Evonik acquires US-based phytochemical producer Wilshire Technologies

MOSCOW (MRC) -- Evonik has concluded a purchase agreement to acquire Wilshire Technologies Inc., with the transaction to be completed by the end of January, said the company.

Headquartered in Princeton NJ (USA), Wilshire Technologies supplies phytochemicals and derivatives to the global cosmetic and pharmaceutical industries. The new home for the cosmetics part of Wilshire’s product portfolio will be in Evonik’s Care Solutions business line.

The purchase price will not be disclosed. Wilshire Technologies has developed a strong technology which obtains products based on renewable and non-animal-origin sources. Utilizing more sustainable and renewable sources for cosmetic ingredients has become an extremely important criteria that many personal care companies in the market today are aiming for.

This acquisition, which comprises approximately 10 employees, and marks a substantial addition to Evonik’s sustainable cosmetic active ingredients portfolio. Evonik’s Care Solutions business will be able to expand its product range into phytochemicals, such as plant derived cholesterol, as a replacement for animal originated ingredients in cosmetic active ingredients. This move supports the ongoing transformation of Evonik’s cosmetics ingredients portfolio towards sustainability and natural-based ingredients.

Additionally, Evonik’s Health Care business line will also benefit, from an enhanced portfolio for its naturally derived excipients and intermediates for pharma and food applications. With the acquisition of Wilshire Technologies and its innovative products for the cosmetics, pharmaceutical and food ingredients markets, Evonik is strengthening its focus on its “Health & Care” growth engine, established to meet the increasing demands from customers towards the global trend of more bio-based and sustainable products.

As MRC informed earlier, Evonik joined with other manufacturers in the High Phthalates Panel (HPP), a sector group of the American Chemistry Council (ACC), in a voluntary manufacturer request to the US Environmental Protection Agency (EPA) to conduct a broad-based risk evaluation of the uses of DINP. The EPA granted the request in early December 2019, a decision welcomed by Evonik. The EPA’s risk evaluation will be performed using the best available science and weight of scientific evidence. The process will be documented and open for public review and comment.

As per MRC's ScanPlast, Russia's overall production of polyvinyl chloride (PVC) reached 975,000 tonnes in 2019, up by 2% year on year. At the same time, not all Russian producers raised their output. December total production of unmixed PVC was about 81,400 tonnes versus 84,600 tonnes a month earlier, RusVinyl decreased their capacity utilisation in November. Overall PVC production reached 975,000 tonnes in January-December 2019, compared to 958,600 tonnes a year earlier. All plants raised their output, except for Kaustik Volgograd.

Wilshire Technologies was founded in 1997 by former Rutgers professor, Joe San Filippo, who has over 35 years of product development experience in this field. The company’s broad portfolio provides cosmetic and pharma actives that come from natural and renewable sources.

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 with more than 36,000 employees.

MRC

World largest ATR-based methanol plant has been put into successful operation

MOSCOW (MRC) -- Recently, Topsoe announced the official opening of the world’s only natural gas-to-gasoline complex in Turkmenistan, as per Hydrocarbonprocessing.

The complex includes the world’s largest methanol plant based on autothermal reforming (ATR), using Topsoe’s SynCOR Methanol solution, with methanol production capacity of 5225 MTPD.

In the Turkmen gas-to-gasoline complex, the SynCOR Methanol solution has been combined with a gasoline synthesis loop to produce synthetic gasoline. This concept is named SynCOR TIGAS.

Over the last two years Topsoe has signed five license agreements of similar capacity based on the SynCOR technology. These projects are in various stages of development.

Global demand for methanol is increasing. Accordingly, investors and producers plan for larger plants with improved energy efficiency to achieve economy of scale. This has made SynCOR the preferred technology for production of synthesis gas in many of today’s world-scale projects because it maximizes single-line capacity, while significantly reducing capital as well as operating costs.

When combined with a Topsoe methanol synthesis loop, the result is SynCOR Methanol, the most cost-efficient large-scale methanol technology in industrial operation today. Capacities can be up to 10,000 tons per day of methanol.

Apart from the obvious financial benefits of the SynCOR technology, it also offers considerable environmental advantages, leaving a smaller CO2 footprint and lower water consumption compared to traditional licensed technologies.

Based on 70 years of experience within synthesis gas, all SynCOR solutions offer more than 99% availability and unsurpassed economy of scale. SynCOR solutions are suitable for large-scale grassroots ammonia, methanol, hydrogen, CO, TIGAS, and gas-to-liquid (GTL) plants, as well as syngas hubs producing multiple products.

We remind that, as MRC wrote previously, the sale of polypropylene (PP) and high-density polyethylene (HDPE) from a new gas chemical complex began in the export trades of the State Commodity and Raw Materials Exchange of Turkmenistan on 3 September, 2018. The new gas chemical complex for production of HDPE and PP with the capacity of 386,000 tonnes/year and 81,000 tonnes/year, respectively, was built by the consortium TOYO Engineering (Japan) and LG and Hyundai (South Korea). The total cost of the project was about USD3.4 billions.

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

Oil group halts distillation at refinery as strike crimps crude supply

MOSCOW (MRC) -- French oil group Total halted a distillation unit at its Donges refinery on France’s western coast due to lack of crude supply during the country’s current strikes, the company said.

Sailors could not get to their tugboats at Saint Nazaire port because a picket line by striking workers was blocking access, Total said in a statement.

“As a result, the Donges refinery cannot be supplied with crude oil. That has led to the distillation unit being halted at the refinery this Sunday,” the statement said.

As MRC wrote before, in early November 2019, Total disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

Total is also developing a USD1.4-billion propane dehydrogenation and polypropylene (PP) complex at Arzew, Algeria, in partnership with Algeria’s state-owned oil company Sonatrach. The facilities will be designed to produce 600,000 metric tons/year each of propylene and PP. The project is in FEED phase with FID due in 2021.

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

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

China 2019 annual crude imports set record for 17th year

MOSCOW (MRC) -- China’s crude oil imports in 2019 surged 9.5% from a year earlier, setting a record for a 17th straight year, as demand growth from new refineries built last year propelled purchases by the world’s biggest importer, reported Hydrocarbonprocessing with reference to data.

Last year, China imported a record 506 million tons of crude oil, according to data from the General Administration of Customs. That is equivalent to 10.12 million barrels per day (bpd), according to Reuters’ calculations based on the data.

Chinese crude imports have set records every year since 2003, according to customs data on Refinitiv Eikon.

December arrivals were 45.48 million tons, customs reported. That is equivalent to 10.71 million bpd, according to Reuters’ calculations, the third-highest ever on a daily basis and down from a record of 11.13 million bpd set in November.

The annual increase equates to 882,000 bpd in incremental purchases, largely because of demand from new plants that added 900,000 bpd to China’s oil-processing capacity, although some of the units started operating only in December.

December imports were boosted by private refiners using up their annual import quotas, while state plants stocked up on oil before the holiday shutdown that accompanies China’s Lunar New Year festival, which falls in late January this year.

“Chinese independent refineries, including two mega projects Hengli and Rongsheng, stepped up purchases before year-end to maximize the utilization of crude import quotas,” said Chen Jiyao, oil consultant at FGE.

However, state refiners likely slowed down opportunistic purchases amid elevated freight rates in October, resulting in slightly lower December arrivals, said Chen.

Last year marked the biggest penetration of private chemical companies into China’s refining business, after the emergence between 2016 and 2018 of smaller independent oil processors often known as “teapots”.

Hengli Petrochemical (600346.SS) and Zhejiang Petrochemical Corp, controlled by Zhejiang Rongsheng Holdings, each added 400,000 bpd in processing capacity, mainly focused on petrochemical output. That boosted China’s crude oil imports notably from Saudi Arabia, helping the kingdom reclaim its title from Russia as China’s top crude supplier.

Meanwhile, natural gas imports, including fuel supplied as liquefied natural gas (LNG) and via pipeline, were 9.45 million tons, the third-highest on record on a monthly basis.

The hefty December purchases included LNG imports that rose to a record last month with China overtaking Japan the world’s top importer of the fuel for the second month in a row.

Imports 2019 expanded 6.9% to 96.56 million tons, with the annual growth slowing from 31.9% recorded for 2018.

China’s gas consumption slowed last year as Beijing eased its coal-to-gas switching program amid a slowing economy and growth in domestic gas output.

Tuesday’s data also showed China’s refined fuel exports in 2019 rose 14.1% from a year earlier to a record 66.85 million tons as refinery throughput outpaced domestic fuel demand growth. December exports were 6.79 million tons.

China raised the volumes of its first batch of 2020 fuel export quotas by 53% from a year earlier to 27.99 million tons.
MRC

Chief executive of ADNOC sees global economy in better shape in 2020

MOSCOW (MRC) -- The global economy is going into 2020 in better shape than last year, Sultan al-Jaber, the chief executive of Abu Dhabi National Oil Co (ADNOC) said, adding that he was pleased regional tension had dissipated in the past few days, said Reuters.

“The UAE will be the first country in the region to operate a safe commercial, peaceful nuclear power station,” Jaber also told an energy event in the capital, Abu Dhabi.

As MRC informed earlier, in June 2019, The Abu Dhabi National Oil Company (ADNOC) said its Ruwais Refinery West Cracker is offline for maintenance

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.
MRC