Tuesday 27 April 2021

Engen RTT to shape the future of RSA’s liquid fuels industry

 Engen, a proudly South African brand and a progressive energy and solutions partner committed to enriching lives for a sustainable future, announced today that it will be proceeding with its Refinery to Terminal (RTT) conversion initiative. This considered decision was not taken lightly and follows an extensive strategic evaluation of Engen’s refining business, in which every facet of the refinery was scrutinised and assessed against market demand, future growth potential and the ability to contribute sustainably. The substantive cost of investment for upgrades required to bring the refinery in line with evolving quality and emissions regulation, were also part of the strategic review considerations.


As a responsible business and a committed corporate citizen, Engen has engaged extensively with Government, particularly with the Department of Mineral Resources and Energy (DMRE) and the KwaZulu-Natal Provincial

Government, on the future of the refinery in its strategic review process. These engagements and the feedback received from Government have proven highly valuable and helped inform our terminal conversion proposal.

At the behest of the DMRE and as part of Engen’s commitment to thorough due diligence, the company also commissioned an independent refinery viability study and an independent socio-economic impact assessment. The reports confirmed that the refinery is not financially viable and indicated relatively minor impact on overall GDP and taxes, while identifying upside benefits such as better security of supply, trade balance improvements and positive environmental impact. Engen expects the RTT to also deliver other economic benefits over the long-term.

Yusa’ Hassan, Engen Managing Director and CEO, comments, “The conclusion of the strategic assessment is that the Engen refinery is unsustainable in the longer-term. This is primarily due to the challenging refining environment as a result of a global product supply surplus and depressed demand, resulting in low refining margins, and placing the Engen refinery in financial distress. Furthermore, unaffordable capital costs to meet future CF2 regulations compliance continues to be a challenge for the long-term sustainability of the refinery.

The RTT is part of a long-term business sustainability strategy to ensure Engen is resilient against future market threats and can respond with agility to new opportunities. It also has a knock-on benefit of a reduction in emissions and carbon footprint that will contribute towards Engen’s environmental stewardship commitments. The conversion will also deliver a significant drop in electricity and water consumption, which will mean more electricity and water would be available for under-served households.

The RTT is part of a long-term business sustainability strategy to ensure Engen is resilient against future market threats and can respond with agility to new opportunities. It also has a knock-on benefit of a reduction in emissions and carbon footprint that will contribute towards Engen’s environmental stewardship commitments. The conversion will also deliver a significant drop in electricity and water consumption, which will mean more electricity and water would be available for under-served households.

Hassan continues, “The investment in new infrastructure to create a world-class import terminal as well as repurposing of the refinery site, will generate much needed economic activity in KwaZulu-Natal. In the current economic climate, this should contribute not just in terms of capital, but also in terms of job creation and skills transfer, something that will support South Africa’s post Covid-19 economic recovery. The RTT will also strengthen South Africa’s long-term security of fuel supply and contribute to lower road transport emissions, with resultant health benefits, and assist the country meet its 2027 Green House Gas (GHG) targets.” The RTT commissioning date is anticipated to be in the 3rd Quarter of 2023, with significant capital investments under consideration. Being a Level 1 B-BBEE contributor, Engen is committed to contributing to meaningful and sustainable transformation in the liquid fuels sector. Strategically reviewing existing proposition The Engen refinery, located in the south of Durban and commissioned in 1954, is the oldest refinery in the country and is responsible for approximately 17% of the country’s fuel production. With a nameplate capacity of 120,000 barrels per day, it ranks as a low capacity, medium complexity facility with limited upgrading potential. An added consideration for any upgrades is that it sits on a restrictive plot size and is located within a residential area; of which both factors render a potential capacity modification unfeasible. The global refinery landscape has changed significantly in the past decade with the emergence of mega sized, integrated, and complex refineries, many of which operate in countries that are primary suppliers of crude, resulting in a prolonged period of ultra-low refinery margins that are forecasted to persist well into the future. This was exacerbated by the onset of the Covid-19 pandemic, which resulted in further contraction of demand.

Hassan adds, “After modelling multiple scenarios in consultation with external international sector specialists, it has become very clear that the Engen refinery is not commercially viable. In view of this, company leadership has recognised that the Engen refinery cannot move forward in its current structure. We must safeguard the long-term sustainability of the Engen business; therefore, we are proceeding with the conversion to a terminal.”

Throughout this review process, Engen prioritised regular communication with employees, keeping them abreast of all relevant developments. The company also engaged with employees and union representatives to contribute inputs to the development of a well-informed, collaborative decision for the refinery’s future.

“Our people are a priority during the RTT transition, and it is our firm intention to preserve as many roles as possible. We are initiating a re-skilling and retooling programme, as well as evaluating the potential for some employees to be redeployed to other parts of the Engen organisation. We also expect that the repurposing of the refinery site to develop new business opportunities (e.g. a training centre, renewable energy initiatives, shared services, industrial hub etc.) will ensure that we mitigate, as much as possible, the impact on existing roles,” says Hassan.

Securing the future for all

Security of supply remains an over-arching consideration as Engen looks to the future of its business. The company maintains a robust business continuity framework and, as such, through the institution of its enhanced Business Continuity Plan (BCP) following the unfortunate December 2020 fire incident and subsequent safe shutdown of the facility, has been able to continue to meet customers’ core petroleum product requirements. It remains committed to maintaining a stable and secure supply of petroleum products and to managing demand fluctuations effectively and efficiently. Furthermore, exercising

Engen’s option to import advanced Euro 5 specification fuels could also support the automotive industry and provide an expanded and improved mobility experience in the future.


Hassan concludes, “Engen is committed to playing a leading role in growing South Africa’s future economic prosperity. Securing a sustainable Engen business provides the platform for the future development of new investment opportunities in South Africa, whilst the repurposing of the Engen refinery will serve as a catalyst for economic growth in KwaZulu-Natal, support job creation and socio-economic growth, and ensure Engen continues to be a positive contributor to both the provincial and national economies.

Monday 19 April 2021

Tidewater chooses Topsoe’s HydroFlex™ and H2bridge™ technologies for renewable diesel production

 Topsoe has signed a contract with Tidewater for the delivery of Topsoe’s HydroFlex™ technology in Canada. The technology will be utilized in a new 3,000 barrels per day renewable diesel facility that, subject to receipt of Tidewater’s final investment decision, will be constructed at the site of Tidewater’s existing Prince George refinery in British Columbia, Canada. When operational, the facility is expected to be Canada’s first commercial-scale stand-alone renewable diesel plant.


The renewable diesel facility will be focused on 100% renewable feedstock and will include a pretreatment facility to provide Tidewater significant flexibility on running various renewable feedstocks.

“We are proud that Tidewater has chosen our HydroFlex™ and H2bridge™ technologies for their new renewable diesel facility. This is a testimony of our ability to deliver market-leading, low carbon emission solutions to the refinery industry,” says Henrik Rasmussen, Managing Director of Haldor Topsoe, The Americas.

“Tidewater is excited to progress our effort in carbon reduction through the development of our renewable initiatives. Topsoe’s technology will contribute to our ability to support our customers with significantly less carbon intensive products,” said Joel MacLeod, Tidewater Chairman and Chief Executive Officer.

HydroFlex™ is the industry-leading technology for production of renewable jet and diesel. This commercially proven technology provides refiners with lower CAPEX, lower OPEX, lower carbon intensity (CI) score, and better diesel yield. HydroFlex™ can be deployed in both grassroots units and revamps for co-processing or stand-alone applications.

Wednesday 14 April 2021

Axens’ Technologies For Basrah Refinery Upgrading Project

 Part of Iraq’s Ministry of Oil, the state-owned South Refineries Company (SRC) executed the upgrading of its refinery located in Basrah, Iraq by implementing a new refining plant adjacent to the existing refinery facility. The Basrah Upgrading Project is now reaching the engineering, procurement and construction (EPC) phase carried out by JGC Corporation (JGC).


Axens is pleased to continue being involved in this important Iraqi project, which will increase the gasoline and diesel production along with other oil products, reducing the national refined products imports. The Basrah Upgrading Project will also improve oil refinery efficiency of the complete facility.

Different Axens’ technologies were selected and will be used:

- a Diesel hydrotreatment unit (Prime-DTM),
- a VGO Hydrotreating unit
- a VGO FCC unit,
- an oligomerization unit (PolynaphthaTM)

Thus, an integrated scheme around the FCC unit is implemented thanks to Axens’ unique position for a complete FCC suite of technologies from pre-treatment to post-treatment. The PolynaphthaTM technology downstream the FCC unit for oligomerization of light olefins aims at maximizing gasoline production.

With this award, another reference is added to the long list of more than 300 FCC projects. Industrial successes in this domain keep the FCC Alliance as a global leader with a track record of 4 new grassroots FCC units started up in the past 4 years.
In addition, Axens will provide catalysts & adsorbents, key technology features such as proprietary equipment, trainings and technical services.

“The Basrah refinery is expanding its operations by increasing its gasoline and diesel production while improving the fuels quality. This will help to solve one of the main challenges to lower national petroleum products imports revitalizing the Iraqi refining sector damaged by war and deterioration. South Refineries Company selected Axens for its wide and proven experience in refining as a partner to supply technologies but also to support throughout the whole project,” said Jacques Rault, Conversion & clean fuels Business Line Director, Process Licensing at Axens.

“The Iraqi Ministry of Oil and the Southern Refineries Company with the support of the Japanese government represented by the JICA Organization are doing great work to complete the Basrah Refinery Development / FCC Project by adopting the latest technologies and designs provided by Axens. With the construction contract signed with the Japanese company JGC on October 1, 2020 and then activated on February 15, 2021, the project activities started according to the agreed schedule. Among other developments, we are pleased to complete this vital and important project that supports the production of oil derivatives meeting international standards and environmental requirements adopted in this field and relieves the burden of oil products imports,” said Ibraheem Al-Salihi, FCC Project Manager, South Refineries Company.

Esso Evaluating Conversion of Slagen Refinery to Import Terminal

 Esso Norge AS is evaluating the conversion of operations at its Slagen refinery to a fuel import terminal. The Board of Directors of Esso Norge AS has today initiated an Information and Consultation process with employees and their representatives as part of an extensive review of the long-term economic viability of the facility. 


Refineries in Europe operate in an increasingly challenging market, characterized by falling demand and strong competition, leading to overcapacity in the market. In Norway, demand has decreased for road transportation fuels. 

“We thank our employees for their tremendous efforts during this challenging time,” said Per-Erik Aasum, president of Esso Norge AS. “We understand the significant impacts a conversion would have on our employees, and we are committed to keeping an open dialogue throughout the process to ensure our employees are treated fairly and with respect.”

If converted to a terminal, Slagen would import high quality fuel products for further distribution through existing infrastructure to ensure ongoing, reliable fuel supply for Esso customers. The basis for and timing of a potential conversion will be subject to consultation with employees and dialogue with the relevant authorities.

During the course of the evaluation, the Slagen refinery will remain in operation to ensure continued, reliable fuel supply. Throughout this process, the company’s priorities will remain the same — meeting the expectations of employees, customers and business partners, while maintaining a consistent focus on safe, reliable and environmentally responsible operations. 

Esso has a long history in Norway and has delivered high quality products and services for more than 125 years. The Slagen refinery has provided critical energy products to support the country’s growth since 1961. We value the long-term relationship with our customers and will continue to provide first-class customer service.

Chevron and Honeywell Announce Start-up of World's First Commercial ISOALKY™ Ionic Liquids Alkylation Unit

 Chevron Corporation (NYSE: CVX) and Honeywell (NYSE: HON) today announced the commissioning and start-up of the world’s first commercial-scale ISOALKY™ process unit that utilizes ionic liquids to produce alkylate. The ISOALKY™ technology represents a major innovation in alkylation technology.


First used in Chevron’s Salt Lake City refinery, the ISOALKY™ technology is designed to meet the refining industry’s needs for a cost-effective alternative to conventional liquid acid systems that offers process safety advantages. Using a non-aqueous liquid salt, or ionic liquid, the revolutionary new catalytic process is handled with standard personal protective equipment and produces a valuable high-octane blending component that helps lower the environmental impact of gasoline. Pioneered by Chevron U.S.A., Inc., a subsidiary of Chevron, and licensed to Honeywell UOP, the technology is offered to the entire industry under the ISOALKY™ brand name.

“The ISOALKY™ plant is an exciting achievement for Chevron and the Salt Lake Refinery, and it’s poised to be a game changer for the refining industry,” said Mike Coyle, president of Chevron Manufacturing. “We are proud of the talent and teamwork demonstrated by our people and Honeywell UOP to bring this project to fruition.”

“ISOALKY™ is a groundbreaking new technology for refiners, and a lower-risk and economical solution compared to conventional liquid acid technologies that produce alkylate,” said Bryan Glover, president and CEO of Honeywell UOP. “Ionic liquids have strong acid properties that enable them to produce alkylate without the volatility of conventional acids, allowing for simpler handling procedures. Together with Chevron, Honeywell UOP has commercialized a solution that meets the rising global demand for cleaner-burning fuels at a lower cost while simplifying complex handling requirements.”

ISOALKY™ technology can be used in new refineries as well as in existing facilities undergoing capital expansion or retrofit applications. ISOALKY™ technology has wider and improved feed flexibility relative to conventional alkylation technologies. Ionic liquids are regenerated on-site, eliminating the need for road or marine transportation for offsite regeneration and polymer byproduct handling. More information about ISOALKY™ technology can be found here.