reduce CO emissions to small amounts, none are available that will consistently meet the 0.007 mark, said Colin Campbell of RTP Environmental. Campbell is one of the nation's leading air quality experts and was brought on by Hyperion to lead its air permit efforts.

"We are willing to accept all the other restrictions imposed by the board, except this one, and even on CO limits we agree with the Board's intent of minimizing emissions," Phillips said. "It's not a matter of desire, it's simply the case that there is no evidence this level can be achieved 24 -7 every day of the year. Importantly, the CO controls we proposed would be the most stringent in the country."

September 28 was the deadline for filing what's termed the "Statement of Issues on Appeal" to the South Dakota Sixth Judicial District Circuit Court. Phillips said he's aware that opponents also filed a Statement of Issues on Appeal, but Hyperion has not had a chance to thoroughly review the statement, and therefore can't comment on it.

Despite the one area that Hyperion appealed, Phillips said the State did an excellent and thorough job on the air permit. The 93-page document was drafted by experts at DENR, and that draft was refined and approved by the Board, which included numerous requirements and stipulations Hyperion must meet. The process included public comment and more than 10 days of technical hearings.

Campbell, of RTP Environmental, said that in addition to the BACT for carbon monoxide from process heaters, there are several other cutting-edge technologies that regulators and Hyperion do agree will bring effective environmental controls. Among those that will be utilized by the Hyperion refinery that collectively separate it from existing facilities in the United States are:

Highly efficient removal and recovery of sulfur from:

petroleum intermediates,
transportation fuels
fuel gas burned in the refinery's process heaters
Ultra-low-NOX burners for control of nitrogen oxide emissions from all process heaters

Use of SCR, or selective catalytic reduction, (in addition to the ultra-low-NOX burners) for most process heaters:

A wastewater treatment plant designed to incorporate both steam stripping and activated sludge biological treatment for highly effective removal of benzene and other hazardous air pollutants from water before it is discharged.
Designing the facility to allow for the elimination of a fluidized catalytic cracking unit, which nearly all other refineries contain. These units are typically the single largest sources of emissions at a refinery.

In addition, Hyperion has agreed to the requirement in the air permit that the company employ the use of thermal oxidizers on its hydrocarbon storage tanks, making it the first refinery in the country to do so.

The Energy Center will also use a hydrogen-producing, integrated gasification combined cycle (IGCC) power plant to provide electricity for the facility. This IGCC plant will include a patented syngas cleanup process that provides highly efficient removal of sulfur and other contaminants and also includes activated carbon for control of mercury emissions. Campbell said no existing IGCC power plant has such effective emissions controls.

"The key," said Campbell, "is that under the permit authored by DENR and authorized by the Board, the air is protected and so are residents in South Dakota and throughout Siouxland."

U.S. Refinery Status: Conoco Sweeny, Texas Undergoes Turnaround

The following table lists unplanned and planned production outages at U.S. refineries as reported by Dow Jones Newswires. The information is compiled from both official and unofficial refining sources and doesn't purport to be a comprehensive list.

Most recently, ConocoPhillips (COP) reported it was performing a turnaround at its Sweeny, Texas refinery that could last until Nov. 1, according to a regulatory filing.

Royal Dutch Shell PLC (RDSA) plans to shut three units at its Deer Park, Texas refinery in the Oct. 1-24 period for maintenance, according to a filing to Texas state environmental regulators.

A hydroprocessing unit, a catalytic cracker unit and an alkylation unit will be shut, it said in a filing to the Texas Commission on Environmental Quality.

Total SA (TOT) reported September 30 that it would restart unit 837. On September 29 it reported the restart of unit 822. Both units are at its Port Arthur, Texas refinery, according to a regulatory filing.

Canadian integrated oil company Husky Energy (HSE.T) will begin a 42-day turnaround that has an impact on 70% of its Lima, Ohio, refinery, the company said. Several units will undergo maintenance, including the crude and vacuum units as well as the gas oil hydrotreater, said company spokesman Graham White.

Valero Energy Corp. (VLO) has moved up planned maintenance at a gasoline producing unit at its Delaware City, Del., refinery to late November or early December, the company said September 28. The fluid catalytic cracking work was supposed to start in the first quarter of next year. It should last 45 to 50 days, company spokesman Bill Day said.

For more detailed information, search Dow Jones Newswires using the code N/REF.

Operator Refinery Capacity Description Restart

(in 000s

bbl/day)

UNPLANNED

CANADA

EAST COAST

Conoco Linden, NJ 238.0 Officials consider run cuts n/a

due to slack demand, a per-

son familiar with operations

said on July 17.

CARIBBEAN

GULF COAST

BP Texas City 455.8 An FCCU unit leak resulted in

TX flaring on Sept. 15-16.

