Glossary

Since the performance in global projects is about communication to co-ordinate global and local initiatives, it appeared imperative to create this glossary.

You will find words related to technology as well as commercial and contractual terms.

For each word you will find a definition as short and simple as possible and comments to make the best use of it.

With new technologies and new practices, new words or new understandings to come up at any time, feel free to comment. We expect to handle this section as a permanent  interactive learning session.

Many thanks in advance for your contribution

Market Leadership : Definition: More than the size of the company and its market share, the Market leadership is related to the capability to: Drive the decisions along the supply chain. Lead the good practices in a given market. Comments: Key Drivers to Market Leadership Anticipate on deep market needs and Focus on key targets Manage the key requirements of specifications and vendors lists Align resources across the company and Perform in execution In practice it means to Identify your core know-how on Supply side, Define the leads to build the Market leadership Demand side, Adjust all levels (Strategic, Tactical, Operational) on Supply side to match with the Demand side.
MDI : Definition: MDI stands for Methylene Diphenyl diisocyanate. as a derivative from the Isocyanates familly, the MDI belongs to the Aromatics branch of the building blocks of the petrochemical industry. Comments: Methylene diphenyl diisocyanate (MDI) and 2,4 toluene diisocyanate (TDI) are used in the production of polyurethanes – an essential component in many products ranging from synthetic fibres through insulating foam and adhesives to mattresses and car seats.
Memorandum Of Understanding : Definition: Memorandum Of Understanding (MoU) is also called Letter of Intent (LoI) Comments: A MoU is a document by which two parties describe how they intend to work together. It can be just a technical base line of co-operation or a more extended agreement with commercial and financial terms. Depending on the countries, a MoU may be considered as a formal bidding contract or not. To avoid future potential conflicts between the parties, a MoU should refer more to the intention to provide means than to detailed commitments on goals and results with key performance indicators (KPIs) and so on. Normally companies use MoU when they want to go fast in mobilizing resources in common to capture opportunities, so that their action is not slowed down by legal and financial discussions which can be managed in parallel. In putting on paper the base line of a potential future contract, the MoU helps the partners to realize in more details what shall be the name of the game and what kind of commitment they can commit on on their side and rely on from the other party.
Methanol : Definition: Methanol is the contraction of Methyl Alcohol. Methanol may also be called, wood alcohol or wood spirit because it can be produced as a by-product of the wood distillation. Methanol is a light, colorless, flammable liquid at room temperature, and contains less carbon and more hydrogen than any other liquid fuel. Comments Methanol occurs naturally in the environment, and quickly breaks down in both aerobic and anaerobic conditions of many varieties of bacteria. As a result, there is a small fraction of methanol vapor in the atmosphere. Over the course of several days, atmospheric methanol is oxidized under the effect of the sunlight to carbon dioxide and water. Methanol is a stable biodegradable chemical that is produced and shipped around the globe everyday for a number of industrial and commercial applications. The mixture of methanol steam and air is explosiveness,utmost of explosion is 6.0% to 36.5%(volume). Methanol is poisonous, one will be blindness if drinking 5 to 10ml,and dead with more. This simple alcohol can be made from virtually anything that is, or ever was, a plant. This includes common fossil fuels, like natural gas and coal, and renewable resources like biomass, landfill gas, and even power plant emissions and CO2. With its diversity of production feedstocks and array of applications, methanol has been one of the world’s most widely used industrial chemicals. Methanol is used as an antifreeze, solvent, fuel, and as denaturant of ethanol. In some region of the world such as South America, methanol is also used for producting biodiesel for running cars, trucks, buses, and even electric power turbines. Methanol is also the chemical building block for paints and plastics, furniture and carpeting, to car parts and windshield wash fluid. Worldwide, over 90 methanol plants have a combined production capacity of about 75 million metric tons. Each day more than 100,000 tons of methanol is used as a chemical feedstock or as a transportation fuel for about 125 million liters. The global methanol industry generates $36 billion in economic activity each year, while creating over 100,000 jobs around the globe. The methanol industry has spread production all over the globe in Asia, North and South America, Europe, Africa and the Middle East.
Methylene Diphenyl diisocyanate : Definition: Methylene Diphenyl diisocyanate is a derivative from the Isocyanates familly. it is commonly called MDI and belongs to the Aromatics branch of the building blocks of the petrochemical industry. Comments: Methylene diphenyl diisocyanate (MDI) and 2,4 toluene diisocyanate (TDI) are used in the production of polyurethanes – an essential component in many products ranging from synthetic fibres through insulating foam and adhesives to mattresses and car seats.
MHC : Definition: MHC is the acronym of Mild HydroCracking. MHC is referring to the refining process designed to performs a partial hydrocracking only. In the mild hydrocracking only about 20-60% at ~ 50-85 bar of the feedstock crude oil is cracked. Comments The objective of the Mild Hydrocracking process is to convert 20-60% of the vacuum gas oil at 343°C to low sulphur distillates and produce high quality cat cracker feedstocks. Refining runs through two different types of processes; hydrotreating and hydrocacking. Hydrotreaters are the most common process units in modern petroleum refineries representing nearly half of the world’s crude oil distillation capacity. A typical Western petroleum refinery uses at least three hydrotreaters – one for naphtha, one or two for light gas oil, and one or two for heavy gas oil and/or vacuum gas oil. Hydrocracking is far less common than hydrotreating, but the number of partial-conversion through the so called mild hydrocracker is increasing as refiners build new units to meet clean fuel regulations. Worldwide demand for gasoline and middle distillate fuels is increasing at the expense of heavy fuels and the diesel fuel market is growing faster than that of gasoline. This situation is a problem in many regions for refiners with fuild catalytic crackers (FCC). They often have excess gasoline and heavy fuel capacity and yet must import diesel fuel to keep up with their customers’ demand at the pump. Compounding the above product yield problems are the tightening product quality and environmental specifications; these constraints also affect FCC feed and effluent streams which are linked to the following quality issues: SOx and NOx emissions 95% of the sulfur in the gasoline pool is contributed by FCC gasoline low-cetane (20-25), high sulfur diesel cuts high-sulfur slurry and coke. One approach would be to install a full hydrocracking unit but it is costly and its combined operation with an FCC might not yield the best answer. A more affordable solution exists. Costing but a third of a full hydrocracking unit, the Mild Hydrocracking (MHC) process goes far to solve the above problems. Since hydrocracking is a capital-intensive process, many refiners consider the option of converting their existing vacuum gas oil hydrotreating units into mild hydrocracking units. The use of mild hydrocracker bottom as FCC feedstock improves the quality of FCC products. For greenfield refineries as well as for the expansion or revamping existing refineries, the mild hydrocracking or MHC process is the most favorable solution for the operating companies to maximize production of high quality fuels with low sulfur content and less than 10 part per million (ppm) key products from every barrel of crude oil processed.
Midstream : Definition: In the Oil & Gas and Petrochemical sector, Midstream refers to all the phase of transportation from the production locations to the transformation locations. Typically, by Midstream we should understand pipelines, vessels and all types of carriers such as trains or trucks. With the evolution of the gas to wire technology (GTW) we should also put in that Midstream category the electrical transportation when it goes directly from fields, especially offshore fields, to local grids. Comment: Until the years 2000, Midstream was barely considered as a sector as such within the Oil & Gas industry as most the companies had decided for long to out-source this transportation function and pipelines were pretty rare. But with the development of the “Upstream” activities in further remote locations and with the political tensions or even direct attacks on existing pipelines, the “Midstream” emerged has a critical phase. In addition the environment constraints have imposed new requirements on the construction of these pipelines and consequently affected heavily their costs. Today the number of pipelines in project around the world and their demanding technical requirements has contributed to make from the “Midstream” a sector by itself within the Oil & Gas Industry. It has generated now its own champions and specialists.
Mild Hydrocracking : Definition: Mild Hydrocracking or MHC is referring to the refining process designed to performs a partial hydrocracking only. In the mild hydrocracking only about 20-60% at ~ 50-85 bar of the feedstock crude oil is cracked. Comments The objective of the Mild Hydrocracking process is to convert 20-60% of the vacuum gas oil at 343°C to low sulphur distillates and produce high quality cat cracker feedstocks. Refining runs through two different types of processes; hydrotreating and hydrocacking. Hydrotreaters are the most common process units in modern petroleum refineries representing nearly half of the world’s crude oil distillation capacity. A typical Western petroleum refinery uses at least three hydrotreaters – one for naphtha, one or two for light gas oil, and one or two for heavy gas oil and/or vacuum gas oil. Hydrocracking is far less common than hydrotreating, but the number of partial-conversion through the so called mild hydrocracker is increasing as refiners build new units to meet clean fuel regulations. Worldwide demand for gasoline and middle distillate fuels is increasing at the expense of heavy fuels and the diesel fuel market is growing faster than that of gasoline. This situation is a problem in many regions for refiners with fuild catalytic crackers (FCC). They often have excess gasoline and heavy fuel capacity and yet must import diesel fuel to keep up with their customers’ demand at the pump. Compounding the above product yield problems are the tightening product quality and environmental specifications; these constraints also affect FCC feed and effluent streams which are linked to the following quality issues: SOx and NOx emissions 95% of the sulfur in the gasoline pool is contributed by FCC gasoline low-cetane (20-25), high sulfur diesel cuts high-sulfur slurry and coke. One approach would be to install a full hydrocracking unit but it is costly and its combined operation with an FCC might not yield the best answer. A more affordable solution exists. Costing but a third of a full hydrocracking unit, the Mild Hydrocracking (MHC) process goes far to solve the above problems. Since hydrocracking is a capital-intensive process, many refiners consider the option of converting their existing vacuum gas oil hydrotreating units into mild hydrocracking units. The use of mild hydrocracker bottom as FCC feedstock improves the quality of FCC products. For greenfield refineries as well as for the expansion or revamping existing refineries, the mild hydrocracking or MHC process is the most favorable solution for the operating companies to maximize production of high quality fuels with low sulfur content and less than 10 part per million (ppm) key products from every barrel of crude oil processed.
Mixed cracker : Definition: Mixed cracker refers to cracker in the refining process which can treat equally ethane or naphtha Comments The cracker is a master piece of the refining process to produce gasoline, diesel, jet fuel and all the building blocks of the petrochemical industry (ethylene, propylene, butadiene and all their respective derivatives) To feed this cracker, usually a steam cracker, the refineries have two solutions, ethane or naphtha. The ethane will come from raw natural gas while naphtha will be extracted from oil. Depending on the location of the refinery and the access to the nearest and most competitive feedstock, gas or oil, the cracker will be selected accordingly. Historically the refineries, especially in the western countries used to work with naphtha cracker because they were producing primarily gasoline and diesel considering the petrochemical products as a by-product of the transportation fuels. But in the Gulf region, many countries were looking to reduce their reliance on exporting only crude oil or natural gas, therefore they investigated solutions to develop business with high added value petrochemical products. Since their existing refineries were already fully loaded to produce gasoline and diesel, and they had significant quantities of associated gas available, they invested in ethane crackers to monetize this natural gas. Today the situation in both regions is slightly different but leading both to converge on the mixed cracker. Western countries are buying their oil at high sky prices which compromises the petrochemical industry behind. In opposite way, the natural gas prices are at their lowest levels giving a premium to the producers using ethane as feedstock for their petrochemical products. This spread between the oil and gas has significantly increased with the development of the shale gas in USA which turns this country from first importer to potential exporter. All the companies upgrading their refineries in these western countries are now integrating mixed cracker to preserve their competitive advantage and benefit from more flexibility depending on commodities markets. In the producing countries, the situation has changed too because in most of them except Qatar, the ethane availability is reducing so that the new refineries should be again able to run with naphtha in case of ethane shortage. So even if the root cause might be different in consumers countries and in producing countries, both are now integrating the same technology with the mixed cracker in order to optimize the downstream value chain between the oil or gas availability as feedstock and the market prices in high added value hydrocarbon products.
MoU : Definition: MoU is the acronym for Memorandum Of Understanding. MoU may also be called Letter of Intent (LoI) Comments: A MoU is a document by which two parties describe how they intend to work together. It can be just a technical base line of co-operation or a more extended agreement with commercial and financial terms. Depending on the countries, a MoU may be considered as a formal bidding contract or not. To avoid future potential conflicts between the parties, a MoU should refer more to the intention to provide means than to detailed commitments on goals and results with key performance indicators (KPIs) and so on. Normally companies use MoU when they want to go fast in mobilizing resources in common to capture opportunities, so that their action is not slowed down by legal and financial discussions which can be managed in parallel. In putting on paper the base line of a potential future contract, the MoU helps the partners to realize in more details what shall be the name of the game and what kind of commitment they can commit on on their side and rely on from the other party.