Partnership for Sharing Market Intelligence and Promoting Business Development

Hydrogen research project

Proton Energy Systems, Inc., a subsidiary of Distributed Energy Systems Corp. was awarded a $2.3 million contract for a hydrogen-technology-oriented follow-on research project.  The study was awarded by the University of Nevada Las Vegas Research Foundation (UNLVRF) and enables Proton to continue to examine advanced proton exchange membrane (PEM) electrolysis technology research funded by a grant to UNLVRF from the U.S. Department of Energy.  The grant will allow Proton to focus on critical technology improvements like increased system and cell stack efficiency, reduced costs through scale-up and manufacturability assessments and improving the technology to directly interface renewable electricity sources to the PEM electrolyzer.

Chlorine Rail Tank Car Replacement Plans

Several leading chemical manufacturers plan to replace their entire U.S. and Canadian chlorine tank car fleets by the end of 2017 with new rail tank cars featuring significantly enhanced safety and security attributes.  Occidental Chemical Corporation (OxyChem), The Dow Chemical Company, U.S. Magnesium LLC and Bayer MaterialScience have committed to the safe and secure rail transportation of chlorine through this aggressive rail tank car replacement plan and the formation of a Chlorine Rail Tank Car Development Coordination Panel.  The primary goal of the Coordination Panel is to accelerate the chlorine industry’s development of enhanced tank car designs that can be leveraged across the chemical industry in cooperation with the U.S. Department of Transportation and Transport Canada.  The Next Generation Rail Tank Car project is focused on the design and implementation of a next generation rail tank car for highly hazardous chemicals that provides a step change in safety and security performance.

Saudi-based Aramco opened an office in Shanghai, China to tap into local manufacturing competence and material supply services.  Aramco Overseas Company (AOC) will focus on strategic sourcing in a bid to strengthen its parent company’s extensive supply chain from oil exploration through to shipping and marketing.  The scale of the business will depend on material availability, quality and pricing.

Alternative energy

China is looking to launch more measures to promote biochemistry and bio-energy in an effort to reduce conventional oil dependency and control polluting industries.  The National Development and Reform Commission said that subsidies, tax breaks and bail-out funds for pilot projects will be used to promote alternative energy programs.  The plan intends to boost the income of the agricultural industry, much like the U.S., by promoting ethanol and biodiesel from crops.

Investment consideration

SK Corp., a South Korean oil refiner, is considering teaming up with Chinese state-run Sinopec.  SK is considering a naphtha cracker to tap into China’s large energy demand. 

Expansion potential

Reliance Industries has been linked to a potential deal worth $2 billion to buy BP’s Belgian refinery and petrochemical business.  This would be a significant step in Reliance’s global expansion plans.  Neither company would comment officially on the report.

New gas reserve

China National Offshore Oil Company Limited (CNOOC Ltd.) discovered a new natural gas reserve in Bohai Bay capable of producing 11.7 million cubic feet of gas/day.  The Jinzhou (JZ) 31-6-1 well was drilled on Structure JZ 31-6 to a total depth of 2,305 meters in the sea area with an average water depth of 28 meters. 

Gas exploration

Danford Equities Corporation of Australia has reached a contract with state-run Myanmar Oil and Gas Enterprise on oil and gas exploration in Australia’s Yetagun gas field off the southern Tanintharyi coast.  The activities will be conducted at the east block of the offshore Yetagun field.  The Yetagun gas field project involves PTTEP (Thailand), Petronas (Malaysia), Nippon (Japan) and MOGE (Myanmar).

Acquisition

United Phosphorous Ltd has acquired the global propanil herbicide business, marketed as Stam herbicide, from Dow AgroSciences LLC.  The $25 million acquisition comes close to UPL’s announcement regarding the purchase of Cerexagri, making UPL the third largest agrochemical company in the world.

Acquisition

The Sanmar Group has entered into an agreement to acquire a chemical business in Port Said, Egypt for $200 million.  The business belonging to Trust Chemical Industries owns a caustic soda plant with a capacity of 200,000 tons/year.  The plant also has facilities installed to manufacture chlorine-based products like Hydrochloric Acid, Chlorinated Paraffin Wax, Sodium Hypochlorite and Ferric Chloride.