Sinopec top refinery Zhenhai resumes operation after overhaul

MOSCOW (MRC) -- Sinopec Corp’s largest refining subsidiary, Zhenhai Refining and Chemical Co, has resumed operations after a nearly four-month overhaul, reported Reuters with reference to Sinopec's statement.

The refinery, based in east China’s coastal city of Ningbo, has crude oil processing capacity of 23 million tons per year, or 460,000 barrels per day (bpd).

“All production units at Zhenhai are now operating at high utilization rates,” Sinopec said, without providing further details.

As MRC informed earlier, Sinopec Tianjin Co (Tianjin United Chemical) is in plans to bring on-stream its naphtha cracker following a turnaround. The company was to resume operations at the cracker by early-July, 2020. The cracker was shut for maintenance on May 9, 2020. Located at Tianjin, China, the cracker has an ethylene production capacity of 240,000 mt/year and propylene capacity of 100,000 mt/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 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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

MOSCOW (MRC) -- Members of the European Parliament (MEPs) are proposing ways to step up green energy storage solutions such as hydrogen or home batteries, in a report that was adopted in one of the Parliament’s voting sessions on Friday, reported Chemweek.

The proposals outlined in the report are set to play a crucial role in reaching the goals of the Paris Agreement on Climate Change, as more efficient energy-storage options in the EU will help "spur decarbonization," the EU Parliament says. In addition, since solar and wind have a variable electricity output, more storage solutions should become available to secure supply, MEPs say.

The EU Parliament has called on the European Commission and EU member states to remove regulatory barriers that hamper the development of energy-storage projects. MEPs say that “the Trans-European energy networks also need to be revised in order to improve eligibility criteria for those wishing to develop energy-storage facilities.” Meanwhile, they urge the Commission to continue supporting research into, and the development of, a hydrogen economy, and to implement measures that would reduce the cost of green hydrogen.

The Parliament also supports the Commission’s efforts to create European standards for batteries and reduce dependence on their production outside Europe. This could happen through “enhanced recycling schemes and by sourcing raw materials sustainably, possibly in the EU,” MEPs say.

Other storage options should be examined and developed to provide an environmentally-friendly solution to the EU’s energy-storage and -supply issue, MEPs say.

“Apart from technologies that we already know work well like pumped hydro storage, a number of technologies will play a crucial role in the future, such as new battery technologies, thermal storage, or green hydrogen. These must be given market access to ensure a constant energy supply for European citizens,” says Claudia Gamon, lead MEP.

The Commission estimates that the EU will need to be able to store six times more energy than it does today to achieve net-zero greenhouse gas emissions by 2050. To reach the goals of the EU Green Deal as well as the Paris climate agreement, the European energy system will need to become carbon-neutral by the second half of this century.

As MRC reported earlier, Italian oil major Eni is planning to create a division to focus on new energy solutions which could be headed by its CFO, as it steps up preparations for a decarbonised future.

Besides, Shell has deepened its carbon emissions targets promising to become a net-zero emissions energy business by 2050 or sooner as pressure mounts on oil majors to help mitigate climate change. Under the move, Shell said it will reduce the net carbon footprint of the energy products it sells by around 65% by 2050, up from a previous goal of around 50%, and by around 30% by 2035, increased from around 20%.

We remind that none of the big oil companies currently meet U.N. targets to limit global warming despite the most ambitious targets set by Royal Dutch Shell and Eni.

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) -- TechnipFMC has signed a major(1) Engineering, Procurement, and Construction (EPC) contract with Assiut National Oil Processing Company (ANOPC) for the construction of a new Hydrocracking Complex for the Assiut refinery in Egypt, said Hydrocarbonprocessing.

This EPC contract covers new process units such as a Vacuum Distillation Unit, a Diesel Hydrocracking Unit, a Delayed Coker Unit, a Distillate Hydrotreating Unit as well as a Hydrogen Production Facility Unit using TechnipFMC’s steam reforming proprietary technology. The project also includes other process units, interconnecting, offsites and utilities.

The complex will transform lower-value petroleum products from Assiut Oil Refining Company’s (ASORC) nearby refinery into approximately 2.8 million tons per year of cleaner products, such as Euro 5 diesel.

Catherine MacGregor, President of Technip Energies, stated: "This award demonstrates TechnipFMC’s long-standing relationship with the Egyptian petroleum sector and strengthens our expertise in the delivery of complex projects in the country. It comes after successful execution of the FEED(2), reflecting our selective approach and the importance of being involved at a very early stage of any development. Assiut is considered one of the major strategic projects needed to meet growing local demand for cleaner products, and we are extremely honored to have been selected by ANOPC to contribute to the largest refining project to be implemented in Upper Egypt."

The Company is working with ANOPC to complete the remaining conditions precedent to enable project work to commence. The Company will include the contract award in its inbound when all the requirements are fulfilled. For TechnipFMC, a “major” contract is over USD1 billion.

As MRC reported earlier, in June 2020, TechnipFMC and Clariant Catalysts entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN).

Besides, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

Propylene is the main feedstock for the production of polypropylene (PP).

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) -- Phillips 66 said its 258,500 barrel-per-day Bayway refinery in Linden, New Jersey experienced a power outage that caused a shut down, reported Reuters.

"All refinery systems functioned as designed... Refinery personnel are working diligently to return to normal," the company said in an emailed response.

As MRC informed earlier, 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.

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) -- Germany's chemical industry association VCI (Frankfurt) says that innovation rather than product bans should be the focus of the new EU chemicals strategy, which the European Commission intends to present in the fall, said Chemweek.

VCI’s announcement relates to a European Parliament vote, due to take place, on a list of demands from its environment committee on the new chemicals strategy, which was announced as part of the EU Green Deal.

According to VCI, the committee is calling for major changes to chemicals legislation including the removal of quantitative thresholds, many additional tests of chemicals and animal testing, and blanket bans on use without prior risk assessment.

"The chemical-pharmaceutical industry supports a chemical strategy that promotes innovations to implement the EU's climate goals, the circular economy, and digitalization. This requires a stable legal framework," says Gerd Romanowski, managing director/science, technology, and environment at VCI.

Flat-rate bans are counterproductive, Romanowski says. Europe can only achieve greater autonomy in the supply of products such as medicines and disinfectants through effective planning by companies, to have the necessary chemicals available, he says.

VCI says that the new EU chemicals strategy should rely on strong use of the extensive REACH data, as well as on simplifications and efficiency improvements, instead of bans. Meanwhile, cooperation between European agencies and scientific advisory bodies on the evaluation of chemicals should be strengthened, VCI says.

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 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