Delek Tyler 58.0 FCCU unit shut down, restarted Sept. 21

Valero Corpus 142.0 Hydrocracker shut for unknown

TX reasons Sept. 24

Valero Port Arthur 287.0 Snag at wet gas scrubber at n/a

TX FCCU on Sept. 19. No impact

to production.

MIDWEST

Exxon Joliet, IL 238.6 Restarting FCCU unit Sept. 17

after minor repairs from an

issue that came up during

planned maintenance of a

diesel hydrotreater.

Marathon Robinson, IL 204.0 Refinery returning to nor-

mal rates Sep 15 after small

plane hits power lines on

Sep 13 at affili-

ated power grid.

Marathon Catlettsburg 226.0 Refinery units in restart Sep 10

KY on Sept. 10 after plant-

wide shutdown the day be-

fore due to a storm. No

estimate on when the plant

will be back at normal

processing rates.

ROCKY MOUNTAINS

WEST COAST

BP Carson, CA 265.0 Operations returning to

normal Sept. 17 after a

compressor snag from a

mechanical error caused

flaring on Sept. 16.

Conoco Wilmington 139.0 Unknown process upset

CA reported Sept. 23

Conoco Rodeo 120.0 Reports flaring Sept. 29

Chevron Richmond 245.2 Gas Oil hydrotreater catches fire

Sept. 24 returns to normal Sept. 28

Tesoro Wilmington 96.8 Sept. 25 fire shuts coker unit, n/a

CA reduces rates.

PLANNED

CANADA

CARIBBEAN

Valero Aruba 235.0 The refinery that was shut

in June for 2-3 months for

economic reasons is being

closed indefinitely.

EAST COAST

Sunoco Philadelphia, 340.0 FCCU at Girard Point in re- Sep 14

PA start Sep 14 following about

five weeks of turnaround

maintenance.

Reformer unit shut in Girard n/a

Point section in early Oct

for economic reasons. Shutdown

to last 1-6 months.

Valero Delaware City 210.0 Coker Unit and Gasifier complex

DE shutting down indefinitely for

economic reasons, the Co. said

on Sep 8.

Maintenance at 80,000-b/d

FCCU delayed moved to Nov./Dec.

Western Yorktown 64.5 Planned work scheduled 1Q 2010.

GULF COAST

Alon Krotz Springs 80.0 Plantwide turnaround starts Jan.

LA Jan. 1 to last 21 days. 21/22

BP Texas City, TX 467.0 Ultraformer No. 4, Ultra- Early

cracker unit and Aromatics Oct.

recovery unit shut for planned

seasonal turnaround mainte-

nance starting on Sept. 2;

restart seen in 4-5 weeks.

Chevron Pascagoula, 330.0 Pre-commercial heavy oil 2010

MS conversion project delayed

from 2008 to 2010 due to

economic factors.

Conoco Sweeny, TX 247.0 Six weeks of turnaround work Oct 30

starts Sept. 14 at Units 14,

9, 38 and 27, which is an

FCCU.

Tail gas incinerator shut during Nov. 1

fall turnaround Sept. 30

Exxon Baytown 572.5 FCCU No. 3 shut Sep 15. for

TX planned maintenance.

Flint Corpus 288.1 $250 mln project for new Spr

Hills Christi, TX diesel desulfurization, 2010

sulfur recovery unit to begin

in Fall 2008. Construction

to last 18 months.

Marathon Garyville 245.0 Project to increase crude oil 4Q

LA refining capacity by 180,000- 2009

b/d 85% complete, as of end

April. New units expected

start up in 4Q 2009.

Motiva Port Arthur 285.0 Expansion project to increase 1Q

TX throughput capacity by 325,000 2012

b/d, to 610,000-b/d, slowed.

Completion now seen 1Q

2012, from 2010.

Shell Deer Park, 340.0 Two weeks maintenance begins Sep 27

TX Sept. 13 at flare gas recovery

compressor.

Shell shuts several units for

work, co said. Sept. 27

Co. said shut hydroprocessing unit, Oct. 24

a catalytic cracker unit

alkylation unit during fall turnaround

Total Port Arthur 232.0 Shut unit 810 for work Sept.22

TX Unit 822 restarted Sept. 29

Restarted 837 Oct. 1

Valero Corpus 340.0 Coker unit shutdown for econo- n/a

Christi, TX mic reasons and planned work;

delayed to June 19 from June

12. The 20,000-b/d unit will

remain off line through July

but could restart at any time

if margins improve.

20,000-b/d FCCU in East n/a

Plant shut; West Plant

50,000-b/d FCCU at reduced

rates since mid-Dec for

economic reasons.

Valero Norco, LA 250.0 Upgrade project to build 2012

a new diesel hydrotreater

unit moved from 2010 to

4Q 2012.

Turnaround at coker unit 1Q

delayed until 1Q 2010

from 4Q 2009.

