P. 6 ~ Continued - OGJ Newsletter

Dec. 5, 2011

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PROCESSINGQuick Takes

EPA seeks more time to develop GHG limits

The US Environmental Protection Agency does not anticipate meeting a mid-December deadline to issue proposed greenhouse gas emission limits for refineries. The agency expects to need more time and is working with litigants to develop a new schedule, a spokeswoman told OGJ by e-mail.

The American Petroleum Institute welcomed the news. "EPA is allowing itself more time to analyze industry data before proposing the unprecedented and enormously complex greenhouse gas rules for refineries," said Howard Feldman, API regulatory and scientific affairs director.

Feldman said refiners recently provided more than 5 million data entries regarding their operations, and have repeatedly asked EPA to issue an advanced notice of proposed rulemaking before proposing new refinery rules. This would ensure that such rules would be based on accurate assessments of refineries' actual emissions and risks, he explained.

"Of course, EPA's application of the Clean Air Act in a way that was never intended by Congress threatens to unnecessarily raise the cost of producing America's energy at a time when the administration should be focused on job creation and economic recovery," Feldman said.

National Petrochemical & Refiners Association Pres. Charles T. Drevna called EPA's delay good news for American consumers and refinery workers. "But our nation would be even better off if EPA went further and dropped plans to impose this unnecessary and counterproductive rule that will do nothing to improve our environment but could raise energy costs and threaten American jobs," he said.

Environmental and other organizations supporting EPA's effort to develop and implement GHG emissions limits for refineries did not immediately comment.

BP, Indian Oil eye Gujarat acetic acid plant

BP PLC and Indian Oil Corp. Ltd. (IOC) have signed a memorandum of understanding to consider a 50-50 joint venture to build a 1 million tonne/year acetic acid plant and associated gasification facilities for production of synthesis gas.

The plant, in Gujarat, would use BP's Cativa XL technology and petroleum coke feedstock from IOC. A feasibility study is in progress. The plant would have a targeted start date of 2015.

IOC operates a 300,000 b/d refinery and petrochemical plant in Gujarat, at Koyali south of Ahmadabad.

BP this year expanded its work in India by agreeing to acquire 30% of 23 blocks operated by Reliance Industries Ltd. for $7.2 billion. The government has approved acquisition of interests in 21 of the blocks (OGJ Online, July 22, 2011).

Indian Oil renews supply deal with Essar

State-owned Indian Oil Corp. Ltd. (IOC) renewed an agreement for supply of 2 million tonnes/year of diesel, gasoline, kerosine, and jet fuel from privately owned Essar Oil Ltd.

The products will come from Essar's 300,000 b/d Vadinar refinery, which is being expanded to 375,000 b/d by March 2012 and to 405,000 b/d by September 2012.

The agreement, covering 2012-15, entitles Essar to buy products from IOC and allows the firms to share distribution facilities.

It's Essar's largest fuel supply contract. The company has similar agreements with state-owned refiners Bharat Petroleum Corp. and Hindustan Petroleum Corp.

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