Imports of injection moulding PET into Belarus increased by 12% in 2019

MOSCOW (MRC) - Import deliveries of injection moulded PET chips to the Belarusian market increased by 12% in 2019 and reached 22,350 tonnes compared to 19,980 tonnes in January-December last year, said MRC DataScope.

December imports of material into Belarus increased by 50% and amounted to 1,880 tonnes compared to 1,260 tonnes in November last year, in December 2018 supply amounted to 1,730 tonnes. The main supplier of material is Russia with a share in the total volume of imports of 94% (21,060 tonnes).

December imports of Russian injection moulding PET chips increased by 66% and amounted to 1,660 tonnes compared to 1,000 tonnes in November last year, in December 2018 supply amounted to 1,700 tonnes. The share of imports from Russia to the Republic of Belarus also decreased in December and amounted to 88% against 98% in the same month last year.

MRC

MOSCOW (MRC) -- Versalis (Milan), the chemicals subsidiary of Italy’s Eni (Rome), is embarking on a wide-reaching transformation that could see its sales of intermediates and plastics drop from around 5 million metric tons/year (MMt/y) currently to 4 MMt/y by 2035 and to about 3 MMt/y by 2050, reported Chemweek.

At the same time, the company expects the share of specialty plastics will rise from the current 25% to around 65% of the total in 2035 and to 85% in 2050. This implies that intermediates and commodity plastics sales could drop by around 63% from around 3.75 MMt/y currently to around 1.4 MMt/y in 2035 and then more than halve to 0.6 MMt/y in 2050, while specialty plastics volumes could double from around 1.25 MMt/y currently to 2.6 MMt/y in 2035, before stabilizing around that level. The company also expects to produce about 1 MMt/y of chemicals from renewable biological or recycled raw materials by 2035, spread about 50/50 between bio and recycled material.

The pledge involves the gradual conversion of existing sites to produce more specialties and utilizing more bio and plastic recycling technologies. The company will focus on the production of high-performance polymers and aims to develop production of chemicals from renewables and chemical and mechanical recycling, including the pyrolysis of nonrecyclable plastics to make feedstocks for polymers with characteristics identical to those produced from conventional hydrocarbons. More specifically, Versalis says it aims to "rebalance" its ethylene-polyethylene chain and integrate it with mechanical and chemical recycling. It will also expand further downstream into compounding to reduce the volatility of its plastics margins.

These targets are part of a much wider long-term strategic plan for Eni, a diversified oil and energy group, in response to concerns about climate change and the drive to reduce greenhouse gas (GHG) emissions. “We have fixed a target of an 80% reduction in net GHG emissions of our energy products by 2050, which exceeds the 70% indicated by the International Energy Agency in their sustainable development scenario, which aims to be compatible with the Paris Agreement,” says Eni CEO Claudio Descalzi. Significantly, this target includes direct and indirect GHG emissions from both Eni's own operations and from Eni products bought by third parties. The group expects to be carbon-neutral in its own operations by 2040.

As part of its strategic plan, Eni expects its upstream production of oil and gas to grow at an annual rate of 3.5% per year from the current 1.9 million b/d of oil equivalent (MBOED) until 2025, before plateauing at around 2.3 million MBOED and then going into a "flexible decline," particularly in oil. LNG volumes will continue to grow, reaching approximately 16 MMt/y by 2025. Eni expects natural gas to account for 60% of its upstream business by 2035 and 80% by 2050. The group also expects to realize 94% of the value of its current oil and gas reserves by 2035, minimizing the risk of "stranded assets."

The group aims for a gradual conversion of all its refining sites in Italy to utilize new technologies in the production of low-carbon products from the recycling of waste material. Eni aims to increase biorefining capacity to 5 MMt/y and be palm-oil-free from 2023, seven years ahead of the EU ban. It currently uses over 320,000 metric tons/year of the product. Castor oil will be emphasized as a new feedstock for refining. The group will also step up efforts in the fields of plastics and waste gasification, and will progressively add capacities at its Italian refining sites for the production of hydrogen, methanol, and biomethane.

Last year, Eni acquired a 20% stake in the refining business of the Abu Dhabi National Oil Co. (Adnoc). Adnoc refines in excess of 922,000 b/d of crude oil at Ruwais. The deal increased Eni’s global refining capacity by 35%. Eni says that, in the long term, the Ruwais refinery will be the only traditional refinery in operation within the Eni system.

