December 1, 2008 at 3:43 pm #3297
BP to Finish Work on New Spanish Oil Refinery Unit By Year End
By Nidaa Bakhsh
Nov. 27 (Bloomberg) — BP Plc, Europe’s second-largest oil company, is expecting to finish work on a new $300 million processing unit at its Castellon refinery in Spain by the end of the year.
A so-called coker unit, with the capacity to produce 20,000 barrels a day of diesel and other fuels, will be “mechanically completed” by the year’s end, Robert Wine, a BP spokesman, said yesterday in a telephone interview from London, where the company is based.
The new unit is expected to go through testing before operations start in the first quarter of next year. Diesel output is expected to rise to about 50 percent of total capacity, from 35 percent, to meet local demand, while fuel oil production will be “eliminated,” BP said in an e-mailed statement.
The Castellon refinery, on Spain’s Mediterranean coast, can process about 120,000 barrels of oil a day into fuels such as gasoline, diesel, and jet fuel, according to BP’s Web site.
Thirty-five percent of Spain’s diesel demand is currently met through imports from Russia or Italy, the BP statement said.
The growing demand for diesel and European Union requirements for lower sulfur in fuels is “forcing costly investment” at processing facilities, Iain Conn, the head of BP’s refining and marketing business, said in a Nov. 25 speech posted on the company’s Web site.
To contact the reporter on this story: Nidaa Bakhsh in London at firstname.lastname@example.org
Last Updated: November 27, 2008 04:07 EST
December 1, 2008 at 3:46 pm #6430
Here is update on Spain’s BP Castellon Coker Project – the coker will be mechanical complete by year end but operational start is for 1Q 2009 after meeting performance testing.
The Spain cokers are like Mexican cokers in that they both start supplying domestic petcoke into markets previously for the US High Sulfur (6.5%S) exports and at a time when more US production will be coming online due to linkage to Canadian Bitumen crude supplies. US exporters in the past often blended 4.5% Sulfur petcokes to place the HS petcokes but very few new additional supplies LS/4.5% will be coming online. The current production of large volumes of 4.5%S petcoke is from existing Venezuelan upgraders which have had a series of problems trying to operate for any length of time (Hurricanes, fires, accidents, power outages….) & have low utilization rates.
December 2, 2008 at 9:45 pm #6426
Spain Refinery Upgrades on track, more diesel seen
By Martin Roberts
MADRID, Dec 2, 2008 (Reuters) – Spanish energy companies say that plans to upgrade refineries and reduce the country’s yawning deficit in diesel are on track despite the credit crunch.
Earmarked for investment by 2011 are more than 6 billion euros ($7.57 billion) to upgrade six of Spain’s nine refineries run by Repsol, Cepsa and BP.
Privately held Grupo Gallardo plans to open a new 110,000 barrel-per-day refinery in 2011, at a cost of 2.5 billion euros. Along with other planned expansions, it would add 260,000 bpd in crude distillation capacity to a current total of 1.37 million bpd.
“The plans are to finance (upgrades) from cash flow. We weren’t thinking of going to the debt markets anyway,” said a spokesman from Repsol, which is Spain’s biggest refiner and operates five plants.
“The idea is to refine more, lower grade crude and produce more middle distillates,” he added.
In the 12 months to September, the latest date for which data is available, net diesel imports were 12 million tonnes, or 33.7 percent of consumption logged by Spain’s energy reserves body CORES.
The only oil product in which Spain had a surplus was gasoline, for which net exports were 2.57 million tonnes, equivalent to 40 percent of consumption.
GASOLINE PRODUCTION TO CONTINUE
But no one was thinking of cutting back gasoline production just yet.
“The problem with closing gasoline units is that you would also lose propane and butane,” said a spokesman from Cepsa, which runs three refineries totalling 430,000 bpd.
Cepsa will spend 1.65 billion euros by 2010 to boost output of middle distillates, including diesel and kerosene, by 39 percent and up its total refining capacity by 17 percent.
Repsol has the lion’s share of planned investment, including 3.2 billion euros aimed at raising crude distillation capacity at its Cartagena plant to 220,000 bpd from 100,000 by 2011.
Repsol, in which Lukoil has been trying to acquire a 20 percent stake, expects its upgrades to cut Spain’s diesel imports by 30-40 percent.
Gallardo predicts its Balboa refinery, when built, will cover 20 percent of Spain’s diesel imports and half those of kerosene.
The main hurdle faced by the Balboa project is an environmental impact study, which the company hopes will be ready by next spring.
Environmental groups have objected that the proposed site for the plant in the southwestern Extremadura region is close to a national park and could contaminate ground water.
Even if Spain’s planned upgrades can dodge credit and environmental obstacles, analysts say European refining margins face a dull outlook in the next 18 months due to increasing downstream capacity, particularly in Asia.
In India, Reliance Industries recently opened a 660,000-bpd refinery — the world’s biggest — and is ready to commission a 580,000-bpd plant.
(Reporting by Martin Roberts) — For a table of planned refinery upgrades and construction in Spain, please click on ($1=.7931 Euro) Keywords: REFINERIES SPAIN/
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December 2, 2008 at 10:01 pm #6425
Here is another update on Spain Refinery upgrades – BP, Cepsa & Repsol all have coker addition/expansion projects in the refinery upgrades. BP recent news alert (see post) said Castellon Coker would be mechanical complete by end of year & at full operation by 1Q09. The Repsol Cartagena & Grupo Balboa refining projects are also mentioned (which include coking additions). <Not mentioned are the Repsol/Petronor Bilbao-Vizcaya, and Cepsa Huelva refining/coking projects specifically.>
December 7, 2008 at 7:20 am #6413
As far as I know, CEPSA Huelva project will not add coking but hydrocracking, can you confirm?
December 8, 2008 at 2:17 am #6412
Technically yes – the CEPSA Huelva Refinery does not have any public announcement about a coking project. But the answer is more likely maybe yes….and maybe no.
The Hydrocracker project you mention should finish up ~2010 and the current 2007 Foster Wheeler project for crude & vacuum unit expansion with new heaters that ~doubles 98MBD capacity should finish 1Q-2Q2009.
If Huelva DOES NOT add a coker – it will be the only one 6 refinery expansion projects (perhaps with exception ENI) that isnt adding or expanding a coker. This would put it at huge disadvantage with its competitors on crude cost/availability, refinery margins and product yields (especially with EU HFO/Marine Bunkers at 1%Sulfur max).
It is also curious that Foster Wheeler was selected for the current projects since they are doing all the other Spain coking projects. If they do not convince CEPSA they need a coker now – it is likely there will be a Phase II/Planning stage coker mentioned when FW works out a contract for Technology with them. So that is why I have it down on my coker addition list in the planning stage sometime in +2012 time frame.
Does this help?
January 11, 2009 at 1:38 pm #6356
Thanks for the information,
BTW, do you have any info about current status of Grupo Balboa project? is it still going forward?
January 11, 2009 at 5:15 pm #6355
I have seen nothing newer than the Spain Update 2 post for Dec 2008 that said the Spain projects including Grupo Balboa are going forward. Nothing has been released about coker on this new refinery …….. yet, but see earlier comments on why one is expected.
Althought not mentioned on the Update 2 post recent (Dec 2008) other Spain news items on CEPSA La Rabida (Hevula) Refinery & Coker project is also going forward.
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