P&G targets carbon-neutral operations by 2030

MOSCOW (MRC) -- Procter & Gamble (P&G) has pledged to ensure that its operational emissions are neutralised by 2030 - an aim is striving to achieve through investment in nature-based climate solutions, said the company.

Building on an existing pledge to halve Scope 1 (direct) and Scope 2 (power-related) emissions by 2030 against a 2010 baseline, the new commitment will see P&G using a mixture of insetting and offsetting to bring residual emissions across these scopes to net-zero. P&G estimates that its annual Scope 1 and Scope 2 emissions will be 30 million metric tonnes in 2030, once it has completed the shift to 100% renewable electricity.

While some insetting and offsetting initiatives centre around renewable energy and clean fuel, P&G has chosen to back nature-based projects which serve to protect, improve or restore habitats. Key focus areas will be peatlands, wetlands and forests.

"The company’s intent is to work with NGO partners to ensure any project it advances under this effort is appropriately vetted to ensure the project, its impacts, and any accounting methodologies used are credible and consistent with best practice,” P&G said in a statement. The consumer goods giant is working with Conservation International, WWF and the Abor Day Foundation already and says it is open to forging additional partnerships.

"Our role as leaders is to make a lower-emission economy possible, affordable and desirable for everyone,” P&G’s chief sustainability officer Virginie Helias said. “It is our responsibility to protect critical carbon reserves and invest in solutions that regenerate our planet."

While the new target does not cover Scope 3 (indirect) emissions, P&G is working with the Science-Based Targets Initiative (SBTi) to develop and deliver against new ambitions in this area. The firm’s previous carbon footprint mapping exercises have proven that the vast majority – 85% - of its Scope 3 emissions are associated with consumer use and disposal of products. As such, it sees communication with consumers as a key level for reducing emissions, providing on-pack and online information on responsible use.

Russia's output of chemical products rose by 4.4% year on year in May 2020 . Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-May.
MRC

Indonesian Chandra Asri reaches on-spec LLDPE output

MOSCOW (MRC) -- PT Chandra Asri Petrochemical (CAP) has reached on-spec output at its 400,000 tons/year linear low density polyethylene (LLDPE) unit following several weeks of facing technical difficulties that severely affected the availability of the grade, reported CommoPlast.

“However, we are still working to optimize operation rates. It might take a little bit of time,” a source close to the producer said. Meanwhile, market participants are not expecting spot availability to normalize anytime so soon as the producer might need to clear out the previous backlogs.

As MRC informed before, CAP began conducting a trial production at its newly expanded polyethylene (PE) plant in Cilegon in March 2020 to produce metallocene PE grade (MLLDPE). The company expanded PE capacity in 2019 by adding one more production line that pushed the total output to 736,000 tons/year. CommoPlast was informed that the newest 400,000 tons/year high density polyethylene (HDPE)/ linear low density polyethylene (LLDPE) swing line would be utilized for the MLLDPE trial production purpose.

According to MRC's ScanPlast report, May LLDPE shipments to the Russian market rose to 31,290 tonnes from 30,450 tonnes a month earlier, production increased. Overall LLDPE shipments to Russia totalled 153,080 tonnes in the first five months of 2020, down by 5% year on year. Production and exports increased by 2 times.

CAP is the largest integrated petrochemical company in Indonesia and operates the country’s only world-scale size Naphtha Cracker. The CAP plant is strategically located in Banten province, providing convenient access to key customers.
MRC

COVID-19 - News digest as of 17.07.2020

1. Total refining margin sinks to six-year low as sales slump, crude rebounds

MOSCOW (MRC) -- Total, Europe's biggest refiner, saw its average refining margin slump to the lowest level in six years during the second quarter when demand for fuels collapsed due to COVID-19 lockdowns while oil prices began to recover, reported S&P Global. Total's "variable cost margin" for its European refineries in the second quarter fell to USD14.30/mt or about USD1.95/b, down from USD26.30/mt in the previous quarter and USD27.60/mt in the year-earlier period, it said July 15 in a trading statement.

MRC

NOVA Chemicals issues LLDPE force majeure declaration at Joffre facility in Alberta

MOSCOW (MRC) -- Nova Chemicals declared force majeure on supplies from its Joffre C4 (butene) linear low density polyethylene facility near Red Deer in Alberta, Canada, a company spokeswoman said in an email July 14 to S&P Global.

The declaration will cover all C4 LLDPE resins produced at the facility effective July 13, the company also said in a letter to customers.

"Over the past several days we have experienced mechanical failures beyond our reasonable control at our two butene linear low polyethylene (LLDPE) reactors in Joffre. As the result of the repair timing and current inventory levels, we have declared force majeure on all butene LLDPE," spokeswoman Jennifer Nanz said in the email.

The event does not affect any of NOVA's other polyethylene products, Nanz said.

"We are committed to safely resolving these issues as quickly as possible. However, we do not yet know the expected length of the force majeure," Nanz said.

The Joffre facility has two LLDPE units with a combined capacity of 1.1 million mt/year, according to data compiled by Platts.

NOVA said in the letter it could provide "no firm indication" as yet on the extent to which the company would be able to supply its customers needs during the force majeure. Nanz could not provide any further information.

As MRC reported before, NOVA Chemicals expanded ethylene production capacity by 20% at its cracker in Corunna, Ontario from the previous capacity of about 839,000 tpy. The expansion occurred between 2014 and 2018 and was part of a wave of expansions and upgrades to NOVA's existing facilities near Sarnia, Ontario. Other upgrades in the plan included a debottlenecking of the Moore low-density polyethylene (LDPE) line and a retrofit of the Moore high-density polyethylene (HDPE) line.

According to MRC's ScanPlast report, May LLDPE shipments to the Russian market rose to 31,290 tonnes from 30,450 tonnes a month earlier, production increased. Overall LLDPE shipments to Russia totalled 153,080 tonnes in the first five months of 2020, down by 5% year on year. Production and exports increased by 2 times.

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is wholly-owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
MRC

Crude futures in Asia lower ahead of OPEC+ production cut talks

MOSCOW (MRC) -- Crude oil futures were lower in mid-morning trade in Asia July 13 ahead of mid-week deliberations by OPEC+ over whether to maintain its current supply cut for another month, and as several countries reported a sharp rise in coronavirus infections, reported S&P Global.

At 11:04 am Singapore time (0304 GMT), ICE Brent September crude futures were down 44 cents/b (1.02%) from the July 10 settle at USD42.80/b, while the NYMEX August light sweet crude contract was 43 cents/b (1.06%) lower at USD40.12/b.

"The record high inventories in the US and a second wave contagion around the globe have added speculation that OPEC+ might yet throw a surprise decision this week by extending the 9.6 million b/d output cuts by a further month, but we think that is unlikely given how prices have almost doubled from lows in April," OCBC analysts said in a note July 13. "In the short term, we expect oil prices to remain within its consolidation phase," they added.

The OPEC+ Joint Ministerial Monitoring Committee will decide July 15 whether to extend 9.7 million b/d production cuts that expire end July by another month.

With major economies showing signs of recovery, sources familiar with the negotiations are indicating that an extension is unlikely, which will see OPEC+ moving ahead as planned to a 7.7 million b/d cut in August.

However, the US has reported more than 60,000 new coronavirus infections a day for the past four days, taking its total number of cases above 3.3 million, according to media reports. Brazil, India and South Africa have also reported an increase in cases, according to the World Health Organization.

The surging number of infections was likely to continue weighing on market sentiment as governments weigh the feasibility of further movement restrictions, clouding the near-term demand outlook.

Elsewhere, Libya, which holds Africa's largest crude reserves, lifted a force majeure on oil loadings July 10, but the Libyan National Army a day later vowed to maintain a blockade until its demands are met.

Crude production in Libya has been reduced to around 70, 000-100,000 b/d in recent months from more than 1.1 million b/d before the blockade was imposed in January. Any short term increase in crude exports from Libya is likely to "add another unwanted level of supply-side uncertainty at an extremely critical point in the oil price recovery phase," AxiCorp chief global markets analyst Stephen Innes said in a note July 13.

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