Dow and Luhai announce partnership to increase the circularity of plastics in China

MOSCOW (MRC) -- Dow and Luhai, an integrated waste management company located in Xiamen, China, have announced their collaboration to give plastics waste collected by Luhai a second life, thereby increasing the circularity of plastics in China, as per Dow's press release.

The agreement is in line with Dow’s new sustainability targets to Stop the Waste by enabling one million metric tons of plastic to be collected, reused or recycled through its direct actions and partnerships by 2030.

Aside from its long history of recycling beverage cartons, Luhai’s waste management operation is focused on collecting and recycling various kinds of post-consumer plastics from waste collected in China. They are currently actively collecting plastic waste from local communities in Xiamen city in Fujian province, with plans to expand to other cities across the country.

Through this strategic partnership, Dow will use its expertise in materials science and application development to create new circular plastic solutions for the Asia Pacific market with from the plastic waste collected by Luhai.

“Plastic waste is one of the most important environmental concerns in Asia, however we can solve this important issue as waste plastic is a valuable resource that can be transformed into new products. We are aggressively tackling the issue by joining efforts with partners to create new applications and value-add to this important material,” said Bambang Candra, Asia Pacific commercial vice president for Dow Packaging & Specialty Plastics. “We are delighted to have Luhai as our recycling partner as we make significant progress toward achieving our shared vision to close the plastics waste management loop and affect much needed change together.”

Dow’s goal is to divert plastic waste from the environment and protect the ecosystems that local communities depend on. With this collaboration, Dow aims to demonstrate the value of recycled plastics by putting them to use in different packaging applications and ultimately, increase the collection and recycling of post-consumer plastics in the local communities.

“As a pioneer in the waste recycling sector in China for twenty years, we are committed to turning plastic wastes into high-value products and enabling the waste management value chain to give plastics a second life, thus accelerating the development of China’s “Zero Waste” city,” said Jennifer Jiang, President, Luhai. “We are pleased to partner with Dow to explore using plastic waste in innovative ways as a long-term environmentally friendly solution for our industry while we further our sustainability objectives.”

Partnering with organizations along the value chain that are already in the waste management and recycling business is key to advancing a circular economy for plastics. By working together with Luhai, Dow strives to help reduce plastic waste in China by giving new end-of-life use to plastics that would otherwise have ended up in the environment or landfill.

As MRC reported earlier, Dow said its sites along the US Gulf Coast reported no major damage from Hurricane Laura. Dow’s sites in Sabine, Beaumont, Deer Park, La Porte, Bayport and Texas City, Texas shut down operations prior to Laura making landfall. Dow's Freeport, Texas site continued operating as did facilities across Louisiana. Dow said it has not identified any significant structural damage or flooding at any of the facilities.

We remind that Dow Chemical conducted a 45-day scheduled maintenance at its propane dehydrogenation (PDH)unit in Freeport, Texas, from 8 July, 2020. This PDH unit has the capacity of 750,000 mt/y of propylene.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

Oil prices rise after OPEC meets; Libyan developments limit gains

MOSCOW (MRC) -- Oil prices edged higher on Friday, bolstered by bullish signals from the recent OPEC meeting, but gains were limited after a Libyan commander said a blockade on the country's oil exports would be lifted for a month, reported Reuters.

Both US crude and Brent were set for weekly gains after Saudi Arabia pressed allies to stick to production quotas, Hurricane Sally cut US production, and banks including Goldman Sachs predicted a supply deficit. Brent was set for a weekly rise of 9%, and WTI was on track to rise 11%.

Brent crude was up 1 cent to USD43.31 a barrel by 11:20 a.m. EDT (1520 GMT), while US oil futures rose 26 cents to USD41.23 a barrel.

Prices retraced some gains after eastern Libyan commander Khalifa Haftar announced he would lift his blockade of oil output for one month. The blockade slashed Libyan production to just over 100,000 barrels per day (bpd) now from around 1.2 million bpd previously.

It was unclear how quickly Libya could ramp up production.

On Thursday, the key panel for the Organization of the Petroleum Exporting Countries and its allies pressed for better compliance with oil output cuts against the backdrop of falling crude prices.

Saudi Arabia's Prince Abdulaziz bin Salman told a gathering on Thursday that the OPEC+ producer group could hold an extraordinary meeting in October if the oil market soured because of weak demand and rising coronavirus cases, according to an OPEC+ source.

"The alliance showed strength and reassured the market that if further action will be needed to discipline sub-compliers and balance the market, it would be taken," said Bjornar Tonhaugen, Rystad Energy's head of oil markets.

Goldman Sachs predicted a market deficit of 3 million bpd by the fourth quarter and reiterated its target for Brent to reach USD49 by year end and USD65 by the third quarter of 2021.

Swiss bank UBS also pointed to the possibility of under supply, forecasting Brent would rise to USD45 a barrel in the fourth quarter and to USD55 by mid-2021.

In the Gulf of Mexico, US producers started rebooting rigs following a five-day closure due to Hurricane Sally.

A tropical depression in the western part of the Gulf of Mexico could become a hurricane in the next few days, potentially threatening more oil facilities.

