December 29, 2019:

Notably, residents of villages in the vicinity of the refinery, led by Singhpura Sithna village sarpanch Satpal Singh, had taken up the issue with the NGT last year, alleging that the refinery is polluting the air and water in the area.  The National Green Tribunal (NGT) on Friday sought fresh report from the HSPCB-headed committee on remedial action taken up for restoration of environment and compliance of norms by the Indian Oil Corporation Limited’s Panipat refinery in Haryana. Notably, residents of villages in the vicinity of the refinery, led by Singhpura Sithna village sarpanch Satpal Singh, had taken up the issue with the NGT last year, alleging that the refinery is polluting the air and water in the area. In November last year, the NGT had constituted a joint team comprising representatives of the Central Pollution Control Board (CPCB), Haryana state pollution control board (HSPCB), National Environmental Engineering Research Institute and Panipat district magistrate for inspection. The team was told to assess the damage to environment and human health being caused by the refinery.

PANIPAT DM SLAMMED FOR HIRING SEPARATE EXPERT

In a strongly-worded judgment, the bench raised objections over the working of Panipat district magistrate Sumedha Kataria and rapped him for appointing a separate expert (Engineers India Limited) to study the pollution caused by the refinery, without reference to the tribunal. “The district magistrate was a member of the committee and could have given even a separate opinion but could not appoint a separate expert. It is not clear as to who paid for such separately hired expert,” the bench observed, terming the opinion given by EIL as “unacceptable”. “We refrain from making any further comments for the time being about the conduct of the district magistrate in trying to divert the issue,” the order said. The bench, however, accepted the remedial measures suggested by him saying, “Let such remedial measures be taken forthwith,” the bench said. With regard to the environment compensation of ₹ 642.18 crore proposed by the CPCB, the NGT said it would consider it at the later stage, after necessary remedial action for restoration of environment and compliance of norms, has been taken by the unit. Talking to Hindustan Times, IOCL general manager (corporate communications) SK Tripathi said, “We have already worked on the suggestions made by the NGT’s joint committee besides compliance of the environmental norms and NGT’s orders.” In May, the NGT had slapped an interim penalty of ₹17.31 crore on the refinery for causing air and water pollution. Hindustan Times, in a report published on January 9, was the first to report that the pollution by the IOCL refinery was affecting health of the people in nearby villages.  The committee has been directed to submit a report by January 31.

By www.hindustantimes.com/

December 29, 2019:

Extra paintings is wanted ahead of Suncor Power can restart a unit at its oil refinery north of Denver, the corporate mentioned in a unlock Friday.  That unit, a fluidized catalytic cracker, launched a clay-like “catalyst” Dec. 11, inflicting smoke to spew out of its stacks in Trade Town and ash to fall to the bottom.  The incident spurred an investigation through Colorado’s Air Air pollution Regulate Department, drew the neighborhood’s ire and brought about the power corporate to make an apology and be offering loose automobile washes for per week to these suffering from the ash.  The corporate investigated the incident and located that an excessive amount of fuel oil used to be added all the way through the start-up of the unit, which is helping produce fuel.  The corporate then took steps to handle the investigation’s findings, it mentioned in a unlock Friday.  Letters: UN local weather talks disappoint, however don’t surrender; Air pollution and air high quality are a most sensible precedence; The knowledge or folly of impeaching Donald Trump (12/22/19) Suncor oil refinery apologizes for chemical unlock, blames operational error Suncor oil refinery’s “operational disillusioned” spurs name for larger state coverage Suncor oil refinery’s unlock of clay-like “catalyst” triggers alarm, activates air checks north of Denver  “Whilst we had deliberate to start start-up of the fluidized catalytic cracker unit (FCC) this week.

We’ve made the verdict to do further operability exams within the unit to make sure we have now preferrred start-up stipulations,” the discharge mentioned. “When we have now showed the brand new timeline, we’ll proportion extra main points.”  Suncor up to now mentioned the catalyst launched used to be now not hazardous and checking out confirmed air high quality in within sight neighborhoods to be “inside of appropriate ranges.”  The corporate apologized for the incident once more within the Friday unlock.

By www.chronicles99.com

December 29, 2019:

On Jan 1, 2020, the International Maritime Organisation (IMO) is set to impose new emission regulations designed to curb pollution produced by the world’s ships.  The new IMO rule is poised to ban shipping vessels using fuel with a sulphur content higher than 0.5 per cent. At present, the upper limit on sulphur oxides is 3.5pc, unless the ships are equipped with exhaust-cleaning systems known as scrubbers, down from 3.5pc.  The change is drastic. This meant ships would require a fuel product to meet the more stringent rules. It also means; ships found in violation of the new law risk being impounded as ports are expected to police visiting vessels.  When the rule was announced, most in the industry felt, it could be disruptive to the global economy, and specially to the shipping industry. After all, maritime transport is critical to the global economy. As per the United Nations, more than 90pc of the world’s trade is carried by sea. By far, it is also the most cost-effective way to move goods and raw materials, across the globe.  The most dire consequences of the change in rules were predicted by Phillip K. Verleger, in his July 1, 2018 article ‘$200 Crude, the Economic Crisis of 2020, and Policies to Prevent Catastrophe,’ under­­lining the global economy was faced with an economic crash of horrible proportions in 2020, for want of low-sulphur diesel fuel.  In order to examine the implications of the new rules, the US Senate held an Oversight Hearing on Dec 10.

“There is still some disagreement over what those exact impacts will be,” said Sen. Lisa Murkowski, the chairman of the US Senate Committee on Energy and Natural Resources.  “But I’m glad to see a consensus — or at least something resembling a consensus - among many analysts that the impacts of IMO 2020 will be less than what was projected just a year ago.  Derrick Morgan, senior vice president at American Fuel and Petrochemical Manufacturers testified, that “it is becoming increasingly clear that refining and shipping industries are prepared for IMO 2020. Major bunker fuel refiners and suppliers have been testing fuels for much of the year, and very-low-sulfur fuel oil (VLSFO) is already being supplied at major ports around the world.”  He also said the Inter­national Energy Agency has reported that “ports, shipowners and refiners have stepped up preparations, and major bunkering hubs such as Fujairah, Rotter­dam, and Singapore are said to have large volumes of compliant fuel available.”

  Linda Capuano, the head of the US Energy Information Agency testified, “We anticipate that the IMO 2020 regulations will put upward pressure of about $2 per barrel on light, sweet crude oil prices in 2020, which will moderate in the following years.”  The markets are calm.

There is no panic, as was anticipated about a year ago. Major oil companies and shipowners have spent billions of dollars preparing for the changes. Matthew Smith, director of commodity research at ClipperData, told CNBC that he believed there is going to be “very strong compliance” with the new rules — at a rate of around 90pc.  In order to meet targets, buyers appear preferring crude with higher yields of IMO-compliant fuel. Abu Dhabi’s highly sought after crude, ‘Murban’ appears falling out of favour, as the world’s top refiners seek out types of crude that produces more low-sulfur, high-viscosity marine fuels.  Demand is rising for grades such as Russia’s ESPO, trading this month at a premium of $8 to $8.40 a barrel over its benchmark price.  How the rules would be implemented is yet to be sorted out. The protocol is still to be established. One candid example is the UAE, with Fujairah port acting as a hub for regional shipping. Reports are now saying that though, the UAE has ratified the IMO 2020 rules, it may not rush to punish non-compliant ships when new rules will be effective from Jan 1.  Some others also need to play catch up. Almost 100 haven’t signed up the IMO agreement yet. These in­­clude Argentina, Colom­bia, Ecuador, Israel, Iraq, Mexi­­co, Pakistan, and Egypt.  The Suez Canal, a trade artery between Europe and Asia passes through Egypt. How these countries would police the non-compliant vessels using their waters are still to be ascertained.  However, as per IMO, those countries that have ratified the bill, represent 97pc of the global fleet. This means, the laggards, including Pakistan, will need to join the club, sooner rather than later.

By www.dawn.com

December 24, 2019:

It’s not often that 1,300 acres of industrial land become available on the edge of a major city center, especially not with good road, rail and water links to the outside world. But the shutdown and bankruptcy of a major refinery have put the site and its infrastructure into play. More than a dozen entities are interested in buying all or part of the South Philadelphia Refinery, which was shut down in June after an explosion caused an extensive fire. Before its closing, the refinery produced more gasoline, diesel, jet fuel and other refined products than any other refinery on the East Coast. The large size of the parcel, its location in the heart of the Northeast and its proximity to transportation make it an attractive proposition to energy companies that want to restart all or part of the refinery, or combine its previous output with biofuels or renewable energy such as solar. “For this mass of ground to become available is extraordinary,” said J. Eustace Wolfington, the senior managing director in the Philadelphia office of Newmark Knight Frank, a real estate firm. But the refinery’s future is clouded in part by questions over viability. Its current owner, Philadelphia Energy Solutions, filed for bankruptcy protection twice in less than two years, citing the rising cost of crude oil and the high expense of buying biofuel credits to meet federal requirements. In its latest filing in July, the company blamed its woes on damage caused by the explosion. The plant’s ability to survive was also called into question in September by an industry report from the consulting firm IHS Markit, which projected declining demand for gasoline and other refined products over the next 30 years because of increased fuel efficiency and greater use of electric vehicles. Refineries, especially those on the East Coast, are expected to respond to the projections by cutting production by two-thirds by 2050, IHS said in the report, which examined the future of the refinery for the City of Philadelphia.  Still, a refinery could be reopened on the site, IHS said, or the plant could be overhauled to make biofuels, renewable energy, petrochemicals or heavy manufacturing. The size and location of the site could also make it suitable for a new logistics and warehousing center, the report suggested. Other refineries have been repurposed, it noted, including the Imperial Oil Refinery in Nova Scotia, which became a port terminal after closing in 2013, and a Shell Haven refinery in Britain that closed in 1999 and was converted to a container port with distribution facilities.

Demand for the site may be limited by heavy contamination from some 150 years of refining, which left behind a cocktail of hazardous chemicals such as benzene and toluene. Contaminants are being cleaned up by a contractor for Sunoco, an oil company that owned the site until 2012, overseen by state and federal environmental regulators. Potential buyers may consider the site’s vulnerability to a possible rise in the sea level, given that it is bordered by a tidal section of the Schuylkill. The river has already flooded some sections of the complex and is expected to inundate it further in coming decades. Another challenge is the densely populated sections of South Philadelphia, where residents, many of them impoverished, blame decades of air pollution from the refinery for high rates of asthma and other illnesses. Still, Mr. Wolfington of Newmark Knight Frank said the site offered a rare opportunity for redevelopment. “The site’s gold. It’s right on the Schuylkill River, you have incredible infrastructure for rail and waterway freight, you have great highway access and plenty of natural resources,” he said. “So it could be industrial, retail, residential, office. The real estate possibilities are endless.” The environmental issues are “not insurmountable,” Mr. Wolfington added. As an example, he pointed to the nearby Philadelphia Navy Yard, a formerly contaminated site covering about the same amount of land as the refinery. That site has been successfully redeveloped as a mixed-use business hub and now has about 170 tenants from different industries and institutions, occupying around 7.5 million square feet of new or refurbished space. Not everyone agrees on the site’s reuse possibilities. Its contamination would make a mixed-use development implausible, said Kevin C. Gillen, a real estate economist and senior research fellow at Drexel University’s Lindy Institute for Urban Innovation in Philadelphia. Instead, he said, its size and location make it more suitable as a logistics center. “Cheap land, lots of it, access to plenty of infrastructure and a significant circumscribing of alternative uses all pretty much point in one direction,” he said in an email. Any purchase agreement will have to be approved by a bankruptcy court in Delaware, where Philadelphia Energy Solutions filed for reorganization. In November, Judge Kevin Gross set an auction date of Jan. 17 for bids by 15 parties, most of them unidentified, that have expressed an interest in the company’s assets. The company said in court documents that the sale of some or all of its assets would be the “best alternative” for all stakeholders, but it has also proposed a debt-for-equity swap as an option. But the court, which has scheduled a bankruptcy confirmation hearing for Feb. 6 and 7, might decide that the sale of the site, rather than the business on it, would be the best way to pay creditors, said Bruce Grohsgal, a professor of bankruptcy law at Widener University’s Delaware Law School. Although such a ruling is rare, “this might be an example of where that’s the case because the going concern of a refinery has been lost from the fire, and the real estate might very well be worth more than the enterprise,” he said.

One possible buyer that has announced its interest is Philadelphia Energy Industries, a new company set up by Philip Rinaldi, a former chief executive of Philadelphia Energy Solutions. Mr. Rinaldi retired in 2017 but wants to restart the refinery in cooperation with a partner that would also make renewable diesel and build solar cells on the site. The City of Philadelphia has avoided taking sides, saying it has limited authority over the privately owned site. But in late November, it issued a 45-page report that concluded any future use should protect public health, be economically beneficial and establish “openness, transparency and trust” with local residents. The city is aiming to cut carbon emissions by 80 percent by 2050, and it would like to see renewable energy production on the site, said the city’s managing director, Brian Abernathy. But it is unlikely to be able to stop refining operations there despite calls by environmental and residents’ groups for it to do so. Still, the bankruptcy suggests that any new refiner will have to make significant changes to run a viable business, Mr. Abernathy said. “This was a difficult financial model to make work as an independent refiner,” he said. “Those economics would still be challenging even with a new buyer.” Mr. Abernathy said a restarted refinery would have the best chance if it was bought by a larger company with the resources to add a fuel-blending capacity, which would enable it to avoid the heavy costs of buying credits to comply with federal renewable fuel rules. Another option is a hybrid of refining and renewable fuel production, reflecting both market signals and policy goals, said Mark Alan Hughes, the faculty director of the University of Pennsylvania’s Kleinman School for Energy Policy and a member of the city’s advisory committee on the site.

“They’re predicting a steadily declining place for things like the refinery that was,” Mr. Hughes said, referring to lower projections for gasoline demand. “The kind of mix that tries to lower the profile of fossil fuel activity is, I think, the most likely outcome.”

By The New Yrok Times

Decedmber 17, 2019:

Saudi Arabian Oil Company (Saudi Aramco) has completed, through its subsidiary Aramco Overseas Company B.V. (AOC), the acquisition of 17% of Hyundai Oilbank from Hyundai Heavy Industries Holdings, for approximately US$1.2 Billion. The completion follows receipt of all necessary regulatory consents and approvals.  The investment in South Korea’s Hyundai Oilbank supports Saudi Aramco’s Downstream growth strategy of expanding its global footprint in key markets in profitable integrated refining, chemicals and marketing businesses which enable Saudi Aramco to place crude oil and leverage its trading capabilities. Hyundai Oilbank is a private oil refining company established in 1964. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day.  The business portfolio of Hyundai Oilbank and its five subsidiaries includes oil refining, base oil, petrochemicals and a network of gas stations.

By www.saudiaramco.com