May 22, 2008 at 1:41 am #3618
Tesoro strikes huge coke deal
By Paul Burgarino
East County Times Article Launched: 05/21/2008
PITTSBURG – With the help of city officials, local refiner Tesoro Corp. has struck a deal to ship its delayed petroleum coke product from its Pittsburg port to China.
Tesoro has been negotiating the past three years to sell the new product to Sinochem International, a petrochemcials subsidiary of one of China’s largest integrated oil companies, company officials said. Terms of the deal were not disclosed.
The deal marks a number of firsts. It is the first direct sale by Tesoro to a customer in China, and it is also Sinochem’s first contractual agreement negotiated directly with a U.S. petroleum coke producer, said Mike Marcy, manager of public affairs for Tesoro’s Golden Eagle Refinery.
Pittsburg officials also hope this is the first of many shipment deals for the city’s deep-water port.The petroleum coke is produced at the Golden Eagle Refinery in Martinez and kept at the company’s bulk terminal in Pittsburg. The first cargo of delayed petroleum coke from Pittsburg to China is expected to be loaded in mid-June, officials said.
The agreement resulted after nearly two years of discussions among Tesoro, Sinochem and Pittsburg city officials. Pittsburg acted in a supporting role in a visit with Tesoro to China earlier this month, said Brad Nail, Pittsburg’s economic development director.
“We would not have been able to attract Sinochem without the active engagement of the city of Pittsburg,” said Robert Sanz, vice president of business development for Tesoro. “This agreement represents a hallmark and demonstrates the ability of the city to facilitate partnering for commercial interests. “Said Nail: “Our role is to try and assist where we can. Anything we can do to support them, we want to do it.”
Sanz applauded Pittsburg officials for the role they played, meeting with Sinochem representatives in Shanghai, China, and Pittsburg and assuring them of Pittsburg’s ability to leverage its waterfront for international commerce.
Pittsburg City Councilman Michael Kee said that the city first accompanied Tesoro to China in 2006 to give Sinochem officials some background about Pittsburg’s aspirations.
“We showed that we were interested in working with them, and that it would be a great opportunity,” he said. “We’ve had a long-standing relationship with Tesoro and are continuing to foster their relationship with Sinochem. Hopefully, we’re seeing the fruits of that.”
“I think they appreciated us being there; it added to the process,” added City Manager Marc Grisham, who noted that in China businesses and government work together.
Petroleum coke is a byproduct from the refining process. It is used in the manufacture of aluminum and specialty metals, electrodes, television screens and charcoal briquettes. The new delayed product is more marketable and valuable than the fluid coke product Tesoro previously manufactured.
Tesoro will keep the delayed coke product in a 92-foot-tall, corrugated steel barn built by Koch Carbon LLC along the city’s shoreline. Nail said that the shipping deal would not directly bring revenue to Pittsburg but could lead to longshoreman jobs. The deal will help stimulate the city’s economy and should be a positive for seeking future port traffic, he said.
“Sinochem made it clear it is just the first of an expanded relationship. Hopefully, they become a very large company for Tesoro,” Nail said.Sinochem officials could not be reached for comment.
Paul Burgarino covers Pittsburg and Bay Point.
May 22, 2008 at 2:00 am #6838
Here is update by East County Times / Paul Burgarino on the Tesoro Golden Eagle New Delayed Coker that started up this year. This news item is about a Petcoke deal with Sinochem that has been in the works since 2006 or almost as long as the new coker.
Tesoro replaced its Fluid coker with a delayed coking unit (COP technology) as part of its capacity expansion (see news post Jan 1, 2007; May 14, 2007, Feb 17, 2008 ~ news thread on coking.com).
The Tesoro deal with Sinochem suggest that the new petcoke is at estimated 2.2% Sulfur level and probably calcinable. And if the production tons match estimated 800,000 mtpy then this deal would represent almost half the China domestic export tons that Sinochem handles now (~1.5 million mtpy or ~10% of China production).
Tesoro also skirted another issue by moving the export thru Koch Carbon’s petcoke silos at POLB – (all export petcoke must now be kept in covered storage) and there was large volume petcoke (~3 million mtpy) displaced when the LAXT petcoke export terminal was closed.
July 14, 2008 at 8:53 am #6719
Tesoro wins contract to ship petroleum coke from Pittsburg to China’s Sinochem
Friday June 11, 2008 BizJournals
Tesoro Corp. has inked a deal with global conglomerate Sinochem Corp. to sell it 150,000 tons of a new, higher grade of petroleum coke, an oil refining byproduct.
The value of the contract wasn’t disclosed. Petroleum coke can be used as fuel in the manufacturing of steel, titanium and aluminum, and as material for manufacturing everything from flat-screen TVs to charcoal briquets.
Tesoro, which operates the Bay Area’s second-largest refinery in Martinez, agreed in May to sell Sinochem 150,000 tons of coke after a three-year period of negotiation, said Brad Nail, Pittsburg economic development director. The first shipment of about 30,000 tons left Pittsburg June 24.
Sinochem, one of China’s largest companies, is involved in logistics, industrial investment, chemicals, rubber, petrochemicals and energy. Pittsburg city leaders made three trips to Shanghai and hosted Sinochem officials once to help Tesoro win the coke contract, Nail said.
July 14, 2008 at 8:55 am #6718
Here is update on the Tesoro petcoke sale to Sinochem there is very little new additional information from the May 2008 news release (see coking.com coker news post). The tonnes indicated here are only 150 kmtpy with the first 30kmt shipment leaving Pittsburg on June 24. The total production at Tesoro is expected to be ~800 kmtpy of 2.2%S petcoke (delayed process replaced fluid coke unit and started up in 2008).
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