REG announces major renewable diesel expansion in Louisiana

MOSCOW (MRC) -- Governor John Bel Edwards and president and CEO Cynthia “CJ” Warner of Renewable Energy Group (REG) announced a minimum USD825 million capital investment by REG to expand its renewable diesel refinery in Geismar, Louisiana, said Hydrocarbonprocessing.

With the investment, REG will retain 66 existing jobs and create 60 new direct jobs with an average annual salary of $45,000, plus benefits. Louisiana Economic Development (LED) estimates the project will result in another 321 new indirect jobs, for a total of 381 new jobs in the capital region and surrounding areas.

"Louisiana is recognized as a global leader in energy,” Governor Edwards said. “That’s an accomplishment we take great pride in, especially as we pursue lower greenhouse gas emissions through our Climate Initiatives Task Force. Attracting investments like REG’s low-carbon project shows Louisiana can be both an energy leader and a climate leader." Built with Gulf Opportunity Zone bonds in Geismar a decade ago, the former Dynamic Fuels refinery was acquired by REG in 2014. In addition to the REG Geismar renewable diesel refinery, REG has become the largest biodiesel producer by volume in the U.S., operating 11 biodiesel refineries in the U.S. and Germany. The new project will more than triple REG’s renewable fuel capacity in Geismar from 90 MM gallons per year to more than 340 MM gallons annually.

"REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” Warner said. “The State of Louisiana and Ascension Parish have been great partners who encouraged us every step along the way as we developed our expansion plan. They truly understand the broad economic and environmental benefits that renewable fuels provide, and we look forward to our continued partnership with them as we undertake this project."

Biorefineries differ from petroleum fuel refineries, in that they use recycled cooking oils, animal fats and other non-fossil feedstocks instead of crude oil. The outcome is a cleaner-burning fuel with a lighter impact on the atmosphere. Biodiesel is often blended as a drop-in fuel, typically at concentrations of up to 20 percent without engine modifications, while the renewable diesel made at Geismar can be used as a 100 percent renewable drop-in fuel.

“We are very pleased that REG has chosen to invest in their renewable diesel facility here in Geismar, expanding a product line that reduces tailpipe emissions and decreases the carbon footprint,” Ascension Parish president Clint Cointment said. “Additionally, the planned marine and rail infrastructure upgrades will allow for supplementary shipping methods, reducing the number of trucks on local roadways."

LED began discussions with REG about a potential refinery expansion in June 2020. To secure the project, the State of Louisiana offered the company a competitive incentive package that includes the comprehensive workforce solutions of the nation’s No. 1 state workforce program, LED FastStart®, and a $5 million performance-based grant, payable in equal installments over five years, to offset infrastructure costs. In addition, REG is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.

In Geismar, REG anticipates beginning construction of the biorefinery expansion in mid-to-late 2021 and completing the project in late 2023, with the majority of new employees hired that year.

Ethylene and propylene are feedstocks for producing 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

Pandemic pushes up cost of Norway oil and gas projects

MOSCOW (MRC) -- The COVID-19 pandemic has interrupted the development of Norway's offshore oil and gas projects, pushing up costs and postponing startups, the government and oil company Equinor announced, said Hydrocarbonprocessing.

The costs of ongoing projects rose by 13.2 billion Norwegian crowns (USD1.4 billion) from a year ago on an inflation-adjusted basis, government documents showed, as COVID-19 restrictions stalled construction at several fields. "The COVID-19 pandemic and weakened Norwegian (currency) have negatively impacted some of the projects, but the combined project portfolio is still very resilient," Equinor said in a separate statement.

Following the delays, Norway's oil output for next year is now expected to be 2.15 MM barrels per day (MMbpd), slightly less than the 2.24 MM predicted for 2021 one year ago, the government's budget showed. Gas production is expected to be 117 billion cubic metres (bcm), less than 121 bcm forecast a year ago.

Equinor's Martin Linge oil and gas field is now expected to cost 60.8 billion crowns, up from an estimate of 56.1 billion a year ago, Norway's 2021 fiscal budget showed. The company's Johan Castberg Arctic oilfield, meanwhile, is now expected to cost 53.4 billion crowns, up from 49 billion crowns previously, the government said.

Cost overruns also hit Equinor's Njord Future, Repsol's Yme and other developments. In March, the long-delayed Martin Linge development became the first offshore field to be hit by the pandemic when installation work was halted after an employee tested positive for the virus.

Half of the inflation-adjusted cost increase of 3.6 billion crowns for Martin Linge was down to infection control measures, Equinor said. The pandemic also interrupted construction of the Johan Castberg's floating production, storage and offloading unit (FPSO) at a yard in Singapore, while the company also discovered technical problems.

Both projects have been delayed by about a year, with Martin Linge now expected to come on stream in the summer of 2021 and Johan Castberg in the fourth quarter of 2023. The cost of the Njord Future project which aims to produce an extra 175 MM barrels of oil equivalent from Njord and its tie-back Hyme also rose and the planned startup date has been delayed until next year.

As a result, several smaller projects, which are planning to use the Njord's production facilities, such as Neptune Energy's Fenja, will also be delayed.

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

SABIC deepens collaboration with Bruckner to encourage circular material use in film manufacturing

MOSCOW (MRC) -- SABIC, a global leader in diversified chemicals, is pleased to announce its recent collaboration with a leader in film manufacturing technologies, Bruckner Maschinenbau, as per the company's press release.

This industry-leading innovation combines SABIC’s certified circular BOPP and BOPE materials with Bruckner’s world leading manufacturing technology for flexible packaging. The collaboration aims to encourage flexible packaging manufacturers to use SABIC’s TRUCIRCLE solutions for certified circular polypropylene (PP) and polyethylene (PE) to create more sustainable products.

The certified circular products from SABIC’s TRUCIRCLE portfolio are made from feedstock recycling of difficult to recycle post-consumer used plastics. Its certified circular BOPP polymer uses recycled material without compromising on quality. Meaning the performance of the film including the stiffness toughness balance, barrier properties and hot fill requirements are met, whilst meeting the food compliance standards, high product purity and safety requirements. This most recent combination of Bruckner and SABIC’s technological innovations has resulted in the creation of a unique platform to produce specialized BOPP (biaxially-oriented polypropylene) films. These films can be used for various flexible applications such as labels, tape and food packaging such as confectionary, snacks, baked good, dried fruits, pasta and fresh food packaging.

As the world-leading biax-film machine manufacturer, Bruckner tested SABIC’s certified circular BOPP material in their own technology center as a drop-in solution for biax-film applications. Trials demonstrated once again that BOPP films made from SABIC’s certified circular polypropylene is fully in line with industry’s need for more sustainability-focused solutions without any compromises on quality. The material’s processability and stretchability performance was shown to be on a parr with the best performing reference materials.

Dr. Stefan Seibel, Head of New Technologies, Bruckner Maschinenbau, said: “Flexible packaging converters are expanding their range of applications and offer a polypropylene which incorporates recycled content as a drop-in solution and viable alternative to existing biax-film lines, offering added sustainability benefits without affecting quality. This is a huge step forward in our journey towards closing the loop across the plastics value chain and working together to create a circular economy.”

Mark Vester, Circular Economy Leader at SABIC, said: “With Bruckner’s machinery and processing expertise, convertors can take full advantage of our innovative TRUCIRCLE solutions and integrate it into their flexible packaging. SABIC and Bruckner are working together to find further solutions to improve the recyclability of packaging films and enable manufacturers to create more sustainable products which will help to drive forward the circularity of our industry.”

SABIC’s TRUCIRCLE portfolio and services is a considerable milestone on the journey towards closing the loop and creating a circular economy for plastics. It showcases SABIC’s circular innovations and can help manufacturers reduce plastic waste by using more sustainable materials. The TRUCIRCLE portfolio spans design for recyclability, mechanically recycled products, certified circular products from feedstock recycling of used plastic and certified renewables products from bio-based feedstock.

Bruckner and SABIC have previously collaborated to create more sustainable materials for the packaging industry. In 2019, both companies worked together to successfully introduce BOPE films into the market. These films are based on raw material developments, which offer completely new possibilities for the film and packaging industry. Currently there is a strong need to develop mono-material PE based flexible packaging to fit with existing collection and recycling operations. This collaboration has demonstrated a positive step to contribute to these needs.

As MRC informed before, SABIC has recently launched a sustainable packaging solution for frozen food which combines a new PE grade with innovative film production technology. Compared to conventional blow PE film solutions, it offers significantly higher throughput and also has potential for down-gauging, making it attractive from both a commercial and sustainability standpoint.

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.

Saudi Basic Industries Corporation (Sabic) ranks among the world"s top petrochemical companies. The company is among the world"s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

Hurricane Delta to reach northern USGC Friday

MOSCOW (MRC) -- Hurricane Delta is on track to reach the US Gulf Coast (USGC) between High Island, Texas, northeast of Houston, and Grand Isle, Louisiana, south of New Orleans, Friday, according to Chemweek with reference to the US National Hurricane Center (NHC).

Located north of Mexico’s Yucatan Peninsula Wednesday afternoon, the storm is forecast to strengthen as it heads north toward the heart of the US petrochemical industry.

At 2 p.m. ET, Delta was passing over the northern coast of Mexico's Yucatan Peninsula, with maximum winds near 100 mph, making it a category 2 hurricane. The storm is moving northwest at 17 mph, according to the NHC.

"Delta is expected to grow in size as it approaches the northern Gulf Coast, where there is an increasing likelihood of hurricane-force winds beginning Friday, particularly for portions of the Louisiana coast," the NHC said in its latest advisory.

According to meteorologists at the Washington Post's Capital Weather Gang, Delta could be a Category 2 or 3 hurricane when it slams onshore US soil, and it may have a serious impact on some of the beleaguered parts of southwest Louisiana that were hit hard by Hurricane Laura, a category 4 storm, in late August.

On Tuesday, Delta was briefly a Category 4 hurricane before it grazed the coastline of northern Yucatan Peninsula.

According to the US Energy Information Administration's latest Energy Disruptions map, Delta could make landfall along the Texas-Louisiana coastline between Port Arthur, Texas; and Morgan City, Louisiana, in an area where about half a dozen US refineries are located, including Valero's 415,000-b/d Port Arthur refinery; ExxonMobil's 539,000-b/d refinery in Baton Rouge, Louisiana; Phillips 66's 269,140-b/d Alliance refinery in Belle Chasse, Louisiana; and CITGO's 440,000-b/d Lake Charles, Louisiana, refinery.

On Wednesday, Phillips 66 said a complete restart of its 440,000-b/d Lake Charles refinery has been temporarily delayed until the storm passes. Reliable electricity has only recently been restored to the facility following Hurricane Laura. Also, the Alliance refinery will stay down as previously announced for planned maintenance.

BP said in its latest storm update Wednesday it has begun evacuating personnel from its platforms and assets and is beginning to shut-in production.

In addition, the four Mobile offshore drilling units contracted to BP are in the process of securing their wells.

Shell said in a storm update that it is closely monitoring Delta as it approaches the company's production facilities in Covent, Geismar, and Norco in Louisiana.

A Valero spokeswoman said the company is monitoring Delta as it assesses its Gulf Coast refining operations.

Delta is set to become the tenth tropical storm or hurricane to make landfall in the mainland US this year, breaking the record set in 1916. It would also be the fifth hurricane out of those US landfalls, according to Weather.com.

As MRC reported earlier, strengthening hurricane Delta forced the closure of 29.2% of offshore crude oil production in the US-regulated northern Gulf of Mexico by midday Tuesday, regulator US Bureau of Safety and Environmental Enforcement (BSEE).

Ethylene and propylene are feedstocks for producing 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

Trinseo raises October PS, ABS, and SAN prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of 5 October.

Effective October 1, 2020, or as existing contract terms allow, the contract and spot prices for the products listed below rose as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR75 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR75 per metric ton;
- MAGNUM ABS resins - by EUR50 per metric ton;
- TYRIL SAN resins - by EUR30 per metric ton.

As MRC informed before, Trinseo last raised its prices for all PS, ABS and SAN grades on 1 September 2020, as stated below:

- STYRON GPPS -- by EUR30 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR30 per metric ton;
- MAGNUM ABS resins - by EUR35 per metric ton;
- TYRIL SAN resins - by EUR30 per metric ton.

According to ICIS-MRC Price report, October prices of Russian PS continued their upward trend. A shortage of material remained in the domestic market. Traders said Nizhnekamskneftekhim reduced its offer prices for this month's PS purchases to 40%. October prices of Nizhnekamskneftekhim's GPPS grew for the agreed with buyers quantities to Rb89,000-95,000/tonne CPT Moscow, including VAT, whereas HIPS - to Rb93,000-99,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC