BP plans to build a USD25 million pilot plastics-to-feedstocks plant in US

MOSCOW (MRC) -- BP plans to build a USD25 million pilot plant to test new technology the energy company says will allow plastic bottles and food packaging to be recycled again and again, reported Reuters.

Polyethylene terephthalate, or PET, is one of the most widely recycled plastics. About 27 million tonnes of PET is used annually in packaging, with bottles accounting for around 23 million tonnes of that, BP said in a statement, citing data from consultancy Wood Mackenzie.

However, only around 60% of PET used for bottles is recovered, with the vast majority recycled only once before being either buried in landfill or burnt as the current recycling process leaves a lot of impurities.

BP said that its new recycling technology, named Infinia, can transform used PET plastics into brand-new plastic feedstock, allowing them to be recycled repeatedly.

The company will build a USD25 million plant in the United States in 2020 to test the technology before deciding on whether it can be fully commercialised.

BP's head of refining and petrochemicals Tufan Erginbilgic said the technology was a "game-changer" for the plastics recycling industry.

"It is an important stepping stone in enabling a stronger circular economy in the polyester industry and helping to reduce unmanaged plastic waste," Erginbilgic said.

As MRC informed earlier, BP and China’s Zhejiang Petroleum and Chemical Corporation (ZPCC) have signed a memorandum of understanding (MOU) to explore the creation of a new equally-owned joint venture to build and operate a 1 million ton per year (Mtpy) acetic acid plant in eastern China. The proposed facility - in Zhoushan, Zhejiang Province - would deploy BP’s CATIVA XL technology to produce acetic acid, a versatile intermediate chemical used in a variety of products such as paints, adhesives and solvents. It is also used in the production of purified terephthalic acid (PTA) of which BP is a leading global manufacturer.

BP’s Global Petrochemicals Business has total (net to BP) capacity at 18 locations in ten countries of 18.3 million tpa including 6.7 million tpa of PTA.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

MOSCOW (MRC) -- PTTGC has shut all high density polyethylene (HDPE) production lines except keeping only one line on normal production at present, reported NCT with reference to sources close to the company.

Located in Map Ta Phut, Thailand, the company’s HDPE plant includes four production lines with a combined capacity of 330,000 tons/year.

The source also said that the producer conducted a test run at its 300,000 tons/year low density polyethylene (LDPE) plant, adding that the plant was not yet ready to start production. The plant, shut in early October for maintenance, currently remains offline with no definite restart schedule.

As MRC informed earlier, PTT started commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) - Japanese carmaker Honda has brought forward a goal to only sell electric and hybrid cars in Europe by three years to 2022, said Reuters, cting a leading company executive.

Last month, Honda said it would phase out all diesel vehicle sales in Europe by 2021 in favour of electrified vehicles.

The carmaker had said in March it intended "to move 100% of its European sales to electrified powertrains by 2025."

"By 2022 we are confident we can have the full range electrified and actually deliver something quite extraordinary," Tom Gardner, senior vice president at Honda Motor Europe, said.

Gardner made the announcement in Amsterdam, where Honda was presenting the new fully-electric Jazz model for the European market. "We see a big change happening in Europe and today we are announcing our response to that."

"We can also feel the fact that the market around us is expanding. Obviously the legislation around the environment is getting clearer as well. It is the track we are on in terms of the development of the new fully electrified line up."

The European Union has set new rules for carmakers to reduce carbon dioxide vehicle emissions from next year, or face fines.
MRC

MOSCOW (MRC) - India relaxed its rules for setting up fuel stations in the country after a gap of 17 years, opening to non-energy companies a sector long eyed by global oil majors, said Reuters.

India, where fuel demand is expected to rise in coming years, has become a lucrative market after the government removed controls on retail pricing of gasoline and gasoil.

However, regulations framed in 2002 had made it difficult for new players to obtain a retail license, such as an investment commitment of 20 billion rupees (USD282 million) in the country's oil and gas sector.

Under the new rules, any company with a net worth of 2.5 billion rupees will be eligible for marketing rights, a government statement said, paving the way for convenience stores, shopping malls and hypermarkets to sell fuel.

Indian fuel retailing is dominated by state refiners - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.

Companies including Reliance Industries, Royal Dutch Shell and Nayara Energy, partly owned by Russian oil major Rosneft, account for about 10% of the roughly 64,625 fuel stations in the country.

The new rules will help in attracting investment and create jobs, Information and Broadcasting Minister Prakash Javadekar told a news conference. "Competition will increase productivity and services, eventually benefiting the consumers," he said.

Global oil companies including Saudi Aramco, Trafigura's Puma Energy and France's Total have said they are interested in setting up fuel stations in India.

The new rules mandate that in addition to gasoil and gasoline, companies must install facilities within three years for the sale of at least one alternative fuel such as compressed natural gas, liquefied natural gas or electric charging.

As it was written earlier, Rosneft is spearheading a move to develop polymer production in India through its recently acquired local subsidiary, Mumbai-based Nayara Energy Ltd. Preliminary plans have been unveiled to construct a 450,000tpa polypropylene production plant at Nayara Energy's Vadinar oil refinery in Gujarat state, India, which is scheduled to go on stream in 2022.

According to MRC's ScanPlast report, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- Fitch Ratings downgraded Saudi Aramco's long-term issuer default rating (IDR) to A from A+ following the September 14 drone and missile attack on two key oil facilities that temporarily slashed its output by half, reported S&P Global.

Fitch last month downgraded Saudi Arabia's rating also to A due to the "vulnerability of Saudi Arabia's economic infrastructure and continued deterioration in Saudi Arabia's fiscal and external balance sheets," it said at the time. The downgrade followed the attack on the company's Abqaiq plant, the world's largest oil processing facility, and Khurais, the country's second largest oil field.

"We have downgraded Saudi Aramco's IDR to 'A' given the rating is capped by that of the sovereign to reflect interdependency between the two and the influence the state exerts on the company through strategic direction, dividends and taxation," Fitch said in a statement on Monday, adding that it has maintained a stable outlook for the company. Aramco didn't immediately respond to an email seeking comment.

Saudi Arabia is currently preparing Aramco for a local and international listing of up to a 5% stake, a sale that is expected to take place between 2020 and 2021.

Aramco, the world's most profitable company and the biggest oil producer, issued its first debut international bond of USD12 billion in April, which was heavily oversubscribed with orders exceeding USD100 billion.

"The (Aramco) downgrade also took into account rising geopolitical tensions in the region, but also the country's continued fiscal deficit, among other factors," Fitch said.

The attack on Abqaiq and Khurais, the biggest ever disruption to Saudi Arabia's crude oil production, was claimed by Yemen's Iranian-aligned Houthi rebels. Saudi officials have said the attack was sponsored by Iran, which denied being involved.

The September 14 incident slashed Saudi Arabia's production by 5.7 million b/d, but the country's energy minister said last week that production was restored to pre-attack levels of around 9.9 million b/d, with oil output capacity returning to 11.3 million b/d. The country aims to restore full oil capacity to 12 million b/d by the end of November.

Attacks on Saudi Arabia's Abqaiq processing facility and Khurais field caused its crude output to plummet to 8.45 million b/d in September, according to the latest S&P Global Platts Opec survey.

Fitch said the attack will not dent Aramco's 2019 profitability. Aramco posted a 12% drop in first half profit to $46.9 billion, its first ever disclosure of earnings.

"We estimate the attack will have a very limited impact on Saudi Aramco's operational and financial performance in 2019," Fitch said.

Fitch also said the IPO will not have an impact on Aramco, which is trying to lure investors with commitments to increase dividend payments to at least USD75 billion a year in 2020 and beyond.

"The IPO itself is unlikely to have any major effect on Saudi Aramco's financial position," Fitch said. "However, the company has already benefited from lower taxes, the domestic oil product price equalization and other initiatives put forward by the government in anticipation of the IPO."

As MRC informed before, McDermott International has announced that it has been awarded a contract by Saudi Aramco and Total Raffinage Chimie (Total) for their joint venture (JV) Amiral steam cracker project at Jubail, Saudi Arabia. Amiral is a JV in which Aramco holds 62.5% and Total the rest. The plant, designed to produce 1.5 million metric tons/year (MMt/y) of ethylene, will be one of the world's largest mixed-feed crackers.

Aramco and Total launched their USD5-billion Amiral JV project in October 2018. The steam cracker will be fed with a mixture of 50% ethane and refinery off-gases. It will supply ethylene to a downstream 1 MMt/y polyethylene manufacturing complex and other petrochemical products. The project aims to fully exploit operational synergies with the adjacent refinery, owned by Satorp, another JV between Aramco and Total. Third-party investors, including Daelim and Ineos, will locate plants at the value park adjacent to Amiral with a combined investment of USD4 billion. A final investment decision is expected in 2021.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC