BASF to deliver more propylene for refiners using new FCC additive

MOSCOW (MRC) -- BASF announced the commercial launch of ZEAL which is a new Fluid Catalytic Cracking (FCC) additive product designed to enhance the production of light olefins in FCC units that process resid or gasoil feedstocks, said Hydrocarbomprocessing.

ZEAL is the latest product development that will enable refiners to quickly respond to the increasing shift to petrochemical feedstocks. ZEAL has been optimized to deliver superior propylene yields while maintaining the base catalyst performance.

ZEAL commercial trials have confirmed its ability to deliver high propylene selectivity and yields. This innovative technology from BASF enhances performance through the higher content of zeolitic active sites in a new propylene FCC additive. Successful applications have demonstrated ZEAL’s ability to provide operating flexibility as refiners increasingly shift toward a crude-to-chemicals configuration in the future.

Detlef Ruff, Senior Vice President Process Catalysts at BASF, says: “The introduction of ZEAL shows that we continuously innovate and introduce new products that address refineries’ needs. We are confident that the benefits of this new product will bring our customers improvements in propylene yields, potentially contributing to the refineries’ profitability.”

“The refining market, and our customers, increasingly focus on the need to support conversion of crude to chemicals,” says Jim Chirumbole, Vice President Refining Catalysts at BASF. “ZEAL delivers high propylene yields to help our customers make more for the market.”

As MRC reported earlier, BASF has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of EUR59 billion in 2019.
MRC

Hypower to use Honeywell UOP hydrogen technology for clean fuel cells

MOSCOW (MRC) -- Honeywell announced that Beijing HyPower Energy Technology Ltd., a leading hydrogen energy technology provider in China, will adopt Honeywell UOP technologies to supply high-purity hydrogen for fuel cells, said Hydrocarbonprocessing.

HyPower agreed to adopt a range of Honeywell UOP solutions including Polybed™ pressure swing adsorption (PSA), thermal swing adsorption (TSA) and other adsorption-based technologies to purify hydrogen fed into fuel cells. Honeywell UOP will provide services, equipment, and adsorbents needed for fuel cell projects.

“As a leader in supporting the hydrogen energy economy across China, we are proud to work with Honeywell UOP, a leading provider of hydrogen technologies all over the world to meet the growing demand for hydrogen fuels,” said Zhiwei Zha, chairman of HyPower. “China is promoting hydrogen energy use in public transportation, as well as logistics vehicles.”

“UOP’s hydrogen purification technologies can further enhance operational reliability by providing a stable source of high-purity hydrogen,” said Bryan Glover, vice president and general manager, Honeywell UOP Process Technologies. “We are happy to work with our customers to achieve the vision of a cleaner and more efficient world.”

Unlike fossil fuels, such as petrol and diesel, hydrogen is a clean fuel that, when consumed in a fuel cell, produces only water, electricity, and heat. With hydrogen energy growing in importance, and concerns about global warming, automobile manufacturers worldwide have invested in developing hydrogen fuel cells to power vehicles and generate electricity.

Chinese government first included the development of hydrogen stations for new energy vehicles in the Government Work Report in 2019. Other energy-intensive economies such as Germany, Japan and South Korea also share a common vision about hydrogen as an energy source.

Honeywell UOP hydrogen purification solutions provide targeted hydrogen recovery and high product purity levels. Hydrogen can be produced on purpose or can be a valuable by-product.

We also remind that China's greenfield Zhejiang Petrochemical will use a range of process technology from Honeywell UOP for the second phase of its integrated refining and petrochemical complex in Zhoushan, Zhejiang province, according to a document, quoting a senior Honeywell official. "This second phase of the complex by itself will process 20 million tons per year of crude oil and produce another six million tons per year of aromatics when completed," Bryan Glover, vice president and general manager, Process Technology and Equipment, at Honeywell UOP, stated in the document as of January 2019.

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

According to MRC's ScanPlast report, Russia's ABS output was 920 tonnes in March. Russian producers manufactured 2,600 tonnes of ABS plastics in January-March 2020, down by 59% a year earlier.
MRC

PE imports to Ukraine increased by 1% in January-April 2020

MOSCOW (MRC) - Imports of polyethylene (PE) into Ukraine increased to about 90,900 tonnes in the first four months of 2020, up 1% compared to the same period of 2019. The greatest increase in demand occurred for high density polyethylene (HDPE), according to MRC DataScope.

Last month's PE imports to Ukraine shrank to 23,400 tonnes from 27,700 tonnes in March, local companies increased shipments of all ethylene polymers grades, including due to quarantine and the suspension of some converters. Thus, overall PE imports reached 90,900 tonnes in January-April 2020, compared to 90,200 tonnes a year earlier. HDPE imports increased mainly due to the forced shutdown of Karpatneftekhim in the first quarter of this year, for other types of polyethylene imports decreased.

The supply structure by PE grades looked the following way over the stated period.
Last month's high density polyethylene (HDPE) imports decreased to 11,100 tonnes from 11,600 tonnes, Ukrainian companies significantly decreased their purchasing of film grade PE due to the resumption of the domestic plant. Overall HDPE imports exceeded 38,600 tonnes in the first four months of 2020 versus 33,300 tonnes a year earlier.

April imports of low-density polyethylene (LDPE) amounted to a little more than 5,000 tonnes against 7,900 tonnes a month earlier, local companies reduced their purchases due to quarantine and shutdown of part of the capacities. Overall LDPE imports reached 25,500 tonnes over the stated period, compared to 26,500 tonnes a year earlier.

Last month's linear low density polyethylene (LLDPE) imports were 6,100 tonnes versus 7,200 tonnes in March, with stretch films producers decreased their purchasing. Overall LLDPE imports reached 22,800 tonnes in January-April 2020, compared to 25,900 tonnes a year earlier.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 4,000 tonnes over the stated period, compared to 4,500 tonnes a year earlier.

MRC

Why oil-rich Venezuela is suffering severe gasoline shortages

MOSCOW (MRC) -- At least five Iranian tankers carrying fuel are currently en route to gasoline-starved Venezuela, which has the world’s largest crude reserves. The United States, which maintains sanctions on both OPEC members, is weighing a response to the supply, said Reuters.

State oil company Petroleos de Venezuela’s refinery network has the capacity to produce 1.3 million barrels per day (MMbpd) of fuel. But after years of underinvestment and lack of maintenance, those refineries processed just 101,000 bpd of crude and produced just 7,000 bpd of gasoline in March, according to an internal PDVSA document.

The South American country’s gasoline consumption has dropped significantly in recent months due to a quarantine designed to stop the spread of the coronavirus. Authorities are distributing just 30,000 bpd of gasoline to service stations across the country, according to an industry source, compared with pre-lockdown consumption of about 170,000 bpd.

In recent years, PDVSA has accepted imported fuel as payment for its crude exports. But these so-called swaps with its main partner, its U.S. refining subsidiary Citgo, were interrupted when the Trump administration sanctioned PDVSA in January 2019 as part of its bid to oust Maduro, a socialist.

Since then, Washington has also pressured PDVSA’s other trade partners, such as Spain’s Repsol, Italy’s Eni and India’s Reliance, not to supply gasoline, though they had been given permission to ship diesel, which is seen as necessary for distribution of food and other vital goods.

The shortages grew far more severe after Russia’s Rosneft, which in 2019 became the main intermediary for Venezuela’s crude and its main fuel supplier, halted operations in the country in March, after Washington sanctioned two of its trading units for dealing with Venezuela.

PDVSA is trying to restart the catalytic cracking units - which are fundamental for gasoline production - at the 146,000 bpd El Palito refinery and the 310,000 bpd Cardon refinery, which has received materials to help its restart via plane shipment from Iran.

In addition to the pending imports of fuel from Iran, the country received a 150,000-barrel shipment of gasoline in late April from Maroil Trading, a Venezuelan fuel magnate who in 2002 had come to late President Hugo Chavez’s rescue by shipping gasoline to the country during a PDVSA strike.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

Qatar Petroleum joins Total to buy 45% interest in Cote d'Ivoire blocks

MOSCOW (MRC) -- Qatar Petroleum said Monday it joined with France's Total to acquire a 45% participating interest in exploration blocks offshore of Cote d'Ivoire, reported S&P Global.

The blocks CI-705 and CI-706 are located in the Ivorian-Tano basin, covering an area of about 3,200 sq. kilometers, Qatar said in a statement. The farm-in agreement marks QP's first foray into Cote d'Ivoire. Terms were not disclosed.
The area could include several hydrocarbons, located in water depths of 1,000 to 2,000 meters, 35 km from shore and about 100 km from nearby Foxtrot, Espoir and Baobab fields.

"The acquisition of working interests in these two blocks marks an important addition to QP's upstream portfolio in Africa," Saad al-Kaabi, QP's CEO, said in the statement. "Africa's offshore is a key target area for QP's international growth strategy."

The farm-in agreement is subject to customary approvals by Cote d'Ivoire's government.

Since June 2017, Qatar has been under a diplomatic and trade embargo by its Gulf neighbors Saudi Arabia, UAE, Bahrain and Egypt. Since then, the nation has looked to boost its international presence through a number of overseas upstream and downstream deals in countries including Oman, Mozambique, South Africa, Kenya, Guyana, the US and Brazil. Earlier this month, QP entered into three farm-in agreements - also with Total - to acquire about 30% of Total's participating interest in blocks 15, 33 and 34 located in the Campeche basin, offshore Mexico. The deal brought to six the number of Mexican blocks QP holds an interest in.

As MRC informed earlier, Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

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