Sempra LNG and Aramco sign interim project participation agreement

MOSCOW (MRC) -- Sempra Energy and Saudi Aramco announced their respective subsidiaries, Sempra LNG and Aramco Services Company, have signed an Interim Project Participation Agreement (IPPA) for the Port Arthur LNG export project under development in Jefferson County, Texas, said Hydrocarbonprocessing.

The IPPA represents another milestone for both companies after having signed a heads of agreement in May last year for the purchase of 5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) and a 25% equity investment in the Port Arthur LNG project.

"Today's announcement is a reflection of the growing alignment between our companies' interest in the overall success of the Port Arthur LNG project," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "We have a tremendous amount of respect for Saudi Aramco and its leadership team and we are pleased we can support their success in the global natural gas markets."

Saudi Aramco's President and CEO Amin H. Nasser said, "The global demand growth for LNG is expected to continue in the coming years, and we see significant opportunities in this market. This agreement with Sempra Energy is another step forward for Saudi Aramco's long-term gas strategy, and towards becoming the global leading integrated energy and chemicals company."

The initial phase of the Port Arthur LNG project is fully permitted and it is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities to enable the export of approximately 11 Mtpa of LNG on a long-term basis. Earlier this year, Sempra LNG initiated the Federal Energy Regulatory Commission pre-filing review for a subsequent potential expansion of the proposed project that would add two additional liquefaction trains for a total export capacity of approximately 22 Mtpa of LNG.

"Port Arthur LNG is expected to play a critical role in helping shape the future of global energy trade," added Martin. "This multibillion-dollar initiative is among the largest LNG projects in development anywhere in the world and is expected to deliver a cleaner energy supply to foreign markets, while creating important, high-skilled jobs right here at home."

The definitive agreements in the Port Arthur LNG export project remain subject to finalization and corporate approvals by each party in its sole discretion before they are executed. Each party's ultimate participation in the Port Arthur LNG export project also remains subject to the execution of related agreements and the fulfillment or waiver of certain conditions precedent contemplated by these agreements, including the condition that each party shall have taken a final investment decision (FID) with respect to its investment in the project at its sole discretion. The IPPA sets forth certain mechanisms for the parties to work towards these and other pre-FID activities.

Port Arthur LNG is one of Sempra LNG's five strategically located LNG development opportunities in North America and is a component of Sempra LNG's goal of developing the LNG infrastructure needed to export 45 Mtpa of clean natural gas to the global LNG market.

Development of Sempra Energy's LNG export projects is contingent upon obtaining binding customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching final investment decisions, among other factors.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

MOSCOW (MRC) -- Zhejiang Petrochemical Co Ltd (ZPC) expects its No. 1 polypropylene (PP) plant and linear low density polyetylene (LLDPE) plant to achieve on-spec cargoes within this week, reported CommoPlast with reference to market sources.

Based in Zhejiang, China, the petrochemical complex consists of 450,000 tosn/year of high density polyethylene (HDPE), 400,000 tons/year of LLDPE and two PP plants with combined production capacity of 900,000 tons/year.

As MRC wrote before, the company has successfully started up its HDPE plant since last week.

Besides, earlier, on 30 December 2019, Zhejiang Petrochemical Co Ltd started up its ethylene cracker. Based in Zhejiang, China, the cracker is able to produce 1.4 million tons/year of ethylene.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

MOSCOW (MRC) -- Qatar Fuel Additives Co (QAFAC), had undertaken an unplanned shutdown at its methanol plant owing to technical issues, reported Apic-online.

A Polymerupdate source in Qatar informed that, the company halted operations at the plant on January 4, 2020. Further details on duration of the shutdown could not be ascertained.

Located in Messaieed, Qatar, the natural gas-based methanol plant has a production capacity of 1.1 million mt/year.

As MRC wrote previously, in August 2019, Haldor Topsoe, Mitsubishi Heavy Industries Engineering, and GTM ONE signed a licence agreement for the design, construction, and operation of a 3000 tpd methanol plant based on Topsoe’s SynCOR MethanolTM technology. The plant will be erected at the Khimprom site in Volgograd, Russia.
MRC

MOSCOW (MRC) -- Nestle is to invest up to Swiss francs (Swfr) 2bn (USD2.1bn) to shift packaging production from virgin to recycled polymers over the next five years, the the producer.

The company is to source up to 2m tonnes of food-grade recycled plastics and has allocated Swfr1.5bn up to 2025 to pay a premium for those materials as part of a drive to create a viable market for those products. The company will seek operational efficiencies to keep the process revenue neutral.

Nestle will use Swfr250m of the funding to set up a venture capital fund to back start-ups developing new packaging materials, refill systems and recycling solutions. Nestle has committed to making 100% of its packaging recyclable or reusable by 2025.

"In addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable," said Nestle CEO Mark Schneider.

The company did not disclose what proportions of different plastic grades it would be investing in sourcing.

Packaging innovation, including new materials, refill systems and recycling solutions, is another key challenge on the path towards a waste-free future. In addition to its significant inhouse research through the Nestle Institute of Packaging Sciences, the company will launch a CHF 250 million sustainable packaging venture fund to invest in start-up companies that focus on these areas.

These two initiatives come in addition to Nestle’s major ongoing efforts in research, sourcing and manufacturing to make its packaging recyclable or reusable and contribute to its goal to achieve zero net greenhouse gas emissions by 2050. As part of the company’s packaging commitment and to increase transparency, Nestle will continue to outline further initiatives and provide regular progress updates.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC

MOSCOW (MRC) -- Firefighters have been tackling a large blaze in the dock area of the Grangemouth petrochemical plant, reported BBC.

The emergency services were called to the plant shortly after 10:45.

Three appliances from Scottish Fire and Rescue are attending the incident in the grounds of the Ineos site.

Police Scotland said the fire had been isolated to the dock area and there were no reported injuries or risks to local residents.

As MRC informed earlier, in 2017, petrochemical giant Ineos unveiled plans to increase the ethylene capacity of its cracker facilities at Grangemouth in Scotland and Rafnes in Norway to over 1 million tonnes each. The company produced then nearly 4.5 million tonnes of ethylene and propylene annually across Europe, but remained the largest buyer of ethylene and propylene in the region.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC