Sonatrach says it controlled oil leaks

MOSCOW (MRC) -- Algeria's state-owned energy company Sonatrach announced it had controlled two oil leaks that occurred earlier in the OK1 pipeline due to bad weather, said Reuters.

Sonatrach had said earlier in a statement on Facebook that the pipeline connects Hassi Messaoud to Skikda.

As MRC informed before, in January 2020, Turkey and Algeria announced that they will jointly establish a petrochemicals plant in Adana on the Mediterranean coast. Turkey’s Ronesans Holding and Algeria’s state-owned energy company Sonatrach will take part in the project, Arkab said on the margins of the Turkey-Algeria Business Forum. The petrochemical facility is estimated to cost around USD1.4 billion, according to the Algerian minister, who also said stakes of Ronesans Holding and Sonatrach in the project will be 66 percent and 34 percent, respectively. The facility is planned in Seyhan industrial zone for petrochemical development and will have production capacity of 450,000 tons per year of polypropylene (PP).

According to MRC's ScanPlast report, Russian plants' total PP production grew to 158,800 tonnes in July, compared to 149,400 tonnes a month earlier; ZapSibNeftekhim, Nizhnekamskneftekhim and Poliom increased their capacity utilisation. Russia"s overall PP production reached 1,063,700 tonnes in January-July 2020, compared to 854,500 tonnes a year earlier. Five out of eight producers raised their capacity utilisation, with a new producer - ZapSibNeftekhim - accounting for the main increase in the output.
MRC

MOSCOW (MRC) -- More consolidation was expected in the European refining system post COVID-19 as operators had already been facing flat or falling demand and rising competition from new refineries in Asia, according to delegates at the S&P Global European Refining Virtual Conference Sept. 3.

"There will be some consolidation in the refining system in Europe," according to Adi Imsirovic, research associate at the Oxford Institute for Energy Studies.

As a result of the coronavirus pandemic, "we have lost 9 million barrels of demand," Imsirovic said, adding the immediate impact for a few simple refineries was that they "are worried about survival".

In the past few months, commodity trader Gunvor announced its intention to potentially mothball its refinery in Antwerp, while France's Total is likely to close its Grandpuits refinery near Paris and possibly transform it into a bioplastics plant.

Switching to biofuel plants and production of renewable fuels is one of the opportunities for European refiners, with Finland's Neste, Total and Italy's Eni already producing biodiesel at some of their plants.

While that was an opportunity, those "who enter first in this business will survive", according to Spyros Kiartzis, manager of new technologies and alternative energy sources at Greece's Hellenic Petroleum.

There were challenges, such as technological limitations and access to raw material, Kiartzis said.

In addition, the overall conversion capacity "is substantially smaller" than the original, said John Cooper, director general of FuelsEurope.

For refineries to "reinvent themselves and start producing green fuel" they will need help from the government, for which "there is a great opportunity", Imsirovic said. European refiners have "little or no government support" as opposed to the big refineries in Asia, Imsirovic said.

Combining refineries with petrochemical operations was another way to help put European refiners on an equal footing with petrochemically integrated big Asian refineries, according to the delegates at the conference.

"We have to identify high value markets, integrate with petrochemicals, find niche markets," Hellenic Petroleum's Kiartzis said, noting that European refiners have to compete with economies of scale and refiners with much bigger capacity.

However panelists noted that European refiners have an additional cost of some USD2-USD3/b due to carbon regulations which do not impact refineries in Asia.

According to Hellenic Petroleum's Kiartzis, the "carbon market is crucial, but should be equal to all players".

Due to the cost of carbon, European refiners were in a "very disadvantageous position compared with others", said Oxford Institute's Imsirovic.

Uncertainty in the wake of COVID-19 was posing further challenges, he said, adding the "key for survival" will be flexibility, including use of the cheapest feedstock and petrochemical integration. Such options, which could be the way forward for bigger refineries, might not be applicable to simple refineries, said Imsirovic.

But if inefficient refiners shut down, "we won't be able to cover our internal demand in 5-10 years," Hellenic Petroleum's Kiartzis said.

Furthermore the integration with petrochemical plants requires raw materials, such as naphtha, and "if you do not have enough refining capacity you cannot integrate".

Earlier this year, as MRC wrote before, 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.

And 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 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) -- ExxonMobil Corp’s 369,024 barrel-per-day (bpd) Beaumont, Texas, refinery continues restarting the large crude distillation unit (CDU) and coker, reported Reuters with reference to sources familiar with plant operations.

Exxon began restarting the 240,000-bpd Crude B CDU and 45,000-bpd coker on Tuesday, the sources said. The entire refinery was shut on Aug. 25 because of the threat from Hurricane Laura.

“Exxon Mobil continues to make progress restarting its Beaumont refinery,” said Exxon spokesman Jeremy Eikenberry. “We continue to conduct site assessments. We are communicating with federal, state and local emergency planning officials about our response to the impacts of the storm.”

Exxon planned to restart the refinery by sometime on Friday, the sources said.

Exxon restarted the 110,000-bpd Crude A CDU last Monday. The two CDUs break down crude oil into hydrocarbon feedstocks for all other production units.

The refinery is also restarting the 120,000-bpd gasoline-producing fluid catalytic cracker (FCC) and 80,000-bpd reformer.

Last Monday, Exxon also restarted the 65,000-bpd hydrocracker, 75,000-bpd reformer and 40,000 bpd hydrotreater.

As MRC informed earlier, ExxonMobil has put off for a year work on its refinery expansion in Beaumont, Texas. The expansion project is now slated to be online sometime in 2023, versus the original 2022 proposal. Bloomberg first reported the delay. ExxonMobil declined to confirm the story, noting that it does not comment on the status of individual projects. The company "is evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term as a result of market conditions caused by the COVID-19 pandemic and commodity price decreases," the company said in a statement.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Eneos Corporation (formerly known as JXTG Nippon Oil & Energy), has restarted its fluid catalytic cracker (FCC) unit following a planned outage, according to Apic-online.

A Polymerupdate source in Japan informed that, the company resumed operations at the unit on August 31, 2020. The unit was shut for maintenance in end-April, 2020.

Located at Kawasaki, Japan, the FCC unit has a propylene capacity of 150,000 mt/year.

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

As MRC reported earlier, JXTG Nippon Oil & Energy brought on-stream its FCC in Sendai on 14 August, 2020. The unit was shut for maintenance, on July 28, 2019.

According to MRC's DataScope report, 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.

Japan's largest refiner JXTG Nippon Oil & Energy was renamed ENEOS Corporation on 25 June, 2020, as part of a wider re-organization of the parent company JXTG Holdings. The move, which also involved renaming the parent company to ENEOS Holdings upon approval at its annual shareholders meeting in June 2020, comes as it strives to be a more comprehensive energy and materials company under its 2040 vision announced in May, 2019. JXTG Holdings was formed as a result of a merger between JX Holdings and TonenGeneral in April 2017. This followed the establishment of JX Holdings as a result of the merger between Nippon Oil and Nippon Mining Holdings in April 2010.
MRC

MOSCOW (MRC) -- DIC Corporation and DIC Group company Sun Chemical Corporation have entered into an agreement to establish a strategic partnership with DuPont aimed at expanding global sales of degassing modules for water treatment, as per DIC's press release.

Through this partnership, DIC grants DuPont exclusive sales rights for its large degassing modules for industrial water treatment applications with the goal of increasing sales in Asia, the United States and Europe. The intention is to boost sales of these devices to approximately twice the fiscal year 2019 level by fiscal year 2021.

DuPont maintains a globally leading portfolio of water purification and separation technologies, including ultrafiltration, reverse osmosis and ion exchange resins. As DIC’s customers in this field, including water treatment equipment manufacturers, often use its degassing modules in combination with DuPont products, this partnership will position the company to extend total solutions and services. Under the terms of the partnership, products for water treatment in DIC’s SEPAREL series will be marketed under DuPont’s Ligase brand name.

This partnership, which will involve DuPont Water Solutions, will apply exclusively to the water treatment market. The DIC Group will continue to manufacture SEPAREL membranes to leverage its unique degassing technology for applications in other markets, including jet inks.

“This is an incredible opportunity for DIC and DuPont to introduce a single water treatment solution for customers,” said Kaoru Ino, President and CEO, DIC Corporation. “One of our goals as an organization is to provide comfort to the world around us. One way to do that is through water safety. We’re excited to enter into a partnership with DuPont Water Solutions that will positively impact both the industry and individuals everywhere.”

“As a global leader in innovative water technologies, we are continually expanding our portfolio of high-quality solutions to help our customers purify, conserve and reuse water,” said HP Nanda, Global Vice President & General Manager, DuPont Water Solutions. “We look forward to working with Sun Chemical and DIC to better meet the needs of our customers focused on water treatment and reuse.”

“We’re extremely proud to be partnering with DuPont Water Solutions to bring an all-encompassing solution to the market,” said Mehran Yazdani, President, Advanced Materials, Sun Chemical Corporation. “This collaboration will allow our water treatment customers to be better served with a single sourced product solution that meets their requirements and expectations.”

As MRC wrote earlier, in December 2019, DIC Corporation announced that it had increased the annual polystyrene production capacity of its Yokkaichi Plant, in Yokkaichi, Mie Prefecture, to 216,000 metric tonnes, from 208,000 metric tonnes, by reinforcing the plant’s polystyrene production facility and optimizing processes. Investment was not disclosed. The Company has set a target for increasing annual sales of polystyrene by 10% from the fiscal year 2017 level by fiscal year 2023.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 225,870 tonnes in the first half of 2020, down by 8% year on year. PS consumption increased by 2% year on year in June 2020, totalling 39,590 tonnes.
MRC