Category: Regions

Shell Global Solutions International BV (Shell) has awarded Worley two contracts for PT Pertamina EP Cepu’s (PEPC) new sulphuric acid plant in Indonesia. This plant is part of the Jambaran-Tiung Biru utilised gas field project for PEPC, which is a subsidiary of PT Pertamina-Indonesia’s state-owned energy company. Under the contracts, Worley will supply be supplying Chemetics’ cooled oxidation reactor (CORE) technology. This is the first time that CORE will be paired with Shell’s Cansolv SO2 capture technology. Worley gained the Chemetics technology as part of its Jacobs Energy, Chemicals and Resources acquisition last year. Cansolv controls the emissions and captures additional by-product value from the sulphur dioxide emitted from various refinery flue gas streams (such as cracking units, process heaters and boilers), sulphur plants and spent acid regeneration units. Sulphur dioxide can be recycled to the sulphur recovery unit to be produced as marketable sulphur or converted to sulphuric acid.

Tecnimont SpA has signed an EPC contract worth approximately e200 million with Gemlik Gübre Sanayii Anonim Sirketi for the construction of a new urea and urea ammonium nitrate (UAN) solutions plant at Gemlik, 125 km south of Istanbul. The plant will have a capacity of 1,640 t/d of granular urea and 500 t/d of UAN, and will be based on Stamicarbon urea technology, a fully owned subsidiary of the Maire Tecnimont group. The scope of work includes engineering, supply of all equipment and materials and construction and erection works. Project completion is planned within about three years of the contract beginning.

Methanex has said that, in light of the uncertainty in the global economy from the Covid-19 pandemic, it will defer approximately $500 million of previously announced capital spending on its $1.4 billion Geismar 3 methanol project for up to 18 months. Geismar 3, which is intended to eventually produce 1.8 million t/a of methanol, will be placed on temporary “care and maintenance” for up to 18 months, enabling the company to complete the project when market conditions improve. Methanex says it will spend $100 million in Q1 2020 and a further $200 million from April 1, 2020 to September 30, 2021 on the project, the majority of which is spending that occurred or was committed during Q1 2020. This is approximately $500 million lower than the $800 million that was expected to be spent over that same period. Construction activity and procurement of non-critical equipment and bulk materials will be suspended until market conditions allow the Geismar 3 project to restart.

Nutrien has temporarily shut down one of the four ammonia plants at its Trinidad production site.

China’s copper industry is facing difficulties caused by the coronavirus outbreak in the country. Prolonged factory closures, particularly in Hubei province, at the centre of the outbreak, as well as neighbouring Guangdong and Zhejiang, also badly affected, have caused a slump in demand for copper domestically as copper fabricators remain on extended closure. However, smelters have resisted cutting production. Daye Nonferrous, based in Huangshi at the centre of coronavirus outbreak, continues to operate at 80% of its 600,000 t/a capacity for 1Q 2020, according to the company, in spite of quarantine and transport restrictions which have reduced truck shipments to the smelter – Daye is reportedly still able to receive copper concentrate shipments via the Yangtze River to Huangshi port.

The Abu Dhabi National Oil Co. (ADNOC) has awarded two EPC contracts with a total value of more than $1.65 billion for the offshore Dalma sour gas development, 190 km northwest of Abu Dhabi city. Dalma is one of the fields in the offshore Ghasha ultra-sour gas concession, which ADNOC views as central to the UAE achieving self-sufficiency in domestic gas supplies.

The UK’s Department for Business, Energy and Industrial Strategy has awarded £28 million ($36 million) of government funding to five demonstration projects for low carbon hydrogen production, as part of a larger stimulus package to cut industrial carbon emissions. The projects targeted for funding include:

At the Nitrogen+Syngas Conference 2020, held in The Hague, Netherlands, Haldor Topsoe launched its new TITAN ™ series of steam reforming catalysts. The company says that the new series, which consists of the RC-67 TITAN and RK-500 TITAN catalysts, offers improved performance and longer catalyst lifetime thanks to the hibonite-rich composition. The addition of titanium promoters adds exceptional mechanical strength while a seven-hole cylindrical shape yields both a very low pressure drop and a high surface area. Pressure drop build-ups in syngas plants can cause unscheduled downtime and cost millions of dollars, while thermal instability during operation can lead to operational risk and reduce plant lifetime. Topsoe says that the catalysts can mitigate these risks, ensuring lower operating costs, increased profit margins, and reduced energy usage.

The grave economic and human health consequences of the global spread of coronavirus (Covid-19) deepened in March.

Canadian Press reports in December have highlighted concerns that the new tighter IMO rules on sulphur content of marine fuels, which came into force on January 1st, could lead to reduced demand for oil sands bitumen and syncrude. Canadian oil output has been steadily increasing over the past two decades, mainly due to expanded bitumen recovery, which now accounts for 50% of Canada’s 4.6 million bbl/d of oil production. However, the discount for Western Canadian Select bitumen blend crude prices versus North American benchmark West Texas Intermediate could almost double to $30/bbl in January, according to consultancy Wood Mackenzie, averaging US$23-24/bbl for most of 2020, as US and other refiners use less heavy, sour oil and switch to lower sulphur feeds to try and optimise low sulphur fuel oil (LSFO) production. However, reduced output from Canada’s competitors Mexico and Venezuela is currently helping to mitigate this. Oil sands producers with refineries or upgraders are expected to benefit as the new standards will increase demand for refined low-sulphur fuels. For example, Husky Energy has expanded its Lloydminster Upgrader to produce an extra 4,000 bbl/d of diesel, and reconfigured its Lima refinery in Ohio to use more heavy oil.