Chexpress - June 11, 2014

North America

More time requested

The Environmental Protection Agency (EPA) has asked for more time to review a liquefied natural gas (LNG) export plant project planned for a site on a bay near Washington, D.C. The EPA requested the Federal Energy Regulatory Commission (FERC) grant a 30-day extension to conduct a review of Dominion Resources Inc’s Cove Point liquefaction project in Maryland. FERC had given the Cove Point project the green light last month and has not provided a comment on the extension request.

Acquisition

    

Phillips 66 is buying a 7.1 million-barrel storage terminal near Beaumont, Texas as part of the company’s plan to increase its logistics and transportation assets. The Chevron Corp. terminal is nearly 60 miles from Phillips’ nearest refinery. Phillips 66 has said the terminal will serve its own refineries as well as others in the U.S. The terminal has two marine docks capable of handling 750,000-barrel oil tankers, one barge dock, and rail and truck loading and unloading infrastructure. It has a storage capacity of 4.7 million barrels for crude and 2.4 million barrels for refined products. The sale is expected to close in the third quarter, pending regulatory approvals.

Acquisitions

Renewable Energy Group’s wholly owned subsidiary REG Synthetic Fuels, LLC has completed its acquisition of the remaining 50 percent ownership interest in Dynamic Fuels, LLC, which was previously owned by Tyson Foods. The new biodiesel facility will be known as REG Geismar, LLC and is a 75-million gallon renewable biorefinery in Geismar, Louisiana.

World

Fire

A fire at Royal Dutch Shell PLC’s plant in Moerdijk, The Netherlands has been extinguished. The cause of the explosion was not immediately clear. Two workers were treated for minor burns. The plant manufactures chemicals from petroleum that are used in products ranging from car components to synthetic fibers and insulation materials. Flames and large plumes of smoke could be seen from about 18 miles away.

Fire

    

Reliance Industries Ltd. had a minor fire break out at its poly butadiene rubber plant in Vadodara, India. The fire should not have any impact on production. No injuries were reported and the fire was brought under control by fire fighters at the plant. The cause of the fire is still under investigation.

Joint venture

Saudi Basic Industries Corp. (SABIC) has entered into a $595 million 50-50 joint venture agreement with SK Global Chemical to produce polyethylene products. The venture will operate a plant recently completed by SK in Ulsan, South Korea. The plant has an expected annual capacity of 230,000 tons. A second plant is planned for Saudi Arabia and the intent is to have production facilities established worldwide over time. The joint venture will be based in Singapore.