Oil and corn tout dueling studies on future of U.S. biofuel program

MOSCOW (MRC) - Big oil and big corn are touting opposing studies released this week on proposed biofuels policy reforms under consideration by the Trump administration, part of an ongoing clash between the two sides over the future of the program, as per Hydrocarbonprocessing.

Valero Energy Corp, a major oil refiner, funded a study by Charles River Associates that supports placing a cap on the price of biofuel blending credits under the U.S. Renewable Fuel Standard (RFS) - a change meant to help refiners that complain the RFS now costs them a fortune.

A rival report from Iowa State University, also released this week, said such a cap on credits would backfire by eroding U.S. demand for corn-based ethanol and potentially lowering corn prices, already under pressure from a supply glut. The corn industry did not directly fund the Iowa State study, but does provide funding to the university.

The studies are meant to inform the administration's deliberations on how, and if, to reform the RFS - which has become a major point of tension between two of President Donald Trump's most important constituencies.

The RFS requires oil refiners to blend increasing amounts of biofuels, mainly corn-based ethanol, into the fuel supply each year, or buy the renewable fuel credits, called RINs, from other companies that do the blending.

The regulation was introduced during the administration of President George W. Bush to help farmers, cut petroleum imports, and improve air quality. But a surge in the price of RINs in recent years has upset merchant refiners who say the policy now costs them hundreds of millions of dollars a year.

Trump waded deeply into the debate last week, urging representatives of both sides to accept a compromise deal that caps prices for the credits while also removing seasonal limits on high-ethanol blend gasolines to expand the biofuels market.

A cap would control costs for small refiners and help them stay afloat, said Brendan Williams, vice president of government relations for refining company PBF Energy.
MRC

Siemens delivers five compressor trains for Fermaca pipeline in Mexico

MOSCOW (MRC) -- Siemens has recently delivered five gas turbine-driven compressor trains to Fermaca Enterprises (Fermaca) for two pipeline stations in Mexico, as per Hydrocarbonprocessing.

The pipeline projects, which also include a long-term service agreement, are part of the Comision Federal de Electricidad de Mexico’s (CFE) ongoing energy reform program intended to increase the availability of low-cost energy and stimulate the country's economic growth.

Both stations plan to begin commercial operation in 2018, and the entire 500 kilometer pipeline is expected to be fully operational in 2019.

The five compressor trains, packaged at Siemens’ Telge Road facility in Houston, Texas, USA, each consist of a SGT-400 gas turbine driving a STC-SV single-shaft pipeline compressor. The gas turbine trains will provide compression power for a 1,500 kilometer pipeline that will transport natural gas from northern Mexico to the center of the country. Two of the trains will be installed at a pipeline station in La Laguna, Coahuila, Mexico. The other three units will be part of a pipeline compressor station in Villa de Reyes, San Luis Potosi, Mexico.

This order follows on the heels of three pipeline compressor trains driven by SGT-750 gas turbines that Siemens provided in 2015 for the El Encino compression station pipeline project that is part of the same pipeline transportation system that includes La Laguna y Villa de Reyes. The complete system is powered by the three stations developed exclusively using Siemens equipment. This recent order continues the momentum of the Mexican oil and gas industry’s goal to supply high-efficiency power plants with natural gas to boost local economies.

Siemens has sold more than a dozen SGT-400 turbines to customers in Mexico over the last three years and more than 60 worldwide. Both the 13.4- and 15-MW versions of the SGT-400 high-efficiency gas turbines offer excellent emissions performance in a rugged industrial design. This makes it an ideal choice for a wide variety of applications, from simple- and combined-cycle power plants, to cogeneration, to power generation and mechanical drive applications for onshore and offshore projects in oil and gas.

Project teams for Fermaca and Siemens worked closely together to determine the optimum train solution that resulted in a competitive CAPEX and OPEX offering, paired with short cycle times. In addition, Siemens designed identical packages for both sites, including all auxiliaries systems to maximize common parts and streamline operations and maintenance teams. The only difference between the two projects is the gas turbine core engine and compressor bundles due to different power demands and operational conditions of each site.

"We are pleased to be selected as the only equipment provider for this important pipeline project," said Eric Carlos, Head of Sales for Latin America at the Dresser-Rand business. "Our ability to deliver a proven product with the lowest total life cycle cost, on time and on budget, demonstrates Fermaca's confidence in us to provide leading-edge technologies that enable the safe, efficient operation of their compressor trains."

"Because of our previous work with Siemens, we were able to review past projects and incorporate lessons learned and best practices into this most recent project,” said Dr. Raul Monteforte, Chief Development Officer of Fermaca. "The close proximity of Siemens facilities and their impressive performance with past projects and equipment makes it easy to manage expectations for this pipeline extension," Monteforte added.
MRC

Prices of European PP are mixed for CIS coutnries in March

MOSCOW (MRC) -- The March contract price of propylene was agreed in Europe down by EUR20/tonne from February. However, European producers reduced their export prices only for propylene copolymers to be shipped to the CIS markets in March, according to ICIS-MRC Price report.

Negotiations over March prices of European PP began on Monday. All market participants stated the ambiguity of decisions on export prices for polymer in March, given lower propylene prices in Europe. In fact, prices of propylene homopolymers (homopolymer PP) virtually either rolled over or went up from February, whereas prices dropped by EUR20-25/tonne in the propylene copolymers segment.

Deals for March shipments of homopolymer PP were done in the range of EUR1,060-1,145/tonne FCA, whereas February deals were negotiated in the range of EUR1,030-1,140/tonne FCA. Some producers had limited export quotas for injection moulding homopolymer PP.

Deals for block copolymers of propylene (PP block copolymers) were discussed in the range of EUR1,195-1,250/tonne FCA, down by an average of EUR20-25/tonne from February.
MRC

European March PE prices for buyers from CIS countries fell by EUR20/tonne

MOSCOW (MRC) - March contract price of ethylene in Europe was agreed down EUR20/tonne from the February.
Taking this into account European producers have announced a proportional reduction in export prices for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) for supplies to CIS countries, according to the ICIS-MRC Price Report.

Negotiations on the March supply of polyethylene from Europe to the markets of the CIS countries started last Monday. The decrease in the cost of ethylene in the region led to a decrease in export prices for LDPE and LLDPE for buyers from the CIS, while prices of high density polyethylene (HDPE) were practically rolled over from the level of February. There was no information about restrictions of PE delivery from Europe this month.

Some European producers, on the contrary, have increased March HDPE prices from the February level. Most deals were done in the range of EUR1000-1070/tonne FCA.

Prices for black PE 100 were mostly rolled over from the February level of EUR1270-1330/tonne FCA.

Deals on March shipments of European LDPE last week were agreed in the range of EUR1100-1150/tonne FCA.

European producers decreased the price for hexene linear polyethylene (LLDPE C6) by EUR 20/tonne. Deals were discussed in the range of EUR 1360 - 1420/tonne FCA.

MRC

Clariant to increase prices for masterbatch and compound products containing TiO2, polymers, carbon black, pigments, dyes and additives

MOSCOW (MRC) -- Clariant, a world leader in masterbatches and specialty compounds, has announced a price increase globally for its entire range of masterbatch and compound products containing titanium dioxide, polymers, carbon black, pigments, dyes and several additives by 4-7% (depending on the grade, concentration and quality of the titanium dioxide, polymer, carbon black, pigments, dyes and additives), as per the company's press release.

The increase includes white, black, color, additive masterbatches and compounds and relates to the following product brands: REMAFIN, RENOL, CESA, HiFormer & MEVOPUR.

This will be effective for all deliveries from April 1, 2018 or as soon as contracts allow. This price increase is due to the continued rise in prices of titanium dioxide, polymers, carbon black, pigments, dyes and additives driven by several factors including supply-demand dynamics, ongoing capacity reductions in the pigment and dye industry and related increases in feedstock costs of several materials.

As MRC informed before, in H2 2017, Clariant completed a significant expansion at its plant in Lewiston, ME, adding equipment that increases its capacity to compound high-temperature fluoropolymers, which include FEP, ETFE, and PVDF. These materials are important for the production of medical catheters because of their flexibility, lubricity and chemical resistance. Demand for these polymers and for specialized masterbatches, which Clariant markets for medical applications under its MEVOPUR brand, continue to grow worldwide.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC