LyondellBasell and Covestro kick-off Circular Steam Project in Maasvlakte

MOSCOW (MRC) -- LyondellBasell (LBI), one of the world's largest plastics, chemical and refining companies and its joint venture partner Covestro, one of the world's largest polymer companies, have kicked-off a large investment project at their site in Maasvlakte-Rotterdam, the Netherlands, as per LBI's press release.

The Circular Steam Project incorporates an innovative technology into the existing production plant to convert its water-based waste into energy. The new installation will take the site's existing production process to a higher level of efficiency and sustainability, resulting in an overall annual reduction of ca. 140,000 metric tons CO2 emissions, 0.9 Petajoule of energy and avoiding the release of 11 million kilograms of salt residue into the surface water.

The project is an important contribution to the Dutch government's CO2 reduction targets. Jean Gadbois, Senior Vice President Manufacturing Europe, Asia and International of LyondellBasell: "The Dutch government's support is pivotal to the viability of innovative projects like this Circular Steam Project, which will allow us to realize an annual CO2 reduction equal to taking 31,000 cars off the road and will contribute to yearly energy savings equaling the electricity use of the city of Breda's 90,000 households. This is a great step in advancing towards a more sustainable production."

Dr. Klaus Schaefer, Chief Technology Officer of Covestro, added: "Our joint site in Maasvlakte is an important element of Covestro?s production network. We are constantly aiming to reduce our specific emissions. Through this investment we will significantly enhance the efficiency of the existing operations."

LyondellBasell and Covestro will build a new bio plant and incinerator on the Maasvlakte site, in which the production's waste will be treated and transformed into steam. The steam will be used as an energy source in the existing on-site production plant, thus making it a circular process. The construction will employ about 71 people full-time; the new facilities will eventually provide permanent positions for 11 full-time employees. The official start of the project was marked by a ceremony in which LyondellBasell and Covestro, together with a large group of stakeholders, revealed the construction plan and its key benefits.

Allard Castelein, CEO Port of Rotterdam Authority commented: "This project is an important step towards realizing the Dutch ambition of a 49% reduction in CO2 emissions in 2030. The industry in Rotterdam, being an important emitter, plays an pivotal role in this reduction. The initiative by LyondellBasell and Covestro is an inspiring example how this can be done, even in a very competitive market."

As MRC informed earlier, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Indonesia’s government confirmed Nicke Widyawati as the permanent chief executive of Pertamina and picked a new upstream director amid pressure on the state-owned energy firm to curb imports, boost refining capacity and biodiesel use, reported Reuters.

Widyawati became the acting chief executive officer (CEO) in April after Elia Massa Manik was fired after repeated clashes with the government over fuel price controls, criticism over his handling of an oil spill and for failing to meet mandates on fuel sales.

Widyawati, a former human resources director at the company, is the third CEO at Pertamina in just three years.
"There are three mandates from the government - reduce imports, start development of refineries and implement the B20 biodiesel project," Widyawati told reporters at a press conference at the State-Owned Enterprises Ministry after her appointment by Indonesian President Joko Widodo.

The B20 project starting next month will require all diesel fuel to contain at least 20 percent biocontent, typically palm oil, to boost palm oil consumption, slash fuel imports, and narrow a yawning current account gap.

Indonesia, one of Southeast Asia’s biggest fuel importers, also aims to reduce its import bill by improving its aging domestic refineries, but some projects have been delayed because of financing issues.

The government also appointed Dharmawan Samsu, the country head of BP Plc’s (BP.L) Indonesia unit, as Pertamina’s upstream director.

Indonesia was once a major crude oil producer and exporter, and a member of the Organization of the Petroleum Exporting Countries, with output reaching more than 1.6 million barrels per day (bpd) in 1995.

Since then, the international oil majors that had dominated the country’s oil development have scaled back their operations because of uncertainty around regulations. The lack of investment in new reserves and rising fuel demand has caused Indonesia to become a net oil importer.

Pertamina is due in 2021 take over as operator of the Rokan block, Indonesia’s second-largest oilfield, from Chevron, though production is falling.

Tanri Abeng, Pertamina’s president commissioner, told reporters that Samsu was appointed because there was a need for someone with experience from a multinational.

"Blocks that have been given to Pertamina are not easy, very difficult tasks but also an opportunity for us. We will be able to increase our production which is only about a third of the domestic output," said Abeng.

Pertamina said this week it aims to lift overall oil output to 407,000 bpd in 2019, up from 2018’s goal of 400,000 bpd.

Abeng urged the government not to keep shaking up management at Pertamina, which faces frequent interference from the government due to its importance on the economy, particularly at a time when the rupiah currency is under pressure.

As MRC wrote previously, in May 2016, PT Pertamina and Russia’s Rosneft OAO signed a cooperation agreement that includes a plan to build a new oil refinery in the Southeast Asian nation.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
MRC

MOSCOW (MRC) -- Air Liquide has entered the Kazakhstan market and will provide hydrogen and steam to Pavlodar Oil and Chemistry Refinery (POCR) through a long-term supply agreement, the France-based industrial gases producer said.

Air Liquide Munay Tech Gases (ALMTG) recently invested EUR12m to acquire hydrogen and purification units, with a capacity of up to 30,000 normal cubic metre/hour (Nm3/h).

ALMTG is a joint venture between Air Liquide and Kazakhstan state-owned oil and gas company KazMunayGaz NC (KMG).

The joint venture partners plan to pursue further opportunities in hydrogen and nitrogen supply to KMG’s other refineries.

"We are delighted to work with KazMunayGaz and to start operating in Kazakhstan," said Olivier Randet, vice president of Cluster Eastern Europe at Air Liquide. "We are looking forward to continuing supporting industrial development in Kazakhstan."

As MRC informed before, in april 2018, Air Liquide signed a new long-term agreement with LyondellBasell, one of the world’s largest plastics, chemicals and refining companies, to supply oxygen to LyondellBasell’s new large-scale petrochemical plant which will be constructed in Channelview, Texas. LyondellBasell’s new propylene oxide/tertiary butyl alcohol plant (PO/TBA), is expected to be the largest of its kind plant in the world when completed.
MRC

MOSCOW (Market Report) -- Ufaorgsintez (petrochemical asset of Bashneft, which is part of Rosneft) shut down some of its low density polyethylene (LDPE) production capacities for maintenance. The outage will be long and is scheduled to be conducted in two stages, according to ICIS-MRC Price report.

The plant's customers said Ufaorgsintez took off-stream the first LDPE line for a scheduled turnaround on 1 September, thus, production of 108 grade polyethylene (PE) was shut. The outage will be quite long and will last for about 30 days.

Also, a shutdown for maintenance at the second LDPE line (158 grade and 153 grade PE), as well as a complete shutdown at the plant's PP production, is scheduled for 19 September.

Ufaorgsintez's overall LDPE and polypropylene (PP) production capacities are about 90,000 and 120,000 tonnes per year, respectively.

PJSC Ufaorgsintez produces phenol, acetone, synthetic ethylene-propylene rubber, high and low density polyethylene, polypropylene, over 30 types of petrochemical products and over 25 items of consumer products. Ufaorgsintez's net profit was Rb5.41 billion in 2017, down by 7% year on year.
MRC