dewjournal · 2017. 6. 10. · 8 dew journal july 2016 dewjournal.com news bentley to advance...

July 2016 DEW JOURNAL 1

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2 DEW JOURNAL July 2016

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Chairman Editorial Board andChief EditorArun Kumar Singhal

DirectorShrey Singhal

Editorial AdvisorsSatish Kumar Mathurformer General Manager (E&S), ONGC

Prof (Dr.) Nikolay P. ZapivalovChairman of Novosibirsk Centre ofRussian Academy of Natural Sciencesand Professor of NovosibirskUniversity, Russia

Dr. Himmat SinghHead of Department - PetroleumEngineering, Chandigarh Universityformer Distinguished Professor,Hydrocarbon Engineering, UPES,former Advisor (R&D), Bharat PetroleumCorp. Limited, former Sr. Dy. Director(Scientist “G”), Indian Institute of Petroleum

S K DasFormer Executive Director, ONGC

PublisherArun Kumar SinghalAdvertising ManagerMs. SarojCirculation ManagerPramil KhanduriDesign & GraphicsAbhinav AryaFinance ManagerPramod KumarRegional Coordinator - New DelhiMukesh GuptaRegional Coordinator - MumbaiJ. ChakarbortyRegional Coordinator -South East Asia & ChinaTony Chen W. K.

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Prepress processing & Printing at Saraswati PressDrilling & Exploration World (DEW) publishedsince 1989 by Technology Publications fromDehradun is an internationally circulatedEnergy and Oil & Gas journal. The journalholds the dist inct ion of being the onlyMONTHLY Energy and Oil & Gas journalpublished from India.

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CONTENTSISSN-0971-7242 R.N.I. No. 51048/89 © 2015 Technology Publications

Cover Focus

July 2016 - Volume 25 No.09

20

Technology/ Technical Papers

Special Report

PENNSYLVANIATHE LAND OF ENERGY GALORE

Shale development changing US fortune

FOCUS PENNSYLVANIA: • Shale gas boom, robust manufacturing andmining • Well-regulated natural gas extraction • Home to top rankingeducational institutions and a world class workforce • Impeccableinfrastructure • Positive FDI growth • Committed Government

12 Three path-breaking technologies of Indian Instituteof Petroleum commissioned in a single year

46 New interactive geological map and database aids exploration49 New stability analysis solutions52 An engineering feat58 Cost saving through modeling & simulation62 New system for better well integrity65 PSE for operational integrity and excellence67 Well testing under high pressure high temperature conditions71 Enhanced Oil Recovery - II82 Plus

Face to Face

‘The breadth of the scope is whatmade this project different for us’“The float-off and towing of the Malikai TLP is just anotherexample of a safely executed towing scope by InterMoor”

55 Martin Kobiela, Managing Director,InterMoor Pte, Singapore talks to DEW

Harmful effects of E-waste on livingbeings and environment


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dewjournal.com Petro-Events CalenderFrom the Editor

The energy policy framework in the United States has undergone significant changeover the six-year period. In many aspects there have been significant improvementsand the country is well placed to continue to deliver a reliable, affordable andenvironmentally sustainable energy system. The most obvious trend to haveemerged is the resurgence of oil and gas production where output had previouslybeen assumed to be in decline. The growth in unconventional gas production hasbeen a game-changing development in North American markets, and is making asubstantial additional contribution to economic activity and employment, both withinthe energy industry and elsewhere by, for example, lowering energy and inputcosts for other industrial sectors.

Energy security has been strengthened over the past six years and risingdomestic production of oil, shale gas and bio-energy alongside demand-sidemeasures such as policies to support energy efficiency and reduce consumptionin the transport sector could result in the United States becoming all but self-sufficient in net terms by 2035.

A defining feature of the energy landscape in the United States has been theunexpected rise in shale gas production and the new-found abundance ofinexpensive natural gas. Though shale gas (alongside other unconventional sourcesof tight gas and coal bed methane) has been produced for several decades, itsproduction only started to expand after 2005, reversing the previous decline ingas production. Proved gas reserves have increased by almost three-quarterssince 2000. Natural gas production is projected to continue to increase over theperiod to 2040. Almost all of this increase is the result of the projected growth inshale gas production and two of the largest shale plays that have been identified,the Marcellus and Haynesville formations, which are among the largest knowngas fields of any type in the world. With the advent of substantial shale gasproduction, the United States has moved quickly from two decades of increaseddependence on imported gas to being a possible significant liquefied natural gas(LNG) exporter. With the approval of the Department of Energy for the export ofLNG to countries with which the United States does not have a free trade agreement(FTA) forthcoming, the country has overcome an obstacle on the way to becomingone of the world’s largest LNG suppliers.

Natural gas production from shale gas and tight oil plays now makes up abouthalf of the U.S. total dry natural gas production. The production from shale gasand tight oil plays is projected to grow from about 14 trillion cubic feet (Tcf) in 2015to 29 Tcf in 2040, making up 69% of the 2040 total dry natural gas production. Thiscategory includes natural gas produced from shale formations as well as fromtight oil plays, which are low-permeability sandstones, carbonates, and shaleformations. Tight gas production is the second main contributor.

In recent years, because of improvements in drilling technology and abundantdomestic resources, natural gas production has continued to grow despite relativelylow natural gas prices. Drilling technology improvements that are expected tocontinue through 2040 will also help production keep pace with demand (bothdomestic consumption and exports), resulting in relatively stable natural gas pricesthroughout the projection period.

As a result of growth in production, domestic production is soon expected tosurpass domestic consumption of natural gas, and by 2018 the United States canbecome a net exporter of natural gas for the first time since the 1950s. By 2040,net exports of natural gas reach 7.5 Tcf, which is 18% of total U.S. production.

Pennsylvania on the other hand is at the forefront of America’s energyrevolution. If Marcellus Shale region was a country its gas production would rankthird in the world behind the US and Russia. Pennsylvania is committed to well-regulated natural gas extraction and safe and responsible pipeline development tomake the Keystone State a global hub for high-tech industries and manufacturingfacilities as a result of clean, affordable and abundant energy. Shale developmenthas reversed the fortunes of the U.S. plastics industry and ensured thatmanufacturers are “re-shoring” jobs once lost to foreign nations with lower energycosts. Undoubtedly Pennsylvania is the Keystone to America’s energy future.

August 2, 2016, NEW DELHI, IndiaThe 17th Energy Summit - Indian Oil &Gas Sectorwww.assocham.org

August 8-9, 2016, DEHRADUN, IndiaSymposium - Translational Research forGlobal Competit iveness of IndiaHydrocarbon [email protected]

August 15-18, JOHANNESBURG, S.AfricaStrategic Workforce Planninginfocusinternational.com/workforce

August 22-25, 2016, KL, MalaysiaIFRS for Oil & Gas Accountingwww.infocusinternational.com/ifrs

August 23-25, 2016, SHANGHAI, ChinaThe 8th CIPPE [email protected]

September 22-24, 2016, YANGON, MyanmarManufacturing 2016 - 3rd InternationalManufacturing Machinery, Equipment,Materials and Services Exhibitionwww.manufacturingmayanmar.com

September 27-29, 2016, ISTANBUL, TurkeyThe 29th World LPG Forum-AEGPL 2016www.worldlgpforum-aegpl2016.com

September 28-30, 2016, KL, MalaysiaThe 3rd MOGSEC 2016www.mogsec.com.my

Oct 10-13 2016, JOHANNESBURG, S.AfricaSuccession Planning, Performance Mgt.,and ROI on Training & Developmentinfocusinternational.com/successionplan

Oct 17-19, 2016, DAMMAN, Saudi ArabiaThe 8th SAOGEwww.saoge.org

October 18-21, 2016, S I N G A P O R EAdvanced Oil & Gas Accountinginfocusinternational.com/oil-gas-accounting

October 26-28, 2016, SINGAPOREThe 4th Gas Asia Summitwww.gasasiasummit.com/dewjournal1

November 15-17, 2016, SHANGHAI, ChinaThe 11th SIPPE 2016www.sippe.org.cn

November 16-17, 2016, KL, MalaysiaThe 4th Offshore Engineering Malaysiawww.fleminggulf.com

November 29-December 2, 2016, SINGAPOREThe 21st OSEA 2016www.osea-asia.com

December 5-7, 2016, NEW DELHI, IndiaThe 12th PETROTECH 2016www.petrotech.in

April 4-7, 2017, TOKYO, JapanGastech Conference and Exhibitionwww.gastechevent.com/dewjournal1

July 9-13, 2017, ISTANBUL, TurkeyThe 22nd World Petroleum Congress 2017www.22wpc.com

AKSCover Description: Drilling - Marcellus Shale


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Bentley to advance piping and vessel designwith expanded global design code coverage

Bentley Systems has announced additional designcode updates for the CONNECT Edition applicationsof AutoPIPE and AutoPIPE Vessel. These design codeupdates will reduce the cost and time to producecompliant piping and vessel designs for any plantproject. AutoPIPE and AutoPIPE Vessel providecomprehensive design code coverage, ensuringproject compliance anywhere in the world.

Updates to the design codes for the CONNECTEditions of AutoPIPE and AutoPIPE Vessel include:• ASME B31 J, a draft standard method to calculate

stress intensification factors (i-factors) and flexibilityfactors (k-factors) for metallic piping componentsused in B31 piping analysis;

• GB 150 pressure vessel design code that usescalculations for material thicknesses with safetyfactors, hydrotest pressure, and weld joint efficiency;

• 2015 update for the ASME Boiler and PressureVessel code, the most popular pressure vesseldesign code in the world.The addition of ASME B31 J to the CONNECTEdition of AutoPIPE will provide comprehensivedesign code coverage for users in the oil and gasindustry, including those designing offshorestructures. The updates to the CONNECT Editionof AutoPIPE Vessel will enable users to stay currentwith the latest global code updates and addressrequirements in the Chinese market.

“AutoPIPE brand products continue to broadentheir reach with new design standards and codes forpipe and vessel design, but significantly, with theCONNECT Edition. The CONNECT Editions of bothAutoPIPE and AutoPIPE Vessel offer users a new wayto collaborate, produce better designs, and gaininsight into their project performance. By signing inand creating CONNECTED Projects, users can nowtake advantage of many CONNECT Edition CloudServices, including project performance reportingcapabilities through the Project Portal and learningand sharing on the Personal Portal. Our AutoPIPEbrands are also leading the charge towardsdevelopment and adoption of new cloud services,including Project-based Configuration Sett ingsmanagement to allow global users to stay up to datewith changes to design specifications and ScenarioServices to allow users to optimize the selection ofpipe supports.,” said Raoul Karp, Bentley vicepresident, Structural and Bridge Analysis.

“Bentley’s AutoPIPE allows the user to efficientlyand successful ly model code-compliant pipingsystems in a fast paced engineering industry,” saidChristian Gomez, project engineer, Veizades &Associates Inc.

AutoPIPE allows users to save time and reduceerrors when performing pipe stress analysis byoffering a comprehensive set of design codes that

EPCs have been relying on formore than 20 years. AutoPIPEVessel offers comprehensivesoftware for optimized pressurevessels, heat exchangers, aircoolers or tank design, allowingengineers to del iver safer,faster, more cost-effect ivevessel designs. The newestdesign code additions furtherdemonstrate Bent ley’scommitment to serving theindustry’s need to address thebroad and ever-changingspectrum of compl ianceenvironments found across theglobe.

Global design codes in AutoPIPE Vessel, such as the Chinese GB 150 pressure vessel design code,allow users to quickly produce safer, more-cost effective designs.


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Global methanol capacityis set to grow at aconsiderable pace from117.5 mtpa in 2015 to 184.4mtpa by 2020, according toresearch and consultingfirm GlobalData.

The company’s latestreport* states that 49planned projects areslated to come online in thenext five years, primarily inChina and Iran, with 17and 12 projects respect ively.China’s methanol capitalexpenditure will total an estimatedUS$13.44 billion over the next fiveyears, far higher than the nexthighest spender - the US - atUS$6.44 billion.

China Petroleum & ChemicalCorporation and Shenhua GroupCorporation Limited are among thetop companies by capacity additionglobally, with 4.1 mtpa and 3.3 mtpa,respectively, expected to come

Global methanol capacity set to hit 184.4 mtpa by 2020

onstream over the next five years.In terms of the Middle East’s

contribution, Iran has 12 plannedmethanol projects, due to addcapacity of 18.9 mtpa by 2018. Thecountry’s capital expenditure forthese projects wil l be US$4.30billion over the next five years. Thisputs Iran very high up in terms ofmethanol capacity production andplanned projects globally. Kaveh

Methanol Co. is thecompany accounting formost capacity addition inIran.However, the leadingcompany for methanolcapacity additions to 2020will be GigaMethanol B.V,which is based inMozambique, andprojected to add 5.3 mtpaduring the forecast period.Mozambique is expected to

spend around US$380 million toadd capacity of around 7.0 mtpa,with projects expected to comeonstream in 2016. This outstripsthe whole of Europe, wheremethanol capacity additions aremainly centered in Russia, whichhas planned capacity additions of1.1 mtpa by 2018, with US$230million in capital expenditure overthe next five years.

[*] Q1 Global Methanol Capacity and Capital Expenditure Outlook – China and Iran FuelMethanol Industry Expansion

Pilot Programme to run two wheelers on CNG launchedIn a major step to curb rising air pollution in Indiancities, Ministry of Petroleum and Natural Gas andMinistry of Environment, Forests & Climate Changehave jointly launched first of its kind Pilot Programmein the country to run two wheelers on CompressedNatural Gas (CNG).

The scooters are being retrofitted with CNG kit.The type approval of the CNG kit has been taken fromAutomotive Research Association of India (ARAI) aswell as Transport Department,Govt. of NCT of Delhi. The typeapprovals of al l components,parts, assemblies in the kit havebeen received from Petroleum andExplosives Safety Organization(PESO), International Center forAutomotive Technology (ICAT) andAutomotive Research Association

of India (ARAI), as applicable. The retrofitment invehicles has been undertaken in a centre authorizedby Transport Department, Govt. of NCT of Delhi.

As per idle emission test, the hydrocarbonemissions from CNG retrofitted two wheelers are75% lesser and CO emissions are 20% lesser ascompared to petrol driven similar models. The CNGkit for two wheelers comprises two CNG cylinders of4.8 litre capacity each, which can be filled with up to

1 kg of CNG in each cylinder.These CNG retrof i t ted twowheelers can drive upto 120kms in a single f i l l and areexpected to be substantial lyeconomical as compared to asimilar petrol run vehicle at thecurrent level of prices, as per thekit manufacturer.


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Siemens and Gamesa have signedbinding agreements to mergeSiemens’ wind power business,including wind services, withGamesa to create a leading globalwind power player. Siemens willreceive newly issued shares of thecombined company and will hold59% of the share capital whileGamesa’s existing shareholderswill hold 41%. As part of the merger,Siemens will fund a cash paymentof •3.75 per share, which will bedistributed to Gamesa’s share-holders (excluding Siemens)immediately fol lowing thecompletion of the merger (net of anyordinary dividends paid unti lcompletion of the merger). The cashpayment represents 26% ofGamesa’s unaffected share price atmarket close on January 28, 2016.

Additionally, Gamesa and Arevahave entered into contractualagreements whereby Areva waivesexisting contractual restrictions inGamesa’s and Areva’s offshorewind joint venture Adwen,simplifying the merger betweenGamesa and Siemens. As part ofthese agreements, Gamesa – inalignment with Siemens – grantsAreva a put option for Areva’s 50%stake and a cal l opt ion forGamesa’s 50% stake in Adwen.Both opt ions expire in threemonths. Alternatively, Areva can in

Siemens and Gamesa to merge wind businesses

this time divest 100% of Adwen to athird party via a drag-along right forGamesa’s stake.

The new company, which willbe consol idated in Siemens’financial statements, is expectedto have on a pro forma basis (lasttwelve months as of March 2016) a69 GW installed base worldwide,an order backlog of around •20billion, revenue of •9.3 billion andan adjusted EBIT of •839 million.The combined company will haveits legal domici le and globalheadquarters in Spain and wil lremain l isted in Spain. Theonshore headquarters wi l l belocated in Spain, while the offshorein Germany, and Vejle, Denmark.

The two businesses are highlycomplementary in terms of globalfootprint, existing product portfoliosand technologies. The combinedbusiness will have a global reachacross all important regions, andmanufactur ing footpr ints in al lcontinents. Siemens’ wind powerbusiness has a strong foothold inNorth America and NorthernEurope, and Gamesa is wel lposi t ioned in fast-growingemerging markets, such as Indiaand Latin America, and in SouthernEurope. Further, the transaction willresult in a product offering covering

all wind classes and addressingall key market segments to betterserve our customer’s needs.

“The merger with Siemensconstitutes recognition for the workperformed by the company in recentyears and evidences ourcommitment to generating value inthe long term by creating significantsynergies and extending thehorizon of our profitable growth.Today, we are embarking on a newera, creating, alongside Siemens,a world-leading wind player. We willcontinue to work as before, albeit aspart of a stronger company and withan enhanced ability to offer all of ourcustomers end-to-end solutions,”said Ignacio Martín, ExecutiveChairman & CEO, Gamesa.

“The combination of our windbusiness with Gamesa follows aclear and compell ing industriallogic in an attractive growth industry,in which scale is a key to makingrenewable energy more cost-effective. With this businesscombination, we can provide evengreater opportunit ies to thecustomers and value to theshareholders of the new company.The combined business will fit rightinto our Siemens Vision 2020 andunderl ines our commitment toaffordable, reliable and sustainableenergy supply,” said Joe Kaeser,President and CEO of Siemens AG.

Rockwell Automation appoints new SE Asia Regional DirectorRockwell Automation, the world’s largest company dedicated to industrial automation andinformation has named Pierre Teszner its new SE Asia Regional Director. Based in Singapore,Teszner will be responsible for sales and marketing across all of Southeast Asia, as well asbusiness operations in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

“Pierre’s broad experience in strategic planning, business development, operations,sales and management makes him well qualified to drive our performance strategy inSoutheast Asia, including increasing market share and directing commercial processes,”said Tom O’Reilly, President, Asia Pacific, Rockwell Automation.Pierre Teszner


dewjournal.comNews

RasGas Company Limited (RasGas) has completeda 10-year Low NOx retrofit programme across Trains1, 2, 3, 4, Al Khaleej Gas 1, and associated Utilities,reducing its nitrogen oxides (NOx) emissions intensityby approximately 90%in comparison to 2006 levels.

The programme, which was implemented incooperation with the Ministry of Municipality andEnvironment (MME), is a significant step in mitigatingenvironmental concerns about local air quality.RasGas introduced General Electric’s (GE)Dry LowNOx technology in 2007 to the company’s gas-firedturbines built before 2005.It subsequently ensuredthat emissions from all applicable combustion unitsmeet, or fall below, Qatar’s applicable regulatorylimits.

