- Email: [email protected]
Curbing water wastage in South Africa
April 1999
WESTINGHOUSE SIGNS SPANISH AGREEMENT The Spanish company Westinghouse Technology Services SA (WTS) has entered into a long-term joint engineering team agreement (JET) and a pilot integrated maintenance engineering programme (IME) with the Spanish utility Endesa. Under terms of the two separate contracts, Westinghouse will provide a full range of plant engineering and maintcnance services that will improve operating efficiencies while reducing costs at Endesa‘s AN Asco and CN Vandel10s nuclear power stations. The JET and IME include engineering and evaluation planning, maintenance scheduling, risk-informed in-service inspection and of piping valves, selected components/ systems, and the establishment of a reliability-centered maintenance protocol. Endesa is Spain’s largest utility and produces over 50 per cent of the country’s electricity. In addition to Asco and Vandellos, Endesa also owns shares in other nuclear power stations throughout Spain.
Pump Industry Analyst
over production in the existing pilot plant. The refinery at the new plant will be able to produce 5000-10 000 ounces of silver per month from used photochemicals, approximately a five times scale-up over present capacities. Itronics is one of Nevada’s leading process technology development companies and a world leader in photochemical recycling. Headquartered in Reno, the company specialises in recycling technology development, photochemical recycling, silver refining, fertilizer manufacturing and technical services for the mining and recycling industries.
PARTNERS PLAN CHINESE MD1 COMPLEX BASF, ICI, Nippon Polyurethane and their Chinese partners are to build and operate a 160 000 tons-per year integrated crude MD1 manufacturing facility in Caojing, near Shanghai. The joint venture of BASF and its four Chinese partners will also establish a 130 000 tons-per-year TDI plant.
LOUISIANA DNT FACILITY COMES ON STREAM ITRONICS EXPANDS FERTILIZER PLANT CAPACITY Itronics Metallurgical Inc is increasing the planned capacity of its liquid fertilizer plant in Reno, Nevada, USA. Work on the US$1.7 million plant is due to be completed in May. The new plant will be able to process 20 000-60 000 gallons of used photochemicals per month and will be able to produce 30 000-70 000 gallons of liquid fertilizer per month. This is approximately a ten times scale-up
Production has started at Air Products and Chemicals In& new 500 million poundper-year dinitrotoluene (DNT) production facility in Geismar, Louisiana. The plant will supply BASF’s and Rubicon’s North American DNT requirements. BASF and Rubicon produce toluene diisocyanate (TDI) at sites adjacent to the new Air Products DNT plant. DNT is a key ingredient in the production of TDI, which is used to manufacture flexible polyurethane foam for furniture, automobiles, housing and other applications.
Air Products has also secured new gases business with BASF and is currently constructing a synthesis gas separation plant at the Geismar site to supply hydrogen, carbon monoxide and synthesis gas to BASF and other customers in the area.
BASF LAUNCHES MALAYSIAN INVESTMENT PROGRAMME BASF Petronas Chemicals, a joint venture between BASF AG and the Malaysian stateowned company Petroliam Nasional Berhad (Petronas), are building a butanediol plant in Malaysia. The plant will have an annual capacity of 100 000 metric tons and will use butane as a feedstock. It will be built in Gebeng (Pahang), which is close to the port of Kuantan, and should begin operations in 2002. Two other major projects are already under construction at Gebeng. The first project includes two acrylic acid plants scheduled to begin operations in 2000. The second project, to be completed by the end of 2000. is an 0x0 alcohols, phthalic anhydride and plasticizers complex. It will produce 80 000 metric tons of 2-ethylhexanol, 135 000 metric tons of n-butanol, 40 000 metric tons of phthalic anhydride and 100 000 metric tons of plasticizers per year. Total capital expenditures for these projects, including the butanediol plant are estimated at US$900 million.
ADB FINANCES PRIVATE WATER SUPPLY IN CHINA The Bank
Asian (ADB)
Development has approved
two loans worth US$48 million for a project providing a reliable supply of water to nearly three million people in Chengdu, China. Chengdu is one of 108 cities classified by the Central Government as having serious water shortages. This is the first private sector water supply BOT project in China and the ADB’s first private sector project in the water sector. Under an 18-year concession, the project will construct and operate one of the most modern water supply plants in China, with a capacity of 400 000 cubic meters. The plant will be transferred to the Chengdu municipal government after 18 years. Commercial production of treated water is expected to begin in September 200 1. The ADB is providing a loan of US$26.5 million and arranging additional financing of up to US$2 I .5 million from external commercial lenders under its complementary cofinancing scheme. The total project cost is US$lO6.5 million. The European Investment Bank will provide additional financing. The borrower is Chengdu GCnCrale des Eaux-Marubeni Waterworks Co Ltd, a company sponsored by a consortium of Vivendi of France and Marubeni of Japan.
CURBING WATER WASTAGE IN SOUTH AFRICA The Cape Metropolitan Council (CMC) has allocated R4.3 million to the six metropolitan local councils for projects aimed at conserving water. Funding comes from the CMC’s Water Demand Management budget of R5 million for this financial year. Both the CMC, which distributes bulk water supplies throughout the Cape Metropolitan Area, and the national Department of
April 1999
Pump Industry Analyst
Water Affairs and Forestry have called for stricter measures to limit the consumption of water. The CMC has accepted a recommendation from its Water and Waste Committee that certain water-saving projects in all the MLCs should be supported.
OIL COMPANIES URGED TO RESTRUCTURE AND RETHINK After a year of crisis, the global oil industry is beset with uncertainty over its future, according to the 1999 edition of World Oil Trends, a joint report by Arthur Andersen and Cambridge Energy Research Associates. Although 1998 was the 15th straight year in which world oil demand increased, it was the smallest increase since 1985, up only 0.3 per cent over 1997. World crude oil and natural gas liquids production in 1998 reached 72.75 mbd. an all-time high. The study found that the oil production and demand imbalance produced a substantial build of inventories throughout the year. In North America, crude stocks during 1998 climbed to their highest level since 1993. In Europe, the increase in inventories was even more apparent. Worldwide crude oil prices in 1998 fell in real terms to levels not seen since 1973. The price fall reflected the Asian economic crisis, OPEC’s decision in November 1997 to raise production, mild winter weather, and sharply higher production from Iraq. industry has The oil attacked its cost structure since 1986 with everything from leading edge technology to joint ventures, with spectacular results. Now, mergers and acquisitions are strategies for
large cost reductions. Howevmitigate er, while mergers risks through greater efficiency and gains in scale, they also pose the considerable challenge of integrating people, cultures, knowledge, technology and processes. World Oil Trends is available for US$95 from Arthur Andersen. Tel: +l 713 547 4166 Fax: +1 713 237 5673.
MIDWEST INTERSTATE PIPELINE PLANNED CMS Energy Corporation, Wicor and Viking Gas Transmission Company are to build an interstate natural gas pipeline to serve the northern Illinois and southern Wisconsin markets. The three Midwestembased energy companies will each hold one-third ownership in the proposed new pipeline. The project, called Guardian Pipeline, will transport natural gas from proposed interconnections with major pipelines at the Chicago hub near Joliet, Illinois to northern Illinois and southeastern Wisconsin. The US$230 million facility will consist of approximately 24 000 horsepower of compression and approximately 147 miles of 36 inch pipe extending from Joliet to the Watertown, Wisconsin area. The pipeline is projected to transport about 750 million cubic feet of natural gas per day.
WESTERN GEOPHYSICAL SURVEYS ANGOLA is Western Geophysical undertaking another phase of its 3-D multi-client seismic survey of approximately 35 000 square kilometers offshore Angola. Exploration interest in deepwater Angola has in-
creased with the significant oil discoveries such as Girossol and Dahlia. Western’s new seismic survey phase covers both licensed and open acreage in highly prospective deepwater blocks, and has been selected after the evaluation of a previously acquired high-quality 2-D grid. To date, 16 000 square kilometers of data have been acquired, with this new phase expected to add an additional 19 000 square kilometers by year end.
ALSTOM CRUISES AHEAD Alstom is to supply Festival Cruises with two new cruise ships. The 625.cabin passenger ships, will be built at Saint Nazaire, Western France, by Alstom’s Chantiers de l’Atlantique subsidiary. They are scheduled to enter service at the beginning of 2001 and 2002.
KRUGER OUTLINES 1998 INVESTMENT SPEND Montreal-based Kruger Inc invested C$155 million in mill upgrades during 1998. Half of the capital projects were carried out at the company’s newsprint and specialty mills in Trois-Rivieres and Bromptonvill, Quebec; Comer Brook, Newfoundland; and Manistique, Michigan. In addition to the C$32 million investment in Scierie Manic in during 1997, Ragueneau another C$lO million was spent on Quebec’s North Shore Mill in 1998. Kruger’s other wholly owned sawmills, Scierie Parent, Scierie Jacques Beaulieu and Scierie HCN,
were also upgraded to enhance production and increase their competitiveness in the lumber market. During 1998, Kruger also completed a C$22 million expansion at its Montreal paperboard mill, manufacturing white top linerboard from recycled paper. In the consumer and industrial tissue products sector, Kruger invested C$35 million in Canadian and UK mills.
EI AND IPST LAUNCH PAPER VILLAGE An Internet-based subscription service designed specititally for the pulp and paperrelated community can be found at http://www.ei.org/ paper. Launched by Hoboken, New Jersey-based Engineering Information Inc and the Institute of Paper Science and Technology (IPST), the Ei Paper Village is the latest step in Ei’s award-winning cyberspace services. It offers immediate desktop access to IPST’s the world’s PaperChem, largest database of intemational journal literature related to pulp and paper. Subscribers can browse or select the specific topics, and receive e-mail updates of abstracts. As part of the service, subscribers will receive a complimentary electronic document delivery service. This will give the user full text access to as many as 50 supplied selected articles, direct to their desk-top within 24 hours. The Ei Paper Village features paper community services such as on-line discussion fora, and expert help is available for specific technical and industry-related topics. Links are provided to all the leading pulp and paper-related technical websites. A free 30. day trial is available from the web site.
WESTINGHOUSE SIGNS SPANISH AGREEMENT The Spanish company Westinghouse Technology Services SA (WTS) has entered into a long-term joint engineering team agreement (JET) and a pilot integrated maintenance engineering programme (IME) with the Spanish utility Endesa. Under terms of the two separate contracts, Westinghouse will provide a full range of plant engineering and maintcnance services that will improve operating efficiencies while reducing costs at Endesa‘s AN Asco and CN Vandel10s nuclear power stations. The JET and IME include engineering and evaluation planning, maintenance scheduling, risk-informed in-service inspection and of piping valves, selected components/ systems, and the establishment of a reliability-centered maintenance protocol. Endesa is Spain’s largest utility and produces over 50 per cent of the country’s electricity. In addition to Asco and Vandellos, Endesa also owns shares in other nuclear power stations throughout Spain.
Pump Industry Analyst
over production in the existing pilot plant. The refinery at the new plant will be able to produce 5000-10 000 ounces of silver per month from used photochemicals, approximately a five times scale-up over present capacities. Itronics is one of Nevada’s leading process technology development companies and a world leader in photochemical recycling. Headquartered in Reno, the company specialises in recycling technology development, photochemical recycling, silver refining, fertilizer manufacturing and technical services for the mining and recycling industries.
PARTNERS PLAN CHINESE MD1 COMPLEX BASF, ICI, Nippon Polyurethane and their Chinese partners are to build and operate a 160 000 tons-per year integrated crude MD1 manufacturing facility in Caojing, near Shanghai. The joint venture of BASF and its four Chinese partners will also establish a 130 000 tons-per-year TDI plant.
LOUISIANA DNT FACILITY COMES ON STREAM ITRONICS EXPANDS FERTILIZER PLANT CAPACITY Itronics Metallurgical Inc is increasing the planned capacity of its liquid fertilizer plant in Reno, Nevada, USA. Work on the US$1.7 million plant is due to be completed in May. The new plant will be able to process 20 000-60 000 gallons of used photochemicals per month and will be able to produce 30 000-70 000 gallons of liquid fertilizer per month. This is approximately a ten times scale-up
Production has started at Air Products and Chemicals In& new 500 million poundper-year dinitrotoluene (DNT) production facility in Geismar, Louisiana. The plant will supply BASF’s and Rubicon’s North American DNT requirements. BASF and Rubicon produce toluene diisocyanate (TDI) at sites adjacent to the new Air Products DNT plant. DNT is a key ingredient in the production of TDI, which is used to manufacture flexible polyurethane foam for furniture, automobiles, housing and other applications.
Air Products has also secured new gases business with BASF and is currently constructing a synthesis gas separation plant at the Geismar site to supply hydrogen, carbon monoxide and synthesis gas to BASF and other customers in the area.
BASF LAUNCHES MALAYSIAN INVESTMENT PROGRAMME BASF Petronas Chemicals, a joint venture between BASF AG and the Malaysian stateowned company Petroliam Nasional Berhad (Petronas), are building a butanediol plant in Malaysia. The plant will have an annual capacity of 100 000 metric tons and will use butane as a feedstock. It will be built in Gebeng (Pahang), which is close to the port of Kuantan, and should begin operations in 2002. Two other major projects are already under construction at Gebeng. The first project includes two acrylic acid plants scheduled to begin operations in 2000. The second project, to be completed by the end of 2000. is an 0x0 alcohols, phthalic anhydride and plasticizers complex. It will produce 80 000 metric tons of 2-ethylhexanol, 135 000 metric tons of n-butanol, 40 000 metric tons of phthalic anhydride and 100 000 metric tons of plasticizers per year. Total capital expenditures for these projects, including the butanediol plant are estimated at US$900 million.
ADB FINANCES PRIVATE WATER SUPPLY IN CHINA The Bank
Asian (ADB)
Development has approved
two loans worth US$48 million for a project providing a reliable supply of water to nearly three million people in Chengdu, China. Chengdu is one of 108 cities classified by the Central Government as having serious water shortages. This is the first private sector water supply BOT project in China and the ADB’s first private sector project in the water sector. Under an 18-year concession, the project will construct and operate one of the most modern water supply plants in China, with a capacity of 400 000 cubic meters. The plant will be transferred to the Chengdu municipal government after 18 years. Commercial production of treated water is expected to begin in September 200 1. The ADB is providing a loan of US$26.5 million and arranging additional financing of up to US$2 I .5 million from external commercial lenders under its complementary cofinancing scheme. The total project cost is US$lO6.5 million. The European Investment Bank will provide additional financing. The borrower is Chengdu GCnCrale des Eaux-Marubeni Waterworks Co Ltd, a company sponsored by a consortium of Vivendi of France and Marubeni of Japan.
CURBING WATER WASTAGE IN SOUTH AFRICA The Cape Metropolitan Council (CMC) has allocated R4.3 million to the six metropolitan local councils for projects aimed at conserving water. Funding comes from the CMC’s Water Demand Management budget of R5 million for this financial year. Both the CMC, which distributes bulk water supplies throughout the Cape Metropolitan Area, and the national Department of
April 1999
Pump Industry Analyst
Water Affairs and Forestry have called for stricter measures to limit the consumption of water. The CMC has accepted a recommendation from its Water and Waste Committee that certain water-saving projects in all the MLCs should be supported.
OIL COMPANIES URGED TO RESTRUCTURE AND RETHINK After a year of crisis, the global oil industry is beset with uncertainty over its future, according to the 1999 edition of World Oil Trends, a joint report by Arthur Andersen and Cambridge Energy Research Associates. Although 1998 was the 15th straight year in which world oil demand increased, it was the smallest increase since 1985, up only 0.3 per cent over 1997. World crude oil and natural gas liquids production in 1998 reached 72.75 mbd. an all-time high. The study found that the oil production and demand imbalance produced a substantial build of inventories throughout the year. In North America, crude stocks during 1998 climbed to their highest level since 1993. In Europe, the increase in inventories was even more apparent. Worldwide crude oil prices in 1998 fell in real terms to levels not seen since 1973. The price fall reflected the Asian economic crisis, OPEC’s decision in November 1997 to raise production, mild winter weather, and sharply higher production from Iraq. industry has The oil attacked its cost structure since 1986 with everything from leading edge technology to joint ventures, with spectacular results. Now, mergers and acquisitions are strategies for
large cost reductions. Howevmitigate er, while mergers risks through greater efficiency and gains in scale, they also pose the considerable challenge of integrating people, cultures, knowledge, technology and processes. World Oil Trends is available for US$95 from Arthur Andersen. Tel: +l 713 547 4166 Fax: +1 713 237 5673.
MIDWEST INTERSTATE PIPELINE PLANNED CMS Energy Corporation, Wicor and Viking Gas Transmission Company are to build an interstate natural gas pipeline to serve the northern Illinois and southern Wisconsin markets. The three Midwestembased energy companies will each hold one-third ownership in the proposed new pipeline. The project, called Guardian Pipeline, will transport natural gas from proposed interconnections with major pipelines at the Chicago hub near Joliet, Illinois to northern Illinois and southeastern Wisconsin. The US$230 million facility will consist of approximately 24 000 horsepower of compression and approximately 147 miles of 36 inch pipe extending from Joliet to the Watertown, Wisconsin area. The pipeline is projected to transport about 750 million cubic feet of natural gas per day.
WESTERN GEOPHYSICAL SURVEYS ANGOLA is Western Geophysical undertaking another phase of its 3-D multi-client seismic survey of approximately 35 000 square kilometers offshore Angola. Exploration interest in deepwater Angola has in-
creased with the significant oil discoveries such as Girossol and Dahlia. Western’s new seismic survey phase covers both licensed and open acreage in highly prospective deepwater blocks, and has been selected after the evaluation of a previously acquired high-quality 2-D grid. To date, 16 000 square kilometers of data have been acquired, with this new phase expected to add an additional 19 000 square kilometers by year end.
ALSTOM CRUISES AHEAD Alstom is to supply Festival Cruises with two new cruise ships. The 625.cabin passenger ships, will be built at Saint Nazaire, Western France, by Alstom’s Chantiers de l’Atlantique subsidiary. They are scheduled to enter service at the beginning of 2001 and 2002.
KRUGER OUTLINES 1998 INVESTMENT SPEND Montreal-based Kruger Inc invested C$155 million in mill upgrades during 1998. Half of the capital projects were carried out at the company’s newsprint and specialty mills in Trois-Rivieres and Bromptonvill, Quebec; Comer Brook, Newfoundland; and Manistique, Michigan. In addition to the C$32 million investment in Scierie Manic in during 1997, Ragueneau another C$lO million was spent on Quebec’s North Shore Mill in 1998. Kruger’s other wholly owned sawmills, Scierie Parent, Scierie Jacques Beaulieu and Scierie HCN,
were also upgraded to enhance production and increase their competitiveness in the lumber market. During 1998, Kruger also completed a C$22 million expansion at its Montreal paperboard mill, manufacturing white top linerboard from recycled paper. In the consumer and industrial tissue products sector, Kruger invested C$35 million in Canadian and UK mills.
EI AND IPST LAUNCH PAPER VILLAGE An Internet-based subscription service designed specititally for the pulp and paperrelated community can be found at http://www.ei.org/ paper. Launched by Hoboken, New Jersey-based Engineering Information Inc and the Institute of Paper Science and Technology (IPST), the Ei Paper Village is the latest step in Ei’s award-winning cyberspace services. It offers immediate desktop access to IPST’s the world’s PaperChem, largest database of intemational journal literature related to pulp and paper. Subscribers can browse or select the specific topics, and receive e-mail updates of abstracts. As part of the service, subscribers will receive a complimentary electronic document delivery service. This will give the user full text access to as many as 50 supplied selected articles, direct to their desk-top within 24 hours. The Ei Paper Village features paper community services such as on-line discussion fora, and expert help is available for specific technical and industry-related topics. Links are provided to all the leading pulp and paper-related technical websites. A free 30. day trial is available from the web site.