- Top Stories
- Boeing, Masdar, UOP Team-Up on Saltwater Bio-Jet-Fuel Scheme
- GM Inks Deal to Sell Saab to Spyker
- Headwaters, Axens Form Direct Coal Liquefaction Alliance
- Fuel Diversification: Challenges to Profitability
- U.S. Export-Import Bank OKs US$1 Billion for Ecopetrol Projects
- Petrobras Configuring New Mega Refinery for Export Market
- Cutting Back on Capital Budgets, Improving Unit Reliability
- Niche Refining Opportunities in 2010
- Refinery Staff Reductions May Affect Turnaround Schedules
- Shale-Gas Cannot Replace Coal; US EPA Regulation Better than Cap-and-Trade
- Hart Receives Funding on Indirect Land Use Change for Biofuels
- PetroChina Becoming Significant Player in Caribbean Fuel Oil Market
- Refining Outlook 2010: Contrasts and Opportunities
- Sub Freezing Temperatures Shut Down Hydrocracker
- Start-Up Wins US$900,000 Grant for Biomass Gasification Factory
- Market Report
- Market Snapshot
- Market Snapshot
- Ernst & Young Report: Better Outlook in 2010 for Oil and Gas Sectors
- CO2 Capture at Supercritical Plants Adds More Than 4¢/kWh Extra Cost
- Refinery Shutdowns Leading to Higher Imports
- U.S. Refining Analysis: Majors to Exit Transport Fuels Market
- News from Americas
- US$400M Upgrade for BP-Husky Toledo Refinery
- New Senior Leadership at Infineum International
- Brazil Slashes Ethanol Blend to 20%; Sugar Growers Accept It
- Valero Finalizes Purchase of Two Ethanol Plants
- U.S. DOE Funds Nearly US$80M for Biofuels/Fueling Infrastructure
- Chevron Interim Q4 Update: Downstream Results Sharply Lower
- Ford to Invest US$450M in Electric Vehicles
- News from Middle East / Asia
- Reliance Reports Improved Net Profits
- CNOOC Expands Diesel Supply in Guangdong
- China’s HK Motors to Build Hybrids in Alabama
- New Hydrocracker at Huizhou Refinery Produces Fuels and Petrochemical Feedstock
- Sasol, Tata Push US$10 Billion CTL Project in India
- China Car Sales to Hit 15 Million Units This Year
- Indian Government Won’t Cover Losses Caused by Price Controls
- India’s Essar Group Eyes Zambia’s Indeni Refinery
- News from Europe / Africa
- Saudi/Shell ULSD Exports Begin This Month
- Eni Buys ExxonMobil Austria Downstream Businesses
- SATORP’s Jubail Refinery includes 17 Compressor Trains
- Italy to Build Oil Refinery in Uganda
- Qatar Entities Further Biojet Fuel Production
- SASREF Completes Major Instrumentation Overhaul
- Davy Wins SNG Contract for China Project
News from Americas
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US$400M Upgrade for BP-Husky Toledo Refinery
Officials at BP-Husky Refining LLC announced Jan. 14 a major equipment upgrade at the BP-Husky Toledo Refinery in Oregon, Ohio.
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New Senior Leadership at Infineum International
Infineum International Ltd. has made a number of changes to its senior leadership team that will become effective Feb.1.
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Brazil Slashes Ethanol Blend to 20%; Sugar Growers Accept It
Brazil’s government this week decided to slash the mandatory blending of anhydrous ethanol in gasoline from 25% to 20% starting Feb. 1, undercutting soaring sugar-cane prices.
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Valero Finalizes Purchase of Two Ethanol Plants
Valero Renewable Fuels Company, LLC, a wholly owned subsidiary of Valero Energy Corporation, announced Jan.14 that it has closed on its purchase of two ethanol plants from ASA Ethanol Holdings, LLC.
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U.S. DOE Funds Nearly US$80M for Biofuels/Fueling Infrastructure
U.S. Dept. of Energy Sec. Steven Chu announced Jan. 13 the investment of nearly US$80 million under the American Recovery and Reinvestment Act for advanced biofuels research and fueling infrastructure that will help support the development of a clean sustainable transportation sector.
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Chevron Interim Q4 Update: Downstream Results Sharply Lower
Chevron Corp. Jan. 11 reported in its interim update that earnings for the fourth quarter 2009 are expected to be lower than in the third quarter 2009.
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Ford to Invest US$450M in Electric Vehicles
Ford Motor Co. officials announced Jan. 11 that the company will invest an additional US$450 million in its aggressive electric vehicle plan, paving the way to build a next-generation hybrid and plug-in hybrid vehicle in Michigan beginning in 2012 and creating 1,000 new jobs.
News from Middle East / Asia
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Reliance Reports Improved Net Profits
Reliance net profits improved in the latest quarter, thanks to higher gas production and better refinery and petrochemical margins. Overall refinery utilization rates exceeded 100% capacity.
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CNOOC Expands Diesel Supply in Guangdong
CNOOC – third behind Sinopec and PetroChina among oil producers and refiners – has boosted diesel supply to fast-growing eastern Guangdong province by 71% in the last month, according to a report from the official Xinhua news service.
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China’s HK Motors to Build Hybrids in Alabama
Representatives of Chinese-backed Hybrid Kinetic Motors Corp. (HK) inked a deal with Italdesign Giugiaro Jan. 18 on engineering and design plans for a line of hybrids that are slated to be produced in Alabama starting in 2013, according to The Birmingham News (Alabama).
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New Hydrocracker at Huizhou Refinery Produces Fuels and Petrochemical Feedstock
The new 80,000-bareel-per-day hydrocracker at China National Offshore Oil Corp.’s Huizhou refinery was successfully started up in late 2009. In addition to the production of transportation fuels, the unit will also produce feedstock for the ethylene cracker in the Nanhai petrochemical complex.
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Sasol, Tata Push US$10 Billion CTL Project in India
Sasol and Tata Steel officials announced Jan. 18 they want to build a 3.6-million-ton-year (80,000-barrel-day) coal-to-liquids plant in Orissa, India.
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China Car Sales to Hit 15 Million Units This Year
China Association of Automobile Manufacturers (CAAM) officials are citing predictions that domestic car sales will hit 15 million units this year, up 10% from the record-breaking 13.64 million unit sales in 2009, which were up 46.2% over 2008.
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Indian Government Won’t Cover Losses Caused by Price Controls
The Indian Finance Ministry is offering less than half of the compensation sought by the Oil Ministry to cover some US$6 billion in state-owned refiner losses on price-controlled LPG and kerosene sales, according to a Press Trust of India report.
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India’s Essar Group Eyes Zambia’s Indeni Refinery
India’s Essar Group and South Africa’s Sasol Ltd. are among foreign companies competing to acquire a majority stake in Zambia’s state-owned Indeni Petroleum Refinery, according to The Post (Zambia).
News from Europe / Africa
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Saudi/Shell ULSD Exports Begin This Month
The Shell/Saudi Aramco Sasref joint-venture refinery will commence exports of ultra-low sulfur diesel (ULSD) by end-January, according to a Reuters report quoting Sasref Executive Vice President Raja Ahmad Murad Bin Raja Bahrin.
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Eni Buys ExxonMobil Austria Downstream Businesses
Italy-based Eni officials announced Jan. 21 that they’ve signed a deal to buy the downstream assets of Mobil Oil Austria, including 135 retail fuel stations, ExxonMobil-Austria’s industrial and wholesale business (with 36 additional Esso branded retail service stations owned by resellers), and the aviation fuel business at the Vienna and Linz airports.
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SATORP’s Jubail Refinery includes 17 Compressor Trains
Compressor trains awarded to Elliott Company for SATORP’s Jubail refinery in Saudi Arabia will serve a variety of applications. Compressor loads will include sour service, hydrogen service and refrigeration.
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Italy to Build Oil Refinery in Uganda
Italy is set to build an oil refinery in Uganda, according to the Web site, New Vision (Uganda).
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Qatar Entities Further Biojet Fuel Production
Officials with Qatar Airways, Qatar Science & Technology Park (QSTP) and Qatar Petroleum (QP) announced Jan. 10 that they will jointly carry out engineering, economic analysis and move into the development of sustainable bio jet fuel that will also look into ways for production and supply, with the support of Airbus.
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SASREF Completes Major Instrumentation Overhaul
Saudi Aramco Shell Refinery Co. (SASREF) has recently completed a major upgrade of obsolete automation systems, involving distributed control system, field devices, central control rooms and integration of safeguarding systems with control systems. The export oriented SASREF refinery processes more than 300,000 barrels per day of Arabian Light crude.
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Davy Wins SNG Contract for China Project
London-based Davy Process Technology officials announced last week they’ve entered into contracts with China-based power producer Datang Energy Chemical Co. Ltd. for a plant to produce synthetic natural gas from coal gasification.
Top Stories
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Boeing, Masdar, UOP Team-Up on Saltwater Bio-Jet-Fuel Scheme
Boeing, the Masdar Institute of Science and Technology, Etihad Airways and UOP officials on Jan. 18 announced an agreement to establish the “Sustainable Bioenergy Research Project” (SBRP), aiming to develop “integrated saltwater agricultural systems to support the development and commercialization of biofuel sources for aviation and co-products.”
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GM Inks Deal to Sell Saab to Spyker
General Motors officials announced Jan. 26 that they’ve finally agreed on terms to sell GM’s Saab car division to Sweden-based upstart, Spyker.
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Headwaters, Axens Form Direct Coal Liquefaction Alliance
Utah-based Headwaters officials announced Jan. 19 the signing of an alliance agreement with Axens to market direct coal liquefaction technology “alone or in combination with refinery residues or biomass.”
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Fuel Diversification: Challenges to Profitability
Some of the unexpected consequences to the current reduction in refined product demand are reduction in construction costs for new facilities that are planned for completion beyond 2011. However, fuel diversification will have a long term effect on refined product fuels.
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U.S. Export-Import Bank OKs US$1 Billion for Ecopetrol Projects
The U.S. Export-Import Bank (Ex-Im Bank) on Jan. 19 announced a US$1 billion “preliminary commitment” to help finance upstream and downstream projects for Ecopetrol, the mostly state-owned oil company of Colombia.
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Petrobras Configuring New Mega Refinery for Export Market
The 300,000-b/d Petrobras refinery to be completed in 2013 will be expanded to 600,000 b/d by 2015. With financial help from the Japanese government and Marubeni Corp., the US$20 billion project is purposed for export of refined product to Japan.
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Cutting Back on Capital Budgets, Improving Unit Reliability
Improving maintenance and reliability in refinery operations is an important priority in 2010. With many refiners indicating they will cut back on capital costs, a higher emphasis will be placed on reliably running existing units, such as the fluid catalytic cracking unit.
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Niche Refining Opportunities in 2010
Projected economics in 2010 seem to indicate a drastic cut in capital projects. Nonetheless, some mega refinery investments are in progress or in the planning stages, such as with the Petrobras US$20 billion refinery in the northeast region of Brazil.
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Refinery Staff Reductions May Affect Turnaround Schedules
Downstream staff reductions have been recently announced by several refining organizations. However, there is speculation as to how these reduced staffing levels will affect plant turnarounds.
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Shale-Gas Cannot Replace Coal; US EPA Regulation Better than Cap-and-Trade
At a Jan. 13 press conference in Washington, D.C., Fred Palmer, Peabody Energy senior vice president-government relations, announced that Peabody – the world’s largest publicly-traded coal company – would support new U.S. Environmental Protection Agency (EPA) “greenhouse” regulations on the energy and power industries, rather than carbon cap-and-trade legislation.
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Hart Receives Funding on Indirect Land Use Change for Biofuels
Hart Energy Consulting has received funding from the Lucille and David Packard Foundation and the Energy Foundation for the project Land Use Change: Science and Policy Review.
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PetroChina Becoming Significant Player in Caribbean Fuel Oil Market
The Caribbean is becoming a major hub for fuel oil traders. PetroChina is projected to become a major player in the Caribbean fuel oil market with its investment in storage facilities and its ties with PDVSA.
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Refining Outlook 2010: Contrasts and Opportunities
2010 will be a pivotal year for the energy industry. Refinery overexpansion from the previous upcycle will be felt, while the industry adjusts to shifts in market demand.
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Sub Freezing Temperatures Shut Down Hydrocracker
Hydrocrackers are designed to operate for at least two- to four-year run lengths. However, unplanned shutdowns due to sub freezing temperatures are a rare event.
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Start-Up Wins US$900,000 Grant for Biomass Gasification Factory
Millinocket, Maine-based RE-Gen LLC will get a US$903,000 grant from U.S. Dept. of Energy (DOE) for a biomass gasification furnace factory with capacity for 250 systems per year.
Market Report
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Market Snapshot
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Market Snapshot
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Ernst & Young Report: Better Outlook in 2010 for Oil and Gas Sectors
While the last 12 months have been a challenge for companies in the oil and gas sector, there have been substantial opportunities for those with strong balance sheets, according to the Ernst & Young Global Oil and Gas Transactions Review, released Jan. 18.
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CO2 Capture at Supercritical Plants Adds More Than 4¢/kWh Extra Cost
Adding carbon dioxide capture to a supercritical pulverized coal-fired power plant will impose more than 4¢ per kiloWatt hour extra cost, according to a new study by California-based SRI Consulting.
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Refinery Shutdowns Leading to Higher Imports
Rationalization of U.S. refining assets will eventually result in noticeable increases in refined product imports. Regional imbalances in transportation fuel prices are also apparent from recent plant closures.
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U.S. Refining Analysis: Majors to Exit Transport Fuels Market
With oil companies reporting low refining margins, consultancy Gerson Lehrman Group recently provided analysis on the causes of sagging performance in the downstream business.