Hamad Mubarak Al Muhannadi, RasGas ChiefExecutive Officer, states, “As a responsible corporatecitizen, we believe that it is our duty to make a positiveenvironmental contribution where we can, and tomitigate any impacts associated with the activitiesunder our control as far as possible. As a Qataricompany, we alsoembrace ourresponsibi l i t ies toour localcommunit ies, andthis includesensuring we play aconstructive role inprotecting the qualityof ambient air.”

RasGas reduces NOx intensity by 90 percent

RasGas’ implementation of GE’s gas turbine technologytook place over a 10-year period and has successfullyreduced NOx intensity by 90%.

Air emissions from oil andgas industry operations maycontribute to local environmentalimpacts such as haze, and canaffect health, flora and fauna.These emissions include NOxand sulphur dioxide emittedduring combustion.

RasGas has long beencommitted to addressing suchenvironmental chal lenges,including forming a speciallyappointed emissions reductionsteering committee comprisingsenior management that isresponsible for identifying andcoordinating opportunities foremission reductions. A 2014Phil ip Townsend AssociatesIncorporated benchmarkingreport conf i rmed that the

company’s NOxemissions intensity,expressed in weightpercentage of totalintake, was better thanthe LNG industryaverage by 70%, withRasGas ranking top ofthe 14 benchmarkedLNG companies.

“As aresponsiblecorporatecitizen, we

believe that it isour duty to

make a positiveenvironmentalcontribution

where we can,and to mitigate

any impactsassociated with

the activitiesunder our

control as faras possible and

play aconstructive

role inprotecting the

quality ofambient air”

- Hamad MubarakAl MuhannadiCEO, RasGas

National Mineral Exploration Policy launchedThe Government of India has approved the NationalExploration Policy (NMEP) on June 29,2016. With thisthe government can now auction 100 prospectivemineral blocks that have been identified by theGeological Survey of India (GSI) for exploration.Through NMEP, the government aims to attract privatesector in exploration of minerals, besides involvingState run GSI, MECL and other notified agencies. Toencourage exploration in the country, the MinesMinistry has already notified the National MineralExploration Trust (NMET).

The National Mineral Exploration Policy proposesthat private entities engaged in carrying out regional

and detailed exploration would get a certain share inrevenue in mining operation from the successfulbidder after the e-auction of the blocks. The revenuesharing could be either in the form of a lump sum oran annuity to be paid throughout the period of mininglease with transferable rights.

For selection of private explorer, reasonable areaor blocks for regional exploration will be earmarkedor identified by the government for auctioning. Asidentified by Geological Survey of India, out of India'sentire Obvious Geological Potential (OGP) area only10% has been explored yet and mining is undertakenin 1-5-2% of this area.


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The CSIR-Indian Inst i tute ofPetroleum (CSIR-IIP), Dehradun,has commercial ized andcommissioned three of its pathbreaking technologies in a singleyear, two of them being the grassroot units. A world record for any

Three path-breaking technologies of Indian Instituteof Petroleum (IIP) commissioned in a single year

research organization, this CSIR-IIP feat has set a landmark for theothers to follow.

The f i rs t technologycommercia l ized andcommissioned by CSIR-IIP duringthis year is the state-of-the-artgrass roots Wax Plant at theNumaligarh Refinery in Assam.With the annual product ion of50,000 tons of high quality wax,

Numaligarh Refinery/BPCL hasalready captured 55% of the Indianmarket and also substantial worldmarket, including that in Nepal andKenya. This wax p lant wasdedicated to the nation in February2016 by the Prime Minister of India,Mr Narendra Modi.

The second grass roots unit togo online during this year is theBenzene Recovery Unit at Reliance

refinery in Jamnagar.First of its kind in theworld, this uni trecovers benzenefrom FCC gasoline.This uniquetechnology producesb e n z e n e - f r e egasol ine whi les i m u l t a n e o u s l yproducing purebenzene. Built at acost of about Rs 500crore, this is the firsti n d i g e n o u stechnology joint lydeveloped by IIP andReliance.

The third unit wass u c c e s s f u l l y

News

(L to R): Dr. Ajit Sapre, Group President, R&T, Reliance Industries Limited, Dr. Ram A. Vishwakarma, Director, Indian Institute of Petroleum andDr. M.O. Garg, former DG, CSIR now Scientist at IIP at a press conference in Dehradun to formally declare successful commercialization ofthree path-breaking technologies by IIP in a single year.

Wax De-oiling TechnologyThe salient feature of this technology which sets it apart from other foreigncompetitors is low capital cost and low energy intensive process becausefurnace has been eliminated from the solvent recovery section throughapplication of advanced engineering tool such as ‘Pinch Analysis’.

Producing Benzene free Gasoline: First time in the worldThe unique and novel aspects of the technology are; it is the first of itskind in the world, based on a thermally and chemically stable and tunablesolvent system discovered to handle reactive impurities laden complexfeedstocks such as FCC Gasoline. The technology does not requireany energy intensive and high expenditure feed pre-processing stepslike selective hydrogenation or hydro-desulfurisation.

Soaker Internal Visbreaking TechnologyThe major novelty of this technology is design of the soaker internalsand its arrangement inside the reactor in such a way that it reducesover cracking of the liquid products and the unwanted coke production.By implementing this technology, refineries are gaining considerableamount of revenue due to the extra productions of LPG, petrol and diesel.


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commissioned and theperformance guarantee testrun conducted at Indian OilCorporat ion Ref inery atHaldia. This uni t uses anadvanced technology toproduce high quality fuel oilf rom a process cal ledvisbreaking. Developed over aperiod of six years, carefullydesigned internals have beeninstalled in the soaker drum of theVisbreaking Unit to eliminate backmixing, thus providing low viscosityfuel oil along with higher yield ofLPG gasoline and diesel.

The detai ls of the threetechnologies are as under:

WAX DE-OILING TECHNOLOGYPrime Minister of India who is alsothe President of Counci l o fScientific & Industrial Research(CSIR) has dedicated the WaxPlant at Numal igarh Ref ineryLimited (NRL) to the nation in afunction at Lepetkata (Dibrugarh),Assam. The NRL wax plant isdesigned to produce 50,000 Ton/annum of high value ‘Paraffin Wax’and 4,500 Ton/annum of‘Microcrystalline Wax (MCW)’.

The ‘Wax De-oi l ingTechnology’ for NRL Wax Plant wasdeveloped by Indian Institute ofPetroleum (I IP). I IP under theleadership of Dr. M. O. Garg hasdeveloped ‘Wax De-oi l ingTechnology’ to produce ‘ParaffinWax’ and ‘Microcrystalline Wax(MCW)’ from two waxy petroleumstreams namely MVGO & HVGO.Engineers India Limited (EIL)provided engineering inputs in thistechnology development.

Numaligarh Refinery Limited(NRL), a subsidiary of BharatPetroleum Corporation Limited(BPCL) situated in North-East part

of India has set-up a grass root‘Wax De-oi l ing Plant ’ wi th theinvestment of Rs. 676 crores. Thisis the first wax plant set-up by anypetroleum refinery in the countrybased on indigenously developedtechnology with the largestinvestment. The ‘Wax De-oilingTechnology’ was offered to NRLthrough a joint bid by CSIR-IIP andEngineers India Ltd. (EIL) and thebid succeeded against st i f fcompeti t ion with Internat ionalProcess Licensers based on lowercost and process benefits.

The sal ient feature of thistechnology which sets it apart fromother foreigncompeti tors is lowcapital cost and lowenergy intensiveprocess becausefurnace has beenel iminated from thesolvent recoverysect ion throughappl icat ion ofadvanced engineeringtool such as ‘PinchAnalysis’.

N u m a l i g a r hRefinery has startedc o m m e r c i a lproduction of ParaffinWax from February,2016. ‘Paraffin wax’ isused for makingcandles, pol ishes,

medicines, food packaging, paints,t i re, rubber, leather etc, whi le‘Microcrystalline Wax’ (MCW) ismainly used in cosmetic industry.At present, in India both types ofwaxes are in short supply. Thedemand of paraffin wax is 2,30,000Ton/annum, whi le currentindigenous production is 64,000Ton/annum. Similarly, the demandof the MCW is 12,000 Ton/annumwhile indigenous production is 900Ton/annum. After starting the waxproduction, NRL has captured thewax market in Nepal, Bangaladesh,Thailand and Kenya also.

With the setting-up of wax plant

News

CSIR-IIP was established in 1960 for thedevelopment of downstream petroleumIndustry of the country. Over the past 55 years,the Institute has developed and commercializeda very large number of technologies both inIndia and abroad. In fact, all the 23 refineries inthe country have either a technology or aproduct or service provided by this Institute. ThisInstitute has also been singularly responsiblefor training of the human resources of thisindustry vital to the Indian economy.

The main building of IIP

Dr. M. O. Garg has developed ‘Wax De-oiling Technology’ to produce ‘Paraffin Wax’and ‘Microcrystalline Wax (MCW)’ from twowaxy petroleum streams namely MVGO &HVGO. Wax Technology also opens upopportunity for its export. Production ofparaffin wax using indigenously developedSolvent De-oiling technology is a greatsuccess under the ‘Make in India’ programpropelled by Government of India.

Dr. M.O. Garg


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at NRL, the refinery profitability hasincreased by Rs. 77.0 crores perannum which is equivalent toincrease in gross refinery margins(GRM) by US $ 0.53 per barrel. Thekey benefit to the nation is it cutdown the wax import by 50% whichwill save the foreign exchange ofthe order of Rs. 500 crore/annum.

There are many societalbenefits of setting-up of this waxplant. The paraff in wax andmicrocrystalline wax are valuableproducts and has wide range ofapplications in many industriessuch as tyres, rubber, candles,adhesives, corrugated board,cosmetics, casting etc. This willdefinitely encourage small scale

entrepreneurs to use waxes as rawmaterial. Setting-up of ancillarymedium and small sized plants willalso create avenues for generatinglarge scale indirect employment inneighboring areas to the localpeople in North-East region of Indiathereby improving their quality of life.

Successful commercializationof Wax De-oiling technology at NRLhas opened up market for providingknow-how for any other new unitthat may come up in the country.The Wax Technology also opensup opportunity for export of thisindigenous technology, as acommercial reference of i t isavailable now.

Production of paraffin wax using

indigenously developed Solvent De-oiling technology is a great successunder the ‘Make in India’ programpropelled by the Government.

IIP-RIL TECHNOLOGY PRODUCEBENZENE FREE GASOLINE: FIRSTTIME IN THE WORLDThe MSAT – II regulations whichbecame active on January 1, 2011(“EPA Regulatory Announcement” –EPA420-F-07-017, February 2007),restricts the average benzene levelin Gasoline sold in U.S (exceptCalifornia), to 0.62 % vol.

Current ly FCC gasol inecomprises nearly 10-20 % of thegasoline pool in a typical refinery.Full range FCC gasoline contains

News

Prime Minister Inaugurating the NRL Wax Plant Function for dedication of NRL Wax Plant to the nation

A view of NRL Wax Plant View of Wax Slabbing Unit

The grass root ‘Wax De-oiling Plant’ is the first wax plant set-up by any petroleum refinery in thecountry based on indigenously developed technology. The NRL wax plant is designed to produce50,000 Ton/annum of high value ‘Paraffin Wax’ and 4,500 Ton/annum of ‘Microcrystalline Wax’


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around 15-30 vol. % aromatics withup to 2 vol. % benzene and 1000 –2000 ppm sulfur. A narrow C6 heartcut fraction of the full range gasolinewill contain anywhere between 11–19 wt. % benzene and up to 500ppm sulfur.

Hydro-processing routes forbenzene and sulfur reduction inFCC Gasoline results in olef insaturation thus lowering the octane.Unprocessed FCC Gasol inecontains reactive impurities likeoxygenates, metals, chlorides,sulphur compounds, ni t rogencompounds, di-olefins and organicperoxides. Due to the complexnature of this feedstock, aneconomic and reliable benzeneremoval/recovery process isdifficult to develop and has not beenpracticed in the industry so far.

In September 2011, RelianceIndustries Ltd. contacted CSIR-IIPto enquire whether i t has atechnology to remove benzene fromgasoline stream containing highcontents of olefins and severalother impurities such as diolefins,chlorides, oxygenates etc. Theeconomic incentives for Reliancewas to produce low benzenegasoline required to be sold in USmarket whi le extract ing andproducing pure benzene which hasa high market value.

CSIR-I IP carr ied outexperiments and generated largeamount of data to develop therequired technology. Thermo-dynamic data was generatedcoupled with developments ofprocess flow sheet and its rigoroussimulation. The complete processpackage was developed andsubmitted to Reliance within aperiod of eight months.

At this stage Rel iancetechnical team joined hands with

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CSIR-IIP along with engineeringcompany to develop the wholeprocess package with engineeringinput. The plant was built at a costof approx Rs 500 Crores atReliance Refinery in Jamnagar.

The plant was mechanicallycompleted in April 2016 and thecommissioning team of CSIR-IIPalong with Reliance commissionedthe unit in May 2016 flawlessly andbrought the unit to full capacitywithin 48 hours. The uni t isoperat ing smoothly whi leproducing gasol ine with non-detectable benzene, sulphur aswell as other impurities. It is alsoproducing extract containing more

than 96% aromatics.With the commissioning of this

unit it has been proved to the worldthat this difficult stream can be usedto produce not only low benzenegasoline but also rich aromatics.

The unique and novel aspectsof the technology are; it is the firstof its kind in the world, based on athermally and chemically stableand tunable solvent systemdiscovered to handle react iveimpuri t ies laden complexfeedstocks such as FCC Gasoline.

It has been conceptualized anddesigned with an out-of-the boxprocess conf igurat ion whichminimizes solvent loss, ut i l i ty

Benzene recovery unit (BRU)

Gasoline producedusing this technologyis relatively benzene

free henceenvironmentally

benign. As benzeneis highly carcinogenic

people involved indistribution and

consumers will bebenefited using

benzene lean petrolBenzene recovery unit (BRU) at Reliance IndustriesLimited refinary in Jamnagar


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requirements, and maximizes yieldand purity of products.

The technology does notrequire any energy intensive andhigh expenditure feed pre-processing steps l ike selectivehydrogenat ion or hydro-desulfurisation.

The indigenous technologywas recently granted U.S Patent(US. 8722952 B2). The technologyhas also been distinguished andawarded the prestigious Council ofScientific and Industrial Research(CSIR)- Technology InnovationAward, amidst a stiff competitionof several award applications fromthir ty seven CSIR - ResearchLaboratories all across India.

The Plant Highlights are:• Plant design throughput: 0.7

MMTPA• Location: RIL, Jamnagar, Gujarat• Estimated Cost of the plant: ~70

Million US $ (~500 Crore INR)• First indigenously developed

technology for a grass roots unitever to be commercialised byReliance.

ECONOMIC IMPACT: A 0.7 MMTPAunit has the potential to fetch ~400Million US $ per annum including~44 Million US $ per annum fromsale of high purity benzene.

The payback period for theBenzene Recovery Unit is expectednot to be more than two years.

Like Reliance there are manyrefineries in India and abroad havingsimilar feedstock streams so they

will be ready to adopt the technology.Hence Technology may be sold tothe clients abroad bringing foreignexchange to the country.SOCIETAL IMPACT: Gasol ineproduced using this technology isrelat ively benzene free henceenvironmentally benign; and asbenzene is highly carcinogenicpeople involved in distribution andconsumers in general wi l l bebenefited more while using thisbenzene lean petrol.

New plant wi l l employengineers and shi f t operatorshence creating new employment.• The technology will serve as a

role model to exemplify the Makein India Mandate of the currentgovernment.

• With Shale Gas boom in NorthAmerica and rapid conversion ofconventional Naphtha Crackersto Gas Crackers, there will be asteep decline in aromatics

(hence benzene) productionworldwide. This technology willsoon become the need of thehour, in view of not only producingclean sulfur and benzene freegasoline but also for efficientrecovery of high purity benzene(valuable aromatic compound)from alternative feedstocks suchas FCC Gasoline.

SOAKER INTERNAL VISBREAKINGTECHNOLOGYVisbreaking is a mi ld thermalconversion process exercised inrefinery for production of fuel oil.This fuel oi l is mostly used inmarine ship and refinery internalheating. Initially IIP had developed“soaker visbreaking technology”which was commercia l ized inseven Indian refineries for theproduction of around 80 % fuel oilin India. Subsequent ly th istechnology was upgradated as“soaker internal technology’. Thistechnology increases productionof LGP, petro l and d iesel bymaximum 2, 7 and 12 wt%respect ive ly. LPG is used ascooking gas, petrol is marketed astransportation oil for light vehiclesand d iesel has wide range ofusages in our society including in

With Shale Gas boom in USA and rapid conversion ofconventional Naphtha Crackers to Gas Crackers, there willbe a steep decline in aromatics (hence benzene) productionworldwide. This technology will soon become the need of thehour, in view of not only producing clean sulfur and benzenefree gasoline but also for efficient recovery of high puritybenzene from alternative feedstocks such as FCC Gasoline

News

IIP’s ‘soaker visbreaking technology’ now upgradated as‘soaker internal technology’ increases production of LGP,

petrol and diesel by maximum 2, 7 and 12 wt % respectively

(Left)IIP scientists at Haldia refinery where soaker internal technology is commissioned.(Right)Soaker Internal reactor


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agricultural sector. Last week thistechnology was successfu l lytested its performance at Haldiarefinery in presence of expertsfrom IIP and EIL. The performancewas tested by processing the mostcontaminants o i l used by therefinery. This is the 3rd successfulcommercia l izat ion of th istechnology. This technology isalready in used at HPCL-Vizag, andIOCL-Mathura from 2012 and 2013respectively. By implementing this

technology, refineries are gainingconsiderable amount of revenuedue to the extra productions ofLPG, petrol and diesel.

Other advantages of thistechnology are:• The fuel oil produced is of better

quality in terms of stability.• Energy is saved as the same

conversion is achievable at lowertemperature.

• Better temperature prof i le ismaintained.

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• Due to lower severi ty of theprocess, handling of plant issafer and easy.

• Longer time on stream due toless coke formation inside thesoaker drum.

The major novelty of thistechnology is design of the soakerinternals and i ts arrangementinside the reactor in such a way thatit reduces over cracking of the liquidproducts and the unwanted cokeproduction.

Innovative solutionto dewater pipeline

Dewatering pipeline

After failed attempts at drying a pipelineusing known traditional methods, apipeline contractor for a pump stationenlisted the help of Atlas Copco Rentalto provide an innovative solution for theirdi lemma. Using our oi l - f ree aircompressors and a customized heatexchanger package, the job went froma standst i l l to a total successdewatering their system.Dewatering pipelines USAThe job site was a natural gas pumpstation with most of the stations coveringa few miles of pipe. The situation cameabout when a large amount of waterentered the pipes throughout the station.The valves in the system had all been left open andthe system was flooded with water.

Usually when dewatering a pipeline, pigs areused to push everything out of the pipe. However,pigs were not an option in this case due to theconfiguration and small diameter of the pipes andthe fact that many of them terminate into a largeindoor receiver tank. This job would need hot, dry airto remove the water.

The contractor had been using compressorsand dryers from competition with little success. Theunits were not able to remove the water and an oily

film remained on the surface, leaving the job at astandstill.

Spencer Snow, Area Sales Manager, presenteda solution that would provide 100% oil-free, hot, dryair to dewater the system safely and effectively.

Once the package was set up, progress wasinstantaneous. And this during a week of heavydownpours in which the area received six inches ofrain in just one day. Even in these saturatedconditions, the Atlas Copco Rental hot, dry 100% oil-free package was able to surpass the work of severalrented competition units.


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Heraeus, one of the world's largest recyclers ofreforming catalyst, has opened a new facility in Indiato recover precious metals from spent petroleumcatalysts. The new site in Udaipur/Rajasthan will beoperated by the German-Indian joint venture "RavindraHeraeus" and will offer India's petrochemical industrymore capacity and state-of-the-art technology to recyclePlatinum and Palladium in the country.

Indian companies will therefore benefit from largernational recycling facilities, which will provide lesstransport costs and easier file processing, fasterrecycling times and better transparency in the marketand overall improved costing for catalyst recycling. Thenew technology wil l furthermore offer latestenvironmental and social standards. After the recyclingprocess, "Ravindra Heraeus" offers its customers toeither receive new precious metals products,precursors or the pure recycled precious metals.

"The new recycling facility of Ravindra Heraeusin India wi l l a l low our customers from the

Recycling facility for spent reforming catalysts

City Gas DistributionAn Indian Perspective

Authors:Dr. Anirbid Sircar, PDPU

Ms. Shreya Sahajpal, PDPUMr. Umang Modi, Gujarat Gas Limited

Limited edition. Book your copy todayto avail early bird discount of 25 percent.

Price per copy Rs.1500

Published by:

[email protected]@gmail.com

BOOK RELEASING SOON...

New heraeus recycling facility for spent reforming catalysts offerIndian petrochemical industry more efficient process to recover precious metals

petrochemical sector to receive outstanding catalystrecycling standards in India. We will be the onlyglobally active precious metal company with localrecycling capabilities in this very important sector.Together with our trusted and long-term partnerRavindra we will be able to offer fast, local and firstclass recycling services to our customers." said AndréChristl, President of Heraeus Metal Management, thecompanies precious metal recycling and trading unit.

Heraeus, the technology group headquartered inGermany, is a leading international company formedin 1851 create high-quality solutions for clients andstrengthen their competitiveness in the long term bycombining material expertise with technological know-how. The company is focused on environment, energy,health, mobility and industrial applications.

Ravindra Heraeus is one of India's mostrenowned companies for precious metal products.Established in 1994, the Joint Venture is equallyowned by the Ravindra Choksi family and Heraeus.

News


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Special Report

EXPLORING

Pennsylvania is at the forefrontof America’s energy revolution

Focus: Effects of shale gas boom on new investment opportunities, the robustmanufacturing, mining and construction industries of Pennsylvania (PA)


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Pennsylvania gets dearer!

The land of

energy galore

The land of the first commercial oil well in the world, today theMarcellus and Utica Shale has once again changed thelandscape of US on the energy front. In fact natural gas istransforming the United States into a major supplier to the globalenergy markets with Pennsylvania as national leader in termsof natural gas production and low-cost energy formanufacturers. Full of energy, the manufacturing, mining andconstruction industries along with oil & gas are foundation ofKeystone State’s economy. As the 8th largest manufacturingoutput in US having an established and diverse supply chainthat is ready to meet specific needs of any industry it is home to17 Fortune 500 companies and more than 2,100 foreignbusinesses and expanding. The unparalleled infrastructureabundant energy supply investor friendly business environmentand tax regime is truly Advantage Pennsylvania making it one ofthe best investment destinations in the United States. What’smore, with Royal Dutch Shell recently committing their world-class ethane cracker plant here the Commonwealth ofPennsylvania gets sti l l dearer to investors. A report:

Cover Focus

Drilling - Marcellus Shale


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Arun Kr.Singhal,Chief Editor,DEW visited

many Countiesin Central and

Western part ofthe KeystoneState underCORE PA

initiative of thePennsylvaniagovernment

established toincrease

visibility of a 53county footprintof the state tointernational

and domesticinvestors and

re-shoringprospects. Thevisit provided

valid reasons insupport of whythe region iswitnessing agrowing FDI.

Special Report

White tail deer hunting is a household and legal sport in Pennsylvania. The meat of White tail deer isgreatly relished by the localites. According to Pennsylvanians if the deers are not hunted they mayout number human population. There are many resorts in Pennsylvania who offer legalized deerhunting permits and facility to in house guests.

Exploring Pennsylvania: Arun Kr.Singhal,Chief Editor, DEW in Harrisburg, the Capitalof Keystone State

Pennsylvania is the fastestgrowing state for FDI in the US


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The Golden HistoryThe manufacturing, mining and construction industries are foundation of Pennsylvania’seconomy. Throughout the history of the nation, Pennsylvania – the ‘Keystone State’ hasbeen a leader in manufacturing, with its world-class R&D and educational institutions,technology commercialization programs, technical and industrial resources, and skilledworkforce have joined to create a unique advantage for businesses here. As the 8thlargest manufacturing output and the 4th largest coal producer (the only state producinganthracite) in the United States it ranks 6th in terms of the number of mining, oil and gasfield machinery manufacturers among the 50 states. However the most obvious changein the recent past, the progress the US has achieved amid the shale gas revolution isthe renaissance of natural gas production.

Pennsylvania, a northeastern U.S. state and one of the 13 original colonies, isknown for its diverse terrain, which includes wide stretches of farmland, national forestsand major waterways. Philadelphia the Keystone State’s largest city displays its richhistory in Independence Hall where the Declaration of Independence and Constitutionwere signed, and the Liberty Bell, an enduring symbol of American freedom. The world’sfirst commercial oil well too was drilled in 1859 in Titusville, PA., room-and-pillar mineshave been active in Pennsylvania’s bituminous coalfields since the late-1700s, andnatural gas production in Pennsylvania dates back to 1881. The real story of innovationin mining, manufacturing, oil and gas in Pennsylvania is however happening today.

Pennsylvania map showing 53 counties under CORE PA (marked in colour) of the total 67 counties

The manufacturing, mining and construction industriesare foundation of Pennsylvania’s economy. As the 8thlargest manufacturing output and the 4th largest coalproducer in the United States it ranks 6th in terms of thenumber of mining, oi l and gas f ield machinerymanufacturers among the 50 states. However the mostobvious change in the recent past, the progress the UShas achieved amid the shale gas revolution is phenomenal

Cover Focus


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Pennsylvania’s climate varies from the southeastwhere it is influenced by the Atlantic Ocean, to coolerareas near the Great Lakesin the northwest, whereweather fronts may comefrom Canada. Precipitationin the state is plentiful andevenly distr ibutedthroughout the year.Temperatures varysigni f icant ly among thefour seasons.

A bright futureThe modern energy mixwithin the United Statestoday consists chiefly of fiveenergy sources: oi l orpetroleum, natural gas,coal, various renewableenergy sources, andnuclear energy. Thesecond-largest part of U.S.energy usage is of naturalgas or methane at about 25percent of all consumption.Natural gas is a fuel ofchoice for heating andindustrial processes andelectr icity productionavailable in large quantitiesat a competitive price.

The second-largestproducer of natural gas inthe U.S., Pennsylvaniashale gas is driving downenergy costs and openingnew opportuni t ies form a n u f a c t u r e r s .Pennsylvania is at theforefront of America’senergy revolut ion. As aresult of its abundant shaleresources, the UnitedStates has surpassed bothSaudi Arabia and Russiaas the world’s leading oiland natural-gas producerin the recent past. In fact

Pennsylvania broke the record by producing 4 trillioncubic feet of cleaning-burning energy a record in itself.

Pennsylvania boastsboth Utica and MarcellusShale plays. Over 25,000natural gas wel ls aredr i l led in Pennsylvaniasince 2007. I f theMarcellus Shale Regionwas a country i ts gasproduction would rank 3rdin the world behind theUnited States and Russia.

The Marcellus Shale,the largest U.S. naturalgas field, underlies about60% of the state in an arcreaching from thesouthwest to thenortheast. It stretches fromupstate New York souththrough Pennsylvania toWest Virginia and west toparts of Ohio. The UticaShale lies under most ofNew York, Pennsylvania,Ohio, and West Virginiaand extends underadjacent parts of Ontarioand Quebec in Canadaand Kentucky, Maryland,Tennessee, and Virginia inthe United States.

Although before 2008the Marcellus Shale wasconsidered to haveinconsequential naturalgas potential, i t is nowbelieved to hold the largestvolume of recoverablenatural gas resource in theUnited States. In 2012, itwas estimated to have 141tri l l ion cubic feet oftechnically recoverablegas by the US EnergyInformation Agency (EIA),and 88 trillion cubic feet bythe US Geological Survey.

