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Released August 12, 2024 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking the construction and operations of three large grassroot refineries in Nigeria, China and Mexico. All have faced delays and are weeks away from either trial runs or full startup. Here is an update on their statuses.
Africa: Dangote Industries' Lekki Refinery
Originally announced in 2013, with construction beginning in 2017, the refinery in Lekki, Nigeria, was expected to begin operations in 2018. After years of delays, the company finally commissioned the lone 650,000-barrel-per-day (BBL/d) atmospheric distillation unit in March 2024, but at only 50% capacity.
Since March, Dangote has been able to produce straight-run refined products like distillates, but additional units are required to make gasoline. Now in August, IIR Energy confirms that gasoline production test runs are in progress at the refinery's Motor Spirit block.
That block's major units include a 103,000-BBL/d naphtha hydrotreater, a 96,000-BBL/d reformer unit and a 38,156-BBL/d isomerization unit. After many delays these are expected to begin operation in mid-August, although further extensions are possible.
Trial runs for Dangote's 204,000-BBL/d Residue Fluidized Catalytic Cracking Unit (RFCCU), a key unit to on-spec gasoline production, are scheduled for late August, with commercial operations expected by mid-September 2024. A similar commercial start date is set for the 1,100 million-pound-per-year-each Polypropylene trains 1 and 2.
The 650,000-BBL/d lone crude unit has been operating at 50% capacity since it was commissioned March 20. In July, Dangote Industries (Lagos, Nigeria) said the unit was expected to reach 85% capacity, amounting to 550,000 BBL/d, later this year. Due to a shortage of domestic crude, it is importing much of its supply.
Dangote's original purpose was to stem the tide of exporting raw crude only to import refined products, namely gasoline. But the refinery's inability to produce road fuels has not yet impacted refined product imports.
When fully operational, Dangote's main production impact will be in Nigeria, but some international impact also may be seen, as it will reduce the nation's refined-product imports.
China: Nanshan Yulong Grassroot Refinery Trial Run Set for September
Shandong Yulong Petrochemical Company Limited has delayed the trial run of Crude Distillation Unit (CDU) 2 at the 400,000-BBL/d refinery in Shandong Yantai, China, until September 2024. The trial was originally scheduled for mid-July 2024. The company tentatively expects full commercial operation of CDU 2 in November 2024, depending on the outcome of the trial run.
Tentative trial run dates of October 2024 are on the schedule for the 200,000-BBL/d CDU 1, 80,000-BBL/d Deep Catalytic Cracker (FCCU), 52,000-BBL/d Reformer 1, 52,000-BBL/d Reformer 2, 52,000-BBL/d Residual Hydrotreating Unit (HDT) 1, 52,000-BBL/d Residual HDT 2, 52,000-BBL/d Residual HDT 3, 52,000-BBL/d Slurry HDT, 40,000-BBL/d vacuum gas oil (VGO) Hydrocracker, and 40,000-BBL/d VGO HDT. The trial run was delayed from June 2024. Commercial startup for these units is tentatively set for December 2024.
Subscribers can learn more by viewing by the related project reports.
Mexico: Pemex TRI Dos Bocas Olmeca Grassroot Refinery
Pemex (Mexico City, Mexico) continues with the commissioning, testing and pre-startup of its 340,000-BBL/d Dos Bocas Olmeca Refinery. Despite announcing the asset's inauguration several times, the Mexican company continues testing several of the refinery's units.
The refinery has resumed the startup of its 105,000-BBL/d Delayed Coker Unit (U-30000) after it was shut down due to mechanical issues in July.
Additionally, failures in the refinery's cogeneration section affected turbines, generators, the heat recovery steam generator (HRSG) and the protection system. This led to reduced testing capacity.
Units continuing under re-circulation mode but not yet operational:
Industrial Info will continue to monitor these installations for the latest changes and status updates as their startup processes continue.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Africa: Dangote Industries' Lekki Refinery
Originally announced in 2013, with construction beginning in 2017, the refinery in Lekki, Nigeria, was expected to begin operations in 2018. After years of delays, the company finally commissioned the lone 650,000-barrel-per-day (BBL/d) atmospheric distillation unit in March 2024, but at only 50% capacity.
Since March, Dangote has been able to produce straight-run refined products like distillates, but additional units are required to make gasoline. Now in August, IIR Energy confirms that gasoline production test runs are in progress at the refinery's Motor Spirit block.
That block's major units include a 103,000-BBL/d naphtha hydrotreater, a 96,000-BBL/d reformer unit and a 38,156-BBL/d isomerization unit. After many delays these are expected to begin operation in mid-August, although further extensions are possible.
Trial runs for Dangote's 204,000-BBL/d Residue Fluidized Catalytic Cracking Unit (RFCCU), a key unit to on-spec gasoline production, are scheduled for late August, with commercial operations expected by mid-September 2024. A similar commercial start date is set for the 1,100 million-pound-per-year-each Polypropylene trains 1 and 2.
The 650,000-BBL/d lone crude unit has been operating at 50% capacity since it was commissioned March 20. In July, Dangote Industries (Lagos, Nigeria) said the unit was expected to reach 85% capacity, amounting to 550,000 BBL/d, later this year. Due to a shortage of domestic crude, it is importing much of its supply.
Dangote's original purpose was to stem the tide of exporting raw crude only to import refined products, namely gasoline. But the refinery's inability to produce road fuels has not yet impacted refined product imports.
When fully operational, Dangote's main production impact will be in Nigeria, but some international impact also may be seen, as it will reduce the nation's refined-product imports.
China: Nanshan Yulong Grassroot Refinery Trial Run Set for September
Shandong Yulong Petrochemical Company Limited has delayed the trial run of Crude Distillation Unit (CDU) 2 at the 400,000-BBL/d refinery in Shandong Yantai, China, until September 2024. The trial was originally scheduled for mid-July 2024. The company tentatively expects full commercial operation of CDU 2 in November 2024, depending on the outcome of the trial run.
Tentative trial run dates of October 2024 are on the schedule for the 200,000-BBL/d CDU 1, 80,000-BBL/d Deep Catalytic Cracker (FCCU), 52,000-BBL/d Reformer 1, 52,000-BBL/d Reformer 2, 52,000-BBL/d Residual Hydrotreating Unit (HDT) 1, 52,000-BBL/d Residual HDT 2, 52,000-BBL/d Residual HDT 3, 52,000-BBL/d Slurry HDT, 40,000-BBL/d vacuum gas oil (VGO) Hydrocracker, and 40,000-BBL/d VGO HDT. The trial run was delayed from June 2024. Commercial startup for these units is tentatively set for December 2024.
Subscribers can learn more by viewing by the related project reports.
Mexico: Pemex TRI Dos Bocas Olmeca Grassroot Refinery
Pemex (Mexico City, Mexico) continues with the commissioning, testing and pre-startup of its 340,000-BBL/d Dos Bocas Olmeca Refinery. Despite announcing the asset's inauguration several times, the Mexican company continues testing several of the refinery's units.
The refinery has resumed the startup of its 105,000-BBL/d Delayed Coker Unit (U-30000) after it was shut down due to mechanical issues in July.
Additionally, failures in the refinery's cogeneration section affected turbines, generators, the heat recovery steam generator (HRSG) and the protection system. This led to reduced testing capacity.
Units continuing under re-circulation mode but not yet operational:
- 170,000-BBL/d Combined Maya Train 1 (U-11000)< /li>
- 68,000-BBL/d Diesel Hydrotreater (HDDI) (U-51000)
- Hydrogen (PH) units
- 60,000-BBL/d Gasoil HDT (HDTGO)
- 55,000-BBL/d Naphtha HDT (HDN)
- Amine 1
- 94,000-BBL/d Fluid catalytic cracking unit FCCU (U-21000)
- 62,000-BBL/d Reformer (REF) (U-71000)
- SWT 1 (Phenolic)
- Tail Gas Treatment Units
Industrial Info will continue to monitor these installations for the latest changes and status updates as their startup processes continue.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
