Plastic waste entering the ocean to triple by 2040 without immediate, sustained action

MOSCOW (MRC) -- 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, said Chemweek.

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. The report notes there is no single solution that can achieve this goal, but that it is rather through breaking “the plastic wave” by taking immediate, ambitious, and concerted actions. The research was carried out and published by The Pew Charitable Trusts (London, UK), and SYSTEMIQ (London, UK), a certified B Corp, in collaboration with the University of Oxford, University of Leeds, Ellen MacArthur Foundation (Cowes, UK), and Common Seas (Bristol, UK).

The current commitments made by governments and industry can only cut the annual volume of plastic flowing into the ocean by about 7% by 2040, and most new regulations “focus on specific items rather than systemic change,” the report says. Reducing plastic use is key to preventing it entering the ocean, but this requires “finding substitutes for plastics, improving recycling practices, expanding waste collection, and ensuring that disposal facilities prevent plastic leakage as a transitional measure,” it says.

The implementation of all these measures, as well as substantial shifts in all economic sectors, significant new investments, and major policy changes from governments would be required, but they could achieve the 80% reduction in the annual flow of plastic waste into the ocean by 2040, the report says.

The required technologies exist, but government incentives and a new approach from industry and investors are needed to enable a “substantial shift of investment away from the production of new plastic to the development of reuse and refill systems and sustainable substitute materials,” according to the study. This also means that every nation will have to do its part in accordance with its capabilities, the report says.

“Adopting systemwide changes to curb ocean plastic pollution offers social, economic, and environmental benefits, from reducing projected greenhouse gas emissions to creating 700,000 jobs around the globe,” the report says.

A five-year delay in taking the actions outlined in the report “would add 80 million metric tons of plastic waste to the 248 million metric tons projected to enter the ocean from 2016 to 2040, compounding risks for marine species and ecosystems, our climate, and our communities,” according to the 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

MOSCOW (MRC) -- DuPont Clean Technologies (DuPont) announced the successful startup and performance test of a 300 KMTA STRATCO alkylation unit licensed by DuPont at the Hengli Petrochemical Company (Hengli) new refinery complex, Changxing Island Harbor Industrial Zone, China, reported Hydrocarbonprocessing.

The new alkylation unit enables Hengli to produce high-quality alkylate, a key component for cleaner, high octane gasoline, from a 100% isobutylene feed stream. This first-of-a-kind unit was developed through DuPont research into the best ways to maximize product octane and minimize end point with this feedstock. Hengli had awarded DuPont the contract for the new alkylation unit as well as a MECS Sulfuric Acid Regeneration unit in 2015.

The alkylation unit uses the latest innovative patented XP2 technology by DuPont in the STRATCO Contactor reactor. The reactor enhancement is designed to improve the acid/hydrocarbon emulsion flow path near the tube bundle heat transfer area of the reactor in order to realize significant process benefits and achieve optimal alkylate product quality.

“DuPont Clean Technologies could not be happier with its ability to enable Hengli Petrochemical Company to meet performance guarantees while processing a feed never before processed in an alkylation unit,” said Eli Ben-Shoshan, Global Business Leader, DuPont Clean Technologies. “It’s a groundbreaking achievement and we’re very pleased to provide innovative technology and services that support the operational and business goals of Hengli.”

“We’re delighted that the new alkylation unit is performing to design specifications,” said a unit manager at the Hengli Petrochemical Company. “The fact that we’re able to produce high-quality alkylate with high-octane values from isobutylene by using the STRATCO alkylation technology benefits our refinery’s overall gasoline pool.”

The STRATCO Alkylation Technology is a sulfuric acid, catalyzed process that converts low-value, straight-chain olefins into high-value, branched components called alkylate. Alkylate, with its superior blending properties, is a key component for clean gasoline and the STRATCO Alkylation Technology helps refiners safely produce cleaner-burning gasoline with high octane, low RVP, low sulfur, zero aromatics and zero olefins. STRATCO alkylation technology is licensed and marketed by DuPont as part of its Clean Technologies portfolio in Overland Park, Kansas. DuPont is the world leader in alkylation technology with more than 100 licensed units worldwide and more than 915,000 BPSD (35,800 KMTA) of installed capacity. DuPont is committed to alkylation research and has extensive experience in assisting refiners with alkylation research, design, start-ups, test runs, troubleshooting, optimization, revamps, expansions, analytical testing, operator training, turnarounds and HAZOP studies.

Hengli Petrochemical Co., Ltd. manufactures chemical fibers. The Company researches, produces, and sells polyester filament and chips for consumer and industry products. Hengli Petrochemical markets it products worldwide.

As MRC wrote oreviously, Hengli Petrochemical Co Ltd ramped up the operation rate of its new No. 5 purified terephthalic acid (PTA) line at Dalian to around 85% on 11-12 July, 2020. The company managed to produce prime grade PTA cargoes at its new PTA line in China on 30 June. This line was successfully launched on 28 June, 2020. Based in Dalian, China, the company has 5 PTA plants with combined production capacity of 11.6 million tons/year, making Hengli Group the world's largest PTA producer, as each PTA plant has production capacity of 2.5 million tons/year.

As per MRC's ScanPlast report, May estimated PET consumption in Russia amounted to 70,170 tonnes, which corresponds to the level of consumption last year (70,450 tonnes). In total for the period January - May of this year, the estimated PET consumption in the Russian Federation amounted to 304,310 tonnes of material. This is 3% lower than the same indicator in 2019.

Hengli Petrochemical Co., Ltd. manufactures chemical fibers. The Company researches, produces, and sells polyester filament and chips for consumer and industry products. Hengli Petrochemical markets it products worldwide.
MRC

MOSCOW (MRC) -- S-Oil, the South Korean refiner controlled by Saudi Aramco, said demand for oil products will steadily increase in the current quarter as restrictions stemming from the Covid-19 pandemic are eased and economies around the world are revived, said Chemweek.

Global oil product demand reached its nadir in April, running at more than 20pc below pre-pandemic levels, then began its recovery from the crisis in May, S-Oil said. Demand, which bounced back to 10pc below December's level in June, will continuously recover through the July-September quarter, the company said.

S-Oil has been betting on a strong recovery throughout the economic collapse brought on by Covid-19, continuing to run its processing units at full output except in cases of scheduled maintenance, even as rivals such as SK Innovation cut run rates. The company's crude distillation units ran at 99.8pc of capacity in the second quarter, compared with 93.4pc a year earlier, despite profit margins sinking to a historic low.

The regional benchmark Singapore GRM variable-cost refining margin averaged minus USD1.70/bl in the April-June period, even worse than the USD0.60/bl positive spread in the first quarter. S-Oil said there was a "massive" build-up of fuel inventories in the second quarter. It sees global demand for oil products finishing this year as much as 10mn b/d lower than in 2019.

Petrochemical demand also has been hit hard by the crisis. Profit margins on aromatics will remain weak in the third quarter amid an oversupply of paraxylene and a sluggish demand recovery, S-Oil said. On the olefins side, margins widened in the latest quarter and should remain strong as robust sales of personal protective equipment boost polypropylene use and recovering demand for propylene oxide absorbs supply growth from plant restarts, the company said.

S-Oil's second-quarter operating loss widened by 82pc on the year to W164.3bn (USD136.9mn).

As MRC wrote before, S-Oil, South Korean petrochemical major, has taken off-stream its residue fluid catalytic cracker (RFCC) unit for a turnaround last month. The company is likely to undertake a planned shutdown at the unit by early-July, 2020. The unit is slated to remain off-line for about two weeks. Located at Onsan, South Korea, the RFCC unit has a propylene capacity of 705,000 mt/year.

Propylene is the main feedstock for the production of 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) -- Bharat Petroleum Corp plans to restart a 200,000 bpd crude unit at its 310,000 bpd Kochi refinery in southern India by end of this month after a three-week maintenance shutdown, said Reuters.

The shutdown of the crude unit and some secondary units at Kochi started earlier this month after the company restarted a 156,000 bpd crude unit at its Bina refinery in central India, R. Ramachandran told Reuters.

State-run BPCL, the country’s second biggest state refiner, had shut the crude unit at the Bina refinery for about three weeks from the second week of June for routine maintenance, he said. Bina has only one crude unit.

According to government data, BPCL’s Bina refinery operated at about 60% of its installed capacity in June.

BPCL also plans to shut a continuous catalytic reformer at its Mumbai refinery in western India for about three weeks from Aug. 1, he said.

As MRC informed earlier, India may extend the bid deadline to invest in state-controlled refiner Bharat Petroleum (BPCL) for a third time, blaming travel disruptions caused by Covid-19. Bids for a 53pc stake in the company are due by 31 July.

In January 2020, Bharat Petroleum Corporation Ltd (BPCL) said it would invest about Rs25,000 crore to set up an ethylene cracker plant at Rasayani, 50 kilometres from its Mumbai refinery, as the firm pushes further into the petrochemicals business to fuel growth.

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.

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. Bharat Petroleum owns refineries at Mumbai, Maharashtra and Kochi, Kerala (Kochi Refineries) with a capacity of 12 and 9.5 million metric tonnes per year.
MRC

MOSCOW (MRC) -- State-owned Thai oil and gas company PTT Pcl said its U.S. unit took a step forward on its proposed chemical plant in Ohio that will turn ethane into plastics with an agreement to develop a natural gas liquids storage facility, reported Reuters.

PTT Global Chemical America (PTTGCA) signed an agreement with Energy Storage Ventures LLC to build a facility to store and transport natural gas liquids (NGL) for PTTGCA's proposed complex.

“Our impending partnership ... brings us one step closer to a final investment decision," PTTGCA President and Chief Executive Toasaporn Boonyapipat said in a statement on Wednesday.

In June, PTTGCA said it delayed making a final investment decision to build the ethane cracker, which analysts estimate will cost USD5.7 billion, from the first half of 2020 to the first half of 2021 due to the coronavirus.

Analysts said the pandemic reduced expected growth in global demand for plastics.

Energy Storage Ventures' Mountaineer NGL Storage subsidiary will develop the underground salt caverns on a 200-acre (80-hectare) site in Ohio’s Monroe County about 8 miles (13 kilometers) from the PTTGCA site.

PTTGCA said it is working with Mountaineer on 1 million barrels of ethane storage and a pipeline linking the storage facility to the project.

PTTGCA said Mountaineer will develop the USD250 million storage facility in two phases by creating multiple caverns in the existing underground salt formation. Each phase will be able to hold about 1.5 million barrels.

PTTGCA said it is seeking new partners for its ethane cracker project after South Korea's Daelim Industrial Co Ltd pulled out earlier this month.

The ethane cracker is designed to produce about 1.5 million metric tons of ethylene per year and will take 4-6 years to build.

In addition, to PTTGCA's project, Royal Dutch Shell PLC is building an ethane cracker nearby in western Pennsylvania.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a 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.
MRC