As MRC informed earlier, Versalis shut its cracking unit in Priolo, Sicily, for repairs in the last days of December, 2019. The capacity of the cracking unit at this complex is 490,000 tonnes of ethylene and 130,000 tonnes of propylene per year. The maintenance works lasted until February 2020. Loading at this cracker was reduced in November and December 2019.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Versalis is a petrochemical company, a 100% subsidiary of the Italian oil and gas company Eni SpA. The company produces a wide range of petrochemical products, and is also one of the world's leading elastomer companies.
Eni spa (Ente Nazionale Idrocarburi) is an Italian oil and gas company headquartered in Rome. Eni operates in 70 countries.
MRC

MOSCOW (MRC) -- Italian energy group Eni has made no decision or announcement about a potential closure of the Milazzo refinery in Sicily, reported Reuters with reference to an Eni spokeswoman's statement on Thursday.

A media report earlier on Thursday, citing Eni officials, said Milazzo would close as a result of air quality requirements that the plant was unable to meet in time. The report said closure was planned by Jan. 1, 2022.

"Milazzo Refinery itself, together with the other Sicilian refining operators, has formally appealed against the new environmental limits," Eni said.

In 2018, the Sicilian regional government approved an air quality plan which laid down, among other things, emission targets for refiners operating in the area.

Some operators called the targets technically unachievable and trade unions expressed concern over possible job losses.

"As of today, the discussion with the (regional) authorities is in progress about both future limits and implications," Eni said.

Milazzo refinery, which has an output of around 10 million tons per year, is operated through a joint-venture of Eni and Kuwait Petroleum Italy.

As MRC informed earlier, Versalis, the petrochemical division of Italy's Eni SpA, shut is cracker in Priolo, Sicily, for repairs in the last days of December, 2019. The capacity of the cracking unit at this complex is 490,000 tonnes of ethylene and 130,000 tonnes of propylene per year. The maintenance works lasted until February 2020.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- INEOS has broadened its portfolio of upstream assets with an agreement to purchase stakes in two Denmark oilfield assets from Spirit Energy, said the company.

The divestment is through a sale of Spirit’s two companies with licenses in Denmark. The two companies jointly own 40% in the Hejre discovery and 27.7% in the Solsort discovery.

The transaction is subject to approval from the relevant authorities and is expected to close later this year.

Dag Omre, Executive Vice President of Spirit Energy Norway & Denmark, said: "In line with our strategy of managing our portfolio, we evaluated these opportunities and concluded that they are no longer core to Spirit Energy.

"We look forward to working closely with INEOS in the coming months to conclude the transaction, as well as focusing on our portfolio of assets, developments and exploration opportunities across North-West Europe."

As MRC informed before, the restart of the ACN plant of INEOS Nitriles in Seal Sands, UK with the capacity of 280,000 mt/year from the planned maintenance, which began on 27 July 2019, was delayed in late September for a second time because of technical issues. The plant was initially expected to restart at the end of August.

ACN is a feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to MRC's DataScopr report, overall ABS imports to the Russian market decreased in 2019 by 4% year on year to 33,700 tonnes.

Spirit Energy was created in 2017 following the combination of Centrica’s Exploration & Production business and Bayerngas Norge AS. The business is 69%-owned by Centrica plc, with the remaining 31% owned by Bayerngas Norge’s former shareholders, led by Stadtwerke Munchen and Bayerngas GmbH.

INEOS is a leading manufacturer of petrochemicals, specialty chemicals and oil products. It has 34 businesses, with a production network spanning 171 manufacturing facilities in 24 countries. From paints to plastics, textiles to technology, medicines to mobile phones - chemicals manufactured by INEOS enhance almost every aspect of modern life. INEOS had sales in 2018 of around $60bn and EBITDA close to €6bn. Its products make a significant contribution to saving life, improving health and enhancing standards of living for people around the world.
MRC

MOSCOW (MRC) -- After being lobbied by a non-profit organization, quick service restaurant company Yum Brands will eliminate the use of expanded polystyrene (EPS) packaging – better known as Styrofoam – worldwide by 2022, said Canplastics.

The company has also committed to making all of its packaging fully compostable or reusable by 2025. A shareholder proposal filed by non-profit As You Sow urging the company to phase out EPS foam among other actions to improve packaging sustainability was supported by 33 per cent of shares voted with a share value of USD7 billion in 2019.

Yum Brands owns the Pizza Hut, Taco Bell, and Kentucky Fried Chicken global restaurant chains. Collectively across its brands, it has over 49,000 locations, making it the largest quick-service restaurant company in the world.

EPS foam is used mostly for side dish take-out containers in about 40 of Yum’s global markets, including 4,000 U.S. locations and 2,700 non-U.S. locations.

As You Sow previously lobbied for change at McDonald’s. In 2017, similar As You Sow proposals received support from 32 per cent of McDonald’s shareholders, causing McDonald’s to agree to eliminate foam packaging by the end of 2018.

As per MRC's ScanPlast, overall imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Ukraine dropped in the first month of 2020 by 8% year on year to 1,440 tonnes. This figure was at 1,570 tonnes in January 2019. GPPS and HIPS imports were 1,940 tonnes in December 2019.
MRC