The coker will operate at

50% of capacity when

restarted due to poor

economics.

Valero Port Arthur 325.0 77,000-b/d FCCU at reduced n/a

TX rates since mid-Dec for

economic reasons.

Valero Sunray, TX 170.0 55,000-b/d FCCU at reduced n/a

rates since mid-Dec for

economic reasons.

Valero Three Rivers 95.0 Plant-wide 24-day turnaround Oct. 2

TX began Sep 9. Restart seen

around Oct. 2.

24,000-b/d FCCU at reduced n/a

rates since mid-Dec for

economic reasons.

Western El Paso 122.0 Planned work scheduled for 1Q

TX 2010.

MID-WEST

Conoco Roxana 306.0 Planned maintenance about to begin,

Ill co said Sept. 22.

Frontier El Dorado 130.0 FCCU and hydrotreater will be Nov

KS shut in Oct for turnaround

maintenance that takes place

every four years.

Husky Lima 146.2 70% refinery goes down for Mid. Nov.

OH planned worked Oct. 1

Marathon Detroit, MI 102.0 Co pushes back finish date Late

for heavy oil project. 2012

Sunoco Toledo, OH 160.0 Planned work to last from

early Aug to mid-Sep.

Valero Memphis, TN 195.0 FCCU upgrade originally slated 2012

for completion in 2009 has been

shifted to 2012.

ROCKY MOUNTAINS

Conoco Billings, 61.0 On Mar 5 the co delayed for Jan.

MT one year an expansion project 2010

which will increase capacity

to 71,000 bbls. Construction of

a new crude unit is now scheduled

to begin in January 2010.

Frontier Cheyenne 52.0 The refinery is operating at n/a

WY reduced rates for economic

reasons.

WEST COAST

Alon Paramount 55.0 Hydrocracker project post-

CA poned indefinitely, the Co.

said on Feb. 4

Chevron Richmond, 243.0 Judge halts construction on n/a

CA expansion project July 1.

Flint North Pole 210.0 One of three processing n/a

Hills AK units has been shut due

to low jet fuel demand,

co confirmed on Mar 19.

PetroStar Valdez, AK 48.0 Refinery shut due to Dec. Jun/Jul

28 fire; expected to re- 2010

start in June/July 2010.

Tesoro Wilmington, 97.0 39-days of turnaround main-

CA tenance is planned for

4Q 2009.

Working on coker, co said.

COSTA RICA

Costa Rica Refinery JV with China Clears Hurdle

Costa Rica's legal watchdog has cleared a billion-dollar contract. On September 3 the government signed with China to jointly build an oil refinery after it was held up in legal wrangling for months.

The Comptroller's Office reversed its own earlier ruling in March, when it said an agreement signed in 2008 for the Costa Rican Oil Refinery, or Recope, to form a joint venture with the China National Petroleum Corporation, or CNPC, was invalid.

The government of President Oscar Arias, which severed diplomatic ties with Taiwan in 2007 to open ties with China, signed an agreement for the joint venture during the visit of Chinese President Hu Jintao.

The Arias administration insisted on the legality of the agreement but the Comptroller's Office - an independent bureau that monitors government actions to make sure they are within the law - had said the joint venture would have violated the Recope's legal monopoly on oil refining and distribution.

It wasn't immediately clear under what circumstances the Comptroller's Office reversed its earlier ruling, but in April the office said the project could proceed only if legislators changed the law.

The agreement includes the creation of a joint venture bi-national company "in charge of developing and putting in operation the project to broaden the Moin refinery, to increase its production to 60,000 barrels a day," the Comptroller's Office said in a statement.

The refinery will be built in the town of Moin, on the Caribbean coast, and is expected to dramatically increase the country's current refining capacity.

The refinery is expected to generate between 1,000 and 1,500 direct jobs, and some 5,000 more jobs indirectly in the province of Limon, according to the government.

VENEZUELA

Venezuela Threatens ConocoPhillips Lawsuit over Texas Refinery Stake

The government of Venezuelan President Hugo Chavez said September 22 it is considering a lawsuit against ConocoPhillips for seeking Venezuela's stake in a Texas oil refinery.

Oil Minister Rafael Ramirez said a legal team representing the state oil company, Petroleos de Venezuela SA, could file a lawsuit against ConocoPhillips for exercising an option to purchase PDVSA's 50 percent stake in the Sweeny refinery.

"Our lawyers are proposing a lawsuit against Conoco," Ramirez said.

ConocoPhillips argues that PDVSA has failed to deliver heavy crude as required under contract to the refinery since the beginning of the year, prompting the Houston-based company to notify PDVSA on Aug. 28 that it would exercise the option under a joint venture agreement.

PDVSA says it stopped shipping 166,000 barrels of oil a day to the refinery in January to comply with production quotas established by the Organization of Petroleum Exporting Countries.

PDVSA and ConocoPhillips have been negotiating since 2007 to set compensation for Venezuela's nationalization of joint oil projects in the Orinoco River basin.

ConocoPhillips refused to sign an agreement in 2007 to continue pumping oil under tougher terms posed by Chavez's government.

Total Plans $25 Bln Orinoco Investment says PDVSA

France's Total plans to invest some $25 billion to develop and process extra-heavy crude reserves in the Orinoco Belt, state-owned Petroleos de Venezuela SA, or PDVSA, said.

The project "includes installing a refinery or (upgrader) that will allow us to obtain improved crude of up to 42 degrees API," PDVSA's vice president of exploration and production, Eulogio del Pino, said.

An API gravity (which measures the density of liquid petroleum compared to water) higher than 31 is considered light crude oil while oil that falls within the 40-45 range commands the highest prices on international markets.

"At present, the highest level we upgrade to in the Belt is 31 degrees API. With this project, we're going to produce a greater quantity of crude because we'll be able to use higher-quality diluents that will give us the potential for greater output," Del Pino said.

In September, seven blocks in the Orinoco Belt –a massive hydrocarbon reservoir in eastern Venezuela - would be auctioned off; a total of 11 multinational oil firms were expected to tender bids.

The auction had been scheduled for July but was delayed because the oil companies asked for more time to clarify details of the contracts.

Venezuela has offered tax incentives to foreign oil companies operating in the country, encouraging them to boost national refining capacity, Energy and Oil Minister Rafael Ramirez said.

"It's in our interest for the country to go from being an exporter of crude to an exporter of products," Ramirez said.

In September PDVSA planned to launch its Investment Plan for the Orinoco Socialist Project in September, including bolstering infrastructure in the area and earmarking $25.9 billion through 2018, Ramirez said.

Venezuela's leftist government completed its nationalization of the oil sector in 2007, stipulating that PDVSA must have at least a 60 percent stake in all hydrocarbon joint ventures nationwide.

The South American country has 142.3 billion barrels of proven reserves, although that figure could rise to 316 billion barrels once the process of certifying the Orinoco Belt reserves is concluded.

SURINAME

Aker Solutions Wins Suriname Refinery Contract to Double Capacity to 15,000 bpd

Aker Solutions has been awarded the project management consultant (PMC) contract for Staatsolie Maatschappij Suriname N.V.'s refinery expansion project in Suriname. Once completed, the project will double the refinery's processing capacity to 15,000 barrels per day, producing diesel, gasoline, fuel oil, bitumen and sulfuric acid.

Aker Solutions' operations in Houston will manage the overall PMC contract. Support will come from its Zoetermeer office in The Netherlands, providing the validation of an extended Front End Design Phase 3 package under preparation by other contractors.

"We are delighted to be working with Staatsolie on the refinery expansion - the largest single project in the country's history," said Glyn Rodgers, president, Aker Solutions U.S. Inc. "We will utilize our extensive refinery and project management experience to deliver a successful project."

Staatsolie is the State Oil Company of Suriname, which is located in Northern South America, facing the Atlantic Ocean between British Guyana, French Guiana, and Brazil.

The initial phase of the PMC program is scheduled for completion during the third quarter of 2010. The refinery expansion is scheduled to be completed in spring of 2013.

The contracting party is Aker Solutions US, Inc.

Aker Solutions ASA, through its subsidiaries and affiliates ("Aker Solutions"), serves several industries, including oil & gas, refining & chemicals, mining & metals and power generation. The Aker Solutions group is organized in a number of separate legal entities. Aker Solutions is used as the common brand/trademark for most of these entities.

Aker Solutions' parent company is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 58 billion and employs approximately 23 000 people in about 30 countries.

Aker Solutions' Process and Construction business area is a world leader in the project management, design and construction of major projects spanning refining, petrochemical processing, liquefied natural gas, metals and mining, power generation, nuclear clean-up, and acid plants.

ASIA

CHINA

CNOOC Considers 12 Mln tpy Greenfield Refinery in Shandong

The CNOOC Group is considering building a greenfield 12-million-ton/year refinery in Dongying, eastern Shandong province, according to a report published in the Economic Observer September 1.

The CNOOC Group has made no comment on the story.

However, a governmental official from Dongying city confirmed that the CNOOC Group is to lay out 46.3 billion yuan to build a refinery with a throughput capacity of 12 million tons/year and ethylene production capacity of 1 million tons/year.

If so, it would be the CNOOC Group's second self-built large refinery after its 12-million-tons/year Huizhou refinery in Guangdong province that came on stream this May.

CNOOC's decision to build its own refinery in Shandong comes after its failure to acquire the local privately run ones.

The feedstock to the refinery would come from the group's medium size offshore oilfields in the Bohai Sea which in 2008 extracted 14 million tons of crude oil.

The CNOOC Group also plans to upgrade its Bohai Sea crude production basin to 50 million tons/year.

Any refining plan, however, has to be approved by the National Development and Reform Commission, China's top economic planner.

Sinopec Corp., which has about 30 million tons/year refining capacity in Shandong province, may encounter a challenge from the CNOOC.

On September 7, CNOOC Refining Unit, CNOOC's wholly owned subsidiary, bought 51 percent stake of Shandong Haihua (000822.SZ), an ocean chemical company located on the southern bank of Laizhou Bay in the Bohai Sea.

The manager from CNOOC also said the company is thinking about moving the oil refinery of Shandong Haihua (000822.SZ) from Weifang to Dongying, so as to cut the construction costs of oil pipelines.

China's industry information provider C1 Energy estimates CNOOC's current domestic annual processing capacity of crude oil has reached 32.5 million tons.

The CNOOC Group is the parent company of CNOOC Ltd.

Sinopec Seeks To Double its Fujian JV Refinery's Capacity for $3.51 Bln

Fujian Refining & Petrochemical Co. will soon seek government approval to double its refining capacity, China Petroleum & Chemical Corp., or Sinopec, said in its online newsletter September 10.

A plan to add another 12 million metric tons or around 241,000 barrels a day of refining capacity at an estimated cost of $3.51 billion (CNY24 billion) will soon be submitted to the National Development and Reform Commission, Sinopec said.

The joint venture refinery, in which Sinopec holds a majority stake, currently has a refining capacity of 240,000 barrels a day and processes mostly sour Arabian crude.

The expansion plan is the latest sign that China's appetite for foreign crude will rise further in the coming years.

Fujian Refining only recently brought fully online refining units with a 240,000-barrel-a-day capacity and a 800,000-ton-a-year ethylene steam cracker.

Sinopec and the Fujian provincial government together own 50% of the refining joint venture, with Exxon Mobil Corp. and Saudi Arabian Oil Co., known as Saudi Aramco, holding 25% each.

The newsletter also said Sinochem Group has started construction of its heavy oil processing plant in Fujian with an initial annual capacity of 5 million tons that will be expanded to 12 million tons or around 241,000 barrels a day by the end of 2011.

Sinochem is in talks with Saudi Arabia and Kuwait over long-term supply of crude oil for the plant, company president Liu Deshu said in March.

In addition, Liaoning Huajin Chemicals Ltd., a major chemical producer in northern China, will need 100,400 barrels a day of imported crude to feed its new refinery scheduled to come online in early November, according to a company official.

BP In 'Preliminary Talks' for China-Kuwait Refinery Role

BP is considering taking part in a China-Kuwait joint refinery project in southern China's Guangdong province, Hussain Esmaiel, president of Kuwait Petroleum International (KPI), said September 28.

The KPI has started "preliminary talks" with the British oil giant Esmaiel it was quoted by the official KUNA news agency. But it did not elaborate on details of the talks.

China and Kuwait in May sealed an agreement on the building of a joint refinery of 9 billion U.S. dollars.

The two countries later picked Guangdong's Donghai Island as the site for the facility. A feasibility study for the location is underway.

The project, expected to be completed in 2013, would have a crude oil refining capacity of 300,000 barrels per day and produce one million tons of ethylene per year.

Kuwait will hold 30 percent of the venture while China Petroleum & Chemical Corp, or Sinopec, will retain 50 percent, with the remaining 20 percent going to the U.S. Dow Chemical Co. and Royal Dutch Shell.

Kuwait, sitting atop ten percent of the world's proven oil reserves, will supply all the crude to the refinery, which is among China's largest joint ventures in this sector when put into operation.

The mega project would serve as a driving force for the emirate to achieve the target of exporting crude oil of 500,000 barrels per day to China by 2015.

INDONESIA

Indonesia Offers Extra Incentives for New Refinery Projects

Fiscal incentives will be offered to oil refinery projects in Indonesia, including the US$4.7 billion Banten Bay Refinery project in Bojonegara, Bantan.

The Oil and Gas Directorate General has recommended to the finance ministry additional incentives to boost development of new oil refineries in the country, an official said.

The recommendations include the exemption of import duty on capital goods, and value added tax on catalysts and spare parts needed by oil refinery projects and a guarantee of loans from the government.

The new incentives are in addition to the income tax facility offered for capital investment, Saryono Hadiwidjoyo, downstream oil and gas director at the energy and mineral resources ministry said.

EUROPE / AFRICA / MIDDLE EAST

FRANCE

Total Exec Says low Demand for Refined Petroleum Products and too much Refining Capacity

Demand for refined petroleum products remains low and the refining industry has too much capacity, French oil major Total SA's (TOT) chief executive said September 4, also saying he isn't worried that the rating agency Standard & Poors has revised its outlook on Total.

The company's recent decision to halt its Dunkirk refinery until market conditions improve isn't a "restructuring measure," but a way to react to a market environment that doesn't allow the unit to stay open, Christophe de Margerie told reporters on the sidelines of a business conference near Paris.

"For the moment, demand is weak and there is too much capacity," he said.

While Total hopes demand will pick up again, de Margerie said that efforts to reduce consumption for environmental reasons mean that, in the medium and longer-term, "It will also be necessary to find a balance between a will to reduce consumption and capacity."

But that would amount to restructuring, he said, insisting that current tweaks such as halting the Dunkirk unit are "a reaction to a market phenomenon that I hope is temporary."

De Margerie also said he isn't worried about credit rating agency Standard & Poor's revising its outlook on Total to "negative" from "stable."

"It simply means that they observe that we have taken an important decision to continue to invest and to maintain the dividend policy at a time of weaker prices," he said.

"Since we believe in a return to a more favorable environment in the months and years to come, we don't have any reason to stop our investments," he added.

French Carbon Tax Going Into Effect January 1 with Large Emitters Exempt

France will begin taxing carbon dioxide emissions by both households and companies starting next year in the hope that consumers and producers gradually shift to more environmentally friendly goods.

From Jan. 1, a special tax of 17 euros will be levied on each ton of CO2 emitted by fossil fuels such as heating oil, gasoline, coal and natural gas, French President Nicolas Sarkozy said in a speech on September 10.

"We cannot keep on taxing labor, taxing capital and ignore taxes on pollution," he said.

Like the U.S. and other European countries, France is seeking ways to meet a series of environmental commitments. The French government has pledged to divide its CO2 emissions by four in 2050 from the level of 1990 by relying increasingly on nuclear power - which generates few greenhouse gases - better insulating buildings and boosting the use of renewable energies.

France wants to emulate Finland and Sweden, which have succeeded in curbing CO2 emissions with the introduction of greenhouse-gas taxes back in the early 1990s. Sarkozy is also anxious to show that France is making progress on its environmental promises ahead of a United Nations conference on climate change in Copenhagen in December.

The carbon tax, however, has become a hard sell. When Sarkozy was elected president in 2007, surveys showed that French people backed the idea. More recent opinion polls suggest enthusiasm has faded as people are growing wary that the tax will dent their spending power amid the economic crisis.

In his speech, Sarkozy said the tax would help the French economy grow while being energy conscious. Yet, environmental movements predicted the new tax would be inefficient on two counts: they say it has been set at a low level and criticize compensations the French government plans to give households and business.

"With this tax, the incentive to shift to energy-efficient goods will be close to zero," said Pascal Husting, head of the French branch of environmental movement Greenpeace.

A recent report commissioned by Sarkozy had recommended setting the tax at EUR32 per ton of CO2 in 2010 and increase it by 5% every year in order to reach a level of EUR100 in 2030. The EUR100 mark is seen as indispensable to achieve the broader goal of slashing CO2 emissions, the report said.

The French president said he opted for an across-the-board level of EUR17 per ton because he was concerned that households would not agree to pay significantly higher taxes on CO2 emissions than big industrial emitters - which are already subject to a European Union mechanism aimed at reducing greenhouse gases. European CO2 emission certificates trade at about EUR15.

Green movements are also worried that money raised won't be used efficiently.

Sarkozy, who has pledged not to increase taxes despite France's rapidly widening budget deficit, has said all the money raised through the new tax would be returned to taxpayers.

Households that are subject to income tax will be awarded tax rebates as early as February 2010; those that are exempted from income tax will receive a check from the fiscal administration.

Companies won't be awarded rebates but a local corporate tax will be scrapped to help offset the new carbon tax.

Husting, the Greenpeace director, said it would have been far more effective to give households "green checks" - money that they could spend only on fuel-efficient goods.

Large CO2 emitters, such as oil refiners and steel makers, will be exempted from paying the new tax. The government will propose special compensations for fishermen, farmers and truckers, to make sure they don't suffer from foreign competition, Sarkozy said.

The carbon tax will not be levied on electricity because the bulk of France's power is generated by nuclear and hydropower plants.

GERMANY

ConocoPhillips Confirms Maintenance at German Refinery

U.S. oil firm ConocoPhillips confirmed on October 2 it has started maintenance at its 260,000 barrels per day Wilhelmshaven oil refinery in northern Germany for planned maintenance.

"We have planned maintenance under way at Wilhelmshaven," a spokesman said, but would not give any more specific details.

Trade sources said on October 1 they expected the entire facility to be shut for at least 10 weeks.

GREECE

Hellenic Petroleum Refinery due for October Overhaul

Hellenic Petroleum SA's 72,000bpd Thessaloniki Refinery, located in Greece's NE region of Macedonia, is scheduled to undergo an overhaul in October 2009. The Thessaloniki refinery is one of three refineries owned and operated by Hellenic Petroleum SA.

The facility is the only plant operating in the northern region of Greece and works in conjunction with the Elefsina and Aspropyrgos refineries, both in Athens, via pipeline. The plant supplies Balkan countries like Serbia, Bulgaria and Albania, as well as the domestic market. The Thessaloniki refinery has a petrochemical site and produces liquefied petroleum gas, gasoline, heating oil, heavy fuel oil, asphalt and other products.

LITHUANIA

Lithuanian Refiner Mazeikiu Nafta Changes Name

On September 1 the Register of Legal Entities of the Republic of Lithuania registered the new name of Public Company Mazeikiu Nafta, which will now be known as Public Company ORLEN Lietuva.

Polski Koncern Naftowy ORLEN S.A., the sole shareholder of Public Company Mazeikiu Nafta, decided to change the company's name on July 7, 2009.

The name change follows PKN ORLEN Group policy providing for all companies within the group to change their names in cases where the concern is the main shareholder. After acquiring nearly 90 percent of all AB Mazeikiu Nafta shares in December 2006, PKN ORLEN S.A. became the sole shareholder of the company in April 2009.

The new name of the company will allow its better identification with ORLEN Group. It will ensure smoother, clearer, and simpler communication and cooperation with the consumers of the company's products, both on the wholesale as well as retail markets.

"The change does not only mean the replacement of signboards. The new name gives a sense to the changes in the Company -- organizational and process changes, new operating units as well as the quality of our products evidence the maturity achieved by the Company," sald Krystian Pater, General Director of Public Company ORLEN Lietuva.

Changing the company's name is followed by the change of the brand. From now the new logo of the only refinery in the Baltic region features stylized image of eagle with the red ORLEN inscription and Lietuva written in silver.

The ORLEN Lietuva brand has been known in Lithuania for several years. The fuel station network under this brand is operated by the company through its subsidiary AB Ventus-Nafta.

PKN ORLEN noted that this is the change of the company's name only (without its reorganization). Legal entity code, VAT payer code, legal address and other details of the company shall remain the same, the company continues its business activities, and all rights and obligations of the company are respectively continued.

UGANDA

Positive Consensus Grows Around $2 Bln Uganda Refinery

Initially viewed skeptically, new details have strengthened the case for refining oil in Uganda.

First is enormous growth in the size of Uganda's suspected reserves. Though still unconfirmed, Tullow Oil is expected to announce that their Ngassa-II well has found 700 million barrels of oil - bringing Uganda's total reserves to nearly 2 billion barrels.

As a result, daily production from Uganda's oil fields could reach 100,000 barrels, enough to support the large-scale refining that was critical for the economic viability of a refinery project.

The find, along collapse of oil prices earlier this year, has led the government to cancel the "early production scheme," putting a large-scale refinery back on the table, according to Mr Matovu Bukenya, the ministry's senior assistant secretary.

The oil found so far is "sweet," meaning that it contains very little sulfur. Unfortunately, it is also waxy meaning it becomes solid below 39 degrees.

These two characteristics actually combine to make a compelling case for refining oil in country. First, the low sulfur content means that the oil can be refined relatively easily without much additional processing.

Mr Dozith Abeinomugisha, a senior geologist in the petroleum exploration and production department, explains that the government will be required to incur much lower capital cost if the refinery is built.

Furthermore, since the oil becomes solid at room temperature, Mr Abeinomugisha said; "transporting crude oil would require heating a pipeline to 39 degrees meaning it might be cheaper to refine it in Uganda."

The ministry has commissioned a feasibility study of the refinery question, the results of which are expected within six months. At $2 billion, a refinery would be a cheaper deal for Uganda.

RUSSIA

Shell to Build 180,000 tpy Lubricants Blending Plant in Russia

On August 31 Shell announced that it is starting construction of a major new lubricants blending plant - the first to be built by an international oil company in Russia.

The plant, which is being built in Torzhok in the Tver region, north-west of Moscow, will have a capacity of 200 million liters a year (about 180,000 tons), making it one of the largest in the Shell network worldwide. Commercial operation is expected to begin by the end of 2010.

As a leading international supplier of lubricants and greases to Russia, Shell will bring advanced technology to the local market and ensure high quality products through stringent quality control. Bringing world-class production capacity closer to customers will allow Shell to supply a full range of high-quality motor oils, transport oils and industrial lubricants to the Russian market, with the potential to expand distribution to neighboring countries in the future. Large industrial customers will benefit from the bulk delivery of technologically advanced products, speeding up delivery times and reducing storage costs.

David Pirret, Executive Vice President for Shell Lubricants, said: "Russia is a country of strategic importance for Shell, and today's announcement is further evidence of our commitment to grow our business here, not only in upstream but also in downstream. Russia is the third largest lubricants market in the world and it is vital that Shell, as the leading global lubricants supplier has a significant presence here. Shell Lubricants has seen seven consecutive years of profitable growth in Russia and we believe that setting up lubricants production facilities will help us capitalize on further growth opportunities."

Dmitry Zelenin, the Governor of the Tver region, noted: "We are glad that Shell is building a lubricants blending plant in the Tver region. The plant will use advanced operational and organizational technologies, employ Russian workforce - from maintenance to managers, and create around 150 new jobs. The regional administration will continue supporting our foreign partners. I am confident that there will be no difficulties to hinder the project implementation, and commercial operation will start by the end of next year as planned."

Siemens to Supply Gas Turbine Generators to Rosneft

Siemens Energy has received an order from Russia for the supply of six industrial gas turbine generators. Purchaser is OOO RN-Tuapsinskiy NPZ, a subsidiary of the major Russian oil company OAO Rosneft. The gas turbine-generators will be operated in the Tuapse refinery located on the Black Sea. The order is valued at approximately EUR90 million.

The SGT-800 gas turbine features high efficiency and low life-cycle costs. It is used for simple cycle power generation, for combined cycle power generation (CCPP) and because of its excellent waste heat recovery potential it is ideal for combined heat and power (CHP). The photo shows the SGT-800 gas turbine with a capacity of 47 megawatts at the Finspong plant in Sweden.

The order encompasses six gas turbines and six generators that are needed for the generation of electricity and steam to accommodate expansion of the Tuapse refinery’s capacity. Tuapse is an important petroleum port on the Black Sea. The customer OOO RN-Tuapsinskiy NPZ is currently undertaking extensive expansion and upgrading projects at the refinery to increase the plant’s capacity from a current 5 million to about 12 million metric tons (38 million to 88 million barrels). At the same time refining depth will be increased from 56 to 95 percent.

“Being able to offer both gas turbines and generators together allows us to uniquely optimize our oil and gas power solutions,” said Tom Blades, CEO of the Oil & Gas Division at Siemens Energy. “We have already obtained several gas turbine orders from Rosneft. This highlights our strong cooperation with the customer as well as the impressive characteristics of the combination of Siemens gas turbines and generators in terms of efficiency, reliability, and quality.”

The SGT-800 stands out with its first-class efficiency, high availability and reliability, and low life cycle costs. NO_X emissions are minimized thanks to its Dry Low Emissions (DLE) combustion system. A critical project requirement for the gas turbines being supplied to the Tuapse refinery is their capability to operate on various fuels. The SGT-800's DLE system is unique in that it can achieve low emissions on a wide variety of fuels.

Including this order, 29 SGT-800 gas turbines have already been ordered by customers from Russia or have been delivered to Russia. For instance, between 2007 and 2008 Siemens received orders from Rosneft for a total of seven SGT-800’ machines for the gas turbine power plant at the Priobskoye oil field.

In June 2009, the Kolomenskoe gas turbine power plant in Moscow, supplied by Siemens with three SGT-800 machines, was able to start commercial operation. The cogeneration power plant supplies the Russian capital with 136 megawatts of electricity as well as 171 Gcal/hour of district heat. Overall plant efficiency is 83 percent.

KUWAIT

Kuwait’s KNPC to Start Scheduled Maintenance at Refineries

Kuwait will carry out scheduled maintenance at all three of its domestic refineries in coming months, a Kuwait National Petroleum Corp., or KNPC, official said September 7.

Kuwait's largest refinery at Mina Al Ahmadi will be partially shut down between Oct. 27 and Nov. 16 for scheduled maintenance at one of its three crude processing units, or CPUs, and associated units including hydrocracker, Mohammed Al Ajmi, a spokesperson for KNPC, told Zawya Dow Jones.

The refinery's processing capacity of 460,000 barrels a day will be reduced by 120,000 barrels a day during the 21-day maintenance work at the CPU, Al Ajmi said.

"This was planned for so we have full storage and can cater to our customers," he added.

KNPC has already started scheduled maintenance at the country's smallest refinery at Shuaiba, with work on the reformer unit under way, Al Ajmi said.

The maintenance program covers a total of five units and will last until mid-November he said, adding that customers won't be affected by the move.

KNPC will also replace a catalyst at its Mina Abdulla refinery between Sept. 21 and Oct. 19, Al Ajmi said.

KNPC, part of state-run Kuwait Petroleum Corp., operates the Persian Gulf country's three refineries at Mina Al Ahmadi, Mina Abdulla and Shuaiba, which have a combined capacity of about 930,000 barrels a day.

McIlvaine Company,

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