Refinery Tracker

Analysis: Latin America Providing an Outlet for U.S. Refining Industry

Strong growth in emerging Latin American economies includes the refining sectors, but U.S. refiners will enjoy a significant opportunity for export to the region until major projects in Brazil and Mexico are completed in the next few years. Those were the conclusions of two refining experts at a Hart Energy Breakfast Club event in Houston on May 3.

Valero Offered US$350 Million for Idled Aruba Refinery

Valero Energy has received an offer of US$350 million for its idled Aruba refinery, and PetroChina is being described as an interested party, according to a recent Dow Jones report. San Antonio-based Valero has not confirmed the name of the potential buyer.

US$600-Million Oil Storage Site Planned for St. James, La.

A consortium including Australian investment bank Macquarie Group plans to build a 10 million-barrel oil storage terminal in Louisiana – a US$600-million bet on both rising North American crude production and increasing exports of refined petroleum products, according to a May 9 Dow Jones report.

IEA: Global Oil Consumption to Hit 90 Million b/d in 2012

Global oil consumption is expected to rise by 0.8 million barrels per day (b/d) in 2012, to 90 million b/d, according to the latest International Energy Agency (IEA) monthly Oil Market Report (released May 11).

Revised Outlook on U.S. Gasoline Market Provided in New Report

An analysis on trends in the U.S. gasoline market is offered in a new report by Terrence Higgins, executive director of refining and special projects for Hart Energy.

Experts Explore Transportation, Petchems, LNG Exports to Promote Gas Demand

The abundance of natural gas from U.S. shale plays is a tremendous resource, but low prices are frustrating gas producers. New ideas for promoting demand, and thus raising prices, are key issues, according to a group of panelists speaking at Hart Energy’s recently held Developing Unconventional Gas Conference in Fort Worth, Texas.

CCS Funding Stalls: Worldwatch Institute

Global funding for carbon-capture and storage (CCS) technology stalled at US$23.5 billion in 2011 compared with 2010, according to a new report from the U.S.-based Worldwatch Institute.

Infineum Signs LOI to Build China Manufacturing Facility

U.K.-based additives company Infineum announced May 4 that it has signed a letter of intent (LOI) with Zhangjiagang Industrial Park in Jiangsu Province, China, as the first step in the process aimed at building a new manufacturing complex in that country. The investment will be subject to approval by the board of directors, the company said.

PFB to Acquire NOVA Chemicals’ Styrenics Business

PFB, through its subsidiary PFB International Corp., has signed a letter of intent with NOVA Chemicals Corp. to acquire NOVA Chemicals’ Performance Styrenics business, including the expandable polystyrene (EPS) and ARCEL resin products.

Foster Wheeler Inks Downstream Engineering Deal with Shell Global Solutions

Foster Wheeler announced May 8 that it signed an “Asian Enterprise Framework Agreement” with Shell Global Solutions International B.V.

Zelinski Joins KBR as President, Downstream

David Zelinski has joined KBR as president of the downstream business unit where he will be responsible for heading up the downstream business unit for KBR’s hydrocarbons group.

Chevron Reports Better 1Q 2012 Downstream Earnings

Chevron Corp. reported earnings of US$6.5 billion ($3.27 per share – diluted) for the first-quarter(1Q) 2012, compared with $6.2 billion ($3.09 per share – diluted) in the 2011 1Q. Sales and other operating revenues in the 1Q 2012 were $59 billion, versus $58 billion in the year-ago period.

Phillips 66 to Double Fuel Exports in Next Two Years

Phillips 66 Co., the refining company spun out from Houston-based ConocoPhillips Co. announced May 1 that it plans to double its fuel exports in the next two years as U.S. oil production surges but gasoline demand declines.

Houma-to-Houston Reversal Open Season Deemed a Success

Shell Pipeline announced April 27 that it successfully concluded its binding open-season period for firm capacity on the Houma-to-Houston pipeline system reversal project (Ho-Ho Reversal).

Caterpillar 1Q-2012 Profit Rises 29% Year-over-Year

Caterpillar announced April 25 that its first-quarter (1Q) 2012 profits rose to US$1.586 billion, up 29% from $1.225 billion in 1Q 2011.

Methanex to Relocate Chilean Plant to Louisiana

Vancouver-based Methanex is planning to relocate one of its plants from Chile to Geismar, La., according to a recent report from Business Excellence.

Marathon Considering Capline Pipeline Reversal

Marathon Petroleum Corp. is exploring the possibility of reversing a major pipeline to bring oil from the Midwest to the Gulf Coast refining belt, according to a May 1 Dow Jones report citing a company executive.

Chevron Phillips Chemical Selects Old Ocean, Texas, for New PE Facilities

Chevron Phillips Chemical Co. LP announced May 1 that it will locate two polyethylene (PE) facilities planned as part of the company’s U.S. Gulf Coast (USGC) Petrochemicals Project near the Chevron Phillips Chemical Sweeny facility in Old Ocean, Texas.

Ecopetrol Profits Rise, but Refining Sector Losses Grow

Colombia’s mostly-state-owned Ecopetrol announced April 30 that first-quarter (1Q) 2012 net income rose to COP$4.3 trillion (US$2.4 billion), up 27.6% from COP$3.4 trillion (US$1.9 billion) in 1Q 2011.

Foster Wheeler Awarded Contracts in Abu Dhabi, Louisiana

Foster Wheeler wins a contract from the Abu Dhabi National Chemicals Company (ChemaWEyaat) for project management consultancy (PMC) services for an aromatics complex (Stage I of the Tacaamol Project) and the supporting infrastructure. The company also was awarded an owner’s engineer contract for a new LNG (liquefied natural gas) liquefaction project to be located in Hackberry, La., by Cameron LNG LLC, an affiliate of Sempra Energy.

Axens, Headwaters Tout Coal/Resid Co-Processing Scheme

Refinery technology vendor Axens and coal-to-liquids (CTL) technology developer Headwaters are promoting a novel coal/residual oil co-processing scheme that could open up new possibilities for motor fuels from relatively low-value feedstocks.

Linde Touts Hydrogen-Reforming Scheme from Biodiesel Byproduct

Germany-based Linde Group announced April 23 that it won certification from testing organization TÜV SÜD for a scheme to produce hydrogen for fuel-cell power from biodiesel byproducts.

CRC Study Finds E15 Damages Vehicle Engines

Two popular gasoline engines in recent-model cars showed mechanical damage from a fuel blend of unleaded gasoline and 15% ethanol, according to a study by a nonprofit research group backed by the petroleum and auto industries.

U.S. EPA Administrator’s Faux Pas Becomes Political Opportunity

The April 29 resignation of U.S. Environmental Protection Agency (EPA) regional administrator Al Armendariz is a classic tale of business regulation colliding with the interests of oil and gas – but with a contemporary twist.

API: Half of U.S. Refueling Stations Not Ready for E15

The American Petroleum Institute (API) recently released an analysis of the Environmental Protection Agency’s (EPA) new regulations to allow higher amounts of ethanol in gasoline.

U.S. EPA Rejects Sulfur-Averaging Scheme for Marine Diesel ‘ECA’ Compliance

The U.S. Environmental Protection Agency (EPA) told an April 24 U.S. House subcommittee hearing that it won’t support a proposed fuel-sulfur-averaging scheme for marine diesel “emissions-control area” (ECA) regulation scheduled to take effect in 2015.

EU Commission Study on Crude Oil Carbon Intensity to Delay Fuel-Quality Directive

The European Commission is undertaking a new economic and environmental impact assessment on the relative “carbon intensity” of various crude oils including Canadian oil-sands crude, with the result that the Commission’s proposed “fuel-quality directive” amendments would be delayed by a year.

U.S. EPA Hits Green Diesel LLC on Biodiesel RIN Fraud Charges

The U.S. Environmental Protection Agency (EPA) on April 30 hit Houston-based Green Diesel LLC with a “notice of violation” (NOV) for allegedly generating and selling more than 60 million “invalid” renewable identification number (RIN) biodiesel trading credits under the Renewable Fuels Standard (RFS) “without producing any qualifying renewable fuel.”

UOP: Renewable Diesel Making Inroads into Commercial Market

While its foundation is in the petrochemical industry, UOP has, with precision, successfully established itself as a leading process technology provider for the advanced biofuels industry. The company provides novel process technology offerings such as its trademarked Ecofining technology, which can cost-effectively and efficiently process a number of virgin and waste oil residues into a clean, drop-in renewable diesel.