Henkel invests in US advanced materials firm

MOSCOW (MRC) -- Henkel says that its adhesive technologies business is investing in Actnano (Boston, Massachusetts), an advanced materials startup that provides tailored conformal coatings technology for the protection of printed circuit boards in a variety of applications in growing electronics segments, said Chemweek.

With this investment, Henkel's adhesive technologies segment will expand its expertise for functional coating solutions in automotive electronics and consumer electronics, it says. No further details about the investment, or the amount, have been disclosed.

Actnano has developed a commercialized technology for gel-based coatings with comprehensive waterproofing and environmental resistant properties, Henkel says. The technology is hydrophobic, electrically insulating, and allows electrical connection through the coating, it says. Together with Henkel, the startup aims to further optimize waterproofing properties for tailored products in target markets and to scale up the technology worldwide, it says.

As MRC informed earlier, Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that Henkel Adhesives Technologies has officially inaugurated its new production facility in Kurkumbh, India.

Henkel are also partnering with Borealis and plastics solutions company Borouge to develop flexible packaging solutions for detergents containing both virgin polyethylene (PE) and high amounts of post-consumer recyclate (PCR) in efforts to increase sustainability.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Total investing over EUR500 mln to convert its Grandpuits refinery into biofuels and bioplastics plant

MOSCOW (MRC) -- Within the framework of its net zero strategy, Total will convert its Grandpuits refinery (Seine-et-Marne) into a zero-crude platform and will invest more then EUR500 mln into this project, as per the company's press release.

By 2024 the platform will focus on four new industrial activities: production of renewable diesel primarily intended for the aviation industry, production of bioplastics, plastics recycling and operation of two photovoltaic solar power plants.

Meanwhile, crude oil refining at the platform will be discontinued in the first quarter of 2021 and storage of petroleum products will end in late 2023. Operations at service stations and airports in the Greater Paris region will not be affected: they will be supplied by the refineries at Donges - currently undergoing a EUR€450 million modernization - and Normandy.

This decision to end its oil refining comes in the wake of an audit conducted over several months on the 260-kilometer Ile-de-France pipeline (PLIF), which carries crude oil from the Port of Le Havre to the Grandpuits refinery.

The refinery was forced to shut down for more than five months in 2019 when a leak appeared on the PLIF, following an earlier leak near Le Havre in 2014. With the approval of government officials, the PLIF’s maximum working pressure was reduced to ensure safe operation. As a result, the refinery could operate at only 70% of its capacity, threatening its long-term financial viability.

The audit found that normal operations at the refinery could be restored only by replacing the PLIF, at a cost of nearly EUR600 million. Given France’s plans for the energy transition up to 2040, therefore, Total has decided to end its oil refining at Grandpuits and embark on an industrial transformation of the site, backed by a major investment plan.

“With the industrial repurposing of the Grandpuits refinery into a zero-crude platform focused on energies of the future connected with biomass and the circular economy, Total is demonstrating its commitment to the energy transition and reaffirming its ambition to achieve carbon neutrality in Europe by 2050,” says Bernard Pinatel, President of Total Refining & Chemicals. “Grandpuits will remain a major industrial site drawing on the know-how and expertise of its teams, and our partner firms will be playing a key role as well.”

As MRC wrote before, French energy major Total said in April that its joint USD5 billion petrochemical project with Saudi Aramco in the Saudi city of Jubail would not be hit by planned cuts in investment, although the partners were focused on controlling costs.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

Crude oil futures maintain overnight losses on fear of supply glut

MOSCOW (MRC) -- Crude oil futures were steady during mid-morning Asian trade Oct 13, maintaining overnight losses, as production capacity in the US Gulf of Mexico started to come back online, heightening concerns of a supply glut amid an unimproved demand outlook, reported S&P Global.

At 10.25 am Singapore time (0225 GMT) ICE Brent December crude futures were up 1 cent/b (0.02 %) from the Oct. 12 settle to USD41.74/b, while the NYMEX November light sweet crude contract was up 2 cents/b (0.05%) at USD39.45/b. Both international crude markets had dived 2.64% and 2.88% to settle at USD41.72/b and USD39.43/b, respectively, on Oct. 12, after supply disruptions caused by a Norwegian labor strike and a hurricane in the US Gulf of Mexico were resolved.

In the US Gulf of Mexico, after the dissipation of Hurricane Delta, oil and gas producers have begun resuming production, and have thus far found little serious damage to their infrastructure, S&P Global Platts reported on Oct. 12.

According to data by the US Bureau of Safety and Environmental Enforcement, over 400,000 b/d of offshore crude production was back online as of Oct. 12, after Delta had shuttered 91%, or 1.697 million b/d, of production capacity on Oct. 10.

"The crude oil market was under pressure from easing supply concerns. BHP and Chevron said they would begin restoring operations at the US Gulf oil platforms affect by Hurricane Delta. The storm had shut about 90% of oil production in the gulf, but the region appears to have sustained little damage," an ANZ analyst said in an Oct. 13 note.

On a slightly bullish note, due to the shut-downs necessitated by Delta, analysts surveyed by Platts expect a US commercial crude inventory draw of 2.3 million barrels in the week ended Oct. 9. Such a draw would bring total commercial inventories down to about 490.6 million barrels, putting them only 11.9% above the five-year average of US Energy Information Administration data -- the tightest overhang since May.

Regardless, the upcoming return of barrels from the US Gulf of Mexico could lead to a supply glut in the oil markets, especially since it coincides with Libya's National Oil Corp lifting the force majeure on the Sharara oil field -- the country's largest with a 300,000 b/d capacity -- equivalent to current Libyan production combined.

"The Libyan Oil supply's permanency is proving to be one of the biggest headaches for OPEC and oil bulls alike," Stephen Innes, chief market strategist at AXI, said in an Oct. 13 note.

Meanwhile, the resurgent coronavirus pandemic continues to threaten renewed lockdown restrictions, which will impede global economic recovery and sap oil demand.

Edward Moya, senior market analyst at OANDA, said in an Oct. 13 note: "Energy markets are looking beyond hurricane season and (are) focused on the glut concerns as the demand outlook appears vulnerable to restrictive measures since the northern hemisphere can't get the virus under control before the dreaded winter wave."

As MRC wrote before, Sasol Ltd. said its Lake Charles Chemicals Project in Louisiana remains shut, though no apparent damage to equipment was found following the nearby landfall of Hurricane Delta. While a preliminary assessment is underway, crews also indicated no flooding damage was experienced at the site from the hurricane that hit on Oct. 9, the company said in a reply to questions. Some power supply was lost overnight. “We will resume the coordinated startup sequence of Sasol’s Lake Charles facilities when it is safe to do so,” the company said. “Start-up will depend on the availability of electricity and other feedstocks as well as the restoration process underway from Hurricane Laura.”

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Infinite Power signs agreement with Marubeni to use power cell technology

MOSCOW (MRC) -- Britain's Infinite Power announced it has signed a letter of intent with Marubeni's Nuclear Fuel Dept of Japan to seek potential markets to use the firm's power cell technology in Japan, said Reuters.

Infinite Power has developed power cells which operate in a similar way to solar cells, but instead of converting the sun's rays into electricity Infinite Power's cells convert the radiation wave emitted from a radioisotope, which is an atom that has excess nuclear energy, into electricity.

Inifinite Power said last month it was seeking to raise 25 million pounds (USD32 million) to construct its first production facility in Britain to make the power cells to provide clean energy to industry.

Discussions are ongoing with investors in the United States and Britain, the firm said.

As per MRC, Enterprise Products Partners LP (EPP), through one of its affiliates, has entered a long-term agreement with Marubeni Corp. of Japan, under which Marubeni will offtake polymer-grade propylene (PGP) produced from a second propane dehydrogenation plant (PDH 2) currently under construction at EPP’s operations in Mont Belvieu, Tex., for supply to global customers.

We remind that Russia's output of products from polymers grew in August 2020 by 4.1% year on year. However, this figure increased by 1.9% year on year in the first eight months of 2020, reported MRC analysts. According to the Russian Federal State Statistics Service, August production of unreinforced and non-combined films rose to 126,300 tonnes from 118,200 tonnes a month earlier. Output of films products grew in January-August 2020 by 8.3% year on year to 863,200 tonnes. August production of non-porous polymer boards, sheets and films exceeded 38,700 tonnes versus 36,400 tonnes in July. Thus, overall output of these products reached 271,900 tonnes over the stated period, up by 3.5% year on year.
MRC

Russian companies settle row with Total over dirty oil supplies

MOSCOW (MRC) -- Russian oil pipeline monopoly Transneft and producer Rosneft have reached a settlement with Total over dirty oil supplies to the French company’s Leune refinery in Germany, Transneft said, as per Reuters.

Up to 5 MM tons of Russian oil in route to central Europe via the Druzhba pipeline were found to be contaminated last year. Total declared a force majeure in June 2019 on the production of jet fuel at its Leuna refinery in Germany following the supply of contaminated crude from Russia.

Transneft did not disclose how much compensation would be paid to Total. The pipeline operator, headed by Nikolai Tokarev, a close ally of Russian President Vladimir Putin, had said it would pay compensation of no more than $15 per barrel.

It had been agreed that buyers such as BP, Shell , Total, Eni and PKN Orlen would put forward claims to Russian suppliers, while Transneft agreed to bear the brunt of the contamination-related costs. Russian exporters, such as Rosneft, would then address buyers’ claims to Transneft for compensation.

Transneft has compensated Hungary’s MOL and all the Kazakh companies affected by crude oil contamination in its pipelines. Organic chlorides were found in Urals crude export flows in late April last year.

As MRC informed earlier, PJSC Tatneft’s Tatneftegazpererabotka (UTNGP) is adding a new unit as part of an ongoing modernization program at its Minnibayevo gas processing plant (MGPP) in Tatarstan’s Almetyevsk region. Recently approved for its permit to build, the project includes construction of a normal butane (n-butane) processing unit and associated off-site installations within the boundaries of the existing MGPP complex.

We remind that Russia's output of products from polymers grew in August 2020 by 4.1% year on year. However, this figure increased by 1.9% year on year in the first eight months of 2020, reported MRC analysts. According to the Russian Federal State Statistics Service, August production of unreinforced and non-combined films rose to 126,300 tonnes from 118,200 tonnes a month earlier. Output of films products grew in January-August 2020 by 8.3% year on year to 863,200 tonnes. August production of non-porous polymer boards, sheets and films exceeded 38,700 tonnes versus 36,400 tonnes in July. Thus, overall output of these products reached 271,900 tonnes over the stated period, up by 3.5% year on year.
MRC