-Flint Hills Resources completed its purchase of Houston-based propylene producer PetroLogistics. The $2.1 billion deal is the largest in Flint Hills’ history and is its first chemical transaction since it bought Huntsman Corp.’s commodity chemicals business in 2007. Flint Hills will own and operate PetroLogistics’ 1.45-billion-pound-per-year propane dehydrogenation facility in Houston.
-A small fire broke out at Chevron’s Richmond, Calif., refinery this morning, evidently caused by a fuel line leak. The blaze was under control within an hour and no injuries were reported. City officials are preparing for hearings next week related to Chevron’s proposed $1 billion Richmond refinery modernization plan, which has been stalled for several years. The Richmond refinery was the site of a major fire in 2012.
-Enterprise Products Partners signed a contract to sell condensate to Mitsubishi Corp., just two weeks after striking a similar deal with Mitsui Corp. Enterprise was one of two companies recently allowed by U.S. authorities to export condensate that has been stabilized and distilled. The decision sparked a debate about whether or not the U.S. is shifting its stance on crude oil exports, which have been largely banned since the early ‘70s.
-Meanwhile, Plains All American is considering building new condensate pipelines and storage tanks in the Permian Basin. Via Reuters, company vice president Sam Brown told attendees at an energy conference Tuesday midstream companies would explore segregating Permian condensate, which is typically mixed with other Permian crude.
-The refining industry has not yet signed on to an oil train safety accord struck Monday by the American Petroleum Institute (API) and the Association of American Railroads (AAR), Reuters reports. A spokeswoman for the American Fuel & Petrochemical Manufacturers said her group had not considered the API/AAR specification car or seen any data showing the costs and benefits of the agreed-upon plan. The new plan would remove DOT-111 cars from the tracks or mandate that they undergo safety upgrades.
