October 06, 2011
Volume: 3
Issue: 19
Feature
Industry Leaders Ponder Future Fuel Scenarios at Hart Energy Conference
Market Focus
ConocoPhillips to Sell or Shutter Pennsylvania Refinery
Enterprise Products, Enbridge Announce Open Season for Cushing-to-Houston Pipeline
DTF Study Details Huge Impact of Diesel on U.S. Economy
Austria’s OMV Announces Latest Refining Divestiture Plan
Calumet Specialty Products Finalizes Wisconsin Refinery Acquisition
Valero Completes Purchase of Meraux Refinery from Murphy
Targa Resources Acquires Two Petroleum Terminals
Uruguay Refinery Outage Spurs Extraordinary Fuel-Import Binge
Despite Subsidies, India’s Diesel Prices Relatively High, Report Says
EIA: World Energy Use to Increase 53% by 2035
Plains All American Continues Louisiana Crude Terminal Expansion
Operations
U.S. NOAA Study: Low-Sulfur Bunker Fuel Cuts Diesel Emissions Up to 90%
NPRA to Become American Fuel & Petrochemical Manufacturers
U.S. East Coast’s Changing Refinery Dynamics
Oiltanking, PERN to Build Storage Terminal in Poland
Technology
U.S. Senator Urges Cost-Competitive Energy Technologies
Reliance Partners with Siemens for Homeland Security Solutions in India
Compliance Issues
EU Legislative Proposals Pose ‘Substantial Risk’ to European Refineries
API: Three-Year Keystone XL Pipeline Delay ‘Is Long Enough’
CEC Refines ‘Green’ Transportation Energy Plan
U.S. Economy Can Absorb New Emissions Rules, Study Says
Brazil’s ANP Proposes 10-ppm Sulfur ULSD Limit for 2013
IEA Roadmap Urges Refinery Inclusion in Massive CCS Projects
ExxonMobil Given OK to Restart Montana Pipeline
Q&A
PBF Energy’s O’Malley Discusses Future Fuel Scenarios
Project Updates
Africa
Asia
Europe and CIS
Latin America
Middle East
North America

Operations

U.S. NOAA Study: Low-Sulfur Bunker Fuel Cuts Diesel Emissions Up to 90%

A new study by the U.S. National Oceanographic and Atmospheric Administration (NOAA) finds that ships switching from high-sulfur to low-sulfur bunker fuel not only would produce lower ambient sulfuric-oxide (SOX) emissions but also (surprisingly) lower “black-carbon” emissions blamed for “global warming.”

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NPRA to Become American Fuel & Petrochemical Manufacturers

Charles Drevna, President of the National Petrochemical & Refiners Association (NPRA) announced October 4 that the NPRA will change its name in late January to the American Fuel & Petrochemical Manufacturers.

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U.S. East Coast’s Changing Refinery Dynamics

Not so long ago, America’s “need” to increase refining capacity was the big theme in the oil industry. Now, the big challenge seems to be keeping some of the existing refineries open. In the U.S. Northeast, remnants of the Delaware River’s once-massive oil refining industry were again shaken on September 27 when ConocoPhillips Co. said it would sell or permanently shut its 185,000 barrel-per-day (b/d) Trainer, Pa. refinery.

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Oiltanking, PERN to Build Storage Terminal in Poland

Germany’s Oiltanking GmbH and Poland’s PERN Przyjazn SA will jointly develop and construct a terminal for the storage and handling of bulk liquids in the Port of Gdansk, Poland, according to a September 23 Oiltanking announcement.

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Technology

U.S. Senator Urges Cost-Competitive Energy Technologies

U.S. Sen. Lisa Murkowski (R-Alaska) issued a September 15 statement on the importance of ensuring that Americans have access to affordable energy during a Senate Energy and Natural Resources Committee nomination hearing. The docket for the hearing included the nomination of several staffers at the U.S. Department of Energy (DOE), and each got an earful from Murkowski.

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Reliance Partners with Siemens for Homeland Security Solutions in India

Reliance Security Solutions Ltd., a subsidiary of Reliance Industries Ltd. (RIL) and Siemens Ltd. have signed a Memorandum of Understanding to jointly develop homeland security solutions for “safe, secure and smart cities and highways” in India, according to a September 19 announcement.

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Q&A

PBF Energy’s O’Malley Discusses Future Fuel Scenarios

On September 21, 2011, one of the visionaries of the independent refining world talked with Refinery Tracker about the future of the U.S. fuels industry. Thomas O’Malley, chairman of PBF Energy, sat down on the sidelines of Hart Energy conference in Washington, D.C., entitled, “The Future of Transportation Fuels in the U.S.”

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Feature

Industry Leaders Ponder Future Fuel Scenarios at Hart Energy Conference

On Wednesday September 21, Hart Energy hosted its conference, “The Future of Transportation Fuels in the U.S.,” which raised plenty of questions and discussion from automotive and refining industry attendees and panelists on the uncertain future paths toward improved transportation energy solutions.
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Market Focus

ConocoPhillips to Sell or Shutter Pennsylvania Refinery

ConocoPhillips announced September 27 that it is seeking a buyer for its 185,000 barrel-per-day refinery in Trainer, Pennsylvania, and associated pipelines and terminals.

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Enterprise Products, Enbridge Announce Open Season for Cushing-to-Houston Pipeline

Canada’s Enbridge, Inc. and Houston-based Enterprise Product Partners L.P. plan to design, construct and operate the new “Wrangler” pipeline to transport up to 800,000 barrels per day (b/d) of crude oil from the oversupplied hub at Cushing, Okla., to the Texas Gulf Coast refining complex, according to September 29 company announcements.

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DTF Study Details Huge Impact of Diesel on U.S. Economy

A new study sponsored by the Diesel Technology Forum (DTF) reveals the enormous impact of diesel fuel and diesel equipment on the U.S. economy.

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Austria’s OMV Announces Latest Refining Divestiture Plan

Austria’s OMV in late September announced the results of a strategy review aimed at developing a new focus on the company’s upstream operations and integrated gas space and “a restructured oil downstream business in order to increase firm-wide profitability and competitiveness.”

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Calumet Specialty Products Finalizes Wisconsin Refinery Acquisition

Calumet Specialty Products Partners L.P. (Nasdaq: CLMT) announced October 3 that it completed the previously announced acquisition of the Superior, Wisc., refinery and associated operating assets and inventories.

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Valero Completes Purchase of Meraux Refinery from Murphy

Valero Energy Corp. announced October 1 that it completed its buyout of the 135,000 barrel-per-day Meraux, La., refinery from Murphy Oil, for US$325 million plus inventories valued at about $265 million.

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Targa Resources Acquires Two Petroleum Terminals

Houston-based Targa Resources announced October 3 that it acquired two refined petroleum product and crude oil storage and terminalling facilities in deals worth a combined US$127 million.

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Uruguay Refinery Outage Spurs Extraordinary Fuel-Import Binge

Uruguay will need to import roughly US$600 million in fuels from other refining nations to compensate for lost production from the country’s only refinery, according to a Reuters report citing an official with Ancap, Uruguay’s national energy company.

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Despite Subsidies, India’s Diesel Prices Relatively High, Report Says

If diesel and gasoline retail prices in India were to be calculated on a “purchasing power-parity” (PPP) basis – comparing the average Indian consumer income against average incomes in other nations – then the PPP-adjusted fuel prices would be among the highest in the world.

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EIA: World Energy Use to Increase 53% by 2035

The U.S. Energy Information Administration (EIA) on September 19 released its International Energy Outlook 2011 (IEO2011), which includes updated projections for world energy markets through 2035.

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Plains All American Continues Louisiana Crude Terminal Expansion

Houston-based Plains All American Pipeline, L.P. (NYSE: PAA), is proceeding with the next stage of an expansion at the partnership’s St. James, La., terminal facility, according to a September 22 company announcement.

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Compliance Issues

EU Legislative Proposals Pose ‘Substantial Risk’ to European Refineries

Recent EU legislative proposals on energy efficiency pose “a substantial risk of leaving many regions and probably countries without indigenous refineries,” warns a new report published by Europia, the European petroleum industry association.

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API: Three-Year Keystone XL Pipeline Delay ‘Is Long Enough’

On September 19, the third anniversary of the U.S. State Department’s consideration of the proposed Keystone XL pipeline project, the American Petroleum Institute (API) said this should be among the shovel-ready projects the President Obama considers as part of his jobs program.

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CEC Refines ‘Green’ Transportation Energy Plan

In early September, the California Energy Commission (CEC) unanimously adopted the state’s third annual transportation energy-investment plan to help change the types of vehicles Californians drive and the fuels they use.

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U.S. Economy Can Absorb New Emissions Rules, Study Says

The cumulative compliance costs of federal air-pollution rules will represent “a tiny sliver” of the overall economy, with compliance costs estimated at less than 0.1% of U.S. gross domestic product, a new Economic Policy Institute (EPI) briefing paper finds.

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Brazil’s ANP Proposes 10-ppm Sulfur ULSD Limit for 2013

Brazil’s Agency for Petroleum, Natural Gas and Biofuels (ANP) on September 12 submitted draft specifications requiring a switch from 50 parts-per-million (ppm) sulfur to 10-ppm sulfur in ultra-low sulfur diesel (ULSD) in areas requiring ULSD by Jan. 1, 2013.

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IEA Roadmap Urges Refinery Inclusion in Massive CCS Projects

The International Energy Agency (IEA) on September 20 unveiled a new technology “roadmap” for slashing carbon dioxide (CO2) emissions from industrial sources – including oil refining.

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ExxonMobil Given OK to Restart Montana Pipeline

The U.S. Department of Transportation (DOT) on September 23 approved ExxonMobil Corp.’s plan to restart its Silvertip oil pipeline, which had ruptured and leaked about 1,000 barrels of crude oil into Montana’s Yellowstone River in July, according to a Dow Jones report.

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Project Updates

Africa

Two refinery projects make news in Africa.

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Asia

The Asian region is among the most active in refining project news, as reported in this issue of Refinery Tracker.

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Europe and CIS

A mixed bag of expansion and grassroots refinery projects, economic idlings, and even Refinery-to-Terminal conversion projects are in the news from the Europe and CIS region.

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Latin America

Projects in Argentina and Brazil light up the refining news map in Latin America.

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Middle East

Rising demand for capital, talent, crude and natural gas is apparent in the strong project news flow coming from the Middle East.

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North America

A processing unit that supports heavy crude runs on the U.S. East Coast is in the process of restarting, while new lubes plant construction and olefins capacity expansion plans on the U.S. Gulf Coast adds cross-commodity gravitas for this issue’s project updates for North America.

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