As MRC informed earlier, global oil refiners reeling from months of lackluster demand and an abundance of inventories are cutting fuel production into the autumn because the recovery in demand from the impact of coronavirus has stalled, according to executives, refinery workers, and industry analysts. Refiners cut output by as much as 35% in spring as coronavirus lockdowns destroyed the need for travel. As lockdowns eased, refiners increased output slowly through late August. But in top fuel consumers the United States and elsewhere, refiners have been decreasing rates for the last several weeks in response to increased inventories, a sustained lack of demand, and in response to natural disasters.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

Texas refineries, including largest, to keep running during weakened storm Beta

MOSCOW (MRC) -- Texas Gulf Coast refineries, including the nation’s largest, plan to maintain normal operations through the passage of weakened Tropical Storm Beta, which is forecast to keep losing strength after coming ashore on Tuesday, said Hydrocarbonprocessing.

Motiva Enterprises’ 607,000-barrel-per-day (bpd) Port Arthur, Texas, refinery, the country’s largest, plans to maintain operations this week, just one week after restarting from Hurricane Laura, said sources familiar with plant operations. Motiva said operations were normal at the refinery on Monday and the company was monitoring the storm for possible developments.

Valero Energy Corp and Total SA plan to keep their Port Arthur refineries in operation. Valero restarted the gasoline-producing unit on Saturday at its 335,000-bpd Port Arthur refinery, sources told Reuters. Valero shut the refinery for Laura on Aug. 25.

Total has advised night-shift workers to bring overnight bags in case heavy rains from Beta cause flooding that leaves them trapped in the 225,500-bpd refinery, said sources familiar with plant operations.

The refinery continues to restart following the Aug. 25 shutdown from Laura. Total spokeswoman Marie Maitre said the refinery had activated its severe weather preparation plan. Phillips 66 said operations were normal at its 265,000-bpd Sweeny, Texas, refinery on Monday.

Lyondell Basell Industries' Houston refinery, Chevron Corp's Pasadena, Texas, refinery, Royal Dutch Shell Plc's Deer Park, Texas, refinery and Exxon Mobil Corp's Baytown, Texas, refinery all plan to keep operating, said sources familiar with operations at the plants.

An Exxon spokesman said operations were normal at Baytown on Monday. Lyondell is monitoring the storm, said a company spokeswoman.

Marathon Petroleum Corp plans to continue normal operations at its 585,000 bpd Galveston Bay refinery in Texas City, Texas, the second-largest refinery in the United States. Marathon spokesman Sid Barth declined to discuss the refinery’s operations.

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

Hempel breaks ground on coatings plant in China

MOSCOW (MRC) -- Danish coatings company Hempel has broken ground on a new 200,000 tonne/year plant at the Yangtze International Chemical Industrial Park in Zhangjiagang, China, said the company.

Production is due to start in 2022, when the plant will replace an existing facility at Kunshan. It will produce various coating types, including: high-solids, solvent-free, waterborne, antifouling. Together with another coatings project at Yantai, Hempel expects to invest a combined USD270m to expand its production capacities in China, it said.

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Hempel is a global company with strong values, working with customers in the protective, marine, decorative, container and yacht industries. Hempel factories, R&D centres and stock points are established in every region. Across the globe, Hempel’s coatings protect surfaces, structures and equipment. They extend asset lifetimes, reduce maintenance costs and make homes and workplaces safer and more colourful. Hempel was founded in Copenhagen, Denmark in 1915. It is proudly owned by the Hempel Foundation, which ensures a solid economic base for the Hempel Group and supports cultural, social, humanitarian and scientific purposes around the world.
MRC

Petrobras opens rebidding for its fifth largest refinery in Brazil

MOSCOW (MRC) -- Brazilian oil company Petrobras said on Monday it will open another round of bidding for its Repar refinery in the state of Parana after receiving binding offers that were too similar in value, reported Reuters.

Repar is Brazil's fifth largest refinery, able to process 208,000 barrels per day, or 9% of the country's capacity.

Petrobras has been trying to sell refineries since at least 2012 with no success, and still produces more than 98% of fuels in Brazil.

The new round starts as Brazil's Supreme Court considers blocking Petrobras' sale of Repar and other refineries, with justices set to rule on the matter by Friday.

Petroleo Brasileiro SA, as the state-controlled company is formally known, must follow specific legislation aimed at keeping asset sales competitive, including that bids be different. Sales also fall under scrutiny of governmental entities.

The company considered the offers low and is asking bidders to raise their prices for the Parana state refinery, according to two people involved in the negotiations who declined to be named as information is private.

Even if the Supreme Court approves the sales, Petrobras doesn't rule out keeping the asset if prices don't meet the minimum range set by its internal technical team, the people said.

Petrobras said in a statement on Monday that three separate groups led by Ultrapar, Raizen and China's Sinopec are part of this phase of the competition. The producer did not give any details about the companies' bids. The prices are highly secret in this phase of the competition.

Lack of buyers for fear of fuel price interference, restrictions by an audit court and anti-privatization movements have prevented sales in the past. More recently, Congress and the Supreme Court have also raised impediments.

The winner of this phase of the Repar competition would be able to exclusively negotiate the contract terms with Petrobras, a process which can take months.

According to Petrobras' internal rules, if the contract terms substantially change after the negotiation, which often happens, the oil company would need to call back competitors for a third round of bids, based on price only.

As MRC reported previously, Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July. She said during the companyпїЅs recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras"s stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the companyпїЅs stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem"s back burner for several years.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras" activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC