SOCAR's Heydar Aliyev Oil Refinery Signs License And Design Agreements With Axens For The Fluid Catalytic Cracking Unit

On January 17, SOCAR HQ held a ceremony to sign licensing and design agreements for the Fluid Catalytic Cracking (FCC) unit between the Heydar Aliyev Oil Refinery (HAOR) and the French company Axens as part of the HAOR Modernization and Reconstruction Project. The ceremony was attended by SOCAR President Rovnag Abdullayev, Axens CEO Jean Sentenac and other officials.

A signing ceremony was eventually held with the parties participating. The documents were signed by Bakhtiyar Mammadov, SOCAR HAOR Director and Fabien Lundy, Axens Process Licensing Global Commercial Director. It is worth noting that SOCAR and Axens have a long-term co-operation. At present, the Diesel Hydrotreatment, Gasoline Hydrotreatment and C4 (butane-butylene) hydrogenation units as part of the Heydar Aliyev Oil Refinery Reconstruction Project, as well as the C3 (propane-propylene) hydrogenation unit as part of the reconstruction works carried out at Azerkimya PU, the naphtha hydrotreatment, diesel hydrotreatment and kerosene hydrotreatment units at the STAR refinery built in Turkey are licensed by Axens.

The cooperation between SOCAR and Axens encompasses the training of engineers either in IFP School or in Axens in order to contribute to the successful implementation of the Heydar Aliyev Oil Refinery modernization projects including the operation of the licensed process units. These trainings aims also at developing skills in energy efficiency and sustainability. Some time ago, the AR-GE Research Centre of SOCAR Turkey, Axens and IFPEN started jointly to expand AR-GE Research capabilities, and identify subjects of common interest.

 

Optimization of Petroleum Product Manufacturing and Supply Network

ENEOS Corporation (President: Ota Katsuyuki; “ENEOS”) announces that it has made a decision to
terminate the operation of the refinery, plant, and logistics functions at the Wakayama refinery
(Refinery manager: Teshima Masayoshi) located in Arida City, Wakayama Prefecture. The
termination is expected to take place in October 2023.

As one of the envisioned goals in the ENEOS Group Long-Term Vision to 2040, ENEOS aims to
“Become one of the most prominent and internationally competitive energy and materials company
groups in Asia”. To achieve the goal, ENEOS is striving to strengthen the competitiveness of the
entire supply chain in petroleum refining and marketing as one of its base businesses, with safe
operations and a stable supply of energy as the major premises.

The various circumstances in the environment surrounding the petroleum refining and marketing
businesses—which include the rapid reduction in demand due to the recent spread of COVID-19
besides structural domestic demand decline for petroleum products and severe international
competition mainly in Asia—were considered comprehensively. As a result, it was determined that
there was a pressing need to optimize the manufacturing of refineries and plants as well as the
supply network for petroleum products. ENEOS therefore decided to terminate all functions of the
Wakayama refinery

Until the termination of all functions of Wakayama Refinery in October 2023, the Refinery will
continue to contribute to a stable supply of energy, putting a high priority on safe operations.

Overview of the Wakayama refinery

• Location : 1000 Hatsushima-cho Hama, Arida City, Wakayama Prefecture
• Start-up of operation : 1941
• Refinery manager : Teshima Masayoshi
• Number of employees : 447 (as of January 1, 2022)
• Site area : 2.48 million square meters
• Crude process capacity : 127,500 barrels per day 

Shell completes sale of interest in Deer Park refinery to partner Pemex

Shell Oil Company, a subsidiary of Royal Dutch Shell plc, has completed the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and P.M.I. Norteamerica, S.A. De C.V. (a subsidiary of Petroleos Mexicanos, or Pemex) for $596 million, a combination of cash and debt.

The agreement covers the sale of Shell’s 50.005% interest in the partnership, and therefore transfers full ownership of the refinery to Pemex. Shell Chemical L.P. will continue to operate its 100% owned Deer Park Chemicals facility located adjacent to the site.

“The completion of this sale marks the start of a new chapter of our history in Deer Park as we’ve worked closely with Pemex over the past few months to ensure a safe and responsible handover of operations for the refinery,” said Huibert Vigeveno, Shell’s Downstream Director. “The team at Deer Park has been instrumental not only in preparing the asset for Pemex operations, but also in continuing a legacy of safety and performance that dates back 92 years. We look forward to remaining a neighbour in the Deer Park community and growing our chemicals business to best meet the needs of our customers while advancing our global energy and chemicals park strategy.”

As part of its Powering Progress strategy, Shell plans to consolidate its refinery footprint to five core energy and chemicals parks. These locations will maximize the integration benefits of conventional fuels and chemicals production while also offering new low carbon fuels and performance chemicals. They also offer future potential hubs for sequestration. 

Notes to editors

• On May 24, 2021, Shell and Pemex announced that they had signed a sales agreement for Pemex to acquire Shell’s 50.005% interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell and Pemex.
• A further amount of $325 million was received for the value attributed to the hydrocarbon inventory at the time of closing. The final amount for the hydrocarbon inventory will depend on volume measurements and average market prices for the month of January, which is expected to range between $300 to $350 million.
• Employees assigned to the refinery assets were offered employment by Pemex with effect upon closing in accordance with the transaction.
• Shell has entered into certain product offtake and crude supply agreements with Pemex for Deer Park Refinery.
• To mark this new chapter and highlight Shell’s continued support for the Deer Park community, Shell has provided approximately $2 million in funding for projects benefitting the community.
• Shell is one of America’s leading energy companies with interests in 50 states employing more than 12,000 people. Shell’s U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, gasoline, lubricants, and other refined products along with renewables such as wind, solar, and mobility options like electric vehicle charging and hydrogen. In the U.S. Shell is also investing in an integrated power business that will provide electricity to millions of homes and businesses.

Lummus and Moscow Refinery Sign Agreement for Furnace Supply in Russia

Lummus Technology announced it has been awarded a contract from the Gazpromneft Moscow Refinery for two fired heaters. The heaters will be installed at the refinery in Moscow, and are part of the plant’s modernization to improve operational efficiency and environmental performance.

“This award is a great example of how Lummus supports its customers across their capital investment and operational cycles,” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. “We are building on CLG’s delayed coking technology with our advanced heater technology and supporting our partner in reliable operations to optimize light product yields, while delivering high run-length and energy efficiency at the Moscow Refinery.”

Lummus’ scope includes the design and supply of two fired heaters, adding to the delayed coking technology that CLG, a joint venture between Chevron and Lummus, provided in 2018.

Lummus’ delayed coking heaters can handle a wide range of feedstocks in refineries and upgrades for both fuel and specialty coke production. Current heater designs work in cooperation with CLG’s delayed coking technology and incorporate multiple cabins with single coils to deliver superior individual firing, precise temperature control and stringent air quality standards.

Lanaz To Use Honeywell Technology to Modernize Iraqi Refinery to Produce Cleaner-Burning Fuels

 Honeywell announced today that the Lanaz Company will use UOP modular naphtha hydrotreating and fixed-bed Platforming process units to upgrade its refinery in Iraq so it can produce more cleaner-burning transportation fuels. The project marks the first use of UOP modular technology in the country and will help Lanaz comply with increasingly strict specifications for fuel products.

UOP has supplied licensing and basic engineering design services as well as full modular units to Lanaz, based in Erbil in the Kurdistan region of Iraq.

As refiners in developing economies seek to upgrade their facilities to produce high-quality gasoline, many are seeking modular solutions to maintain costs and mitigate risk with pre-fabrication and assembly completed in a safe and controlled environment off-site. In addition, modular technology provides a faster pathway to operations with facilities coming online less time.

“Depending upon capacity and location, UOP’s modular technologies can reduce construction and installation costs more than 20 percent compared with systems constructed on site,” said Laura Leonard, vice president and general manager, UOP Process Technologies. “By upgrading with this technology, Lanaz can start operations between a year and 18 months faster than the traditional field-fabricated model, and quickly produce high-quality gasoline to meet growing demand.”

The Lanaz Refinery is a fully equipped, high capacity refinery built in 2008 in the Kurdistan Region of Iraq and processes about 100,000 bpd of crude oil.