Oiltrends

Prista and Uzbekneftegaz to form JV to recycle used oils

admin — Tue, 08 May 2012 08:52:55 +0000

Bulgaria’s Prista Holding EAD and Uzbekneftegaz, the state-owned holding company of Uzbekistan’s oil and gas industry, will form a joint venture company called Uz-Prista Recycling to recycle used oil. The US$15 million enterprise will process 43,000 tons a year of used oil at OJSC Rezinotekhnika in the Tashkent Region. An order for the JV’s creation is now awaiting approval from the Uzbek Cabinet. The JV will likely be formed in the second half of this year. The project will be financed by both founders’ funds. It was earlier reported that Prista Oil Holding EAD had purchased a 50.1% stake in Uz-Texaco LLC from Texaco Overseas Holding Inc. Later, Uz-Texaco was remained Uz-Prista. The founder on the Uzbek side is Uznefteprodukt, which has a 49.9% stake. Uz-Texaco launched production of synthetic motor oils under license from Prista Oil in October 2011. The JV plans to implement a 5,000-ton-per-year plant to produce synthetic and semi-synthetic oils, as well as antifreeze. The project is estimated to cost US$1 million. (March 27, 2012)

Butamax files lawsuit against Gevo

admin — Tue, 08 May 2012 08:47:52 +0000

Butamax Advanced Biofuels, LLC, a technology leader in biobutanol, released a statement regarding Gevo’s allegations on patent infringement.”Gevo has filed a lawsuit against Butamax in reaction to the KARI patent infringement lawsuit we filed against Gevo on March 12. This, like other Gevo counterclaims, has no legitimate basis,” said Butamax CEO Paul Beckwith. On May 12, the company filed a new lawsuit against Gevo for infringing Butamax’s patent 8,129,162. The patent covers commercially-relevant recombinant KARI enzymes which is not limited to Pseudomonas enzymes. This development offers biofuel producers a highly efficient production pathway for the low-cost manufacture of biobutanol. Beckwith explained that Gevo was given a patent on a very specific KARI enzyme, while the KARI patent of Butamax is broader and the enzyme of Grevo falls within the scope of Butamax’s patent. “As the biobutanol pioneer, Butamax has complete freedom to operate and the same cannot be said for Gevo. We will continue to vigorously defend our rights and will seek every available remedy to stop Gevo’s ongoing infringement.” (March 14, 2012)

Oiltanking Partners posts gains in net income for 2011

admin — Tue, 08 May 2012 08:47:29 +0000

Oiltanking Partners, L.P. posted a net income of US$11.9 million for the fourth quarter of 2011, which was the same net income during the same period in 2010. The company reported a full year net income of US$62.4 million for 2011, compared to US$37.8 million in 2010. The full year 2011 net income statement includes an income tax benefit of $27.1 million which was given because of the elimination of deferred tax accounts which are related to the conversion to a non-taxable entity after the Partnership’s initial public offering. The company’s net income for the full year 2011, excluding the income tax benefit, as well as other gains and losses, reached US$41.4 million. “Oiltanking Partners’ very successful initial public offering and the value we have created for our unit holders were clearly key highlights of 2011,” said Carlin Conner, chairman, president and CEO of the partnership’s general partner. “In 2011, we were able to continue to generate strong financial results due to our critical position in the logistical supply chain of crude oil, refined petroleum products, chemical feedstocks and liquefied petroleum gas or LPGs. The results reflect our strong strategic position with expansive deepwater docks, significant storage capacity and superior pipeline connectivity to the major refineries along the Gulf Coast.” (March 15, 2012)

Indian refiners ask government to revert to regulating gasoline prices

admin — Tue, 08 May 2012 08:40:26 +0000

India’s state-owned refiners have asked the government to once again regulate the price of gasoline. In June 2010, the government decided to deregulate gasoline but still required oil companies to secure permission before raising prices. But the government has been refusing to allow the state-owned refiners to increase prices leaving the refiners with no other option than to absorb losses incurred by selling gasoline at below market rates. With the deregulation of gasoline, the government is no longer obliged to compensate the refiners for their losses. “Gasoline is not under regulation right now. But under-recoveries are very high and we will not be able to absorb the losses,” said R.S Butola, chairman of India’s largest state-owned refiner, Indian Oil Corporation (IOC). The company said it has incurred losses amounting to Rs 20 billion (US$400 million) from selling gasoline at prices that were less than the market rates during the current financial year which ends on March 31, 2012. “We have asked for 100% reimbursement. If we are not given this, we will have to consider passing on the burden to consumers,” Butola said. But the government does not seem to be keen in reverting to regulating gasoline because it would mean a higher subsidy burden. In the current financial year ending March 31, the total revenue loss on selling gasoil, LPG and kerosene is estimated to reach more than Rs 1.4 trillion (US$28 billion). “Oil companies have no doubt suggested some measures. As of now we are not contemplating regulation,” said Oil Minister S. Jaipal Reddy. (March 27, 2012)

