Page 18 - DMEA Week 19 2020

DMEA
NEWS IN BRIEF
DMEA
Saudi Arabian port receives biggest petchem ship
The King Fahd Industrial Port in Yanbu, Saudi Arabia, has received TORM Maren, a ship carrying 109,000 tonnes of gasoline.
It is the largest petrochemical ship the port’s Samref Station has ever received, the Saudi Press Agency reported on March 9.
It is part of a strategic plan to develop Saudi ports to receive the largest and most modern international ships, and to improve the ports’ performance and services. King Fahd Industrial Port has high operational and logistical capacity as well as advanced equipment, contributing to attracting a greater number of international shipping lines.
Egypt’s fuel subsidy bill
down 65% in 9M through
March
Egypt’s spending on fuel subsidies dropped by about 65% to 21bn Egyptian pounds ($1.34bn) in July-March, a petroleum ministry official told Reuters on March 10.
Egypt spent 60.1bn Egyptian pounds on fuel subsidies in the same period a year earlier. Over the past three years, Egypt has phased out subsidies on most fuel products as part of an IMF-backed economic reform programme..
per litre in place of SAR1.31, while gasoline 95 will be priced at SAR0.82 per litre from SAR1.47 in the previous month.
The new prices have come into effect on May 11. According to Saudi Aramco, this is in accordance with the governance procedures of pricing adjustment of approved energy and water products.
Oman starts commissioning $6.7bn petchem plant
Oman’s OQ has kick-started commissioning at its $6.7bn Liwa Plastics polymer project near the port of Sohar, local media reported on May 13.
The complex, set to establish the Sultanate as a key petrochemicals producer, will raise OQ’s polyethylene and polypropylene capacity to 1.4mn tonnes per year, from a mere 300,000 tpy at present.
The product portfolio will include
linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE) and polypropylene (PP). The improvement of the product mix helps OQ’s partners to address the growing global demand for innovative polymers.
The project is also expected to spawn a series of investments further downstream..
Equatorial Guinea orders
study from Nexant for
formaldehyde plant
The Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea, in collaboration with the Atlantic Methanol Production Company (AMPCO), awarded American company Nexant the feasibility study for
the construction of a new formaldehyde production plant in Punta Europa.
The project is part of the Year of Investment and was previously agreed during a meeting last January between H.E. President Teodoro Obiang Nguema Mbasogo, H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, Marathon Oil Chairman, President and CEO Lee Tillman and Executive Vice President Mitch Little.
Formaldehyde is a key component in the manufacturing of plastics, clothing, paper, and is widely used in industries derived from wood. The construction of such a facility in Equatorial Guinea would open doors for the establishment and growth of such related industries in the country. The feasibility study for the project is expected to be ready by mid- June 2020, and is part of the ongoing Year of Investment 2020.
“We are on track to deliver several projects under the Year of Investment 2020 following
the award of the feasibility study for a 5,000 bpd modular refinery to VFuels last month, and the award of the feasibility study for
the methanol-to-derivates plant this week,” declared H.E. Gabriel Mbaga Obiang Lima. “These are two landmark projects of the
Year of Investment that will boost the local transformation of domestic oil and natural gas and create substantial jobs for the country,” he added.
The Year of Investment 2020 projects aim at attracting investments across Equatorial Guinea’s midstream and downstream industries and promote infrastructure that adds value to the hydrocarbons industry of the country through job creation. In light of the ongoing economic crisis in the region,
the Year of Investment has also become a
way for Equatorial Guinea to ensure a quick and sustainable recovery of its economy by promoting investments in key infrastructure projects that can create local value and generate revenue for the country. Key projects being promoted under the Year of Investment notably include a modular refinery for domestic supply, an additional modular refinery which could be destined for exports, storage tanks for refined products, methanol derivatives manufacturing, an industrial mining area with a gold refinery, and a urea plant project.
Kenya continues its
pipeline plan as oil prices
drop
Kenya is forging ahead with its plan to build
a Sh121.45 billion pipeline from Lokichar to Lamu to boost its crude oil exports despite the concern over falling prices of the commodity in the global market, Business Daily Africa reported on May 14.
Budget estimates show that the State Department for Petroleum plans to spend KES648.5mn ($6mn) in the financial year starting July 1 on the oil pipeline, commonly known as Project S.
The allocation is in addition to the KES777.5mn allocated in the current financial year to undertake research, feasibility studies, project preparation and design for the project.
According to the official timelines, the pipeline construction will be completed in the second half of 2023 and not June 2022.
“We can conclude the award to EPC (engineering, procurement and construction) contractor in the second or the third quarter of the year and begin construction then,” Petroleum PS Andrew Kamau told the Business Daily in an earlier interview.
Adnoc, Enoc open more fuel stations in UAE
The UAE’s fuel retailer Adnoc and Enoc on May 10 announced opening more outlets and convenience stores in the country.
Adnoc Distribution, the UAE’s largest fuel and convenience retailer, opened four new service stations in the Industrial City of Abu Dhabi (ICAD) 3, Mouzaz, Khalifa City and Al Khubaisi in Al Ain.
Ahmed Al Shamsi, Acting CEO of Adnoc Distribution, said: “We have continued to implement initiatives that help our customers to stay safe when making their essential journeys, and we recognize that fuel is one such necessity.”
Saudi Arabia slashes fuel prices substantially
Saudi Aramco has reduced fuel prices in the Kingdom starting Monday (May 11), Saudi Press Agency (SPA) reported early May 11.
Gasoline 91 will now be priced at SAR0.67
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Week 19 14•May•2020