PRODUCTS AND TECHNOLOGIES
Lummus Technology | December 03, 2021
Lummus Technology announced it has been awarded a contract from the Gazpromneft Moscow Refinery for two fired heaters. The heaters will be installed at the refinery in Moscow, and are part of the plant's modernization to improve operational efficiency and environmental performance.
"This award is a great example of how Lummus supports its customers across their capital investment and operational cycles. We are building on CLG's delayed coking technology with our advanced heater technology and supporting our partner in reliable operations to optimize light product yields, while delivering high run-length and energy efficiency at the Moscow Refinery."
Leon de Bruyn, President and Chief Executive Officer of Lummus Technology
Lummus' scope includes the design and supply of two fired heaters, adding to the delayed coking technology that CLG, a joint venture between Chevron and Lummus, provided in 2018.
Lummus' delayed coking heaters can handle a wide range of feedstocks in refineries and upgrades for both fuel and specialty coke production. Current heater designs work in cooperation with CLG's delayed coking technology and incorporate multiple cabins with single coils to deliver superior individual firing, precise temperature control and stringent air quality standards.
About Lummus Technology
Lummus Technology is the global leader in developing process technologies that make modern life possible and focus on a more sustainable, low carbon future. Lummus is a master licensor of clean energy, petrochemical, refining, gas processing and renewable technologies, and a supplier of catalysts, proprietary equipment, digitalization and related lifecycle services to customers worldwide.
About the Moscow Refinery
The Moscow Refinery is the main supplier of fuels to the Moscow region, covering 40 percent of the capital's market. The refinery has been undertaking a full-scale modernization program since 2011. Thanks to various initiatives the plant has already cut production-driven environmental impacts by 50 percent, with these expected to drop another 50 percent by 2021 once the second phase of modernization is complete.
Chevron Corporation | March 01, 2022
Chevron Corporation and Renewable Energy Group, Inc. announced a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.
The acquisition combines REG’s growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution and commercial marketing position.
“REG was a founder of the renewable fuels industry and has been a leading innovator ever since. Together, we can grow more quickly and efficiently than either could on its own.”
Chevron Chairman and CEO Mike Wirth
The transaction is expected to accelerate progress toward Chevron’s goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities. After closing of the acquisition, Chevron’s renewable fuels business, Renewable Fuels - REG, will be headquartered in Ames, Iowa. In addition, CJ Warner is expected to join Chevron’s Board of Directors.
“This transaction delivers premium cash value to shareholders and will give us additional resources as we aim to accelerate growth and strengthen our collective ability to deliver the sustainable fuels our customers and the world need,” said CJ Warner, REG president & CEO. “Our employees’ hard work and dedication have built a fantastic renewable fuels company and made this transaction possible. We look forward to joining Chevron’s team.”
The transaction is expected to be accretive to Chevron earnings in the first year after closing and accretive to free cash flow after start-up of REG’s Geismar expansion.
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We are focused on lowering the carbon intensity in our operations and seeking to grow lower carbon businesses along with our traditional business lines.
About Renewable Energy Group
Renewable Energy Group is leading the energy and transportation industries’ transition to sustainability by converting renewable resources into high-quality, sustainable fuels. REG is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. REG utilizes a global integrated procurement, distribution, and logistics network to operate 11 biorefineries in the U.S. and Europe. In 2020, REG produced 519 million gallons, or 1.7 million metric tons, of cleaner fuel delivering 4.2 million metric tons of carbon reduction. REG is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
ICE and Hedge | December 10, 2021
Intercontinental Exchange, Inc. a leading global provider of data, technology, and market infrastructure, announced that it plans to launch its first ethylene futures contracts on December 13.
Designed for participants who need to manage their exposure to ethylene price risk from the U.S. Gulf Coast to Asia, the two cash settled futures contracts are based on ethylene price assessments by ICIS. The ICIS CFR NE Asia ethylene assessment and the ICIS CFR SE Asia ethylene assessment are quoted on a cost and freight basis per metric ton of ethylene for delivery.
“These new contracts will provide a direct hedge for the market to manage its ethylene exposure on the water from the Gulf Coast to Asia. There is tremendous demand from Asia for these contracts given the role ethylene plays in the plastics and packaging manufacturing industry.”
J.C. Kneale, Vice President, North American Gas and Power at ICE
Ethylene is considered to be amongst the most important and widely used petrochemical components. It is one of the key ingredients to make plastic, PVC, polyethylene, and ethylene glycol used in polyester and antifreeze. Polyethylene is estimated to account for more than half of global ethylene demand and is used to make packaging, trash can liners, as well as coating paper and cardboard.
“With its new ethylene export capacity, the US is now a significant player in the global ethylene market. Our petrochemicals team in North America and Asia is immensely pleased to be working with ICE to provide end-to-end hedging solutions in this space,” said Mark Quiner, Head of Petrochemicals at Marex. “We share ICE’s focus on derivatizing petrochemicals in the U.S. as it allows us both to offer our clients international vertical hedging solutions from the well-head all the way to the end of the barrel.”
“Ethylene is the starting point for so many consumer and industrial goods that impact our daily lives,” said Anne-Sophie Purtell, Regional Head of Sales, Greater Asia at ICIS. “The decision to launch the futures contracts shows the increased sophistication of the market. ICIS price assessments are referenced throughout the world and represent an industry reference point. We are delighted that ICE’s Asia ethylene futures contracts will be settled on ICIS price assessments.”
The new ethylene contracts will trade alongside ICE’s existing Gulf Coast ethylene contract, the Ethylene, OPIS PCW Mont Belvieu future, and the contracts which hedge the feedstocks to make ethylene including the ICE Ethane, OPIS Mt. Belvieu Non-TET future and option contracts.
In addition, ICE plans to launch its first Asia Propylene contracts on January 10, which will be the Propylene ICIS CFR NE Asia Future and the Propylene ICIS CFR SE Asia future. Propylene is the raw material to produce polypropylene, a widely produced commodity plastic, with applications in many household items, clothing, and other consumer products.
About Intercontinental Exchange
Intercontinental Exchange, Inc.is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.