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CALIFORNIA POWER PLANTS FIRED BY FLUID COKE

May 14, 1990 Three of five planned independent power projects using a technology that cleanly burns fluid petroleum coke have started up in the San Francisco Bay area. Process designer Combustion Power Co. (CPC), Menlo Park, Calif., said the technology holds great promise for cogeneration and independent power projects in areas with air quality problems. At the same time, widespread application of the technology could boost U.S. consumption of refinery petroleum coke, an underutilized, low cost product that

U.S. BRIEFS

May 14, 1990 BROWN & ROOT U.S.A. INC. finished installing underground civil and foundation packages for two 35,000 kw cogeneration units it is building for Oklahoma Gas & Electric Co. at Conoco Inc.'s Ponca City, Okla., refinery. The plants will supply electricity to OG&E and process steam to Conoco. HADSON CORP., Oklahoma City, reached an amended power sales contract with Niagara Mohawk Power Corp. for a 79,000 kw gas fired cogeneration project in Rensselaer, N.Y. TEXAS EASTERN

OGJ NEWSLETTER

May 21, 1990 The role of two Soviet companies in the group awarded exploration rights covering the jointly administered zone between North and South Yemen is in doubt. Machinoimport and Zarughgeologia planned to meet their contributions to the Hunt-Exxon, Total-CFP, and Kuwait Foreign Petroleum Exploration Co. group with equipment and services. The non-Soviet partners don't like the quality of this equipment, and the Soviet companies have reportedly hit problems finding a cash alternative, leaving the

SEVEN YEARS OF OPERATION PROVE RCC CAPABILITY

May 28, 1990 Arthur G. Shaffer Jr. Ashland Oil Inc. Ashland, Ky. Charles L. Hemier UOP Des Plaines, Ill. The reduced crude conversion (RCC) process at Ashland Oil Inc.'s Catlettsburg, Ky., refinery has demonstrated throughout the past 7 years that it is a reliable and efficient means of converting residual fractions into transportation fuels. The 40,000 b/sd capacity RCC unit has shown good feedstock flexibility, which results from the ability to control the overall unit heat balance.

DESIGN BASIS DEVELOPED FOR H2 PIPELINE

May 28, 1990 M. Mohitpour Novacorp International Consulting Inc. C.L. Pierce Novalta Resources Inc. Calgary Peter Graham Novacor Chemicals Ltd. Joffre, Alta. In lieu of uniform codes or standards for hydrogen-gas pipeline design and construction, Novacorp International Consulting Inc., Calgary, developed a design basis and used it in the design, engineering, and construction of a hydrogen-gas cross-country pipeline. The pipeline joined the Alberta Gas Ethylene Co. Ltd. hydrogen purification plant to the

PHILLIPS HOMES IN ON PASADENA BLAST CAUSE

May 28, 1990 An isolated departure from routine procedures caused the Oct. 23, 1989, explosions and fire that leveled Phillips 66 Co.'s Pasadena, Tex., polyethylene plant and killed 23 people, a Phillips study has concluded. Other possible causes-such as flaws in design, construction, or materials quality or inadequate safety procedures-were not implicated, concluded a study of the accident by a special Phillips Petroleum Co. committee.

INTERNATIONAL BRIEFS

May 28, 1990 CHINA'S biggest foreign funded refinery is under construction in Hainan province. The $530 million, 115,000 b/d plant at Haikou, funded solely by U.K. company Haikou (Ko Fung) Comprehensive Refinery Co. Ltd., is to be complete in 1992. Feedstock will be Middle East crudes, with products earmarked for export to Europe, China's Xinhua News Agency reported.

U.S. BRIEFS

May 28, 1990 DEPARTMENT OF ENERGY reached a proposed $3.35 million settlement with Kern Oil & Refining Co. and Larry Delpit, a former Kern owner, to resolve claims that Kern sold price controlled crude to resellers and bought price exempt crude at below market discounts during October 1979-January 1991. Kern and Delpit did not admit any wrongdoing.

DEALS STRUCK ON SEVERAL OFFSHORE RIGS

May 28, 1990 While one U.S. company is preparing to build as many as six offshore drilling rigs, another plans to operate two rigs in the North Sea. Capital Maritime Corp., Greenwich, Conn., let a contract to Allison-McDermid, Brownsville, Tex., to build three jack ups with options for three more. In addition, Sonat Offshore Drilling Inc., Houston, and Arcade Shipping AS, Oslo, agreed to form a Norwegian offshore drilling company, Arcade Drilling AS.

FIRMS TO HIKE FRENCH OUTLAYS

May 28, 1990 Ste. Nationale Elf Aquitaine and BP France plan to step up outlays on their French refining and marketing operations. Elf will spend a total of $540 million in 1990-93 on refining and marketing in France. Part of Elf's outlays will go for installation of a 230,000 metric ton/year hydrotreater at its Grandspuits refinery east of Paris and a 145,000 ton/year alkylation unit at its Feyzin refinery near Lyon.

THAI PETROCHEM UNITS EYED

Jun 4, 1990 Industry plans petrochemical projects totaling $300 million in Thailand. Thailand's Siam Cement Group 51% and Dow Chemical Corp. 49% formed a $188 million joint venture to produce 200,000 tons/year of styrene monomer in the Thai eastern seaboard province of Rayong. Using Dow technology, the plant will start up in late 1993.

INTERNATIONAL BRIEFS

Jun 4, 1990 WESTERN GAS MARKETING LTD., Calgary, plans to sue Consolidated Natural Gas Ltd. and Consolidated's former parent Northern Natural Gas Co. to enforce a sales contract that had a 15 year term to 1994. A Canadian export license expired in 1989, and Western alleges Consolidated was obliged to seek an extension but did not. Deliveries of as much as 167 MMcfd under the contract ended last Nov. 1, and Northern Natural switched to other suppliers.

U.S. BRIEFS

Jun 4, 1990 A FEDERAL ENERGY REGULATORY COMMISSION administrative law judge ruled the Department of Energy lacks authority to hold a corporate officer liable for alleged violations by the corporation of petroleum price rules.

FINDING, REPLACEMENT COSTS FALL IN ALBERTA

Jun 4, 1990 Canadian Energy Research Institute (CERI) estimates for 1988 long term oil equivalent finding and replacement costs in Alberta show a sharp 5 year decline. Gas finding and replacement costs also have declined greatly in the same 5 year span, CERI figures show. The decreases in Alberta crude oil finding and replacement costs, although not as abrupt as those for gas and oil equivalent, reflect the same downward trend.

OGJ NEWSLETTER

Jun 4, 1990 Is another oil price slide on the horizon? Merrill Lynch worries that a near term drop in prices may be more severe than it earlier expected. Merrill Lynch projected a slip to $17/bbl after the recent OPEC Geneva meeting, but now says it may have been too optimistic. It cites reports of Iranian and Iraqi production topping quota by a combined 700,000-900,000 b/d in May. The only country making a significant cut in May was Saudi Arabia, Merrill Lynch says, which may renege in frustration.

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