China’s Sinopec gets green light to develop Weirong shale gas field

MOSCOW (MRC) -- China’s Sinopec has received approval from the ministry of natural resources to develop shale gas at the Weirong gas field in the southwestern province of Sichuan, reported HellenicShippingNews with reference to the refiner's statement.

The company plans to build 166 wells at the gas field with total production capacity of 3 billion cubic metres (bcm) each year.

The first phase of construction is underway, with two testing wells reaching daily output of 313,000 cubic metres and 253,000 cubic metres, respectively, the company said.

China’s shale gas production of about 10.9 bcm in 2018 accounted for less than 7% of total gas output. But a top researcher at PetroChina expects shale gas output could reach 280 bcm by 2035.

As MRC informed before, Sinopec Guangzhou Petrochemical, part of China's petrochemical giant - Sinopec, plans to restart operations at its cracker in early December, 2019. A Polymerupdate source in China informed that the company started maintenance at the plant on October 12, 2019. Located in the Guangzhou province of China, the cracker has ethylene production capacity of 260,000 mt/year and propylene production capacity of 150,000 mt/year.

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.

China Petroleum & Chemical Corporation or Sinopec Limited is a Chinese oil and gas company based in Beijing, China. Sinopec's business includes oil and gas exploration, refining, and marketing; production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, and other chemicals.
MRC

U.S. energy-related CO2 emissions rose in 2018 for first year since 2014

MOSCOW (MRC) -- Total U.S. energy-related carbon dioxide (CO2) emissions in 2018 rose to 5.27 B metric tons, 2.7% more than its 2017 level, said Hydrocarbonprocessing.

The primary reasons for the increase were higher natural gas-related emissions resulting from more extreme summer and winter weather and growth in transportation-related petroleum emissions, linked to a strong economy. U.S. energy-related CO2 emissions declined in 6 of the past 10 years and were 12% lower in 2018 than in 2005, according to a data series published in the U.S. Energy Information Administration’s (EIA) Monthly Energy Review.

Coal-related CO2 emissions declined by 4% in 2018, making coal the only fossil fuel with lower CO2 emissions in 2018 compared with 2017. Total U.S. emissions from natural gas first surpassed emissions from coal in 2015. Natural gas consumption has increasingly displaced coal consumption in the electric power sector in recent years.

Natural gas consumption and emissions increased in 2018 largely because of colder winter and hotter summer weather. Natural gas is both the most prevalent home heating fuel and the most prevalent fuel used to generate electricity. Because both heating and cooling demand were higher in 2018, total natural gas emissions increased by 10%.

U.S. petroleum consumption also increased in 2018, contributing to a 1.9% increase in energy-related CO2 emissions from petroleum. Relatively strong economic growth spurred growth in diesel consumption, which resulted in a 6% increase in related CO2 emissions.

As MRC informed earlier, American Chemistry Council (ACC) reported that U.S. specialty chemicals market volumes started the fourth quarter on mixed note, with no change in October.

We remind that, Russia's output of chemical products rose in October 2019 by 5.4% month on month.
However, production of basic chemicals increased by 3.9% in the first ten months of 2019. According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for mineral fertilizers and polymers in primary form. Thus, 210 ,000 tonnes of ethylene were produced in October, compared to 200,000 tonnes a month earlier. Limited production was a result of scheduled shutdowns of several large producers in September-October.
MRC

Overhaul of Bosnian oil refinery to be completed in mid-2020

MOSCOW (MRC) -- An overhaul of Bosnia's sole oil refinery Brod could be completed in mid-2020, past the previous plans, reported Reuters with reference to a regional energy minister's statement on Tuesday, which dismissed speculation that the debt-laden plant might be closed down.

The refinery, majority owned by Russia's Neftegazinkor, a unit of state-owned oil company Zarubezhneft, was shut in January after it had been hit by a blast which killed one worker and injured nine.

Petar Djokic, the energy minister of Bosnia's autonomous Serb Republic, where the refinery is located, had said the operations could restart in a year.

On Tuesday, Djokic told the region's parliament that Russian energy and prime ministers have said the Russian companies would not pull out of Bosnia but would restart production at the refinery in mid-2020.

Auditors warned the refinery, which processed 1.2 million tonnes of crude annually, may face liquidity problems after it piled up losses and its liabilities exceeded assets, but Brod has dismissed those claims.

Oil demand has since been covered through imports from Serbian oil company NIS, majority owned by Russia's Gazprom Neft.

As MRC wrote before, in October 2017, Russian oil producer Gazprom Neft, through its subsidiary Naftna Industrija Srbije (NIS), started construction of a new deep conversion complex (DCC) at its Pancevo Refinery in Serbia with an investment of over EUR300m. The new complex will be equipped with delayed coking technology. It is anticipated to be ready in 2019 and will help NIS to start production of petroleum coke (pet coke) which is currently not done in the country.

The Gazprom subsidiary holds 56% in NIS, an oil and gas company in which the Serbian government is a major shareholder.
MRC

DSM and Shapeways partner to develop scalable 3D printing solutions

MOSCOW (MRC) -- In a bid to make additive manufacturing more accessible for the manufacturing sector, Netherlands-based material supplier Royal DSM is partnering with 3D printing service bureau Shapeways to develop “custom and industrially scalable 3D printing solutions, said Canplastics.

In a statement, DSM said the partnership will allow it to utilize Shapeways’ technology to “harness the power of on-demand 3D printing at scale, with just a small line of code."

Called “DSM Powered by Shapeways”, the technology will be available for DSM high-performance materials, with the goal of providing businesses a lower barrier to entry and quicker access to new materials and additive manufacturing technologies.

"DSM’s partnership with Shapeways will allow DSM to grow its additive manufacturing ecosystem bringing customers fast, easy access to 3D printing materials and technology,” said Hugo da Silva, DSM’s vice president of additive manufacturing. “Shapeways’ innovative product creation solutions will greatly impact the way our customers are scaling additive manufacturing solutions and experiencing new technologies."

The partnership between the two companies was officially announced during the recent Formnext trade show, which ran earlier this month in Frankfurt, Germany. More detail about the collaboration will be released in the coming months, DSM said.

"We at Shapeways believe that the power of additive manufacturing and simplified product creation increases scalability and greatly enhances traditional manufacturing solutions,” said Greg Kress, CEO at Shapeways. “By collaborating with DSM, a highly esteemed science-based company, Shapeways’ B2B solutions will continue to scale the accessibility of 3D printing across a multitude of sectors."

As MRC informed earlier, Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, announced the strengthening of its leadership in high-performance specialty polymers with the operational launch of a new production line for Arnitel in Emmen, the Netherlands.

Founded in 2007, Shapeways is headquartered in New York City, with manufacturing facilities in Long Island City and the Netherlands.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

Honeywell UOP wins major contract in China

MOSCOW (MRC) -- Honeywell has announced that Zibo Qixiang Tengda Chemical Co. Ltd. (QXTD) will use its UOP C3 Oleflex technology to expand production of propylene in response to growing demand for propylene derivatives, according to Hydrocarbonprocessing.

Honeywell UOP also will provide licensing, the process design package, proprietary and non-proprietary equipment, on-site operator training, technical services for startup and continuing operation, catalysts and adsorbents for the project.

QXTD currently operates an existing C3/C4 Oleflex unit that coverts propane and isobutane into propylene and isobutylene. With the second C3 Oleflex unit, QXTD will produce additional quantities of polymer-grade propylene to make propylene oxide, a key ingredient for polyurethanes. Increased demand for polyurethane foam comes from the automotive, building and construction, textiles and furnishing industries.

"Customers including QXTD have been at the forefront of addressing the growing demand for propylene, which is the primary component in thousands of consumer products," said Bryan Glover, vice president and general manager of Honeywell UOP’s Petrochemicals & Refining Technologies business. "This expansion in propylene capacity establishes QXTD as a major supplier while also diversifying its product portfolio."

Globally, most new dehydrogenation projects since 2011 have been based on UOP technology, including projects for propane (C3), isobutane (iC4) and mixed C3/ iC4 service. Global production capacity of propylene from Oleflex technology currently stands at approximately 7.8 million metric tons per year.

Honeywell UOP’s C3 Oleflex technology uses catalytic dehydrogenation to convert propane to propylene and is designed to have a lower cash cost of production and higher return on investment among competing technologies. Its low energy consumption, low emissions and fully recyclable, platinum-alumina-based catalyst system helps minimize its impact on the environment. The independent reaction and regeneration sections enable steady-state operations, improved operating flexibility, and a high on-stream factor and reliability.

Based in Zibo, in China’s Shandong Province, QXTD researches, develops, produces, and markets various chemical products in China. It manufactures and distributes propylene, isobutylene, tert-butanol, butadiene rubber, carboxylated styrene butadiene, latex and other petrochemicals. The company exports to the United States, Japan, Canada, South Korea, and India, and is a subsidiary of Zibo Qixiang Petrochemical Industry Group Co., Ltd.

As MRC informed earlier, in September 2019, Zhejiang Satellite Petrochemical Co. started up a second propylene plant using Honeywell UOP's C3 Oleflex technology at a new petrochemical complex in China. The new unit has the capacity to produce 450,000 t/y of polymer-grade propylene.

Propylene is a feedstock for the production of polyprolypele (PP).

According to MRC's ScanPlast report, 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