Total seeks compensation for pipeline contamination

MOSCOW (MRC) -- Total will seek compensation for the losses caused by a contaminated oil pipeline which has led to a halving of output at its Leuna refinery in Germany, reported Reuters with reference to Chief Executive Patrick Pouyanne's statement to shareholders.

"The impact on us is not nil. The Leuna refinery in Germany, which is at the end of the pipeline, is producing at half of its capacity," Pouyanne said.

Oil export flows from Russia have been disrupted since April when high levels of organic chloride were found in crude pumped via the Druzhba pipeline to the Baltic port of Ust-Luga and other European countries.

Some 5 million tonnes of oil were contaminated and the dirty crude is now stuck in pipelines in Belarus and further West, in Poland, Germany, Ukraine, Slovakia, Hungary and the Czech Republic.

Pouyanne said the costs of the contamination and eventual decontamination were still to be clarified.

"Who is going to pay for the decontamination? There is a significant amount that is being mentioned, around USD15 per barrel. At the moment, everyone is looking at the other to find the one who is responsible," Pouyanne said, answering questions from shareholders.

"We'll look to recoup the loss we have suffered," he said.

As MRC informed before, French oil and gas major Total said on 17 May that it had suspended operations at some units of the 230,000 barrel-per-day Leuna refinery in Germany for technical checks following the prolonged situation of contaminated Russian crude supply. Total said it was carrying out the checks to manage any long-term supply complications due to the contaminated Russian crude.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- SIBUR and 3M have signed an agreement to cooperate in product development and polymer recycling at SIBUR’s PolyLab, said the company.

Thanks to their durability, strength, eco-friendliness and other advantages, such polymers as polyethylene and polypropylene are some of the most widely used synthetic materials, popular with the construction, utilities, automotive, healthcare, food and other industries. PolyLab’s key priority is to promote the use of polymers both to manufacture existing products, and to design novel solutions to drive technological advancement in healthcare, consumer goods, automotive, and construction industries. PolyLab will foster the use of recycled materials and the application of polymers in circular economy. To this end, samples of new PE and PP grades will be transformed at the Centre's pilot manufacturing lines into pipes, medical goods, films, food packaging, canisters and other products. This will provide a deeper insight into polymers’ properties and their impact on the end product quality to further improve the materials and boost production efficiency.

SIBUR and 3M will cooperate in the development of new polyethylene and polypropylene grades, including those to be produced at ZapSibNeftekhim. In particular, the parties agreed to develop new solutions to boost the processability of polymer grades and make SIBUR's products more eco-friendly and fit for recycling.

The companies are also supposed to jointly hold events educating SIBUR’s clients in efficient polymer processing technologies using PolyLab’s demo equipment. They are planning to cooperate in health and safety, share experience in the application of cutting-edge digital technologies in production and R&D, including Big Data.

“Partnering with global innovation and technology leaders, such as 3M, contributes to the advances of Russia’s petrochemical industry. Joint efforts in designing new polymer production solutions will enable SIBUR to market new products that will meet the highest requirements and improve quality of life,” said Vasiliy Nomokonov, Management Board member and Executive Director at SIBUR.

“We have been cooperating with SIBUR for many years. We are convinced that PolyLab will bring it to a new level and enable us to contribute to SIBUR’s addressing the issues of its customers even more by leveraging on 3M’s global resources, too,” said Mats Friberg, Managing Director at 3M Russia and CIS.
MRC

MOSCOW (MRC) -- The Pennon Group, parent company of Viridor, the UK’s biggest recycling company, has announced a ground-breaking project which will harness the electricity created from non-recyclable waste at its ?252 million energy recovery facility at Avonmouth, near Bristol, to power a new ?65 million plastic recycling plant, said the company.

In year one, the UK's biggest multi-polymer plant will produce 60KTPA of recycled plastic a year from 81KTPA feedstock (1.6 billion bottles, pots, tubs and trays), rising to 89KTPA (1.7 billion bottles, pots, tubs and trays) in year three, producing 63KTPA of recycled material. The new plastics recycling plant will be powered by energy created which uses non-recyclable waste as its fuel, creating a true circular economy energy park.

Pennon’s Chief Executive Officer Chris Loughlin said: “Pennon is dedicated to working in ever-more sustainable ways and we are extremely excited to be announcing this first-of-its-kind investment in plastics recycling. By using waste which cannot be recycled as the fuel to create low carbon electricity which will power plastics recycling we are creating a truly resource and energy-efficient waste management solution.

The recycling and reprocessing plant will be a world-class facility which creates a recycling powerhouse in the South West, where Viridor and Pennon have their headquarters. The plant is an early sign of Viridor’s continuing commitment to UK plastics conversion, coming within months of the Government’s Resources and Waste strategy and a year on from the UK Plastics Pact, of which Viridor was a founding member.

This co-location of a plastic reprocessing plant with an energy recovery facility is a real industry first creating the opportunity to create even greater sustainability and environmental efficiency.

The project will put 60,000 tonnes of recycled plastic from bottles, pots, tubs and trays in PET, HDPE and PP flake and pellet form) back in the economy every year as a viable and sustainable solution to virgin plastic. It will be powered by diverting 320,000 tonnes of waste from landfill and generating 32MW of electricity – the equivalent energy used to power around 44,000 homes.

Recycled plastic uses 50% less electricity than virgin plastic and sourcing power from non-recyclable waste takes energy efficiency one step further and gives this material a real purpose.

The project also adds to its green credentials with the addition of a ?2 million water treatment plant, which has benefitted from the input and expertise of another Pennon company, South West Water.

Two-thirds of plastic collected for recycling in the UK is currently exported and 46% of plastic packaging is currently recycled against a target of 75%.
MRC

MOSCOW (MRC) -- Petrocuyo is in plans to brought on-stream its polypropylene (PP) unit following a turnaround, according to Apic-online.

A Polymerupdate source in Europe informed that the company is likely to complete turnaround the plant in end-May, 2019. The plant was taken off-line for maintenance in end-April, 2019.

Located in Lujan de Cuyo, Argentina, the PP plant has a production capacity of 130,000 mt/year.

Petrocuyo is the result of the merger of Petroquimica Cuyo and Petroken, companies with more than 30 years experience and internationally and locally wellknown. Thus, it is settled an Argentinean company which from the very beginning has been operating strengthened by technological and human synergies.

Petrocuyo offers a complete range of polypropylenes: homopolymers, impact and random copolymers, special polyolefins and PP compounds. The production plants are located in Lujan de Cuyo, Mendoza Province, and in Ensenada, Buenos Aires. Its installed capacity totals 310,000 tons per year.
MRC

MOSCOW (MRC) -- LG Chem is likely to shut its polyvinyl chloride (PVC) plant for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the company has planned turnaround at the plant in early-June, 2019. The plant is expected to remain shut for a period of around one week.

Located in Yeosu, South Korea, the PVC plant has a production capacity of 610,000 mt/year.

As MRC informed before, LG Chem is planning to spend USD2.4-billion to expand its naphtha cracking center (NCC) and polyolefin (PO) plant in Yeosu, South Korea. The project, which will expand the NCC and PO facility by 800,000 t/y each, is expected to be completed in the second half of 2021.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC