The downstream rundown: In case you missed it 6/17
The downstream rundown: In case you missed it 6/17
In case you missed any downstream news, this piece will give you a summary of some of the top stories from last week.
Impact of strike by South Korean truckers on autos, steel, petrochemicals, others
Thousands of South Korean truckers were on strike for the seventh day on Monday, protesting over pay as fuel costs surge, disrupting production, slowing port operations and posing new risks to a strained global supply chain.
South Korean industries, including auto, steel, petrochemical and cement, faced accumulated losses worth about 1.6 T won ($1.2 B) as of Sunday due to the ongoing trucker strike, the industry ministry said.
Following are details of the disruption, lost production and reactions from union officials and businesses.
Ørsted to capture and store 400,000 tons of carbon in 2025
Ørsted is planning to establish carbon capture at its wood chip-fired Asnæs Power Station in Kalundborg on western Zealand and at the Avedøre Power Station’s straw-fired boiler in the Greater Copenhagen area. The technology and logistics for handling and storing carbon from the two CHP plants are in place, and if financial support is obtained from the current tender for carbon capture and storage, Ørsted can be ready to capture and store 400,000 tons of carbon as early as 2025, which is also the objective of the political agreement on carbon capture and storage (CCS).
“With carbon capture at the Asnæs and Avedøre CHP plants, we’ll be able to capture 400,000 tons of carbon from 2025, which can be stored in the North Sea. This will contribute significantly to realizing the politically decided climate target for 2025,” says Ole Thomsen, Senior Vice President, Ørsted.
Repsol will invest over €35 MM to build an XLPE plant to manufacture HV and EHV cables
Repsol will build a new plant in Tarragona, with an investment of over €35 M for the manufacture of Cross-linkable Polyethylene (XLPE), a polymer used in cable insulation, located between the conductor and the outer protective layers.
The plant will have an annual capacity of 27 kt and is scheduled to start in mid-2024. The LSHC (Linear Short Hyperclean) new technology selected for the plant, from Buss AG, will provide a product with very competitive properties, enabling Repsol to complete its product range for cables by incorporating materials for HV (high voltage) and EHV (extra-high voltage) cables.
Chevron completes acquisition of Renewable Energy Group
Chevron Corporation completed its previously announced acquisition of Renewable Energy Group, Inc. following approval by REG stockholders.
“We have brought together companies with complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuels companies in the United States,” said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron. “Chevron now offers our customers an expanded suite of cost-effective, lower carbon solutions that utilize today’s fleets and infrastructure.”
Wood signs global engineering & project support master services agreement with Chevron
Wood, the global consulting and engineering company, has entered into a 10-year global master services agreement for engineering and project related services with Chevron.
The agreement can be used by all of Chevron’s business units and covers both offshore and onshore assets within the upstream, midstream and downstream markets.
Aramco Trading plans to absorb Motiva Trading ahead of possible IPO
Saudi Aramco is planning to merge two energy trading units, people familiar with the matter said, with Aramco Trading Co (ATC) due to absorb Motiva Trading ahead of a potential initial public offering of the business.
The move to combine the businesses is expected to give potential investors a better sense of the scale of Aramco's trading and would also allow the state oil producer to simplify financial reporting and cut duplication.
The restructuring is likely to be announced before the end of the year, one of the two people familiar with the matter said. The merger would come four years after Shell Plc exited Motiva Enterprises, leaving Aramco in control of Motiva Trading and Motiva's refinery, the largest in the United States.
Maire Tecnimont strengthens its partnership with Granbio thanks to the patent validation for 2G ethanol technology
Europe’s strict regulations and challenging targets for the decarbonization of transports are driving a rapidly growing demand for bio and low carbon fuels, with bioethanol alone expected to show a CAGR of over 4% during the 2022-2027 period.
As part of its green acceleration roadmap, Maire Tecnimont Group’s NextChem partnered up with Brazil-based GranBio in 2020 to co-develop and co-license the 2G ethanol technology which converts non-food lignocellulosic biomass into low-carbon second generation biofuels.
Shell to build ships to carry more CO2 over longer distances for CCS hubs
Shell is building larger vessels that can carry more carbon dioxide over longer distances as part of the company's plans to expand its carbon capture storage (CCS) business globally, the oil major said.
The ability to ship large volumes of CO2 from industrial sites to offshore CCS hubs is critical in improving the economies of scale for these projects. CCS is aimed at decarbonizing heavy industries such as refining, cement and steel.
As part of the Northern Lights project in Norway, Shell's joint venture with Equinor and TotalEnergies, the companies will build two ships capable of carrying 7,500 cubic meters of CO2.
Lummus Technology launches next generation of breech-lock high-pressure heat exchanger closure
Lummus Technology, a global provider of process technologies and value-driven solutions, announced the launch of its Polaris breech-lock closure, a new technological upgrade applicable to its high-pressure heat exchanger equipment. This advanced design of breech-lock closure provides a host of operational benefits including safe, reliable and secure sealing under all conditions, a simplified assembly and easier maintenance.
"The Polaris breech-lock heat exchanger exemplifies our dedication to deliver innovation and operational performance for customers requiring new or retrofitted heat exchangers," said Rutger Theunissen, Chief Business Officer of Services and Supplies, Lummus Technology. "The new closure system allows for a wider range of operating conditions, increased unit sizes and capacities and reduces shut down times due to ease of use, while delivering the high reliability and safety our customers expect from Lummus."
Wood appoints new executive president for consulting business
Wood, the global consulting and engineering company, announced the appointment of Azad Hessamodini as Executive President of its Consulting business and the latest member of the firm’s executive leadership team.
In this role, Mr Hessamodini will assume executive responsibility for Wood’s global specialist consultancy business encompassing almost 4000 professionals with industry-leading expertise in areas including decarbonization, hydrogen, Carbon Capture & Storage, renewables advisory, asset optimization and digital solutions.