Special Report

Pennsylvania is at the forefront ofAmerica’s energy revolution. TheUS has surpassed both SaudiArabia and Russia as the world’sleading oil and natural-gasproducer. If the Marcellus ShaleRegion was a country its gasproduction would rank 3rd in theworld behind the US and Russia


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McCloskey, Vice President of Energy & BusinessDevelopment, Clearly Ahead Development a leading

resource agency foreconomic development inClearf ie ld County,Pennsylvania.

Paul in his presentationon the “FutureOpportuni t ies from theEnergy Sector” where I wasan audience provided anoverview of the MarcellusShale, the US natural gas,pricing and other energyrelated topics.

Pennsylvania has thegreatest numbers of activeand permitted MarcellusShale wells in the nation,with Marcellus Shaledrilling activities expectedto continue within theCommonwealth for yearsinto the future. TheMarcellus and Utica shaleformations have provenattractive to investors aswell, with a recentPriceWaterhouseCoopersanalysis confirming that thetotal deal value from 2010through 2012 was $7.1billion in the Utica and $34.4billion in the Marcellus, atotal investment in theAppalachian Basin of morethan $41 billion (Source:IHS, PwC).

Even as natural gasproduction reshape theU.S. economy andredef ines America’scompetit ive advantagesthere is still room to grow,as there is a mismatch,geographically, in naturalgas supply and demand.New pipel ine andprocessing infrastructure

In September 2012, the Marcellus Shale overtook theHaynesville Shale of northwest Louisiana as theleading producer of bothshale gas and overallnatural gas in the UnitedStates. In February 2014,Marcellus gas wellsproduced 14.0 billion cubicfeet per day a 42 percentincrease over the earlieryear and comprising 21percent of all the dry gasproduced that month in theUnited States

As per US Departmentof Energy, in US ShaleBasins Marcellus fairwayis 40,000-50,000 squaremiles with est imates ofrecoverable reserves upto500 TCF. The current USnatural gas demand is 23TCF per year. It is worthmentioning that Bernett inPennsylvania which is thelargest US gas f ie ld,provides 6% of US naturalgas. The Bernett core is5,000 square miles.

Since natural gas isdifficult to transport, it ispr iced as a regionalcommodity using the"Henry Hub" price as thebenchmark.

According toPennsylvania Public UtilityCommission's "GasOutlook Report , June2015", superabundance ofnatural gas, lack of pipelineinfrastructure andMarcellus has one of thelowest breakeven costs ofany shale play in the USAand are the three primereasons why the PA shalegas is more affordableaccording to Paul

Cover Focus

Paul McCloskey, Vice President of Energy & Business Development,Clearly Ahead Development a leading resource agency for economicdevelopment in Clearfield County, Pennsylvania.

Pennsylvania has the greatestnumbers of active and permittedMarcellus Shale wells in thenation, with Marcellus Shale drillingactivities expected to continuewithin the Commonwealth foryears into the future. The Marcellusand Utica shale formations haveproven attractive to investors


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will be keys to connecting new supply sources withnew and growing sources of demand, especially inmanufacturing sectors.

Supplementing the manufacturing industry, theU.S. natural gas boom has resulted in stablewholesale electricity prices, lower greenhouse gasemissions and greater system flexibility. In fact naturalgas is transforming the United States into a major

suppl ier to the globalenergy markets withPennsylvania as nationalleaders in terms of low-cost energy formanufacturers.

Pennsylvania is alsoseeing parallel growth in production of natural gasliquids (NGL) including ethane and propane. Naturalgas processing in the state grew six-fold from 2011to 2013, and producers are building both processingplants to extract NGL and pipelines to transport themto domestic and Canadian markets and to ports onthe East Coast and Gulf Coast for export.

The compressed natural gas (CNG) too is

The exciting growth opportunities in the fields ofengineering and manufacturing in Somerset,Cambria, Blair, Jefferson, Mercer and LawrenceCounties besides others as a result of KeystoneState’s expanding energy industry are phenomenal

Pennsylvania is the second-largestproducer of natural gas in the country, butthe natural gas market extends beyondproduction. Natural gas usage fits into manyaspects of its economy, including heat,power, downstream manufacturing, andelectricity generation. Other natural gasuses such as compressed natural gas offerinexpensive transportat ion fuel to

companies who base themselves inthe state.

“O” Ring CNG Fuel Systems L.P. ofBrookville, Pennsylvania has benefitedfrom the vast natural gas plays withinthe CORE PA Region to develop thetechnology of utilizing clean, domesticabundant resources for fuel saving.

"O" Ring is a full-service globalcompressed natural gas (CNG) fuel

solut ions company based in WesternPennsylvania. The company promotes theuse of CNG as a clean, abundant, andeconomical North American energy sourceto further boost the economy, cut foreign oilpurchases, enhance national security, createmore jobs for US workers, and cut harmfulemissions.

"O" Ring services range from feasibilitystudies to assessing needs all the waythrough concept, design, andimplementation. It focuses on the design

Man with a mission!

L.P., Robert H. Beatty,Jr., with his wife at the“O” Ring fueling stationand education centre inBrookville, PA

This is the first private CNG fuel station inPennsylvania which has blossomed into a growingnetwork of filling stations in Western Pennsylvania

“O” Ring devised trailor mounted CNG compressor station, a properitory conceptdeveloped by the company and put in place at various CNG fueling station in PA

Special Report


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the state, followed by the residential sector and theindustrial sector, which each consume slightly lessthan one-fourth.

In addition to leveraging the world’s second largestMarcellus Shale reserves to cut the cost of natural gas,the Commonwealth’s energy portfolio consists of coal,clean-coal technology, nuclear power, hydropower andother renewable energy sources to fuel manufacturing

growth. In the last few years,Pennsylvania’s abundantresources have reducednatural gas prices by 50percent and electricity costsby 40% for industrial users.

The Core of PAOf the 67 Counties, 53 fallunder the CORE PA Region.CORE PA Global is anini t iat ive establ ished toincrease the visibility of a 53county footpr int ofPennsylvania tointernational and domesticinvestors and reshoringprospects. Its mission is towork together as one toattract, retain, and growbusiness and industrythereby increase job growthin the region. Partners withover 50 economicdevelopment organizations,the core of Pennsylvaniaboasts abundant andinexpensive ut i l i t ies,superior infrastructure, alegacy workforce thatu n d e r s t a n d smanufacturing, astoundingeducational opportunitieswith nat ional ly ranked

promoted as a clean,abundant, andeconomical energy sourcein order to further boost theeconomy, reduce foreignoil purchases, enhancenational security, createmore jobs for US workers, and reduce harmfulemissions.

Half of all households in Pennsylvania use naturalgas as their primary heating fuel, but the electric powersector have grown rapidly in recent years to surpassthe residential sector as the largest consumer ofnatural gas in Pennsylvania. The electric power sectoruses nearly two-fifths of all natural gas consumed in

The compressed natural gas (CNG) is also promotedas a clean, abundant, and economical energy sourcein order to further boost the economy, reduce foreignoil purchases, enhance national security, create morejobs for US workers, and reduce harmful emissions

and installation of CNG fueling stations, with a secondary focus on vehicleand fleet conversion to natural gas vehicles (NGVs).It also design and installpublic fuel station facilities, owning and operating four CNG stations and hasbuilt over a dozen others for clients.

Founder and managing partner of “O” Ring CNG Fuel Systems, L.P., RobertH. Beatty, Jr., is a proven expert in the field of compressed gases as well ascompression and storage systems. With 30 years in the field as the formerpresident of “O” Ring & Associates, Inc. a related compressed gas companyclients feel assured they are in good hands with Bob attending to their uniqueCNG needs. With vehicles operated on CNG Bob has cut his annual fuelcosts in half.

As the owner of several natural gas wells, Bob practices what he preaches.He has personally converted everything possible in his home and businessto CNG. From heat, to electric, to cooking fuel, to lawn mowers, forklifts, aswell as all business and personal vehicles. He has achieved energyindependence both personally and professionally and is eager to help othersrealize the benefits of natural gas.

Extensively promoting use of CNG. "O" Ring also design and install publicfuel station facilities through portable CNG units mounted over trailor for easyinstallation. With its full-spectrum of services, the company guides one inevery aspect of go-green CNG experience.

Future developments include; small-scale liquefied natural gas (LNG) andSynthesizing Gas to Liquids (GTL) production equipment. The possibilities areendless with advances in technology and processes to create DME, Olefins,Methanol, Ethanol, and Synthetic Diesel from natural gas according to Bob.

Bob has certification from the Natural Gas Vehicle Institute (NGVI) ofAmerica in both CNG Fuel Station Design & Construction and CNG Fuel StationManagement.

Finally and perhaps most importantly Bob with his vision is successful inachieving it through the support of his equally enthusiast better-half (wife) inhis ventures.

Promoting use of CNG

Cover Focus


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schools, top ranked colleges and universities, andworld-class trade and technical institutions.

The CORE region even features a thrivingconstruction and mining equipment industry that hasseen exponential growth over recent years.

Whi le in the United States vis i t ingCommonwealth of Pennsylvania on being invited bythe government there as one of the seveninternational technical writers and editor, I witnessedan exci t ing growth in manufactur ing, shaledevelopment and the revolution in unconventional gasproduction that is making a substantial contributionto economic activity and competitiveness. The excitinggrowth opportunities in the fields of engineering andmanufacturing in Dauphin, Somerset, Cambria, Blair,Jefferson, Mercer and Lawrence Counties besidesothers as a result of Keystone State’s expandingenergy industry and policies are phenomenal.

An added advantage is that the core region ofPennsylvania is strategically located close to majordomestic and international markets. Over 40% of theUnited States population and more than 60% ofCanada’s population are located within a 500 mileradius of the region hence its growing importance.

As a result of the many initiatives and governmentpolicies, Pennsylvania’s GDP ranked sixth among thestates in 2013. The state is among the top 10

consumers of coal, natural gas, petroleum products,and electricity, but its total energy consumption percapita is in the lower half of states nationwide. Theindustrial sector leads energy consumption in thestate. Major energy-consuming industries includeagriculture; mining; aluminum, steel and relatedheavy manufacturing; forest products; and tourism.

Businesses ranging from small family operationsup to huge multinational corporations are takingadvantage of Pennsylvania’s abundant naturalresources to advance their businesses in today’sglobal economy. Presently Pennsylvania is home to17 Fortune 500 Companies and more than 2,100foreign companies. What’s more, with Royal DutchShell announcing to build their world-class ethanecracker plant in Western Pennsylvania it will be a game-changing plant for the State and create thousands ofjobs. Three $1 billion USD natural gas power plantsare also coming on-line starting in 2016.

Interacting with officials of various Counties,economic development organisat ion, industryexperts, companies and visiting many manufacturingunits, Pennsylvania showcased its r ich naturalresources, t rained workforce, matchlessinfrastructure (an outstanding network of interstatehighways, modern freight railroads, six internationalairports and three major ports with access to theAtlantic Ocean, Great Lakes and the Gulf of Mexico)and creative universities that bolster the mining, oiland gas f ield manufacturing industr ies. Thesefacilities offer a very conducive environment for newand existing businesses to flourish.

To spur economic development and growth everyCounty I visited in Central and Western Pennsylvaniawere ready to roll out red carpet for investors looking

Special Report

Continued page 33...

The core region of Pennsylvania isstrategically located close to majordomestic and international markets.Over 40% of the US population andmore than 60 percent of Canada’spopulation are located within a500 mile radius of the region


dewjournal.comCover Focus

The pad-ready si te in Bedford CountyDevelopment Association (BCDA)’s Business Park II launched recentlyis available to companies seeking to locate or expand in Bedford County.The 75 acres is a a Keystone Opportunity Zone (KOZ) pad-ready permittedsite. The “Ready for Business” effort will seek to attract the attention ofsite selectors and business leaders. The fact that the site has thenecessary infrastructure in place will make for an easy transition for anycompany coming to the area. The site is designated as a KeystoneOpportunity Zone (KOZ) with tax abatement through the end of 2025.

“In addition to itsprime location andproximity to a world

class workforce,Business Park II can

accommodate thedevelopment of a

780,000 sq.ft. facility”- Theresa BrumbaughVice President, BCDA

L to R: Jill Foys, Executive Director, Dorte Heffernan, CGBP, International Trade Manager, along withKatarina Ishman, CGBP, Sr. International Trade Specialist, Northwest Commission, PA

“The Northwest Commission is a Local Development District servingan eight-county region of Northwest Pennsylvania namely, Clarion,Crawford, Erie, Forest, Lawrence, Mercer, Venango and Warren eachoffering plethora of opportunities for investors” - Jill Foys

Mercer County, PA is home to successful companies. Itoffers low-cost land, low-cost labor, valuableinfrastructure, and the right financial tools to makecorporate expansion a reality. Our ImprovementMovement Team help find the right tools to Make it in!Mercer County” - Randy P. Seitz

BCDA celebrates “Readyof Business” initiative

IDEAL GUIDES - INVESTORS COUNT ON THEM

northwestpa.org

penn-northwest.com

bcda.org


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(1, 2 & 3) Ezeflow Group, a company manufacturing high yield alloy pipe fittings for the up, mid and downstream market have large manufacturingbase in PA. Photo shows the manufacturing process of the pipe fittings for the oil & gas, chemical and petrochemical industry at EzeFlowmanufacturing unit in PA. (4, 7, 8 & 9) Noise Solutions has grown to become the leading North American provider of engineered industrial noicesuppression for the energy sector. The company’s manufactures most effective and robust equipment with the highest quality standards andengineering excellence. Noise Solutions is full-service company offering superior products and services that work together to effectively attenuateindustrial noise. Photo shows acoustic walls being manufactured by the company in PA. (5 & 6) Environmental Tank & Container (ETC), subsidaryof JFW Industries exports state-of-the-art metal equipment, large tanks and vessels, large coating lines and robotic equipments for upstream andmidstream sector of oil & gas industries and for defense, OEM, rail and power gen industries. Photo number 6 shows the seven international editorsfrom different contries along with ETC/JWF personnels during a visit to the company’s manufacturing facility in Pennsylvania.

INDUSTRIES SERVED

Manufacturing high yield pipe fittingsfor the up, mid and downstream market

Leading North American provider of engineeredindustrial noice suppression for the energy sector

JWF is dedicated to upstream, midstream,OEM, defense, rail car and power gen

(Details of the success stories - the companies mentionedbelow will be featured in subsequent issues of DEW Journal)


dewjournal.comShale devlopment in PAstimulates manufacturing

16

10

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151718

20

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21

(10, 11 & 12) Curry Supply Co. has grown into one of the America’s largest manufacturers and dealers of commercial service vehicles including on-and off-road water trucks, on-and off-road fuel/lube trucks, mechanics, service, vacuum, winch, dump, crash attenuator trucks and lube skids.Curry Supply delivers internationally, with sales and service throughout US. Photo shows Curry Supply manufactured tanks on some of the worldrenowned vehicles used for demanding operations of oil & gas, minning and construction industry. (13 to 21) Center Rock, started in the oil and gasindustry, then grew original design to provide construction equipment, and then grew again to provide mining and quarry equipment. Command morethan a 50% market share within the tristate area in oil & gas. The company burst into the international spot light in 2010 when they rescued 33 minerstrapped 2,070 feet underground in the San Jose mine in Chile by a novel shaft like capsule manufactured by them. Photo 17 shows a replica ofthe same. Leading global drilling, oil & gas, construction, mining, and foundation contractors trust the company for optimum performance, even inthe most challenging operating conditions. Photo shows different kind of drilling equipments and bits manufactured at the company in Pennsylvania

12

11One of America’s largest manufacturers ofon and off road water/fuel/lube truck tanks

Center Rock leading US manufacturerof drilling tools and equipments


dewjournal.com Special Report

IDEAL GUIDES - INVESTORS COUNT ON THEM

Southern Alleghenies Planningand Development Commission(SAP&DC) serves as the regionalcoordinator for PennsylvaniaRegional Export Network, theCommonwealth of Pennsylvania’seconomic development programfor international business. Freebusiness counseling is provided toidentify new opportunities for businessgrowth, such as international andgovernment markets, and much more.

The SAP&DC is a non-profitregional economic and communitydevelopment organization servingBedford, Blair, Cambria, Fulton,Huntingdon and Somerset Counties.

“The SAP&DC iscommitted to helping

small and mediumsized businesses inthe Alleghenies by

providing technical andfinancial assistance”

- Steven K. HowsareExecutive Director, SAP&DC

The Lawrence County Economic Development Corporation (LCEDC)is a private, non-profit organization dedicated to enhancing the economyand the quality of life in Lawrence County. The LCEDC is your resourcefor navigating the challenges and opportunities of growing or expandingyour business in Lawrence County. The dedicated team works withmany types of businesses from manufacturers to service-relatedcompanies in all stages of growth from start-ups to establishedbusinesses and global corporations.

Lawrence County is located at the core ofNorth America’s largest concentration ofpopulation and business markets. LawrenceCounty is the ideal location for businessesseeking easy access to, 40% of the USpopulation and purchasing power, more than60% of Canada’s population, 45% ofUS manufacturers and 40% of the nation’sdomestic trade and service industries

sapdc.org

(Left) Steven K. Howsare, Executive Director,SAP&DC and (right) Joyce A.B. Hoffman,International Trade Specialist, SAP&DC

lawrencecounty.com

jeffersoncountydevelopment.com

Somerset County Economic Development Council is a non-profit organization promotingeconomic development and job creation in the County. We promote and expand industrial,commercial, and retail businesses by helping new companies locate within the county,while continually assisting existing companies.scedc.net

Jefferson County offers a wide array of development resources. Itprovides opportunities to start & grow business. Jefferson County isalso an outdoor lovers' dream destination.

Through its Revolving Loan Fund Programs, Jefferson CountyDevelopment Council, Inc. offers attractive low interest financing tobusinesses and industries within Jefferson County. It also offers severalproperties within Jefferson County that are waiting to be developed forcommercial use. These properties all have full access to utilities andare offered at a reasonable price to spur economic growth.

Bradley Lashinsky M.P.S.,Director-Economic Devel.,Jefferson County

Christine A. Perneski,Director, Intl. BusinessAssistance, North Central

ncentral.com


dewjournal.com

to expand or relocate either from within the stateborders or across the globe. The state has an array ofresources for investors in researching and identifyingsites, developing supplier networks and recruitingskilled professionals and quality employees to helpbusinesses succeed and thrive in Pennsylvania.

The many investment options and facil i t iesoffered by di f ferent Count ies invi t ing foreigninvestment are undoubtedly lucrative.

As part of CORE PA initiative during visit to variousmanufacturing units and companies I came acrossmany success stories related to latest technology andservices offered by some of the innovative companiesand industrial suppliers involved in mining, oil andgas field machinery manufacturing in Pennsylvania.

Of the many successful companies I had anopportunity of visiting in PA, Centre Rock, EnvironmentTank and Container (ETC), JWF, Curry Supply, "O"RingCNG Fuel Systems, L.P., Noise Solutions Inc.,Vacuum Processes Inc. and Ezeflow besides othersare worth mentioning. These companies and manyothers have excelled in their areas of operationsrelated to oil & gas, mining and manufacturing as aresult of Shale development in Pennsylvania that isspuring all around growth of businesses.

The insights provided by experts during the tourinto the many aspects of shale gas and its explorationin an environmentally benign wayhas not only driven down energycosts and opened newopportunities for manufacturersbut count less investmentavenues which are undoubtedlyreason for expandinginternational businesses here.

“Today, PA has specializedexpert ise desired around theworld. We rank in the top 10 in 55industries for exports. Also, wework with companies of all sizesacross the state in a variety ofindustries,” said Noelle Long,Regional Representative, COREPA Global while talking to DEW.

David Briel , Execut iveDirector, Office of InternationalBusiness Development,Department of Community andEconomic Development, Office of

Internat ional BusinessDevelopment, Pennsylvaniaemphasizes, “As the second-largest producer of natural gasin the U.S. and home to thelargest unconventional naturalgas f ie ld in the world,Pennsylvania is driving downenergy costs and opening newopportunities for manufacturerswhere ample internat ionalinvestment opportunities exists”.

The manufacturing industryhas long formed foundation ofPennsylvania’s economy - astatus maintained over the yearsthrough dynamic evolution tomeet modern needs and theincorporation of world-class R&D and innovativemethods, he added.

On how the office of International BusinessDevelopment, Pennsylvania help in exportdevelopment services David said, our major help isfor export counseling, market research, market entrystrategy, foreign company background checks,customized searches for qualified buyers, agents,distributors or partners, grants, trade missions &

Cover Focus

The manyinvestmentoptions and

facilitiesoffered bydifferentCountiesinvitingforeign

investmentare

undoubtedlylucrative

Noelle Long, Regional Representative, CORE PA Global making a presentation on the potentialsof Pennsylvania.

“PA has specialized expertisedesired around the world. Werank in the top 10 in 55 industriesfor exports. Also, we work withcompanies of all sizes across thestate in a variety of industries”

- Noelle LongRegional Representative, CORE PA Global


dewjournal.com

shows and on-the-ground support. All this facilitatesan investor to start and run the business seamlessly,he added.

Among the many distinctions, FDI contributes to70,000 jobs in CORE PA, ranking Pennsylvania 4th inthe United States in job creation. The state wasnamed 2014 FDI destination of the future for energyintensive industries. PA is the fastest growing statefor FDI with a 29% increase in 2014. It has howevershown positive FDI growth since 2012.

Committed GovernmentTo channel ize the abundant natural resourcestowards the development of the state, PennsylvaniaGovernor Tom Wolf is committed to spur economicdevelopment for long-term, sustainable economicgrowth and creating jobs through responsible, well-regulated natural gas extraction. Since taking office,in January 2015 Governor Wolf has taken a numberof steps to make Pennsylvania a better place. Hisemphasis is to make new investments in 21stcentury manufacturing and refocus on economicdevelopment dollars and strategies. Towards thisend, he is focused on three simple goals: jobs thatpay, schools that teach, and government that works.His initiatives have recently borne fruits with RoyalDutch Shell committing their world-class ethanecracker plant here. This project is the result of morethan four years of planning over the course of twoadministrations which finally Governor Wolf has

Pennsylvania Governor Tom Wolf is committedto spur economic development and long-term,sustainable economic growth and creating jobsthrough responsible, well-regulated natural gasextraction. His initiatives have recently bornefruits with Royal Dutch Shell committing theirworld-class ethane cracker plant in Pennsylvania.This project can be a game-changer-bothfor the region and the commonwealthTom WolfPennsylvania Governor

been able to finalize.The Royal Dutch Shell Chemical plans to build a

cracker plant in Potter and Center townships inBeaver County (Southwestern Pennsylvania) is lookedupon as a game-changer - both for the region andthe commonwealth. This announcement marks thefirst major U.S. project of its type outside the GulfCoast Region, with project ions of generat ingemployment in the future.

The new cracker plant will make plastics fromgas extracted in Pennsylvania and help attractindustries that use these natural gas byproducts forthe goods they produce. This means that the facilitywill serve as the centerpiece in the region for creationof new markets for polyethylene with added potentialof attracting other manufacturing investments that willlead to even more business attraction and job creationfor generations to come.

“The success of this project is part of a much-needed, longer term plan to translate our abundantresources to make Pennsylvania a leader indownstream production. The commitment of the Shellcracker plant in Western Pennsylvania is an importantstep toward this goal" according to the Governor.

The Pennsylvania government is clearly workinghard to take the State to the next stage of all roundprogress and prosperity. Inviting FDI is high onagenda, with the aim to make the Keystone State aglobal hub for h igh- tech industr ies andmanufactur ing fac i l i t ies as a resul t o f c lean,

affordable and abundant energybeing the second largestproducer of natural gas in theUnited States. There are effortsto encourage new pract ices,technology and investment.

The Pennsylvania government is clearly workinghard to take the State to the next stage of all roundprogress and prosperity with efforts to encouragenew practices, technology and investment

Special Report


dewjournal.com

Innovation in EducationPennsylvania recognized for itstop-ranking educat ionalinstitutions and a world-classworkforce is home to more than270 colleges and universities.It has four of the nation’s top 50universities, eight of the top 50liberal arts colleges and threetop business schools. Togetherthese colleges and universitiesprovide not only a world-class work-force, but,unparalleled collaborative R&D, innovation, materialstesting and technology acceleration capabilities, aprime focus of the government.

With the resources and opportunities of a majorresearch university in a welcoming, student-centeredenvironment, Penn State Behrend offers a uniquelearning experience to 4,700 undergraduate andgraduate students.

Dr.Russell Warley, Director, Penn State Erie, TheBehrend College - School of Engineering says, “as afour-year residential the institution offering thirty-seven bachelor's degrees, five master’s degrees, andfour associate degree programs our campus is

among the largest in the Penn State system withfaculty-to-student ratio of 1:16 providing students witha personal ized learning experience fromaccomplished instructors.”

The School of Engineering offers bothengineering and engineering technology programsto accommodate diverse learning style and careergoals.

The LindenPointe Development eCenter - Abusiness incubator located in Hermitage,Pennsylvania which I had an opportunity of visitingprovides guidance for business startup. An AdvisoryBoard, mentoring by successful business owners andindustry experts help track progress of startups.

(Top) Campus of Penn State Erie, The Behrend College's School of Engineering, Hermitage, PA. (Left) Ketaki Desai, PhD, Executive Director,LindenPointe Development eCentre - a non-profit business incubator. (Right) Dr.Russell Warley, Director, Penn State Erie, The BehrendCollege's School of Engineering

Home to more than 270 colleges anduniversities Pennsylvania has four of thenation’s top 50 universities. Together thesecolleges and universities provide not only aworld-class work-force, but, unparalleledcollaborative R&D, innovation, materials testingand technology acceleration capabilities

Cover Focus

PENNSYLVANIA’S STRENGTHS


dewjournal.com

Everything a startup mightneed from developing an“Elevator Pitch,” buildingrelationships with angelinvestors and venturecapital, fosteringpartnerships withregionals corporationsand making the r ightconnections are thestrong forte of the Centreaccording to KetakiDesai, PhD, ExecutiveDirector, LindenPointeDevelopment eCenter - anon-profi t businessincubator.

The LindenPointeCentre is hencecommitted to promotinginnovat ion andenterpreneurship byproviding a supportiveenvironment, includinginfrastructure, education,training, mentorship,and a network of serviceproviders. Thisinfrastructure helpsenterpreneurs from theregional service areasand beyond to achievesuccess by encouragingtechnological innovationand economic growthand providingassistance in thed e v e l o p m e n t ,management andpromotion of theirventures, Dr. Ketaki toldme.

The Centre isdefinately playing a keyro le in support inginnovat ion andeconomic developmentof the State andenriching quality of life.

CHIEF EDITOR, DEW JOURNAL WITH

Chief Editor, DEW Journal with Jill F

oys, Executive Director, Northwest

Commission, PA

With Dr.Russell Warley, Director, Penn State Erie, Th

e

Behrend College's School of Engineering, Hermitage, PA

.

With owners (husband-wife duo) ofBlackbird Disti l lery at their unit inBrookville, PA. The distillery has convertedto using natural gas as its fuel as a resultof abundance and affordable natural gasin Pennsylvania

With Ketaki Desai, PhD, Executive Director, LindenPointe Development eCentre-a non-profit business incubator.

Special Report

With the officials of Community & E

conomic Development, Departmen

t of Environmental

Protection, Oil & Gas Associations

, National Fuel and Pipeline Expe

rts of Pennsylvania

at the State’s first CNG Station an

d Training Centre, Pittsburgh, US

With Steven K. Ho

wsare, Executive

Director, SAP&DC an

d others


dewjournal.com

Randy P. Seitz, President and CEO, Penn-Northwest DevelopmentCorporation, PA pose with a copy of DEW

CHAMPIONS OF KEYSTONE STATE

With Linda Thomson, Preside

dewjournal · 2017. 6. 10. · 8 dew journal july 2016 dewjournal.com news bentley to advance...

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