August 1, 2013:

Suncor Energy Inc , Canada’s largest integrated oil company, said on Thursday that its 130,000 barrel per day Montreal refinery will be able to process up to 15,000 bpd of Western Canadian oil by year end. Steve Williams, Suncor’s chief executive, said facilities at the refinery to allow crude by rail shipments will be complete by December. The refinery, which currently relies on imported crudes, will eventually be able to handle as much as 30,000 bpd of Canadian oil. However, Williams said the actual amount it processes will depend on the price spread between Canadian and international oil.

Meanwhile, maintenance downtime and pipeline outages had an impact on the company’s second-quarter profits, which came in just shy of market expectations.  Operating earnings of $934 million or 62 cents per share, missing the average analyst estimate by a penny, according to Thomson Reuters. A year earlier, Suncor posted operating earnings of $1.25 billion, or 80 cents per share.

Oilsands operations and refineries were taken down for planned maintenance work during the quarter. Production was further constrained when June flooding in Alberta caused pipeline outages.

“Following these events, production at our oilsands operations has been restored, and we are currently seeing strong performance,” said CEO Steve Williams. Net earnings, which include unusual or one-time items, were $680 million, or 45 cents per share, compared to net earnings of $324 million, or 21 cents per share.

A year earlier, Suncor took a $694-million writedown on a Syrian natural gas project. The company pulled its employees out of the Middle Eastern country when civil war broke out. Total production was 500,100 barrels per day during the second quarter, down from 542,400 a year earlier. In the oilsands, output averaged 276,600 barrels per day, compared to 309,200 barrels per day. Third-party outages reduced production by about 36,000 barrels per day. Earlier this year, Suncor said it was scrapping its Voyageur oilsands upgrader because of shifting market conditions. Burgeoning production of light oil from regions such as North Dakota means it no longer makes economic sense to invest billions into a facility to convert heavy oilsands crude into a lighter product refineries can handle. Suncor took a $1.49-billion writedown on Voyageur in the fourth quarter of 2012 and another $127 million in the first quarter of 2013.

The Voyageur upgrader was part of a $1.75-billion partnership inked between Suncor and French energy giant Total S.A. in late 2010. A decision on whether to go ahead with the companies’ jointly-owned Fort Hills mine is expected during the fourth quarter, while it’s not known when the fate of their Joslyn oilsands mine will be decided. Suncor’s board also approved a quarterly dividend Wednesday of 20 cents per common share, payable Sept. 25. Suncor is Canada’s biggest energy company with a dominant position in Alberta’s oilsands. In addition to huge mining operations north of Fort McMurray, Alta., it has steam-driven projects at Firebag and MacKay River. In addition, Suncor has refineries in Edmonton, Montreal, Sarnia, Ont., and Commerce City, Colo. Those assets help shield Suncor from swings in commodity prices, as they translate into lower costs in that part of the business.

By Reuters

August 1, 2013:

WILLEMSTAD  - The month of July was very critical for the environment in Curacao. The oil refinery, Isla, sulfur dioxide emission was above the standards set by the World Health Organization. This was measured at the Beth Chaim (Jewish cemetery near the refinery) point, says the local environmental organization SMOC. Sulfur dioxide (also known as SO2) is a combustion product of sulfur, which is released by burning fossil fuels. SO2 contributes to air pollution and smog. In moist air the sulfur trioxide (SO3), which forms a compound in water, forms sulfuric acid. The members of Parliament will meet in August to discuss the future of the oil refinery. The contract with the Venezuelan oil company Petroleos de Venezuela Sociedad Anonima (PDVSA) will expire in 2019. There are a few options for the refinery. Either completely get rid of it, move it to another location on the island or renovate it.

By Curacao Chronicle

July 3, 2013:

VietNamNet Bridge – Mr. Phung Dinh Thuc - Chairman of the Board of Members of the Vietnam Oil and Gas Group (PetroVietnam) said the foreign partners had settle $5 billion for the Nghi Son oil refinery project but the construction will be kicked of in September, instead of July.  Thuc said after settling capital, the partners signed a contract on capital supply plan for Nghi Son Refinery project, which takes effect from July. However, concerning the progress of the project, Thuc said because of the holidays in the countries of the foreign partners, the construction of Nghi Son Refinery will be postponed to September or October this year, instead of July. Earlier, on June 5, Idemitsu Kosan Corporation (Japan) – the partner holding the largest stake in the project, said that they had arranged $5 billion from financial institutions for the Nghi Son petrochemical project. Plus $4 billion from the investors themselves, $9 billion for the project has been completely arranged.

The Nghi Son petrochemical complex was proposed for implementation from April 2008. The investors include Idemitsu Kosan, the Kuwait Petroleum International (KPI) with 35.1 percent each, PetroVietnam with 25.1 percent and Mitsui Chemicals with 4.7 percent of capital. According to the plan, by 2016, the refinery will be completed and begin commercial operation in 2017 with a capacity of 200,000 barrels per day. Once in operation, Nghi Son will improve the ability of self-supply of gasoline and oil of Vietnam from 30 percent at present to 70 percent. The main products of the refinery are LPG, A92 and A95 petrol, diesel, kerosene, jet fuel, plastics and sulfur.

By VietNamNet Bridge

June 22, 2013:

Flint Hills Resources reported a power outage due to a storm at its Rosemount, Minn., refinery Friday, according to a filing to the U.S. National Response Center.The outage at the 320,000-barrel-a-day refinery caused a release of hydrogen sulfide, according to the filing, which was made public Saturday. The refinery is located about 17 miles south of Minneapolis, according to the company's website. A spokesman for Flint Hills Resources, a subsidiary of Koch Industries Inc., was not immediately available to comment.

By The Wall Street Journal

June 21, 2013:

Midwest spot gasoline strengthened after Flint Hills Resources Inc. shut units at the Pine Bend refinery in Minnesota because of a power failure. Conventional, 85-octane gasoline, or CBOB, in Chicago gained 1 cent to 21 cents a gallon below futures on the New York Mercantile Exchange at 12:37 p.m. The differential has narrowed 11 cents in the past two days after falling to the biggest discount since March 1, according to data compiled by Bloomberg. Flint Hills’ 330,000-barrel-a-day Pine Bend plant suffered a power loss, resulting in the automatic shutdown of several units. Jake Reint, a company spokesman, said he couldn’t comment any further on the units or repairs that may be under way.  In the Group 3 market, which covers states from Oklahoma north to Minnesota, conventional 87-octane gasoline gained 0.25 cent to a 9.75-cent discount.  When a refinery takes units offline, it typically results in lower regional supplies and strengthening of spot prices.

Gasoline inventories in the U.S. Midwest climbed 507,000 barrels to 49.7 million barrels in the week ended June 14, according to U.S. Energy Information Administration data. Distillate fuel supplies dropped 197,000 barrels to 27.3 million during the same time period, the lowest level since May 24. Ultra-low-sulfur diesel fuel strengthened 0.75 cent in Chicago to 2.75 cents below futures on the Nymex, according to data compiled by Bloomberg. Group 3 ULSD gained 0.25 cent to a 1-cent premium. The 3-2-1 crack spread in Chicago, a rough measure for gasoline and diesel fuel based on West Texas Intermediate oil in Cushing, Oklahoma, increased 64 cents to $16.84 a barrel.

By Bloomberg