Croatian oil firm INA aims for USD282 million biorefinery investment

MOSCOW (MRC) -- Croatia’s oil and gas firm INA said it aims to invest 250 million euros (USD282.4 million) to build a biorefinery in the central town of Sisak to help reduce its carbon footprint, said Reuters.

The company, whose biggest shareholders are Hungary’s energy group MOL and the Croatian government, has applied for strategic project approval at Croatia’s ministry of economy and entrepreneurship. It is also seeking European Union funding, as the bloc of which Croatia and Hungary are members, aspires to cut emissions to zero by 2050.

“The support of the EU and the Croatian government are key preconditions for the final implementation of this important project ... which fits into the Green Plan and European Energy Strategy," Sandor Fasimon, INA Board President, said in a statement. The Croatian government had no immediate comment.

INA owns two refineries, one in Rijeka and a smaller one in Sisak, where it is developing an industrial facility producing bitumen from 2021. As part of the industrial complex, the refinery would produce advanced bioethanol from second-generation, sustainable biomass, as well as green power, INA said.

In February, INA signed a deal with Axens, awarding the French group the licence to supply cellulose ethanol technology and the basic engineering design for advanced bioethanol production.

Last year, INA also inked a deal with Belgian firm De Smet Engineers & Contractors on the provisional basic design for an ancillary facility and its integration into the existing refinery.

INA plans to invest 50 million euros to establish a raw material supply chain, primarily into plantations of the biomass crop miscanthus, which is regarded as a sustainable source of biofuel.

As it was written earlier, INA has put into trial operation a new propane propylene splitter facility worth 500 million kuna (USD81 million/72 million euro) that aims to boost its competitiveness by expanding product portfolio. The new facility, which is located at INA's Rijeka oil refinery, will produce a high-purity propylene used as a semi-finished product in the petrochemical industry. The splitter's capacity is 84,000 tonnes of propylene per year. The products will be stored in four underground tanks, connected to the upgraded logistics grid for further road, rail and water shipment to the markets of Central Europe and the Mediterranean. Works on the new facility started at the beginning of 2019, during the time of one of the biggest overhauls at the Rijeka oil refinery worth an overall 800 million kuna.

According to MRC's ScanPlast report, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- Meghmani Finechem (MFL), a material subsidiary of Meghmani Organics (MOL), has commenced commercial production of additional caustic soda plant along with captive power plant in the existing chlor-alkali and derivative complex at Dahej in Bharuch, Gujarat, said Projectstoday.

The company has completed additional caustic soda plant of 1,28,000 tpa along with captive power plant of 36 MW in the existing chlor-alkali and derivative complex. The company has started commercial production from 20 June 2020.

The caustic soda expansion has been set up at a cost of Rs 300 crore and captive power plant at Rs 150 crore.
MFL expects that the expansion will add revenue of Rs 200 crore in FY21 and Rs 360 crore in full year of operation in 2021-22.

With this additional caustic soda, the company will reach to 2,94,000 tpa and captive power plant to 96 MW. This will significantly contribute to reduce the country’s dependence on import.

The chlorine and hydrogen being co-product, after this expansion, its capacity will increase by 1,10,000 tpa and 37 million NM3 per annum, respectively.

Additional chlorine and hydrogen generated from this plant will ensure continuous supply to the existing customer, agrochemical, pharmaceutical industries and upcoming downstream project of chlor-alkali derivative complex viz Hydrogen Peroxide, Epichlorohydrin and CPVC resin inthe existingchlor-alkali complex.

As MRC informed earlier, May production of sodium hydroxide (caustic soda) in Russia was 112,000 tonnes (100% of the basic substance) versus 101,000 tonnes a month earlier. Overall output of caustic soda totalled 543,000 tonnes in the first five months of 2020, up by 1.4% year on year.

MRC

MOSCOW (MRC) -- German consumer goods company Henkel has successfully completed a plastic waste reduction bond, said Packaging-gateway.

The five-year, USD70m bond is a private placement with Japanese insurance companies Dai-ichi Life and Dai-ichi Frontier Life. Proceeds from this bond will help finance key projects and activities under Henkel’s sustainability actions.

It also emphasises the company’s commitment to enhance a circular economy and reduce plastic waste. In March this year, Henkel enhanced its sustainability commitment to make 100% of Henkel’s packaging recyclable or reusable by 2025. It also planned to reduce the amount of fossil-based virgin plastics by 50%.

Henkel CFO Marco Swoboda said: "Sustainability is not only firmly embedded in our strategic framework for the future but also increasingly relevant for investors and the financial market. "We are proud to be the first corporate issuer of a plastic waste reduction bond, once more demonstrating our ability to conclude innovative sustainable investment instruments at attractive terms.

"By linking financing concepts to our plastic waste reduction initiatives, the finance team shows its continuous commitment to actively contributing to our sustainability agenda." Multinational investment bank and financial services holding company HSBC served as the Green Structuring advisor and lead manager in relation to the transaction.

In April this year, Henkel unveiled new Persil 4in1 DISCS detergent packaging, which now contains 50% postconsumer recycled polypropylene (r-PP) obtained from discarded household plastics.

As MRC informed earlier, Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that Henkel Adhesives Technologies has officially inaugurated its new production facility in Kurkumbh, India.

Henkel are also partnering with Borealis and plastics solutions company Borouge to develop flexible packaging solutions for detergents containing both virgin polyethylene (PE) and high amounts of post-consumer recyclate (PCR) in efforts to increase sustainability.

According to MRC's ScanPlast report, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- CBH Inc. official source announced that the company will invest in the Sultanate of Oman in the construction of a Low Sulfur Fuel Oil Refinery, reported Hydrocarbonprocessing.

The LSFO refinery aims to serve the growing shipping needs for IMO complaint cleaner fuel for shipping propulsion.

The planned capacity is 300,000 bpd in phases.

The location of the refinery is open to the Arabian sea outside the Straight of Hurmoz. The natural depth of the port area qualifies it to receive large ships with deep keel.

The refining process is based on a unique Canadian technology with proven results in turning poor quality fuel into cleaner and higher grades.

The CBH official said: “CBH Inc. are delighted to cooperate with the Government of Oman to invest in the LSFO refinery. Oman is one of the best located on the world map for such investment. We have great confidence that our decision is a strategically sound one”. He added: “The people of Oman are highly educated, young, and hard working. The country is resourceful and safe”. Oman also enjoys high political and economic stability for almost fifty years.

The project satisfies the strict investment criterion of CBH based on focused investment strategy, with safe, secure, and high returns. Such refinery is a niche investment that considers the challenges facing the oil and gas industry and focus mainly on market demand. Such demand is led by international law and the viability of the global logistics business.

The total investment is USD1.5 billion. The expected ROI is 22% per year. The structured investment is based on a global fund based in London, UK and open to interested investors.

As MRC wrote before, plans to build a new gas-to-liquids (GTL) project in Oman between the government and Shell have been thrown into doubt by the global economic downturn, the sultanate's oil minister Mohammed AL-Rumhy told S&P Global in late June.

We remind that in July 2017, Orpic, the Sultanate’s refining and petrochemicals flagship, announced plans to establish a worldwide network of offices to support the marketing of the huge quantities of polymers that will be produced when its Liwa Plastics mega venture comes on stream in 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 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- Taiwan’s CPC Corp is seeking gasoline for the first time in many years following an unexpected shutdown of a secondary unit in its Talin refinery, according to Hydrocarbonprocessing with reference to sources.

The unit which processes compounds into a high octane gasoline component is expected to resume production by end July after it was shut around mid-June due to mechanical glitch.

This has prompted CPC to seek 300,000 barrels of 95-octane gasoline for July 15-31 arrival at Kaohsiung through a tender which closes on July 1.

CPC typically exports gasoline to Asia and does not import the fuel under normal circumstances.

The refinery and petrochemical maker operates two refineries, one in Talin and another in Taoyuan, Taiwan, which have a combined capacity of over 500,000 barrels per day (bpd).

As MRC reported earlier, Taiwan's CPC Corporation is restarting its No. 4 naphtha-fed steam cracker July 6 after being shut last week. The company unexpectedly shut is No. 4 cracker due to technical glitches on 2 July, 2020. Based in Linyuan, Taiwan, the cracker is able to produce 380,000 tons/year of ethylene and 193,000 tons/year of propylene. Initially, the shutdown period was slated for around 7 days.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
MRC