McDermott earns next phase of Russian ethane cracker project from CC7

MOSCOW (MRC) -- McDermott International, Ltd announced it has secured the next phase of the ethane cracking project from China National Chemical Engineering & Construction Corporation Seven, Ltd (CC7), said Hydrocarbonprocessing.

In 2019, McDermott was awarded a contract for the extended basic engineering on the project. This has now been expanded to include the provision of the engineering and procurement early works package for all schedule critical equipment.

The project is the largest ethylene integration project in the world. Located near Russia's shores at the Gulf of Finland, the natural gas processing chemical plant, owned by Baltic Chemical Plant (BCP), will be comprised of two ethylene cracking trains with an annual capacity of 1.4 million tons each.

"The expansion of this award is a direct result of our execution performance to date and we will continue to drive excellent results to support CC7 and BCP in the development of this world-class project," said Tareq Kawash, Senior Vice President, Europe, Middle East and Africa. "From concept design to commissioning and start-up, McDermott is uniquely positioned to execute fully integrated ethylene projects."

Lummus Technology was previously awarded the Process Design Package Engineering on the project and the license for its olefin production and recovery technology. McDermott and Lummus work jointly on projects through a strategic agreement that leverages their respective strengths for customers.

The early works package will be executed from McDermott's offices in The Hague, the Netherlands and in Brno, Czech Republic.

As MRC informed earlier, in March 2020, McDermott International, Inc. announced that the company intends to move forward with the previously announced share and asset purchase agreement to sell all of the Lummus Technology business to a joint partnership between The Chatterjee Group and Rhone Capital (the "Joint Partnership").

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
MRC

Henkel posts decline in adhesives revenue, organic sales for 2020 expected to drop

MOSCOW (MRC) -- Henkel delivered strong organic sales growth of 3.9 percent in the third quarter of fiscal 2020 – despite the continued challenging economic environment as a result of the COVID-19 pandemic, said Chemweek.

Group sales totaled around 5 billion euros, corresponding to a nominal change of -1.5 percent. At the beginning of October, Henkel published preliminary figures for its sales performance in the third quarter and presented its new guidance for fiscal 2020.

"The impacts of the global coronavirus crisis continue to determine the market environment. Nevertheless, Henkel achieved a good business performance in the third quarter, with all three business units contributing. This is evidence of our robust, diversified portfolio comprised of successful brands and innovative technologies for our customers in the industrial and consumer goods businesses. Furthermore, our additional investments in marketing, innovation and digitalization are paying off. Plus, we significantly expanded our digital sales in the third quarter, increasing their total sales share to more than 15 percent,” said Henkel CEO, Carsten Knobel.

"The good performance in the third quarter is also partly due to catch-up effects from the second quarter, where the negative impacts of the COVID-19 pandemic were particularly severe. But above all, it is the result of our strong global team, which in this unprecedented and challenging time for all of us, is showing enormous commitment as it continues to contribute to the long-term success of Henkel."

Henkel performed well in this challenging market environment in the third quarter. The Adhesive Technologies business unit was able to record a recovery in demand across all business areas compared to the second quarter and achieved positive organic sales growth overall compared to the same quarter of the previous year. In the Beauty Care business unit, the Hair Salon business also showed a recovery compared to the second quarter. Its organic sales development year on year was, however, slightly negative. Conversely, the retail business achieved very strong organic sales growth compared to the third quarter of 2019. With demand for laundry detergents and household cleaners remaining strong and thanks to catch-up effects from the second quarter, the Laundry & Home Care business unit was able to record significant organic sales growth, and thus continued its successful development.

"During the coronavirus crisis, we adapted flexibly and quickly to changes while continuing to vigorously pursue the agenda for purposeful growth that we introduced in March this year. With our new full-year guidance, we provided our expectations for our development over the remainder of the year. Although we assume that we will continue to feel the negative impacts of the pandemic in the fourth quarter, we do not expect to see further extensive lockdowns – such as those witnessed in the second quarter – in the core regions essential for Henkel. We are convinced that, with our strategic focus on purposeful growth, we are well positioned to emerge stronger from the crisis,” Knobel added.

In the third quarter of 2020, sales of the Henkel Group decreased nominally by -1.5 percent to 4,999 million euros. Organically (i.e. adjusted for foreign exchange and acquisitions/divestments), sales increased by 3.9 percent. At Group level, the increase was driven by volume, with price and volume developments differing between the business units. Acquisitions and divestments accounted for an increase of 0.1 percent in sales. Foreign exchange effects had a negative impact of -5.5 percent on the sales performance.

In the first nine months of 2020, sales decreased nominally by -4.5 percent to 14,485 million euros. Organically, Henkel registered a negative sales development of -2.1 percent, primarily due to volume effects. Over the first nine months of this year, price trends were only slightly negative. Henkel’s business performance was influenced, especially in the first six months of the year, by the negative impacts of the COVID-19 pandemic on its Industrial and Hair Salon businesses in particular. After recording the strongest decline in demand in the second quarter, Henkel’s businesses recovered significantly in the third quarter.

The emerging markets achieved organic sales growth of 8.8 percent in the third quarter. Organic sales development in the mature markets was positive at 0.6 percent. In the Western Europe region, sales declined organically by -1.2 percent year on year. By contrast, we were able to increase sales in the Eastern Europe region by 10.4 percent. In the Africa/Middle East region, we achieved organic sales growth of 13.9 percent in the third quarter of 2020. Organic sales growth was 2.9 percent in the North America region and 13.8 percent in the Latin America region. Organic sales development in the Asia-Pacific region was positive at 1.2 percent. In the first nine months of 2020, the emerging markets posted organic sales growth of 1.3 percent, whereas sales development in the mature markets was negative at -4.4 percent.

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

China private refiner Hongrun to expand mega crude oil tank farm

China private refiner Hongrun to expand mega crude oil tank farm

MOSCOW (MRC) -- East China-based private refiner Shandong Hongrun Group plans to further expand its mega crude oil tank farm by another 20% next year to meet growing demand from external parties, according to a company official, said Hydrocarbonprocessing.

Commercial stockpiling played a pivotal role in China’s bumper crude oil purchases this year as refineries and traders took advantage of decades-low oil prices to build stocks and as the Chinese economy emerged faster than expected from the coronavirus pandemic. Based in Weifang in the northeastern part of Shandong province, China’s oil hub for independent refineries, Hongrun, which started investing in crude oil storage a decade ago, plans to build 2.8 million cubic meters of crude oil tankage space next year.

That would bring Hongrun’s total crude storage capacity to 15.8 million cubic meters, or nearly 100 million barrels, which is equivalent to nine days of China’s total crude oil imports, said the Shandong-based official, adding that this is possibly the largest such facility owned by a private Chinese refiner. "Most of our storage targets third-party commercial use, as our site is kind of a transfer center for more than 70 refineries in Shandong,” said the official, who declined to be named as he is not authorized to speak to media.

Hongrun operates a 140,000-barrel-per-day refinery in Shandong. Of the existing 13 million cubic meters of space, three-quarters are bonded tanks. Provincial authorities must approve such facilities that allow for the storage of oil that has not gone through customs clearance, letting refiners and traders store oil without government import quotas.

The 13 million cubic meter storage includes 12.2 million cubic meters in Weifang and 800,000 cubic meters in nearby Qingzhou city, the official said. Hongrun counts global traders Mercuria, Vitol and BP among its regular clients under long-term agreements, the official added.

China’s Shanghai International Energy Exchange is another large client which is using 20 million barrels of Hongrun’s tanks as delivery tanks for the Shanghai crude oil futures contract.

As mRC informed earlier, in October 2019, Sinochem Hongrun's new 800,000 mt/year PX plant in the Weifang Binhai economic development zone in Shandong province was shut down for turnaround.

As per MRC' ScanPlast, calculated consumption of polyethylene terephthalate (PET) reached 52,71o tonnes in September 2020, down 27% compared to the same time a year before. Total consumption of PET in Russia in the nine months of 2020 reached 530,750 tonnes, down 22% than the same indicator last year.
MRC

INEOS launches a new Clean Hydrogen Business to accelerate the drive to net zero carbon emissions.

MOSCOW (MRC) -- INEOS has launched a new business to develop and build Clean Hydrogen capacity across Europe, in support of the drive towards a zero-carbon future, as per the company's press release.

INEOS currently produces 300,000 tonnes of hydrogen a year mainly as a co-product from its chemical manufacturing operations.

Through its subsidiary INOVYN, INEOS is Europe’s largest existing operator of electrolysis, the critical technology which uses renewable energy to produce hydrogen for power generation, transportation and industrial use. Its experience in storage and handling of hydrogen combined with its established know-how in electrolysis technology, puts INEOS in a unique position to drive progress towards a carbon-free future based on hydrogen.

The business will have its headquarters in the UK and aims to build capacity to produce hydrogen across the INEOS network of sites in Europe, in addition to partner sites where hydrogen can accelerate decarbonisation of energy.

INEOS is already involved in several projects to develop demand for hydrogen, replacing existing carbon-based sources of energy, feedstocks and fuel. It expects to develop further partnerships with leading organisations involved in the development of new applications. INEOS will also work closely with European Governments to ensure the necessary infrastructure is put in place to facilitate hydrogen’s major role in the new Green Economy.

Wouter Bleukx, Business Unit Manager Hydrogen said “Hydrogen is an important part of a climate neutral economy that has been discussed for decades. Finally, a hydrogen-fuelled economy is within reach as transportation in the UK, Germany, France and other countries begins to run on this carbon free technology. With extensive experience in electrolysis, INEOS is uniquely placed to support these new opportunities, driven by emerging demand for affordable zero-carbon energy sources.”

As MRC reported earlier, a 660,000-metric tons/year phenol-acetone plant operated by INEOS in Gladbeck, Germany, was shut for maintenance from 27 October until 6 December.

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier).

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

Sasol in final stages of new LDPE plant startup, resumes Lake Charles operations

MOSCOW (MRC) -- Sasol is continuing in the final stages for the startup of its new 420,000 mt/year low-density polyethylene (LDPE) plant after previously announcing a startup for October, the company's spokesperson, Kim Cusimano, said in an email to S&P Global Nov. 3.

The company resumed operations for all its Lake Charles, Louisiana, chemical complex units that were operating before Hurricane Laura, Cusimano said.

Sasol is among the Lake Charles chemical producers that shut operations ahead of Hurricane Laura's Aug. 27 landfall, and again before Hurricane Delta came ashore Oct. 9, which was the same path as Laura.

The LDPE plant was delayed to a startup in November due to Hurricane Delta interrupting its planned October startup date.

The company's LDPE plant is the last of the new units to come online at its USD12.9 billion Lake Charles expansion and is "progressing through the final stages of startup," Cusimano said.

The company said it "will release a formal disclosure to the market when the (LDPE) unit reaches beneficial operation."

Beneficial operation is defined as 72 hours of continuous on-spec production.

Sources have said they are not confident that the startup will occur anytime before December.

As MRC reported earlier, Sasol said Sept. 21 the new LDPE plant, which had been slated to start up in early 2020 before it was damaged by fire during commissioning in January, did not sustain any significant storm impacts. And the company resumed commissioning the plant then.

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC