Phillips 66, partner cancel renewable diesel project

MOSCOW (MRC) -- U.S. refiner Phillips 66 and biodiesel producer Renewable Energy Group Inc have abandoned construction of a renewable diesel plant in Washington state following delays in receiving permits and uncertainties, the companies said, as per Hydrocarbonprocessing.

This marks a setback in what has been a major push by refiners including Marathon Petroleum, HollyFrontier and Valero to produce diesel from soybeans and other organic products and earn lucrative tax credits for generating the fuels.

The proposed 250-million-gallon-per-year project would have been the largest renewable diesel refinery on the West Coast of the United States, the companies said.

The refinery was planned to be constructed adjacent to Phillips 66’s Ferndale Refinery, looking to take advantage of existing infrastructure that includes tank storage, rail and truck rack access.

“While we believe the Ferndale Refinery is a strategic fit for this renewable diesel project, permitting uncertainties were leading to delays and higher costs,” Robert Herman, Phillips 66 executive vice president of refining, said in a statement.

The companies did not immediately respond to a request for details on the uncertainties.

Phillips 66, Renewable Energy Group had been expected to make a final investment decision in 2019 on the project, which was announced in 2018.

The companies said on Tuesday they were working to wind down the permitting process.

As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

We also remind that in March 2018, Chevron Phillips Chemical Company LP, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- Pipeline operator Kinder Morgan Inc (KMI.N) said on Thursday it sold the 25 million shares in Canada’s Pembina Pipeline Corp that it received when Pembina bought Kinder Morgan Canada for USD764 million, reported Reuters.

Kinder Morgan said it will use the proceeds to cut its debt.

Canada’s Pembina Pipeline had agreed to buy Kinder Morgan Canada and the U.S. portion of the Cochin pipeline for CD4.35 billion (USD3.28 billion) in August.

As MRC wrote before, in February 2019, it was announced that Pembina Pipeline and Petrochemical Industries Co. of Kuwait are moving forward with plans to build a propane dehydrogenation (PDH) and polypropylene complex in Alberta. The plant will convert about 23,000 barrels of propane per day into about 550,000 metric tons of polypropylene (PP) per year. The partners expect it to cost USD4.5 billion and come onstream in 2023. Another firm, Inter Pipeline, is already building a PDH and PP complex in Alberta. It is expected to cost USD3.5 billion and be completed in 2021.

According to MRC's ScanPlast report, 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) -- Saudi Arabian chemicals major Sabic has named Swiss market expansion services group DKSH as a key distribution partner, said the company.

Financial details of the partnership were not disclosed.

As part of its strategy to foster the additional growth of its Specialties business, and to provide outstanding service to its customers in Asia Pacific, Sabic has named DKSH as a key distribution partner, serving SABIC customers for specialty engineering thermoplastics in Greater China, South Korea, and Southeast Asia.

This collaboration involves SABIC’s complete portfolio of specialty materials, including NORYL resins (polyphenylene ether-based materials), ULTEM resins (polyetherimide materials), LNP compounds and the full range of polycarbonate-based high-performance copolymers.

"We are delighted to welcome DKSH to our distribution network, as we seek to further expand our delivery of high-performance thermoplastic materials solutions, along with outstanding service, to our Specialties customers in Asia,” said Martin Tam, Director, Customer Fulfillment, APAC, Specialties, SABIC. “This collaboration will support existing customers, and help grow our customer base in strategic industries in Asia Pacific, including the key markets of China, Indonesia, Korea, Thailand, Singapore and Malaysia."

Sabic Europe, an affiliate of Sabic, conducted maintenance works at its cracker No.3 at Geleen site in the Netherlands this autumn. The planned maintenance started in September and lasted around 2 months. The company operates two steam crackers in Geleen which are capable of producing 1,250,000 tons/year of ethylene and 675,000 tons/year of propylene in total.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

DKSH holds a leading position within the distribution of specialty chemicals across Asia, including polymers. Their specialty and business development approach relies on a strong commitment to R&D through a network of nine specialty chemicals innovation centers in the region.
MRC

MOSCOW (MRC) -- Fuel and gas processing at Libya’s Zawiya refinery were continuing normally on Monday despite a halt to loadings from El Sharara oilfield, reported Reuters with reference to two refinery employees' statement.

Zawiya is connected to Sharara by a pipeline that was shut on Sunday by forces loyal to eastern-based commander Khalifa Haftar as part of a wider blockade, Libya’s National Oil Corporation (NOC) said.

As MRC informed before, in late December 2019-early January 2020, Libya's oil infrastructure has once again found itself in the crosshairs of the country's prolonged civil conflict between the UN-backed Government of National Accord and the self-styled Libyan National Army. The country's 120,000 b/d Zawiya refinery was the target of an airstrike on 27 December, 2019, and state-owned National Oil Corporation (NOC) confirmed that sites near the oil storage facility operated by the Zawiya refinery were hit by a bomb on Friday.
MRC

MOSCOW (MRC) -- Vinmar Polymers America will distribute Lanxess Corp.'s high-performance plastics to customers in North America, said Plasticsnews.

VPA, a unit of Houston-based Vinmar International, and Lanxess of Pittsburgh will work together to complement Lanxess' market strategy with regionally placed inventory, along with sales and technical support, officials said in a Jan. 17 news release.

They added that the new arrangement broadens the existing relationship between Lanxess and Vinmar in Turkey and Australia.

Key North American product offerings will include the Durethan-brand line of nylon 6 and 6/6 resins and Pocan-brand PBT resins and blends, according to VPA President Kirt Dmytruk.

Lanxess Corp. is a unit of Lanxess AG of Cologne, Germany. The firm is a leading specialty plastics and chemicals maker with annual sales of almost USD8 billion. Vinmar is a global plastics and chemicals distributor that posted sales of USD3.6 billion in 2019.

Vinmar has been working to grow its VPA unit in the last year. In mid-2019, the firm acquired resin and sheet distributor Alpheus Enterprises of Mexico City.

In late 2019, Vinmar Senior Vice President Vishal Goradia told Plastics News that the firm plans to remain active in the M&A market while also growing its businesses organically. He added that Vinmar is looking at possible U.S. distribution and chemical acquisitions.

Earlier, Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) fell in January-November 2019 by 14% year on year to 70,700 tonnes (62,000 tonnes a year earlier).

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 60 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics.

MRC