BASF ChemCycling project faces legislative problems due to German environmental law

MOSCOW (MRC) --The prospect of chemical recycling becoming a viable reality is looming on the horizon, but it is not yet a foregone conclusion as it faces some legislative problems, said Bioplasticsnews.

BASF is among the key drivers with its ChemCycling project at its site in Ludwigshafen, Germany. While costs are expected to come down in line with economies of scale as the technology is developed, the use of products made through chemical recycling could not be rolled out throughout Europe.

German environment agency the BMU does not include chemical recycling within its definition of recycling in the Packaging Act (VerpackG), which replaced the German Packaging Ordinance at the beginning of 2019.

The new legislation aims to reduce the impact of waste on the environment, with material recycling pitched at 65% (58.5% of all packaging) rising to 70% (63% of total volume) in 2022.

So for the time being while BASF may be able to break down monomers to reproduce polymers in Ludwigshafen, these products will not be classified as material recycling within Germany.

In September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices.

Apart from BASF, SIBUR’s design session was attended by representatives of Unilever, Boston Consulting Group, Renaissance Capital, as well as Razdelniy Sbor, the association for ecology and environmental protection.

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

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- Air Products Qudra and Royal Commission for Jubail and Yanbu signed a Memorandum of Understanding (MOU) to establish world-class industrial gas production facilities and distribution networks in the industrial cities of Royal Commission, according to Kemicalinfo.

The MOU sets preliminary framework details for Air Products Qudra to

- establish a hydrogen fueling economy in the Kingdom,
- achieve higher values for off-gases,
- introduce new technologies to convert low-value feedstocks into high-value products,
- establish a helium recovery network, and
- expand the carbon-dioxide capture and re-use economy in the Kingdom of Saudi Arabia.

Seifi Ghasemi, Chairman, President and Chief Executive Officer for Air Products, said, "It is an honor to collaborate with the Royal Commission to explore the business case to invest, build, own and operate world-scale, transformative industrial gas facilities at Jubail and further support the creation of a world-leading downstream sector in Saudi Arabia."

Mohammad A. Abunayyan, Chairman of Vision Invest & Qudra Energy, said, "We are pleased about the collaboration with the Royal Commission for Jubail and Yanbu as Air Products Qudra strives to deliver world-class industrial gas infrastructure to Jubail and Yanbu."

Dr. Samir Serhan, Chairman of Air Products Qudra and Executive Vice President for Air Products, said, "We have already started the plan to kick off our Phase 1 investments to build world-scale industrial gas production units and distribution networks in Jubail. We look forward to bringing our full suite of capabilities to these projects and supporting essential sustainable energy production in these Industrial Cities."

The MOU supports Royal Commission’s strategy to promote direct investments, diversify and enhance the Kingdom’s economy, improve the services to its clients to help improve their business performance, and maximize localization within the Kingdom of Saudi Arabia.

As MRC wrote earlier, in December 2014, SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases. The unit came on-stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.

Besides, we remind that in September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC

MOSCOW (MRC) -- The American Chemistry Council (ACC) announced at its board of directors meeting that Huntsman Chairman, President and CEO Peter Huntsman will become the Council’s newest board officer, effective January 1, 2020, said Americanchemistry.

"Innovation and sustainability remain at the forefront of a thriving U.S. chemical industry,” said incoming ACC President and CEO Chris Jahn. “Peter Huntsman represents one of the world’s most highly diversified chemical products companies serving a broad range of end use markets. He knows first-hand the importance of a regulatory framework that bolsters the confidence of our value chain that our members’ products are safe for their intended use. His leadership will help to ensure ACC continues to articulate the industry’s view and commitment to a more circular economy and distinguishes the industry as a constructive partner in that evolution," he added.

"Peter’s insight, experience and guidance will strengthen ACC’s position as the leading voice for the industry as we continue to promote the role of American chemistry in a global manufacturing future,” said Chemours CEO Mark Vergnano, incoming Chairman of the Board.

Following formal approval by the board of directors, Huntsman will first assume the role of Vice Chairman of the Board and chair of the Council’s Board Finance, Audit and Membership Committee. He’ll serve in this capacity for one year, followed by a one year term each as Chairman of the Executive Committee and Chairman of the Board. Huntsman was first elected to ACC’s board of directors in February 2017.

As MRC informed earlier, the Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), fell 0.4 percent in October on a three-month moving average (3MMA) basis following stable activity during the third quarter. On a year-over-year (Y/Y) basis, the barometer was off 0.5 percent (3MMA).

As MRC informed earlier, Russia's output of products from polymers rose in September by 5.2% year on year. However, this figure increased by 1.7% year on year in the first nine months of 2019. According to the Russian Federal State Statistics Service, September production of unreinforced and non-combined films was slightly over 107,300 tonnes, compared to 110,000 tonnes a month earlier. Output of films products grew in January-September 2019 by 9.1% year on year to 893,000 tonnes.
MRC

MOSCOW (MRC) -- South Africa has agreed "in principle" to the construction of a new refinery backed by Saudi Aramco though the timing for the project remained unclear, reported S&P Global with reference to South Africa's energy and minerals minster's statement.

"In principle, we have agreed to it," Gwede Mantashe told reporters on the sidelines of an industry event in Cape Town.

"What is left now is to see contractors on site. I will only be convinced when the contractors are on site."

South Africa and Saudi Arabia reached a framework agreement for a new refining and petrochemicals complex in January as part of Saudi Arabia's USD10 billion investment plan for South Africa.

Mantashe said the government has agreed with Aramco's plan to build the plant at Richards Bay in the northeast despite the government's preferred site being Coega in the Eastern Cape. He gave no further details on the scale of the plant which would reduce South Africa's need for refined product imports.

South Africa imports around 40% of its crude requirements from Saudi Arabia.

Saudi Aramco is also looking to diversify its crude storage options by using the Saldanha Bay terminal in South Africa with a capacity of around 50 million barrels and between demand centers in Asia and Europe.

As MRC informed previously, Saudi Aramco, which temporarily lost half of its oil production following the September 14 attacks on two key oil facilities, is running its local refineries at full capacity and is forging ahead with plans to start up new refineries. The company is also starting up a joint venture refinery in Malaysia next year. According to Aramco's bond prospectus released in April, the refining and petrochemical joint venture with Petronas - the Malaysian national oil company - collectively known as PRefChem, was supposed to start this year.

The PRefChem joint venture includes a 300,000 b/d refinery, an integrated steam cracker with capacity to produce 1.3 million mt of ethylene located in Johor, Malaysia. Aramco was supposed to provide a significant portion of PRefChem's crude supply under a long-term supply agreement. Jazan and PrefChem will help Aramco reach a gross refining capacity of 5.6 million b/d, it said in the prospectus. The company currently owns and has stakes in four refineries abroad with a total refining capacity exceeding 2 million b/d.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% 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

MOSCOW (MRC) -- Saudi International Petrochemical (Sipchem) has announced that the board of directors approved by circulation on 27 October 2019 the appointment of Khalid A Al-Zamil as Sipchem chairman till the end of the current board cycle on 9 December 2019, reported Refining&Petrochemicals.

Al-Zamil has various practical experiences in engineering and management. He holds a bachelor’s degree in civil engineering from Southern California University in the United States.

As MRC wrote before, in March 2018, Sipchem said it was planning to resume proposed merger talks with Sahara Petrochemical 2260.SE in a deal that could create a 14.7 billion riyals (USD3.9 bln) chemicals company. The two companies called off a planned merger in 2014, citing an inadequate regulatory framework in the kingdom for the collapse.

As in early April, 2019, Sahara Petrochemicals announced that its current CEO, Salah Mohammed Bahmdan, would head up the new group that will be formed from its merger with Sipchem. Abdullah Saif Alsaadoon, Sipchem’s CEO, will be appointed as chief operating officer of the combined company. The companies disclosed last December that they had agreed to a merger of equals in a move they estimate to yield synergies of up to 225 million Saudi riyal, or $60 million, by the end of the third year after completion.

Besides, we remind that on 29 December, 2014, Sipchem started a new ethyl vinyl acetate (EVA) film plant. Located at Hail in Saudi Arabia, the plant has a production capacity of 4,000 mt/year.

According to MRC's DataScope report, September EVA imports to Russia fell by 22,7% year on year to 3,420 tonnes from 4,430 tonnes in September 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-September 2019 by 18,2% year on year to 29,190 tonnes (35,690 tonnes in the first nine months of 2018).

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC