Page 18 - DMEA Week 47 2020

DMEA NEWS IN BRIEF DMEA

Fatal fire at Iran’s Kharg tanks, a lot of people took advantage of that,” JYIC pens partnership deal
“It was an opportunity to fill up our
Petrochemical’s LPG unit Shaddick said. “We started at the bottom and with SABIC, Vopak to own
it’s gotten better and better.”
A fire at Iran’s Kharg Petrochemical plant on 20% stake in Chemtank
November 19 killed one person and injured
three others, although the plant is operating Saudi Sadara Chemical SABIC and Vopak Holding Terminals
normally and the methanol unit is fully BV signed a partnership agreement with
operational. fulfils lenders’ conditions Jubail and Yanbu Industrial Cities Co
The fire, which was extinguished within (JYIC), owned by the Royal Commission
15 minutes, broke out when hydrocarbons for project completion date for Jubail and Yanbu, under which JYIC
from the plant’s LPG unit were being will become a 20% stake partner in Jubail
removed. The unit had shut for full Sadara Basic Services Company said that Chemical Storage and Services Company
maintenance the previous day. its parent company, Sadara Chemical (Chemtank).
The managing director of Kharg Company (Sadara), has fulfilled the The agreement aims at strengthening
Petrochemical, Gholamreza Amirshaghaghi, conditions specified by the lenders to strategic integration among the three parties
confirmed the normal operations at the achieve the Project Completion Date to scale up the scope of collaboration
plant without elaborating on the scale of (PCD) of Sadara project. between local and international
the damage at the LPG unit or its expected The PCD is a key milestone that marks organisations. This will ultimately help
start-up date. the completion of the Sadara project and achieve the goals of the National Industrial
The company had issued a tender to sell follows the completion of the creditors’ Development and Logistics Program, a key
44,000 tonnes of mixed LPG in September reliability test (CRT) in December 2018, part of Saudi Vision 2030.
and 10,000 tonnes of mixed LPG in October according to a bourse filing on Tuesday. Commenting on the event, Abdullah
and November respectively. The reliability test is a monitored exercise Al-Saadan, president, Royal Commission
designed to demonstrate that Sadara’s for Jubail and Yanbu, said that JYIC enables
26-plant chemical complex is operating at the Royal Commission to make optimal
Ecomar expands Fujairah full capacity. use of its assets and provide services in
the Royal Commission cities, thus achieve
refinery capacity to 20,000 Port Harcourt refinery’s sustainability and efficiency. He also said
that the agreement is part of Saudi Vision
bpd 2030.
“It invests in the development of the
Ecomar Energy Solutions has expanded rehabilitation begins Q1 industrial investor logistical services
production capacity at its refinery at Fujairah 2021: NNPC sector, which plays an active logistical
on the UAE’s east coast to 20,000 barrels per role in serving industries, especially
day (bpd) on the back of increased demand The Nigerian National Petroleum Corporation petrochemicals. This will help create
and improved margins since the first week of (NNPC) said it will begin the second phase of an attractive environment and enhance
November. the rehabilitation of Port-Harcourt Refinery in capabilities of the business sector,” Al-
Capacity was increased from 15,000 the first quarter of 2021. Saadan said.
bpd, and output is up to 19,000-20,000 bpd NNPC targets getting the four refineries Yousef Al-Benyan, SABIC vice chairman
from 15,000 bpd, Leigh Shaddick, Ecomar’s running by 2023. The NNPC’s Group and CEO, said the agreement builds on the
trading director, told S&P Global Platts on Managing Director (GMD) Mallam Mele historical partnership between SABIC and
Nov. 24. He added that Ecomar currently has Kyari disclosed this at an interactive session RCJY. It is an extension of the company’s
orders for fuel oil extending to the end of Q1 with journalists in Abuja last weekend. continuous coordination in support of
2021. “The vision of revamping the pipelines is in the industrial sector in the kingdom to
“Now is the time to build, costs are low,” tandem with the Refineries Rehabilitation Project create an appropriate environment to lay
Shaddick said. “We see plenty of demand. which we have promised to deliver by 2023. the foundation for future investment, Al-
Refining margins are slightly better since the “I am happy to announce that the funding Benyan added. Also he recognised on the
first week of November. News of the vaccine challenge which had stalled the second phase contribution of vopak as a global player in
was really helpful.” of the rehabilitation of the Port Harcourt this field.
Pfizer and BioNTech said on November Refinery has been resolved. The contract for Eelco Hoekstra, CEO of Royal Vopak,
9 that their COVID-19 vaccine prevented the second phase will soon be awarded and said: “The entry of JYIC cements a
more than 90% of infections. work will commence in Q1 of 2021,” Kyari partnership in which the Royal Commission,
Ecomar plans to further expand capacity said. SABIC and Vopak have jointly collaborated
to 60,000 bpd by the beginning of 2022, The GMD said much had been put in place over the past 20 years to create a world-
when low sulfur fuel oil may be added to to boost exploration and production with a class supply chain infrastructure in Jubail
the product list, Shaddick said. The refinery view to raising national reserves to 40 billion and Yanbu. This sets a great platform to
currently produces naphtha, kerosene, barrels and daily production to 3 million. He deliver further growth and efficiency in the
gasoil and residual fuel, and also has floating also disclosed that a number of disputes that kingdom.”
storage off Fujairah for oil products. Storage hampered production activities had been Under the new agreement and subject to
capacity inland remains 130,000 cubic metres resolved with a view to boosting production obtaining all required regulatory approvals,
(1.09mn barrels). to meet the 3m barrels per day production JYIC will own 20% of the Chemtank
Fujairah has two other refineries, operated target. shares, making SABIC and Vopak Holding
by VTTI and Uniper Energy. “Key among these are disputes involving Terminals BV owners of 58% and 22%
Energy Solutions was set up in 2013 and Shell and Belema Oil that shut in over 30,000 respectively.
the refinery started in April 2020 when WTI barrels per day production in OML 25.”
crude prices turned negative.

P18 www. NEWSBASE .com Week 47 26•November•2020