Saudi Aramco to acquire 9% of Chinese petrochems project

MOSCOW (MRC) -- State-owned Saudi Aramco has signed an agreement to acquire nine percent of Chinese project Zhejiang Petrochemical, reported Reuters with reference to Saudi state news agency SPA.

The agreement, which formalizes a previously announced plan, came during a visit of Crown Prince Mohammed bin Salman to Beijing.

Zhejiang Petrochemical is controlled by private Chinese chemical group Zhejiang Rongsheng Holding Group.

Zhejiang Petrochemical is building a refinery and petrochemical complex in the eastern Chinese province of Zhejiang.

As MRC wrote before, in October 2018, State oil giant Saudi Aramco signed an agreement to invest in a refinery-petrochemical project in eastern China, part of its strategy to expand in downstream operations globally.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
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Lanxess announces capacity expansion for corrosion inhibitor products

MOSCOW (MRC) -- Specialty chemicals company Lanxess has successfully completed a debottlenecking project resulting in a 15 percent increase in global production capacity of its Additin RC 4000 series of corrosion inhibition additives, as per the company's press release.

The additional capacities are a result of process synergies identified and realized following Lanxess’s 2017 acquisition of Chemtura Corporation, which expanded its lubricant additives portfolio and global production network.

"With Lanxess’s increased footprint from the Chemtura acquisition, we were able to unlock process synergies between our production sites in Mannheim, Germany and West Hill, Canada to increase output of our corrosion inhibitors products to meet market demand and further enhance our global production network," said Martin Saewe, Head of the Lubricant Additives business line in Lanxess’s Additives (ADD) business unit.

"The global corrosion inhibitor market is growing and we have seen increasing demand for Lanxess specialty additives products due to their unique performance and technical advantages relative to other product offerings in the market," Saewe adds. "While we are committed to supply security for our customers, we are also looking toward the future with new product developments in the pipeline to meet new performance requirements and stricter regulations."

Lanxess’ Additin Corrosion Inhibition (CI) product range includes calcium sulfonate, carboxylate, succinic acid, and phosphoric acid-based specialty products. They work by being adsorbed on the polar metal surface to form a water-repellent and protective film that protects against corrosion. Main applications include power transmission oils, industrial oils, metalworking fluids, anti-corrosion oils, and greases.

As MRC reported earlier, Lanxess A.G. is expanding production of high-performance plastics at its Krefeld-Uerdingen site in Germany by building a new compounding facility at the North Rhine-Westphalia site. The Cologne-based specialty chemicals company said Sept. 19 that it was investing a "mid-double-digit million euro" amount in the new facility, which is scheduled to start operation in the second half of 2019.

The Additives (ADD) business unit is part of Lanxess’ Specialty Additives segment, which recorded sales of EUR 1.60 billion in fiscal year 2017.

Lanxess is a leading specialty chemicals company with sales of EUR 9.7 billion in 2017 and with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
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Baystar celebrates groundbreaking for new PE plant in Pasadena, Texas

MOSCOW (MRC) -- Bayport Polymers LLC (Baystar), the 50/50 joint venture owned by Total Petrochemicals & Refining USA, Inc. (TPRI) and Novealis Holdings LLC - itself a joint venture co-owned by Borealis AG and NOVA Chemicals Inc. - held its official groundbreaking ceremony for the construction of a new 625,000 metric ton-per-year Borstar polyethylene unit at its production site in Pasadena, Texas, with an anticipated start-up in 2021, as per Hydrocarbonprocessing.

The state-of-the-art Borstar technology, which will be used in North America for the first time, will allow Baystar to produce enhanced polyethylene products for the most demanding applications. Approximately 1,750 jobs will be created during the peak engineering and construction activity.

Baystar is also building a one-million-ton per year steam cracker in Port Arthur, Texas. The new cracker will process ethane, which is abundantly available and competitively priced in the U.S., and will supply feedstock for its existing 400,000-ton-per-year polyethylene units as well as the new Borstar polyethylene unit in Pasadena.

"This new Borstar unit will more than double the site’s capacity and allow Baystar to provide our North American customers with a greater range of high-value-added and resource-efficient products," said Baystar President Diane Chamberlain. "The Port Arthur cracker and the new Borstar unit are tangible evidence of the power of partnership between Total, Borealis and NOVA Chemicals."

Speaking at the ceremony, the three joint venture partners commented: "With the ethane cracker project in Port Arthur now well underway, it is exciting to be here today with our partners Borealis and NOVA Chemicals to start the construction of the polyethylene unit here at Baystar," said Christophe Gerondeau, President and Chief Executive Officer, Total Petrochemicals & Refining USA.

"These two projects are a perfect example of Total’s strategy to expand in petrochemicals where we can leverage cost-advantaged feedstock and capitalize on our integrated platforms such as Port Arthur." "Borealis is very pleased to be bringing our third-generation Borstar technology to the North American market for the first time," said Borealis CEO Alfred Stern. "Baystar will profit from this superior technology, but also from our success in developing and sustaining ambitious joint ventures on a global scale. We are also glad to have found partners who share our commitment to safety at all levels of operations."

"It’s exciting to be here today as Bayport Polymers celebrates this next milestone. We look forward to having Borstar technology available in North America, which allows us to better serve our customers with innovative products that help make everyday life healthier, easier and safer," stated NOVA Chemicals CEO, Todd Karran.

Total and NOVA Chemicals are founding members of the Alliance to End Plastic Waste, an alliance of nearly 30 companies from the plastics and consumer goods value chain committed to advance solutions to help end plastic waste in the environment, especially in the ocean. Borealis is a founding member of Project STOP, an initiative that aims to eliminate the leakage of plastics into the environment.

As MRC wrote previously, in June 2018, Bayport Polymers LLC (Bay-Pol), a joint venture of Total and Novealis Holdings LLC - a joint venture of Borealis AG and NOVA Chemicals Inc. - held the official groundbreaking ceremony for the construction of a new ethane cracker at the Total Port Arthur Refinery. The new USD1.7-billion ethane cracker is the first project under construction by the recently-formed Bay-Pol joint venture.

In late May 2018, Total S.A., Borealis AG and NOVA Chemicals Corporation announced they had closed a joint venture in petrochemicals on the U.S. Gulf Coast after receiving all required regulatory approvals. The company named Bayport Polymers LLC (“Bay-Pol”) is 50% owned by Total and 50% owned by Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals. Diane Chamberlain is appointed President of the new entity.
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Shell to Acquire Energy Storage Firm Sonnen

MOSCOW (MRC) -- Shell has agreed to acquire 100% of Sonnen, a German-based smart-energy storage systems and energy-services firm for households. This agreement follows an investment by Shell in May 2018, as per PowerPulse.

After regulatory approval and completion of the transaction, Sonnen will become a wholly-owned subsidiary of Shell.

"Sonnen is one of the global leaders in smart, distributed energy storage systems and has a track record of customer-focused innovation. Full ownership of Sonnen will allow us to offer more choice to customers seeking reliable, affordable and cleaner energy," Mark Gainsborough, Executive Vice President New Energies at Shell, said. "Together, we can accelerate the building of a customer-focused energy system in support of Shell’s strategy to offer more and cleaner energy solutions to customers."

Christoph Ostermann, Chief Executive Officer and Co-Founder of Sonnen, said, "Shell New Energies is the perfect partner for helping us grow in a market that is expanding rapidly. With this investment, we’re excited to help more households to become energy independent and benefit from new opportunities in the energy market. Shell will help drive the growth of Sonnen to a new level and help speed up the transformation of the energy system."

Sonnen offers smart energy storage to customers and offers digital energy services via its sonnenCommunity platform. For example, the sonnenBatterie optimizes the use of solar power in a household and supplies energy at night using stored solar power generated in the daytime. Sonnen has been a pioneer in the energy market by combining its technology with new business models for a decentralized energy system.

Sonnen Battery Community allows customers that pay a monthly fee to have access to battery power from a pool of batteries. This service is only available in Germany so far.

Recently, Sonnen put Germany’s biggest virtual battery into operation. It is based on a network of home electricity storage systems across the country to help balance power supply and demand on the power grid. So, in addition to offering energy storage technology (the sonnenBatterie), its German customers can pay a monthly fee to be a member of a pool of energy storage batteries. In this way, users with solar or wind power can power their own homes and also sell power to others in the battery pool. So far, this service is only available in Germany.

The agreement is expected to accelerate the ability of the two companies to deliver innovative integrated energy services and electric vehicle charging solutions, and the provision of grid services that are based on Sonnen’s virtual battery pool.

The Shell-owned Sonnen subsidiary will work with the Shell New Energies division that the company established in 2016. The Shell New Energies division focuses on new fuels for transportation such as hydrogen and biofuels and power. In the power sector, Shell New Energies is involved in almost every stage of the process of generating, buying and selling, and supplying electricity to customers.

As MRC informed before, in May 2018, China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) announced the official start-up of the second ethylene cracker at their Nanhai petrochemicals complex in Huizhou, Guangdong Province, China. Several linked derivative units have also started up and the remaining units will start up progressively over the next few weeks. These new units were constructed by CNOOC and are owned and operated by the existing CNOOC and Shell Petrochemical Company (CSPC) joint venture.

China National Offshore Oil Corporation (CNOOC), the largest offshore oil & gas producer in China. CNOOC businesses cover the main segments of oil & gas exploration and development, engineering & technical services, refining and marketing, natural gas and power generation, and financial services.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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Akselos secures funding for digital twin

MOSCOW (MRC) -- Predictive digital pioneer, Askelos, has secured funding from technology accelerator, the Oil and Gas Technology Centre (The OGTC), to advance research and development into digital twin technology for the oil and gas industry, said Hydrocarbonprocessing.

Developed for the operation of any large-scale asset, Akselos’ software will generate digital twins of pressure vessels in order to produce more accurate predictions for maintenance and inspection - including where and when repairs will be needed.

By combining this with robotics inspections, it will allow accurate validation of the structural integrity and fitness for service, making the repair process more efficient. Akselos estimates that the digital twin software could support a reduction in inspection and maintenance costs, as well as a 25% reduction in equipment downtime.

Combining this solution with robotic inspections could result in a 45% maintenance cost reduction and 25% reduction in equipment downtime. The project aligns with the OGTC’s Asset Integrity Solutions Centre, which is focused on accelerating technology solutions for improving process vessel inspection, increasing production by up to ?157million per year (at USD50/bbl oil price).

"The OGTC is of crucial importance to the future of the UKCS. This partnership will consolidate our efforts to bring value to the UK oil and gas industry with world-class emerging digital technology. We look forward to collaborating with the asset integrity team at the OGTC to address these significant challenges for operators," John Bell, VP of Akselos said.

"We are delighted to support Akselos with the development of this technology. Digital twin software will speed up data analysis, testing “what if” scenarios to optimize future inspection programmes and allow for improved shut down planning. Rebecca Allison, Asset Integrity Solution Centre Manager, the Oil & Gas Technology Centre added. “This approach ties in perfectly with the focus on robotics and automation, harnessing the power of data and technology to improve overall asset efficiency."

The project is due to commence immediately, and with data and outcomes made available when the project finishes in June.
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