Siemens Energy partners with Linde Engineering to accelerate decarbonization efforts

MOSCOW (MRC) -- The downstream oil and gas industry is under intense pressure to improve efficiency, reduce greenhouse gas (GHG) emissions, comply with strict environmental regulations, and demonstrate that it can be part of a sustainable future. At the same time, plant operators face the ever-present challenge of lowering costs and maintaining profitable operations. To help the industry meet these demands, Siemens Energy and Linde Engineering have entered into a strategic partnership, according to Hydrocarbonprocessing.

As part of the collaboration agreement, the two companies will leverage their complementary portfolios and competencies to investigate, develop, and optimize technology and equipment packages to enhance the sustainability and performance of petrochemical facilities (brownfields and greenfields).

The companies will jointly conduct studies that explore how Siemens Energy’s and Linde Engineering’s technologies can be combined to facilitate the decarbonization of petrochemical plants through emissions reductions and increases in energy efficiency - for example, by optimizing the consumption of power and steam.

Particular areas that will be evaluated include, but are not limited to, the use of Siemens Energy’s products, including gas turbines, steam turbines, compressors, and generators with Linde Engineering’s steam cracker technology and related processes for olefin production, purification, and separation. The companies will also explore how renewable technologies and energy storage can be leveraged to support customers’ decarbonization initiatives. Other key performance areas that will be targeted for improvement include plant availability and uptime, maintenance, OPEX and CAPEX, and regulatory compliance.

“The core competencies and technology portfolios of Siemens Energy and Linde Engineering are highly complementary,” said Thorbjoern Fors, executive vice president for Siemens Energy Industrial Applications. “Our experience in designing and building low-emissions energy systems, coupled with Linde Engineering’s expertise in steam cracker technology and other downstream processes, will enable us to unlock tremendous value for petrochemical customers, who are under intense pressure to reduce costs and decarbonize.”

“The partnership builds on the longstanding and trustful business relationship that Siemens and Linde Engineering have maintained for decades,” said John van der Velden, senior vice president Global Sales & Technology at Linde Engineering. “It represents a key step in helping the industry drive toward a more sustainable, profitable future and in offering our customers a more efficient solution for ethylene production.”

As MRC informed earlier, in late October, 2020, Siemens Smart Infrastructure and WUN H2 GmbH signed a contract to build one of the largest hydrogen production plants in Germany. It will be built in Wunsiedel in the north of Bavaria. With a power intake of six megawatts in the initial development phase, the plant will run solely on renewable energy and will be CO2-free. The electrolysis plant from Siemens Energy will have the capacity to produce over 900 tons of hydrogen per year in this first phase. When fully expanded, it will be able to supply up to 2,000 tons. Groundbreaking is scheduled for the end of this year and commissioning at the end of 2021.

We remind that in mid-October, 2020, Linde GmbH and Shell announced an exclusive collaboration agreement on ethane-oxidative dehydrogenation (E-ODH) technology for ethylene production. The catalytic process is an alternative route to ethane steam cracking, offering the potential of economic advantages, acetic acid co-production and significantly lower overall carbon footprint through electrification of power input.

Ethylene is the main feedstock for the production of polyethylene (PE).

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased.
MRC

MOSCOW (MRC) -- China's Shaanxi Yanchang Zhongmei Yulin has recently successfully conducted trial production at its new polypropylene (PP) plant and managed to achieve on-spec powder cargoes in late October, reported CommoPlast with reference to market sources.

Based in Yulin, China, this plant, which is included in the company's Phase II project, has a production capacity of 400,000 tons/year of PP.

The company already has two PP plants at the same site with the capacity of 300,000 mtyear.

As reported earlier, Shaanxi Yanchang Zhongmei Yulin Energy and Chemical Co Ltd shut it’s PP 2 and linear low density (LLDPE) units for scheduled turnaround on 1 August, 2016. Meanwhile, its MTO, PP1 and high density polyethylene (HDPE) units were shut on 8 August 2016. Based in Shaanxi, China, the company has a PP1, PP2, HDPE and LLDPE units each with a production capacity of 300,000 ton/year. The units were expected to remain off-stream for 45 days.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

1. Asia Chemical Conference 2020: COVID-19 a windfall for ABS producers

MOSCOW (MRC) -- Consumption of acrylonitrile-butadiene-styrene (ABS) has surged as a result of home quarantines imposed by the spread of COVID-19, with producers’ cash margin in excess of USD500/metric ton in 2020 and expected to rise above $600/metric ton in 2021, said Daniel Siow, IHS Markit director/styrenics on Thursday at the eighth Asia Chemical Conference, being held by IHS Markit in a virtual format, as per Chemweek. The global economy was plunged into despair when COVID-19 first hit in early 2020 and a second wave is now recurring in major European countries and the US. This has meant that cities have to be locked down and working or schooling from home has become the norm until an effective vaccine can be discovered and large populations inoculated.



MRC

MOSCOW (MRC) -- Olin Corporation reported a third-quarter net loss of USD736.8 million, compared to same year-ago quarter net income USD44.2 million, reported Chemweek.

The loss reflects a USD700 million goodwill impairment charge and weaker chemical results. Net sales were USD1.4 billion, down 8.8% year-on-year (YOY). Reported adjusted EBITDA was USD195.5 million, down 33% YOY on weaker chlor-alkali and vinyls, and epoxy results, offset by stronger Winchester earnings.

Chemical volumes and margins have improved significantly from second-quarter lows, Olin said. "Third-quarter 2020 sales for the chemicals businesses increased sequentially by approximately 17%, and sales have increased every month since the low point in April," said Scott Sutton, Olin president and CEO. "Additionally, Olin drove sequential pricing improvement in the third quarter 2020 for chlorine and almost all chlorine derivatives." Recent price increases for chlorine, epoxy resins, bleach, ethylene dichloride and chlorinated organics are expected to improve margin in the fourth quarter. "Fourth quarter volumes are expected to be challenged based on customer year-end inventory reductions and Olin selectively selling less into poor quality markets, slightly more than offsetting the positives from driving price increases," Sutton said.

Chlor alkali products and vinyls segment sales for the third quarter were USD755.1 million, down 14% YOY. Segment adjusted EBITDA was USD149.9 million, down 36% YOY due to lower ethylene dichloride and caustic soda pricing and lower volumes.

Epoxy sales for the third quarter 2020 were USD476.1 million, down 7% YOY. Segment adjusted EBITDA was USD38.8 million, down 24% due to lower product prices and lower epoxy resin volumes, partially offset by lower raw material costs and operating costs.

Winchester sales for the third quarter 2020 were USD206.4 million, up 9% YOY. Segment adjusted EBITDA was USD31.7 million, up YOY 66% due to higher commercial ammunition volumes and pricing.

As MRC informed earlier, in December 2019, Olin Corporation announced that it plans to permanently shut down a chlor alkali plant with a capacity of 230,000 tons and its Vinylidene Chloride (VDC) production facility, both in Freeport, Texas. These closures are expected to be completed before the end of 2020.

As MRC reported earlier, August production of sodium hydroxide (caustic soda) in Russia were 99,200 tonnes (100% of the basic substance) versus 89,400 tonnes a month earlier, said MRC analysts. Russia's overall output of caustic soda totalled 837,600 tonnes in the first eight months of 2020, down by only 2% year on year.
MRC

MOSCOW (MRC) -- LG Chem, a South Korean petrochemical major, has shut down its aromatics unit in Yeosu following a fire at the company's cracker at the same site on 5 November, according to Chemweek.

The unit can produce 180,000 mt/year of benzene, 115,000 mt/year of toluene and 80,000 mt/year of xylenes.

The aromatics unit could stay offline for 2–3 weeks.

As MRC reported earlier, a fire broke out at its central control room at the Yosu cracker complex at around midnight local time (15:00 GMT) onn 5 November, the company said. The country's largest chemical company said it was in the process of figuring out the cause of the fire. The facility can process about 1.2 million tonnes of ethylene per year (tpy).

Benzene is the main feedstock for the production of styrene monomer (SM). which, in its turn, is used for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 362,820 tonnes in the first nine months of 2020, down by 1% year on year. September total estimated PE consumption in Russia was 48,690 tonnes, up by 13% year on year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC