Chevron Lummus Global announces successful startup of biofuels project

MOSCOW (MRC) -- Chevron Lummus Global (CLG) and Applied Research Associates, Inc. (ARA) announced the successful startup of euglena Co., Ltd. (euglena Co.)'s integrated Biofuels ISOCONVERSION unit in Yokohama, Japan, according to Hydrocarbonprocessing.

The 5 BPD, first-of-its-kind demonstration unit, employs the Biofuels ISOCONVERSION technology, jointly developed by CLG and ARA, to produce renewable jet fuel and renewable diesel out of an algae oil blend and waste vegetable oil. euglena Co. has successfully started up the demo-unit in 2020, and its renewable diesel products have met all specifications of a Japanese standard of diesel fuel “JIS K2204”. They have started supplying a renewable diesel to local bus services for passenger transportation in Japan. euglena Co. also plans to produce a renewable jet fuel that meets the ASTM D7566 Annex 6 specifications and supply it to commercial flights in Japan.

Biofuels ISOCONVERSION technology consists of hydrothermal conversion and hydroprocessing operations that convert waste fats, oils, and greases into jet fuel and diesel that are virtually indistinguishable from their petroleum counterparts. This will result in an over 80% reduction in lifecycle greenhouse gas emissions compared to petroleum, once it is commercialized. ReadiJet™ and ReadiDiesel™, produced from the Biofuels ISOCONVERSION technology, contain a uniform distribution of all hydrocarbon types observed in petroleum fuels, including aromatic, cycloparaffin, isoparaffin, and normal paraffin compounds, and are able to be directly blended with petroleum fuels.

ASTM International has approved the new production pathway for Sustainable Aviation Fuel (SAF) called “Catalytic Hydrothermolysis Jet,” or CHJ. euglena Co. intends to deliver CHJ for commercial flights in the coming years through the use of the Biofuels ISOCONVERSION technology.

“CLG is proud to be a part of the successful demonstration of the Biofuels ISOCONVERSION technology at euglena Co. and looks forward to implementing it at larger scale at several other locations around the world,” said Thad Sauvain, CLG’s Director of Global Sales and Licensing.

“We are excited to see euglena Co. take this meaningful step forward in its bold quest to become a leader in the production of low carbon intensity sustainable aviation fuel from algae and waste fats, oils, and greases,” said Chuck Red, ARA’s Vice President of Fuels Development.

As MRC wrote before, in early July, 2020, Haldia Petrochemicals (HPL), a flagship company of The Chatt­erjee Group (TCG), alo­ng with its international partner Rhone Capital has acquired US-based Lummus Technology at an enterprise value (EV) of USD2.725 billion (around Rs 20,590 crore) from McDermott International. In the joint acquisition, HPL’s share is at 57 per cent, the balance would be held by Rhone Capital. Under the new dispensation, Lummus Technology wou­ld function as a ‘standalone’ autonomous entity.

We remind that in late March 2020, India's private-sector Haldia Petrochemicals (HPL) shut its naphtha cracker after ports in the country declared force majeure to prevent the spread of the coronavirus.

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.
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Idemitsu commences lubricant plant operation in China

MOSCOW (MRC) -- Idemitsu Kosan Co.,Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director President and CEO: Shunichi Kito) initiated operation and production at Huizhou Plant of Huizhou Idemitsu Lube Co., Ltd., the second directly-operated lubricant manufacturing plant in China, said Chemweek.

The Huizhou Plant was built through Huizhou Idemitsu Lube Co., Ltd. (President: Daisuke Sumitomo; a wholly owned subsidiary established in September 2018) for the purpose of increasing our supply capacity in order to accommodate the growing demand for high-performance lubricants in China. The annual production capacity of this plant is 120,000 KL.

The start of production at Huizhou Plant increases Idemitsu Group’s annual lubricant supply capacity in China to a total of 290,000 KL. Idemitsu Group now has three plants in China: the new Huizhou Plant (Capacity:120,000KL),located in South China, the existing Tianjin Plant (Capacity:120,000KL)in North China, and the Changzhou Plant (Capacity:50,000KL) in East China, run by an Idemitsu affiliate Guohong Lube China . Through the operation of these three plants, Idemitsu will work on the establishment of a stable supply structure and the optimization of supply for the whole of China, which is the world’s largest lubricants market Idemitsu aims to develop and improve its marketing and supply chain in China as part of its vision to expand and emphasize our lubricants business as a global supplier.

As MRC informed earlier, Japanese oil refiner Idemitsu Kosan said on Wednesday it will end its petrochemical joint venture with German chemical manufacturer BASF due to slumping demand at home and an oversupply caused by plant expansions in Asia. The joint venture will in December close its Chiba plant for making butanediol, an organic compound used in stretchable fibres and engineering plastics. Idemitsu said it will exit from the butanediol business.

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

China slows crude oil storage flows slightly in July

MOSCOW (MRC) -- China’s massive build-up of crude oil inventories this year slowed somewhat in July, but remained elevated by historical standards as imports stayed near record levels, said Hydrocarbonprocessing.

One of the few bullish spots in the global oil market this year has been China’s ravenous appetite for crude, with imports for May, June and July being the highest three months on record. And, after a blip caused by lockdowns in the first quarter to combat the spread of the novel coronavirus, refinery processing has also been ramped up to record levels.

What is less visible is that China has been adding to its crude oil stockpiles at a record pace as well. China doesn’t disclose flows into the nation’s Strategic Petroleum Reserve (SPR) or commercial storage tanks, but an estimation can be made by deducting the amount of crude processed from the total amount of crude available from imports and domestic output.

China’s crude imports in July were 12.08 million barrels per day (bpd), while domestic output was 3.88 million bpd, giving total available crude of 15.96 million bpd.

Refinery throughput was 59.56 million tonnes, the highest for a single month, although in barrel-per-day terms the 14.03 million bpd in July was just below the record 14.08 million bpd achieved in June.

Subtracting the July refinery throughput from the total available crude leaves a gap of 1.92 million bpd, which likely flowed either to commercial storage or the SPR. This is down from the 2.77 million bpd gap seen in June, but is in line with the average of 1.95 million bpd for the first seven months of the year.

This is more than double the flows into storage seen in the first seven months of 2019, when there was a gap of 940,000 bpd between total available crude and refinery processing. The leap in storage flows so far in 2020 can be broken into two phases, the first being when China didn’t cut import volumes even though domestic fuel consumption took a massive hit during the COVID-19 lockdowns of the first quarter.

The second was the huge buying of cheap crude during the brief March-April price war between the two leading exporters of the OPEC+ group, Saudi Arabia and Russia. That crude started arriving in late May and the last of it should be discharged this month.

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

BASF to build UV filters production line in Taiwan

MOSCOW (MRC) -- BASF, a global market leader in personal care ingredients including UV filters, is investing to double its global Uvinul A Plus production capacity, with the introduction of a new line at its Kaohsiung site in Taiwan, as per the company's press release.

The additional capacity is expected to come on stream by mid-2022. BASF currently produces Uvinul® A Plus at its site in Ludwigshafen, Germany.

“We expect the demand for high-performance and safe UV filters to continue to grow worldwide, due to consumer awareness about the importance of UV protection for skin health. BASF as a global market leader in personal care ingredients is dedicated to supporting this growth,” said Ralph Schweens, President Care Chemicals, BASF.

“Our investment in the production of Uvinul® A Plus in Kaohsiung reflects the demand for advanced UV filters from our customers and underlines BASF’s commitment to the region,” said Dr. Rajan Venkatesh, Senior Vice President, Care Chemicals, BASF Asia Pacific. “This expansion coupled with our existing asset for Uvinul A Plus in Ludwigshafen will increase supply security for our customers.”

“As the company which first commercialized the UV filters product class globally, BASF has deep expertise in production as well as offering complete solutions that include sunscreen formulations, which enhance every-day skin care regimes,” said Srikanth Vaduvur, Vice President, Personal Care Solutions, Care Chemicals, BASF Asia Pacific. “Our site in Kaohsiung which maintains high competency in manufacturing standards currently produces Tinosorb S and the Uvinul A Plus investment will further augment the production of our UV filters portfolio in the region.”

Uvinul A Plus is one of the few photostable UVA filters available in the market today that reliably filters the sun’s dangerous UVA rays and provides outstanding protection from free radicals and skin damage. The oil-soluble granule offers excellent formulation flexibility, is free of preservatives and highly efficient at low concentration. Uvinul A Plus is ideal for long-lasting sun care and skin care products with anti-aging efficacy.

As MRC reported previously, BASF will increase its alkoxylate capacity in Asia Pacific, with its latest investment in Jinshan, China. The company has acquired land, buildings and assets of SPC, related to alkoxylates production, adjoining the BASF Jinshan site, in order to fulfil the growing demand from customers across Asia Pacific, especially China. With the current alkoxylate line in the Care Chemicals Jinshan plant running at full capacity, this acquisition will help double the capacity at Jinshan from end 2020.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

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.

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

Fluor JV achieves final provisional turnover of the facilities on clean fuels megaproject

MOSCOW (MRC) -- Fluor Corporation announced that its joint venture with Daewoo Engineering & Construction and Hyundai Heavy Industries has successfully achieved final provisional turnover of the facilities for Kuwait National Petroleum Company’s (KNPC) Mina Abdullah Package 2 (MAB2) Clean Fuels Project in southern Kuwait, said Hydrocarbonprocessing.

"This significant milestone marks the completion and successful handover of MAB2 facilities to KNPC,” said Mark Fields, president of Fluor’s global Energy & Chemicals business. “It has been an honor to complete this megaproject alongside KNPC, training hundreds of their personnel and leveraging multiple local suppliers and contractors. We look forward to providing ongoing support to the refinery’s commercial operations and helping KNPC deliver on its mission to strengthen Kuwait’s economy by producing high-quality fuels to meet both local and international demand."

The Clean Fuels Program is being executed on the three KNPC-owned and operated refineries in Kuwait. As part of the program, KNPC plans to retire existing processing facilities at the Shuaiba Refinery and perform a major upgrade and expansion of the MAB and Mina Al-Ahmadi refineries to integrate the refining system into one complex with full conversion operations.

The MAB2 package facility is comprised of a world-scale hydrogen plant (steam reformers), sulfur block (sour water stripper, amine regeneration unit and sulfur recovery unit) and utilities, off-sites and non-process buildings. It also covers extensive modifications to the existing Mina Abdullah refinery units.

"Working together with the Fluor-led joint venture team to achieve this important milestone for the CFP is a true success not only for KNPC but for the State of Kuwait as well, as it will bring further prosperity for all of us,” said Abdulla F.S. Al Ajmi, deputy CEO of KNPC. “It has been a long, but truly amazing journey that now has reached its destination."

At peak, more than 12,000 craft workers were on site supported by a joint venture team that spanned three continents. The project team executed more than 127 million workhours at site and, through an intense and effective HSE program, together achieved a world-class total case incident rate (TCIR) of 0.046.

“Through our unwavering commitment to safety, integrity, teamwork and execution excellence, we are proud to have teamed with KNPC to complete this exciting project and build on our legacy of successful project delivery in Kuwait,” said Menko H. Ubbens, senior vice president and project director. “It has been a privilege for the project team to be able to meet the needs of KNPC while conducting business in a socially, economically and environmentally responsible manner to the benefit of current and future generations.”

Following commissioning, both refineries will have a capacity of 800,000 barrels per day to meet local and international demand for clean fuels.

As MRC informed earlier, Advanced Global Investment Co. (AGIC), a subsidiary of Advanced Petrochemical Co. (APC), has let a contract to Fluor Corp. to provide project management consulting (PMC) for the operator’s proposed propane dehydrogenation (PDH) and polypropylene (PP) complex at APC’s existing operations in Jubail Industrial City, on Saudi Arabia’s eastern coast. As part of the contract, Fluor will deliver PMC services for front-end engineering design, detailed engineering, procurement, and construction phases of the project, including associated utilities and off sites. Once completed, AGIC’s complex will produce 843,000 tonnes/year of propylene and 800,000 tpy of PP that will be used for production of specialty polymers by manufacturers in the face mask, automotive, pipes, food packaging, and textiles industries, according to the service provider.

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