Lonza appoints new CEO

admin — Tue, 08 May 2012 08:36:00 +0000

The Board of Directors of Lonza elected Richard Ridinger as the new CEO of the company. Ridinger will assume office on May 1 this, and will replace Rolf Soiron, who was acting CEO ad interim since the end of January. The 53 year-old German national has extensive industrial leadership experience. “Richard Ridinger could be a person who grew up with Lonza”, said Rolf Soiron. “He is a chemical engineer who knows our industries, customers and products. With Richard Ridinger, we were not only able to attract a man of action and team player, but also a winning personality.” Ridinger has also held numerous functions at two other companies: Henkel for 14 years and Cognis for 11. As CEO of Lonza, Ridinger’s responsibilities will include strengthening the company’s market position in relevant markets, strengthening competitive capabilities and improving productivity in critical areas. (April 3, 2012)

NRG Energy to build comprehensive electric vehicle charging network in California

admin — Tue, 08 May 2012 08:32:27 +0000

The California Public Utilities Commission and NRG Energy (NRG) have entered into an agreement which gives NRG the right to build an extensive electric vehicle (EV) charging network in California. The project will require an investment of approximately US$100 million over the next four years. The fee-based charging network will have at least 200 publicly available fast-charging stations within the San Francisco Bay area, the San Joaquin Valley, the Los Angeles Basin and San Diego County. The charging stations will have the capability to add 50 miles of range during a charging time of less than 15 minutes. NRG’s EV infrastructure commitment also includes the wiring for at least 10,000 individual charging stations across California located at homes, offices, multi-family communities, schools and hospitals. “With this agreement, the people of California will gain a charging infrastructure ready to support their current and future fleet of electric vehicles,” said David Crane, NRG’CEO. “And we will be helping the State meet its clean car goals as embodied by its Zero Emission Vehicle (ZEV) mandate.” The agreement, which is still awaiting approvals and finalization, will resolve an outstanding litigation concerning a long-term electricity contract which was entered into more than a decade ago by a subsidiary of Dynegy, Inc., which at that time was a co-owner of NRG. In 2006, after acquiring Dynergy’s 50% interest in assets, NRG assumed full responsibility for resolving this issue. “California already leads the way in the development of an alternative energy transportation sector and, with the price of gasoline above US$4 per gallon and rising, all Americans need to be giving serious consideration to the increasingly attractive electric vehicle alternative to what former President Bush called ‘our national addiction to foreign oil’,” Crane explained. “This network will be built with private funds on a sustainable business model that will allow NRG to maintain and grow the network as EV adoption grows.” (March 23, 2012)

PerkinElmer Introduces two new products for high-throughput oil analysis

admin — Tue, 08 May 2012 08:30:04 +0000

PerkinElmer, Inc. recently introduced the OilExpress 4 and OilPrep 4 systems which can give faster oil analysis. The company is a global leader with more than 50 years of experience in petrochemical analysis. PerkinElmer combines advanced technologies for faster and improved lubricant analysis. “PerkinElmer is a world leader in lubricant analysis with approximately 10 million oil samples analyzed on our instruments every year,” said Dusty Tenney, president, Analytical Sciences and Laboratory Services, PerkinElmer. “The new OilExpress 4 system joins the power of the Spectrum Two FT-IR analytical instrument with the scalability of the JANUS automated liquid handling platform for increased sample throughput. This instrument ensures improved oil and lubricant analysis to help our customers maintain engine functionality. This new product family is one example of our commitment to improving our customers’ laboratory processes.” (April 2, 2012)

Scania switches to bioethanol

admin — Tue, 08 May 2012 08:27:15 +0000

Scania, a leading manufacturer of trucks and buses for heavy transport applications, and a producer of industrial and marine engines, is now focusing its efforts on reducing the environmental impact of its own operations. The company, which operates in about 100 countries, now uses renewable bioethanol as a fuel instead of fossil-based diesel fuel. With this change, Scania said it will reduce the climate impact of carbon dioxide emissions from its own goods transport services at its production facilities in Södertälje, Sweden, by as much as 70 %.

Scania spearheads use of bioethanol in transport services

The company now uses bioethanol in eight trucks and this will contribute to a decrease in CO2 emissions equivalent to that produced by 12 normal homes heated by fossil-based electrical energy. “As a supplier of transport solutions, it is important for us to take the lead in developing sustainable alternative solutions and demonstrate how sustainability and efficiency are linked in practice,” said Anders Nielsen, Scania’s head of Production and Logistics. Scania also offers a series of products and services that are climate and energy efficient. Ecolution by Scania helps transport companies reduce their carbon dioxide emissions while maximizing revenue from their truck and bus operations. Ecolution by Scania is a comprehensive package that includes optimizing vehicles that run on bioethanol, driver training and continuous supervision of both vehicles and drivers. “By switching to ethanol, Scania is demonstrating that sustainable solutions can be achieved – here and now – with technology that is already available today,” Nielsen explained. (March 2, 2012)

Shell, BP rank highest among majors in Pike biofuels report

admin — Tue, 08 May 2012 08:24:36 +0000

Although the biofuels industry is still in its infancy stage, it already accounts for almost 30 billion gallons of production. The amount of biofuels currently produced can be considered a mere trickle, but over the next decade, biofuels are expected to play an increasingly important role. This is due in part to mandates imposed by at least 31 countries all over the world. The growth of the biofuels industry does not run counter to the interests of Big Oil because the world’s largest oil companies have been formulating strategies to bring biofuels to commercial scale. A new Pike Pulse report published by Pike Research states that Shell and BP are two oil majors best positioned to develop and profit from the growth of biofuels.

“Pike Pulse Report: Biofuels Commercialization by Oil Majors”

“While Pike Research does not perceive any of the oil majors to be outright industry leaders at this stage, several companies have demonstrated a solid foundation for growth and long-term success,” said senior analyst Mackinnon Lawrence in the most recent report released by Pike. “Shell and BP both have advantageous near-term positions for ethanol production from sugarcane and strong commitments to commercializing advanced biofuel pathways.” This is because both companies are pursuing strategies that are based on rapid scale-up in Brazil. Brazil has a very efficient sugarcane market which represents one of the most actively growing biofuels markets, and has the potential to supply sugar for advanced conversion technologies which produce “drop-in” fuels as well. In the Pike Pulse assessment, Shell scored slightly higher than BP largely because of its US$12 billion venture with Cosan, a leading global producer of ethanol from sugarcane. BP, on the other hand, has been an early pioneer in the development of advanced biofuels. The company has made multiple investments in a number of potentially breakthrough feedstocks, and participates actively in R&D efforts. BP has also built a strong portfolio consisting of early-stage investments. Ranked third is France’s Total, which has mapped out a strategy similar to the ones developed by Shell and BP. However, Total’s commitment has been quite conservative and is aimed at the development of a delivery supply chain for biofuels, focused mostly in Brazil.

The “Pike Pulse Report: Biofuels Commercialization by Oil Majors” presents an evaluation of 10 of the leading publicly held international oil majors. It rates the companies based upon 12 criteria for strategy and execution, such as production strategy and roadmap, partnerships, geographic reach, investment portfolio, distribution network and market impact. Pike Research is a market research and consulting firm which provides in-depth analysis of clean technology markets all over the world. (March 20, 2012)

Indian government considers divesting Andrew Yule stake in Tide Water

admin — Tue, 08 May 2012 08:14:50 +0000

Heavy Industries and Public Enterprises Minister Praful Patel disclosed that the Indian government will look into the possibility of offloading the stakes owned by Andrew Yule & Company Ltd. (AYCL) in Tide Water Oil. The Kolkata-based, tea-producing company has a 26% stake in Tide Water Oil, which has been producing automotive and industrial lubricants in India since 1928. AYCL has set a gross sales target of Rs324 crore (US$61 million) in 2012-13. In the current fiscal year, the company’s gross sales reached Rs277 crore (US$52.5 million). Its tea production business has gone up from 96 lakh kilograms in 2007-08 to 110 lakh kilograms in 2011-12. Since its rehabilitation in 2007, AYCL has been profitable. The company’s net profit in 2011-12 is estimated at Rs10 crore (US$1.9 million). (March 30, 2012)