Consortium studies halving Antwerp petchem cluster greenhouse gas emissions by 2030

MOSCOW (MRC) -- A consortium has been formed by chemical and energy companies and Port of Antwerp with the goal of halving carbon dioxide (CO2) emissions within the port’s integrated petrochemical cluster by 2030, said Chemweek.

The consortium, named Antwerp, will investigate the technical and economic feasibility of building CO2 infrastructure to support future carbon capture, utilization and storage (CCUS) applications, it says. Carbon capture and storage (CCS) and the potential utilization of CO2 as a raw material for the chemical industry are seen as important routes in the transition to a carbon-neutral port, it adds. The participating companies are Air Liquide, BASF, Borealis, ExxonMobil, Fluxys, Ineos, Total, and Port of Antwerp. Greenhouse gas emissions within the port were measured at 18.65 million metric tons in 2017, according to Port of Antwerp.

A feasibility study, supported by the Flemish Agency for Innovation & Enterprise, is investigating the building of a central pipeline “backbone” along the industrial zones on both banks of the River Scheldt at Antwerp, the consortium says. The study also includes various shared processing units, a shared CO2 liquefaction unit, and interim storage facilities at Antwerp, and cross-border transport of CO2 by both ship and pipeline.

As Belgium does not have suitable geological strata, international collaboration will be necessary to transport the CO2 across borders and store it permanently in assets such as depleted offshore gas fields, the consortium says. It is studying piping the CO2 to Rotterdam or transporting it by ship to Norway. Air Liquide, Total, Fluxys, and Port of Antwerp this week submitted subsidy applications to the European Union to carry out detailed studies of both options under the Connecting Europe Facility (CEF). A decision on the award of grants is expected in November.

Other subsidy applications are being prepared for the European Innovation Fund as part of the European Green Deal. “Broad support—especially financial support—by the EU, the Belgian Federal Government, and the Flemish Government will be essential to ensure the success of the project,” according to the consortium.

"As the largest petrochemical cluster in Europe we are assuming our responsibility with unprecedented collaboration between eight leading companies,” says Wouter De Geest, the consortium’s chairman. “Together we are investigating the possibilities for cutting CO2 emissions from our production processes, as well as additional innovative solutions for more sustainable petrochemistry in Antwerp."

As MRC informed earlier, an estimated 11 million metric tons (MMt) of plastic waste enter the ocean every year and this will almost triple by 2040, to 29 MMt, if immediate and sustained action is not taken, according to a newly published in-depth report. This is equivalent to dumping 110 lbs (50 kilograms) of plastic on every meter of coastline around the world, it says. However, it is possible to reduce annual flows of plastic into the ocean by about 80% in the next 20 years by applying existing solutions and technologies, according to the report, Breaking the Plastic Wave.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- UK oil production slumped by almost 7% on the year to 1.103 million b/d in the first quarter due to COVID-19 disruption as well as technical issues, said S&P Global.

The Q1 data from the Department for Business, Energy and Industrial Strategy (BEIS) showed crude oil production was down 6% on the year at 1.01 million b/d, while natural gas liquids output fell 14% to 93,000 b/d.

In March, the UK oil and gas industry moved to a minimal staffing regime at offshore facilities to protect workers' health, likely resulting in operators moderating production levels, although activity levels are now thought to be increasing.

Disruption in the North Sea oil industry is likely to have continued into the current quarter, although output may be supported by the cancellation of swaths of summer maintenance, both for health and cost-cutting reasons. The industry has also gradually adopted new testing regimes and work protocols to enable higher staffing levels.

The International Energy Agency this month forecast UK oil output would fall by 30,000 b/d this year, with the recent crash in oil prices likely to have a longer-term impact on production levels due to reduced investment in new production projects.

The majority of UK oil output is usually exported, with producers finding higher prices in Asia for grades such as Forties, generally the largest component in the Dated Brent benchmark.

UK consumption of indigenously produced crude and NGLs jumped by 37% on the year to 2.74 million mt, while total feedstock intake by UK refineries fell 6% to 14.21 million mt, BEIS said.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We remind that in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Chemical railcar traffic in North America remains weak, said Chemweek.

Volume totaled 40,616 carloads during the week ended 23 May, down 1.9% from the previous week and down 15.8% year over year (YOY), according to data released by the Association of American Railroads (AAR).

On a four-week basis, volume declined 12.8% from 2019 and 11.8% from 2018 (chart), only slightly down from the respective 12.2% and 11.6% declines of the week ended 16 May. For the year to date, chemical railcar traffic in North America declined 3.1% from 2019 and 4.1% from 2018, deepening the deficits of 2.4% and 3.6% recorded during the previous week.

Chemical railcar traffic in the United States contributed 28,531 carloads to the total, down 14.4% YOY and up 0.5% from the previous week. For the year to date, US chemical railcar traffic is down 3.0%. Canadian chemical rail traffic totaled 11,138 carloads, down 20.7% YOY and down 8.7% from the previous week. For the year to date, Canadian chemical railcar traffic is down 3.3%.

Chemical railcar traffic in Mexico totaled 947 carloads, a YOY increase of 7.6% and a sequential increase of 14.4%. For the year to date, Mexican chemical railcar traffic is down 3.9%.

As MRC informed earlier, Chemical railcar traffic in North America showed some firming last week. Volume remained significantly down year-over-year (YOY), but the deficit did not deepen. On a four-week basis, volume declined 12% from 2019 and 11.3% from 2018 (chart), improving slightly from the 12.8% and 11.8% declines of the previous week.

As MRC informed earlier, Russia's output of products from polymers grew in April 2020 by 11.2% year on year due to quarantine restrictions. However, this figure increased by 3.4% year on year in the first four months of 2020. According to the Russian Federal State Statistics Service, April production of unreinforced and non-combined films decreased to 107,000 tonnes from 110,400 tonnes a month earlier. Output of films products grew in the first four months of 2020 by 12.5% year on year to 402,800 tonnes.
MRC

MOSCOW (MRC) -- The British Plastics Federation (BPF) has launched an online portal to help organisations across the UK locate suppliers in response to the coronavirus outbreak, said Britishplastics.

Companies who provide products vital to the UK’s response to Covid-19 are listed in one place, including those who can provide visors, ventilator parts, aprons, hand sanitiser bottles, clinical waste sacks and other key supplies. The BPF has been contacted by over 100 different organisations, including UK, Scottish and Welsh Governments, the NHS, and organisations across the country, to help source suppliers who can provide critical supplies for frontline NHS workers as well as staff in other key sectors, such as manufacturing.

These requests have predominantly been for Personal Protective Equipment (PPE), but include other items key in the fight against coronavirus such as bottles and closures for hand sanitiser. In response, the team at the BPF has been concentrating on helping to locate manufacturers and suppliers across the country in a coordinated attempt to protect the UK public.

As part of this effort, the BPF has helped play a role in ensuring millions of face shields, millions of hand sanitiser bottles, and hundreds of thousands of other urgent medical supplies have been provided to hospitals across England, Scotland and Wales.

Director General of the BPF, Philip Law, commented: “The BPF and its members have risen to the challenge faced by the NHS and industries across the country. “Member companies have stepped up to transform and expand their manufacturing operations, working longer and harder to ensure we can provide the protective equipment and medical supplies the UK needs.

“We are also working closely with the government to access the specialist manufacturing equipment that is urgently needed." Law added that the BPF has been working alongside a number of Government departments, including the Cabinet Office, the Department for Business, Energy, and Industrial Strategy, the Department for International Trade, and the Department of Health and Social Care to provide information and feedback during the crisis.

As MRC informed earlier, an estimated 11 million metric tons (MMt) of plastic waste enter the ocean every year and this will almost triple by 2040, to 29 MMt, if immediate and sustained action is not taken, according to a newly published in-depth report.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

1. Oil complex retreats as economic uncertainty clouds demand outlook

MOSCOW (MRC) -- The oil complex settled lower July 23 as demand outlook came under pressure amid growing economic uncertainty following a weak US jobs report, according to S&P Global. NYMEX September WTI settled 83 cents lower at USD41.07/b and ICE September Brent was down 98 cents on the day at USD43.31/b. Oil futures, which were already trending off overnight highs, turned lower ahead of US trading after US Labor Department data showed initial unemployment claims climbed to 1.416 million in the week ended July 18. "The recovery appears to be stalling as jobless claims rose for the first time since March and as continuing claims remain elevated," OANDA senior market analyst Edward Moya said. "The economy does not seem to be on sound footing anymore and with high uncertainty with the direction of the coronavirus, businesses will likely struggle to justify hirings."


MRC