Page 12 - DMEA week 23

DMEA PetroChemiCaLs DMEA
Iran acts to increase petrochemical exports as US targets PGPIC
middLe east
IRAN is trying to ramp up exports of petro- chemicals following the major reduction in oil sales since they were speci cally targeted by US sanctions in November.
e move is unsurprising given the success of oil sanctions, while on June 7 Washington announced the sanction of Iran’s Persian Gulf Petrochemical Industries Co. (PGPIC) for alleg- edly providing indirect support to the Islamic Revolutionary Guard Corps (IRGC).
Iranian government sources were quoted by newswires as saying that Tehran has been selling higher volumes of cut price petrochemical prod- ucts to Brazil, China, India and others as it seeks to make up for lost oil revenues.
Sales of certain products have been able to continue largely because of ambiguity surround- ing urea, ammonia and methanol, but the move to sanction PGPIC will act as a warning to those collaborating with Iranian petrochemical rms.
The company and its 39 subsidiaries and overseas sellers have now been branded specially designated nationals (SDNs), preventing US companies of citizens from having dealings with them. 14 of these subsidiaries are petrochemical production project companies.
e Treasury said it had also sanctioned the PGPIC holding group’s network of 39 subsidiary petrochemical companies and foreign-based
sales agents. PGPIC and its units have 40% of Iran’s petrochemical production capacity and account for 50% of Iran’s petrochemical exports, it said. Member of the Iranian Oil, Gas and Pet- rochemical Products Exporters’ Union, Ahmad Sarami, this week said that Tehran has received US$11 billion from petrochemical exports dur- ing the previous Iranian calendar year, which ended on March 20.
Meanwhile, state energy sector media outlet Shana reported on June 11 that the rst phase development of the hengam petrochemical plant was 73% complete. It cited the National Petrochemical Co. (NPC) as saying that the pri- mary reformer, ammonia production reactor and a CO2 separation tower had been installed during the last month.
Once complete, the Assaluyeh-based facility will have a production capacity of 803,000 tonnes per year of ammonia and 1.28 million tpy of urea and granules.
Deputy oil minister Behzad Mohammadi also said this week that 14 petchems projects are being developed as the rst phase of the Parsian Energy Intensive Industrial Special Economic Zone (PEIISEZ) in the southern province of hormuzgan. he said that these will increase the country’s petrochemical output by 15 million tpy at an investment cost of US$19 billion.™
terminaLs & shiPPinG
New Fortress signs MoU for Angola facility
afriCa
NEW Fortress Energy has signed a memoran- dum of understanding (MoU) with Angola on the provision of a regasi cation terminal. e facility will provide gas to the West African state for power generation.
e US-listed company said in a statement on June 5 that the deal was signed with the Angolan Ministry of Mineral Resources and Petroleum, Ministry of Energy and Water and Ministry of Finance. Angolan President Joao Lourenco also approved the MoU. New Fortress will fund, build and operate an import and regas terminal. It will also work with the petroleum ministry to explore domestic gas resources and a liquefac- tion facility, the statement said.
“This partnership will provide cleaner, a ordable natural gas to Angola, creating sig- ni cant economic and environmental bene ts,” said New Fortress’ CEO, Wes Edens.
Reducing fuel costs, through this shi to gas, “will encourage further investment and directly
bene t Angolans”.
Angolan Minister of Mineral Resources and
Petroleum Diamantino Azevedo said the deal was the rst step to the country becoming a “gas economy”.
While the MoU is interesting, the statement from New Fortress noted it was non-binding and that any de nitive agreement may di er from this document.
The company, in its IPO filing earlier this year, declared an interest in opportunities in Africa. New Fortress has had a number of suc- cesses in providing oating storage regasi cation units (FSRUs) in the Caribbean and has plans for a facility in Ireland.
As of May 15, when the company posted its first quarter results, New Fortress said it had 14 projects under development, with costs of around US$356 million. Plans in Jamaica, Puerto Rico and Mexico were expected to be up and running in the next 12 months, it said.™
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w w w . N E W S B A S E . c o m Week 23 13•June•2019