Evonik to install new natgas power plant at Marl chem site in Germany

MOSCOW (MRC) -- Evonik is to install a new advanced high-efficiency gas and steam turbine power plant at Marl Chemical Park. The specialty chemicals group is thus, after more than 80 years, ending hard-coal based power and steam generation in Marl, which will reduce its CO2 emissions by up to one million metric tons annually, said the company.

Direct greenhouse gas emissions of its plants worldwide will then be reduced annually by almost one fifth. Evonik and its partner Siemens signed agreements for the construction of the two-block power plant on August 30th. Construction is slated to start before the end of this year. The high-efficiency and very flexible plant, produces power and steam in a cogeneration process, is expected to come on stream in 2022. Its total system efficiency will exceed 90 percent.

The project cost is in the three-digit million-euro range. Siemens Gas and Power is the main contractor and, jointly with its internal partner Siemens Financial Services, is responsible for the planning and construction of the entire power plant, including a new central control station building. Evonik will operate the plant in conjunction with the existing natural gas power plants.

“The modernization of our power plant park is a key element in achieving Evonik’s sustainability targets,” says Thomas Wessel, Chief Human Resources Officer and Industrial Relations Director of Evonik. “The main climate target of Evonik is to halve our absolute greenhouse gas emissions by 2025 relative to base year 2008."

Willibald Meixner, CEO of Siemens Gas & Power, Power Generation Operations, said: “Siemens is actively helping to shape the energy transition in Germany. Decentralized industrial power plants that are equipped to meet the requirements of digitalization are an important component of our portfolio for the reduction of CO2 emissions. This is well illustrated by the Evonik order, which gives us immense satisfaction."

With the new power plant Evonik is securing cost-efficient and sustainable energy for its Marl Chemical Park, Evonik’s largest production site, over the long term. Apart from power, steam generation is also important for production in the Chemical Park. The plant has a power output of 180 megawatts—which corresponds to the power requirement of almost 500,000 households—and can produce up to 440 metric tons of steam per hour. The load control of the plant is highly flexible. This means it can contribute toward balancing out fluctuations in power feed from renewable energies into the grid—which is an important and indispensable element for the energy transition. About 2,000 households will continue to be supplied with district heating from the site’s integrated steam network.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world. In fiscal 2018, the enterprise with more than 32,000 employees generated sales of EUR13.3 billion and an operating profit (adjusted EBITDA) of EUR2.15 billion from continuing operations.
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MOSCOW (MRC) -- South Korea’s exports extended their slump in August as an escalating feud with Japan adds to uncertainties for the economy already elevated amid the U.S.-China trade war, said Bloomberg.

Exports fell 13.6% in August from a year earlier, a ninth consecutive month of contraction, data from the trade ministry showed Sunday. That compared with economists’ consensus for a 12.5% drop. Imports fell 4.2%, and the trade surplus was USD1.7 billion.

Export weakness has been the main drag on South Korea’s economy this year, weighing on companies’ investment and hiring. Headwinds from trade tensions remain high. Japan, a key supplier of materials and components, formally removed South Korea from its list of trusted trading partners on Aug. 28. The U.S. will start applying a new round of tariffs on some Chinese imports starting Sunday.

Exports fell in August due to deteriorating external trade conditions, base effect and a drop in operating days, according to a trade ministry statement. Impact from Japan trade sanctions seen limited so far, statement said.

South Korea’s trade data serve as a barometer of global demand due to its early release. The country is the world’s biggest source of memory chips, which go into everything from computers to smartphones.

“Global trade remains in a slump, and a turnaround is not around the corner,” said Howie Lee, an economist at Oversea-Chinese Banking Corp, before the data release. "There are some suggestions that the electronics market may have hit a bottom, and it will be interesting to see if this manifests."

The Bank of Korea held its benchmark interest rate on Friday, while noting that risks to its 2.2% growth forecast have increased.
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MOSCOW (MRC) -- SIBUR and Tatneft has signed a letter of intent with respect to Togliatti-based petrochemical facilities, as per SIBUR's press release.

Under the deal, SIBUR plans to sell and Tatneft plans to acquire certain production and other assets that are currently registered in the name of SIBUR Togliatti and Togliattisintez legal entities.

The assets include production facilities for various types of synthetic rubber used by Russia's and the world's leading tire manufacturers, for MTBE (high-octane fuel component), butadiene, isoprene, and other intermediates, as well as infrastructure of the industrial park accommodating a number of chemical and other technological companies.

For Tatneft, the acquisition is an opportunity to strengthen the vertical integration of its KAMA TYRES business and increase its value. After the acquisition, Tatneft intends to further develop the assets in line with its gas and petrochemical strategy. SIBUR - with its focus on establishing and developing global scale production of basic polymers, high-potential medium-tonnage products and premium special chemicals – will continue to cooperate with the Togliatti-based companies as partners.

The deal is expected to be closed by the end of 2019, including all corporate procedures, antitrust approvals, and other statutory formalities.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. Meanwhile, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.
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MOSCOW (MRC) -- South Korean oil refining companies imported more crude oil from the United States than from Kuwait in July, as per BusinessKorea.

South Korean oil refining companies imported 14.78 million barrels of crude oil from the United States and 11.03 million barrels of crude oil from Kuwait last month, when the former exceeded the latter for the first time in history. Their crude oil imports from Saudi Arabia added up to 24.7 million barrels during the same period.

Korea's crude oil imports from the United States almost tripled in one year from 5.37 million barrels. In addition, the value of the imports reached an all-time high of USD982.9 million.

This can be attributed to a decrease in the price of American crude oil led by shale oil development. As of July 1, the per-barrel WTI and Dubai crude oil prices were USD59.09 and USD65.06, respectively. This difference has been maintained last month as well.

American crude oil has a low sulfur content, which means its added value is high. Also, it can add to the companies’ profitability when mixed with cheaper Latin American crude oil, which is mainly heavy crude oil. Moreover, the ongoing trade disputes between the United States and China has led to a decrease in China’s American crude oil imports and a continuous oversupply.

Tax benefits applied to American crude oil are another reason for the increase. At present, a 3 percent tariff is applied to crude oil from the Middle East whereas no tariff is imposed on American crude oil in accordance with the KORUS FTA. In addition, the South Korean government gives a refund of 16 won per liter to non-Middle East crude oil importers in the interest of import source diversification.

SK Innovation is relatively more aggressive in importing crude oil from the United States. The company is using very large crude carriers (VLCCs) to import the oil via the Cape of Good Hope sea route. This means it is enjoying a stable supply with tensions between the United States and Iran escalating in the Strait of Hormuz region, through which Middle East crude oil is transported.

On the other hand, S-Oil and Hyundai Oilbank are more passive in that Saudi Aramco is the largest shareholder in the former and the second-largest shareholder in the latter. "The United States is currently building oil pipelines between the inland and the western coast for shale oil export and direct import via the Pacific Ocean is expected to become possible next year," said an industry executive.

As MRC informed earlier, SK Innovation, owner of South Korea’s top refiner SK Energy, said in February 2019, it saw a rebound in refining margins in 2019 supported by firm diesel demand in the second half of the year.
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MOSCOW (MRC) -- Zhong An United Coal Chemical Co has restarted its polypropylene (PP) unit following an unplanned outage, as per Apic-online.

A Polymerupdate source in China informed that the company has resumed operations at the unit on August 24, 2019. The plant was shut owing to technical issues on August 10, 2019.

Located at Huainan, Anhui province, China, the PP unit has a production capacity of 145,000 mt/year.

As MRC reported earlier, the company also restarted its linear low-density polyethylene (LLDPE) unit, which was also shut on 10 August, because of the same reasonon 24 August, 2019.

According to MRC's ScanPlast report, Russia's estimated PP consumption was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Zhongan United Coal Industry Chemical Co. Ltd. mines, processes, manufactures, and distributes coal products. The сompany produces brown coal products, bituminous coal products, hard coal products, coking coal products, and other related products. Zhongan United Coal Industry Chemical markets its products throughout China.
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