ORL delivers first cargo of IMO-spec marine fuel

MOSCOW (MRC) -- Israel’s Oil Refineries (ORL) recently delivered its first cargo of 0.5% sulfur content marine fuel, complying with incoming new IMO rules, a trading source said, as per Reuters.

The Haifa-based 197,000 barrel per day refinery loaded its first 30,000-tonne cargo of the ultra-low sulfur, 380 centistoke blend in late May, the source said.

Ships will be required to use fuels with a sulfur content of no more than 0.5% from the start of 2020, down from 3.5% currently, under International Maritime Organization (IMO) rules aimed at cutting air pollution.

Several refiners have in recent months developed new marine fuels to comply with the new regulation as shippers are expected to start shifting to the new specification ahead of 2020.

Oil majors Exxon Mobil, Chevron, BP and Royal Dutch Shell have also said they are developing very low sulfur fuels to meet the 0.5% requirement.
MRC

MOSCOW (MRC) -- Geely Automobile Holdings Ltd. and South Korea's LG Chem Ltd. have formed a joint venture to produce batteries for electric vehicles, reported MorningStar.

Geely's unit Shanghai Maple Guorun and LG Chem will hold a 50% stake each in the joint venture and its registered capital will be USD188 million, the Chinese carmaker said in a stock exchange statement.

The joint venture will leverage the expertise of both companies to manufacture batteries for new energy vehicles in China and ensure a stable supply in the future as the government stresses on reducing emissions, Geely said.

As MRC wrote previously, 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

MOSCOW (MRC) -- Saudi Energy Minister Khalid al-Falih said on Sunday that OPEC would probably meet in the first week in July in Vienna and that he hoped it would reach consensus on extending its agreement to cut oil output, said Reuters.

Falih said earlier this month that OPEC was close to agreeing to extend the agreement beyond June, although more talks were still needed with non-OPEC countries that were part of the production deal.

The Organization of the Petroleum Exporting Countries plus Russia and other producers, an alliance known as OPEC+, have a deal to cut output by 1.2 million barrels per day (bpd) from Jan. 1. The pact ends this month and the group meets in coming weeks to decide their next move.

“We are hoping that we will reach consensus to extend our agreement when we meet in two-weeks-time in Vienna,” Falih told reporters on the sideline of a G20 energy and environment ministerial meeting in Karuizawa, northwest of Tokyo.

Asked when the meeting will be held, he said: “Probably the first week of July”.

It was not completely clear whether the agreement would also include OPEC+.

OPEC was set to meet on June 25, followed by talks with its allies led by Russia on June 26. But Russia suggested a date change to July 3 to 4, according to sources within the group.

Falih said that oil demand usually picks up in the second half the year, with refineries coming back from maintenance and with seasonal demand boost, and that the new agreement would help rebalance the market.

“I’m fairly confident that fundamentals are going in a right direction,” he said.
MRC

MOSCOW (MRC) -- The PCK oil refinery at Schwedt in eastern Germany had started receiving clean Russian crude oil via the Druzhba pipeline, oil industry group MWV said after contamination issues had been disrupting flows since April, as per Hydrocarbonprocessing.

PCK Schwedt was receiving some oil, yet not the full amount, a MWV spokesman said, adding full capacity would possibly be reached within days as pipeline capacity and supplies were being successively revved up.

He did not give any details about oil flows at the Leuna refinery which had also been affected by the pipeline halt.

Russian pipeline monopoly Transneft expects the Druzhba pipeline to resume full operations from July 1, TASS news agency reported on Friday.
MRC

MOSCOW (MRC) -- Wacker has inaugurated a new production line for silicone elastomers at its Zhangjiagang site in China, said the producer on its site.

With an annual capacity of several thousand metric tons, the facility will help support WACKER’s future growth path in China and improve the availability of high consistency silicone rubber (HCR) in the Asia-Pacific region. The plant’s cutting-edge equipment includes world-class kneaders which are essential for manufacturing high quality HCR grades. The expansion measure – a lower double digit million investment - underscores WACKER’s commitment and technological leadership in the silicone rubber industry.

With its new manufacturing line in Zhangjiagang, China, Wacker is significantly expanding its global production capacity for high consistency silicone rubber (HCR). The facility will significantly shorten delivery lead times for customers in the region. (Photo: WACKER)

"Today’s event not only is another milestone in WACKER’s efforts to expand its operational footprint in China, but also shows our determination to further serve and develop local and regional markets," said Paul Lindblad, President of WACKER Greater China, at the inauguration ceremony. The expansion of Wacker’s silicone elastomer plant is yet another example of the company’s ongoing investments into its Chinese facilities. "The new manufacturing line will contribute significantly to our silicone rubber production capacity. This will enable us to improve our service to customers and business partners, who are willing to grasp the opportunities in today’s ever-changing and increasingly sophisticated marketplace", Lindblad said.

Wacker’s new production line is located in a new building complex covering 2,000 square meters. The facility’s kneaders are currently the largest of their kind in the industry. The plant’s mixing and screening equipment and the state-of-the-art waste treatment process are also setting industry standards in terms of productivity and sustainability. The new production line will enable shorter lead times, speed up market response, and improve overall customer experience.

As MRC informed before, in November 2017, rhe Group began building a new spray dryer for dispersible polymer powders at its Ulsan site, which will have a total capacity of 80,000 metric tons per year. The Munich-based chemicals company is also constructing an additional reactor for dispersions based on vinyl acetate-ethylene copolymer (EVA), which are needed as the raw material for the spray dryer to produce dispersible polymer powders. Ulsan’s plant complex, which covers the entire production chain from VAE dispersions to dispersible polymer powders, will be one of the largest of its kind in the world. Investments will total around EUR60 million and production was scheduled to start in the first quarter of 2019.

Wacker has been operating its own subsidiary in Greater China for over 25 years and has greatly expanded its regional activities since then. The company not only maintains seven sales offices in all the country’s key economic regions, but also two technical centers and three production sites. The Group produces silicones and polymers in Zhangjiagang and Nanjing. Both sites are located in Jiangsu province. The plants are the largest of their kind in China. In 2018, Wacker generated sales of over EUR1 billion in the Greater China region, including Taiwan.
MRC