Total and LanzaTech produce plastic bottle from industrial emissions

MOSCOW (MRC) -- LanzaTech (Skokie, Illinois), Total (Paris, France), and L’Oreal (Clichy, France) announced on Tuesday that they have produced a plastic bottle made from industrial carbon emissions, according to Chemweek.

The process involved LanzaTech converting captured industrial emissions into ethanol in a biological process. Total then dehydrated the ethanol to produce ethylene in a process developed in partnership with IFP Axens. The ethylene was then polymerized into polyethylene (PE) used by cosmetics giant L’Oreal.

“It is a technological and industrial success proving that industrial carbon emissions can be used to produce plastic packaging,” the companies say in a joint statement. “This world first demonstrates the commitment of the three partners to the development of a sustainable circular economy for plastics and paves the way for new opportunities for the capture and reuse of industrial carbon emissions.”

The three partners plan to scale production and “look forward to working with all those who want to join them in committing to the use of these new sustainable plastics.”

As MRC reported earlier, Total has agreed to sell its Lindsey refinery in the UK to fuel trader and marketer Prax Group, as the French oil major focuses on its integrated downstream assets and the coronavirus adds to the uncertainty over long-term demand for fuel.

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

1. Chemicals maker Covestro Q3 profit beats on cost-cutting, demand recovery

MOSCOW (MRC) -- German chemicals maker Covestro reported a better-than-expected third-quarter profit on Tuesday, citing cost-cutting measures, improved volumes in Asia-Pacific and demand recovery after a coronavirus-induced slump, said Reuters. In the second quarter, the company had managed an unexpectedly swift rebound from a pandemic-related slowdown and finance chief Thomas Toepfer had said the trend would continue into the last months of the year. “In the third quarter, demand from our customer industries experienced a strong rebound,” Chief Executive Markus Steilemann said in a statement on Tuesday.

MRC

MOSCOW (MRC) -- The French government will stop providing export guarantees to projects involving dirty forms of oil from next year, all oil in from 2025 and gas in from 2035, reported Reuters with reference to the finance ministry's statement earlier this month.

France stopped giving export guarantees this year to projects where fracking and flaring were involved and also stopped support for coal projects.

In a second step, guarantees would be halted next year for projects involving heavy oil, shale oil and bitumen oil sands, affecting the creation of up to 700 new jobs, the ministry said in its proposal to parliament.

From 2025, public export guarantees would no longer be provided for the exploration and development of new oilfields, potentially at a cost of 1,800 jobs, followed by new gas fields from 2035, which could affect 3,000 jobs.

The ministry said the later date for gas was because that could help some countries with the transition to cleaner forms of energy.

It also proposed scrapping export guarantees for thermal power stations with emissions higher than the national median of the benefiting country from 2021.

The proposals will be submitted to parliament in the 2021 budget bill being considered by lawmakers.

As MRC wrote before, in mid-October, 2020, Russian oil pipeline monopoly Transneft and producer Rosneft reached a settlement with Total over dirty oil supplies to the French company’s Leune refinery in Germany. 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.

We remind that 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 also 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.
MRC

MOSCOW (MRC) -- Showa Denko decided at its Board of Directors' meeting today to split its business in optical semiconductors and rare earth alloys through an absorption-type company split effective January 1, 2021 (hereinafter "the Company Split"), said Chemweek.

Showa Denko Photonics Co., Ltd., a wholly-owned subsidiary of SDK, will succeed to the business. As the Company Split is to be implemented through a simplified absorption-type company split between SDK and its wholly-owned subsidiary, part of details is omitted in this disclosure.

Objective of the Company Split. In its medium-term business plan "The TOP 2021," SDK aims to establish itself as a "KOSEIHA Company," which means a group of KOSEIHA businesses that can maintain their profitability and stability at high levels over a long period. The optical semiconductor business is classified as one of the "Grow" businesses under the plan. SDK aims to expand the business in this growth market by providing products and technologies meeting customer needs, thereby developing it into one of its KOSEIHA businesses.

To achieve this goal, SDK will make the business an operating company, increasing the speed of decision-making and sharing of the latest market information. By focusing on the growing business in infrared light-receiving/emitting devices, we will meet customers' requirements, taking advantage of our industry-leading product quality and customizing capability.

As per MRC, Showa Denko K.K. in March 2018, it stopped production at a cracking unit in Oita (Oita, Japan) for preventive maintenance. Maintenance at this enterprise with a capacity of 691 thousand tons of ethylene per year continued until April 19, 2018.

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

MOSCOW (MRC) -- ADNOC announced the award of contracts worth USD324 million (AED 1.19 billion) to optimize onshore field operations and enhance efficiencies as it continues to invest responsibly to drive smart growth, said Worldoil.

ADNOC Onshore, a subsidiary of ADNOC, awarded the three contracts which will see the procurement and construction of flowlines and wellhead installations across several onshore oil fields in the Emirate of Abu Dhabi. The contracts also include the engineering, procurement, and construction (EPC) of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals.

The contracts were awarded to Galfar Engineering and Contracting (WLL – Emirates) and Robt Stone (Middle East LLC). Over 70% of the combined award value will flow back into the United Arab Emirates’ (UAE) economy under ADNOC’s In-Country Value (ICV) program, reinforcing ADNOC’s commitment to maximizing value for the nation.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “These awards further highlight ADNOC’s drive to invest responsibly to unlock greater value from our assets and resources and build long-term resilience as we deliver our 2030 strategy. The contracts follow a competitive tender process that ensures that substantial value will flow back into the UAE through our ICV program, reinforcing ADNOC’s commitment to supporting local business and stimulating the growth and diversification of the nation’s economy."

As part of the selection criteria for the awards, ADNOC carefully considered the extent to which bidders would maximize ICV in the delivery of the project. This is a mechanism integrated into ADNOC’s tender evaluation process, aimed at nurturing new local and international partnerships and business opportunities, fostering socio-economic growth, and creating job opportunities for UAE nationals. The successful bids by the two contractors prioritized UAE sources for materials, local suppliers, and workforce.

Omar Obaid Al Nasri, CEO of ADNOC Onshore, said: “These contracts build on the momentum of our recent awards for upgrades on the Jebel Dhanna terminal and underline our commitment to unlocking the full potential of our assets and fields to deliver increased value for our shareholders and contribute to ADNOC’s objective to create a more profitable upstream business. The award for flowlines and wellhead installations will help sustain long-term production at our Bab, Asab, and Sahil fields while the award for the bypass system will provide critical backup for the existing crude receiving station connecting our fields and export terminals, to ensure business continuity and resilience."

The two PC contracts awarded for flowlines and wellheads are split into two parts. The first contract, valued at approximately USD71 million (AED 261.2 million), is awarded to Galfar Engineering & Contracting (WLL - Emirates). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Asab and Sahil fields.

The second contract, valued at approximately USD168 million (AED 618.2 million), is awarded to Robt Stone (Middle East LLC). The contractor will procure and construct flowlines and wellhead installations for the ADNOC Onshore Bab field. The scope of work includes residual engineering, procurement, construction, pre-commissioning, and commissioning of natural oil producer wells and water injection wells at the respective fields. Both contracts are expected to be completed in five years.

The third contract, the EPC awarded to Galfar Engineering and Contracting (WLL – Emirates), is valued at approximately USD84 million (AED 309.1 million). It will create a new bypass system to provide critical backup for ADNOC Onshore’s existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals. The project is expected to be completed in 30 months.

As MRC informed earlier, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said. And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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