Global refinery maintenance activities are gradually getting back on track

MOSCOW (MRC) -- Refiners across the globe were severely impacted by COVID-19, which destroyed demand, reduced operations in several refineries and even compelled them to suspend operations, said Hydrocarbonprocessing.

Despite unfavorable conditions in the first three quarters of 2020, refiners are getting back to normalcy with seemingly improving market scenario, says GlobalData, a leading data and analytics company. In the beginning of 2020, several refiners were forced to slash capital expenditure (capex) to sail through the crisis. This led to postponement or rescheduling of planned maintenance activities in several refineries across various regions. Lockdowns imposed in many countries also resulted in supply shortage of spare parts and contract workers, preventing refinery operators to go ahead with their maintenance activities as per original schedules.

Haseeb Ahmed, Oil and Gas analyst at GlobalData, comments: “As companies slash costs to stay afloat amid falling revenues, they are unwilling to infuse additional capex into maintenance schedules. Several refiners have pushed maintenance activities to 2021, as they re-assess their business portfolios. For instance, Milazzo Refinery and Eni have postponed maintenance activities in their respective refineries to Q2 2021."

Several refiners deferred maintenance schedules to Q1, Q2 or late 2021. Workers safety has been one of the key concerns for refiners to delay maintenance. Refineries located in North America and Europe have been impacted the most, since the pandemic was widely prevalent in these regions during the initial stage. However, many of these refineries have started maintenance and are taking adequate precautionary measures – albeit with delays. While refineries across Asia have started their maintenance activities, refineries situated in Oceania, or in the Middle East are yet to start.

Ahmed continues: "The implications of delayed maintenance activities, such as reducing refinery and losing supply contracts, have weighed down several refinery operators. Although maintenance activities are back on track across many regions after a hiatus, it is unlikely that refiners can catch-up with their initial schedules. "While, operators are adjusting to the new norm of operating refineries, the gradual improvement in global economy provides a ray of hope to run refineries at their maximum potential and cover the lost ground."

As MRC informed earlier, chemical companies across the UK are “battling through the pandemic and the threat of a Brexit no deal”. According to the CIA’s latest quarterly survey of its members, chemical businesses saw a modest expansion in the third quarter with the survey’s sales diffusion index reaching 55.4 and export growth to non-EU countries registering 56.5. Any figure above 50 represents growth. The overall performance index was 51.5, beating forecasts, CIA says.

As MRC informed before, SABIC Europe declared a force majeure on its low density polyethylene (LDPE) supplies from Wilton, the UK on November 3, 2020. The company had shut its LDPE plant for a maintenance work in the first half of October. The Wilton unit is able to produce 400,000 tons/year of LDPE.

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.
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MOSCOW (MRC) -- Braskem says it has completed a USD10-million expansion of its innovation and technology center at Pittsburgh, Pennsylvania, according to Chemweek.

The expansion adds eight R&D labs, and equipment for developing technologies around catalysis, recycling, and 3D printing. This includes capabilities in catalysis and petrochemical process technologies, 3D printing research, as well as chromatography, polymer cracking and microscopy analyses.

"We have a clear value proposition when we make products with a lower carbon footprint or use plastic waste in a circular fashion,” says Gilfranque Leite, directory/innovation and technology at Braskem. “Our clients and brand owners have programs focused on these important areas, yet many don't have the in-house technology capabilities to do this R&D intensive work on their own. In partnering with Braskem, we can directly support them in achieving their sustainability goals.”

The expansion is also a part of Braskem’s broader innovation strategy, which is centered around developing technologies to support a carbon-neutral circular economy, the company says.

As MRC reported previously, Brazilian petrochemical producer Braskem's 450,000 mt/year PP plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, as per the company's statement as of Sept. 10. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

We remind that production at Braskem's new PP plant in the US was at 36,000 tonnes in October, close to the monthly production capacity of the plant of around 38,000 tonnes.

Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.

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

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
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MOSCOW (MRC) -- Sherwin-Williams (SW) reported third-quarter net income up 22.4% year-on-year (YOY), to USD705.8 million, on net sales up 5.2%, to USD5.12 billion, said Chemweek.

Adjusted earnings totaled USD8.29/share, beating analysts’ consensus estimate of USD7.75/share, as reported by Refinitiv (New York, New York). Higher sales for architectural paint, especially residential repaint and do-it-yourself (DIY) paint, drove the increases.

"Continued and unprecedented strength in our DIY business, solid demand across our residential repaint and new residential segments, and improving demand in our industrial coatings businesses and regions drove our strong third quarter results," says SW chairman and CEO John Morikis. “Improving sales, coupled with favorable customer and product mix, lower input costs and ongoing continuous improvement efforts, drove strong double-digit growth in EBITDA and diluted net income per share."

Americas segment sales grew 2.8% YOY, to USD2.98 billion, while segment profit increased 12.6%, to USD747.4 million. “The increase in the quarter was due primarily to higher residential repaint, DIY and new residential paint sales in the U.S. and Canada, partially offset by the impacts of COVID-19 on demand in some end market segments served,” SW says.

Performance coatings segment sales were up 1.2% YOY, to USD1.31 billion, while segment profit rose 12.9%, to USD155.3 million. Higher volumes and improving demand drove the increases, with particularly strong results in the packaging and wood business lines.

Consumer brands segment sales increased 23.5% YOY, to USD838.1 million, while segment profit grew 72.6%, to USD198.3 million. Sales and profits were boosted by higher sales volumes to retail customers, especially in North America and Europe.

SW is increasing its full-year 2020 earnings guidance to USD21.49-21.79/share, compared with guidance of USD20.96-21.46/share previously, due to continued strong demand, particularly in DIY residential businesses. This compares with full-year 2019 earnings of USD16.49/share. For the fourth-quarter, net sales are expected to increase by 3-7% YOY. Quarterly earnings guidance was not disclosed.

As MRC informed earlier, Heat-FlexTM Hi-Temp 1200 from Sherwin-Williams was chosen as the single coating protection against corrosion and high heat for the oil and gas bulk valves at Saudi Aramco’s Ras Tanura refinery. Experts from Sherwin-Williams collaborated with contractor Tecnicas Reunidas on the clean fuels and aromatics project to protect bulk valves for all process conditions and temperatures and ensure fault-free continuous operations at the facility near the industrial port city Jubail in Saudi Arabia.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.

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MOSCOW (MRC) -- Specialty chemicals producer Elementis (London, UK) has rejected a GBP621-million (USD819 million) all-cash buyout offer from Minerals Technologies (New York, New York), saying the valuation for the company is too low, according to Chemweek.

Elementis’s board confirms it received a proposal on 5 November from Minerals Technologies for a possible cash offer of 107 pence per share, and says it has unanimously rejected the conditional proposal as it “significantly undervalued Elementis and its future prospects.” There can be “no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate,” it adds.

The offer represents a premium of 31% to the closing price of 81.70 pence per Elementis share on 4 November, according to Minerals Technologies. Elementis has over 580 million issued shares at present.

Mineral Technologies says it is “currently considering its position” following the rejection of its offer, adding that its proposal represents a premium of 47% to Elementis’s 90 trading-day volume weighted average share price of 72.66 pence as of market close on 4 November. “However, any offer would be likely to be solely in cash,” it says.

Elementis, founded in 1844, manufactures additives for products in the consumer and industrial markets, including personal care, coatings, chromium, energy, and talc. Rothschild & Co. is acting as financial advisor to Elementis. The company in October reported lower volumes year on year for the third quarter, with a sequential improvement in trading compared with the second quarter.

Minerals Technologies is required in accordance with stock market regulations by 10 December to announce either a firm intention to make an offer for Elementis or that it does not intend to proceed.

As MRC reported earlier, Elementis has just entered an exclusive distribution agreement with DKSH (Zurich, Switzerland), a holding company specializing in market expansion services, for personal care applications in the French market.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.

Elementis plc is one of the UK's largest speciality chemicals business. The Company comprises three businesses: Specialty Products, Surfactants and Chromium. Both Specialty Products and Chromium hold leading market positions in their chosen sectors. Elementis employs over 1,200 people at more than 30 locations worldwide.
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MOSCOW (MRC) -- Honeywell has announced the introduction of an advanced industrial training solution that combines 3D immersive technology with industry-leading operator training simulation to create a collaborative learning environment for plant operators and field technicians, said Hydrocarbonprocessing.

Honeywell’s Immersive Field Simulator is a virtual reality (VR) and mixed reality-based training tool that incorporates a digital twin of the physical plant to provide targeted, on-demand, skill-based training for workers. “Faced with increasingly complex technology and an experienced workforce nearing retirement, operators need robust technical training and development solutions that accurately depict real-world environments,” said Pramesh Maheshwari, vice president and general manager, Lifecycle Solutions and Services, Honeywell Process Solutions. “Traditional training approaches often fail to meet the mark when it comes to helping panel and field operators and maintenance technicians in process plants become better at their jobs. The result can be reliability issues and increased operational incidents."

The Immersive Field Simulator offers a smooth, virtual walkthrough to familiarize workers with the plant. It includes avatars that represent virtual team members. The simulator’s cloud-hosted, device-agnostic platform, which incorporates flexible 3D models, grows with the user as plant operations change. The simulator is customizable to meet specific instructional needs and project team members and plant subject matter experts can easily create customized training modules.

Honeywell’s Immersive Field Simulator transforms training for today’s digital-native workforce, enabling employees to learn by doing while increasing knowledge retention, minimizing situations that can result in operational downtime improving competencies across a variety of areas.

"With our end-to-end solution, console and field operators can practice different operating and safety scenarios, including rare but critical situations, in a safe, simulated environment,” said Maheshwari. “This approach significantly improves upon current training tools and methods. VR-based training boosts confidence and retention while improving overall professional skills. Experience shows that students using VR can learn significantly faster than in the classroom."

Honeywell’s Competency Management program, which includes the simulator training, is built upon decades of workers’ experiences using integrated control and safety systems. Honeywell has incorporated this experience into state-of-the-art competency-based offerings that improve worker performance and safety.

As MRC informed earlier, Honeywell UOP has announced that French energy company Total will utilize Honeywell UOP’s Ecofining process technology to produce renewable fuels, primarily for the aviation industry, at its Grandpuits platform at Seine-et-Marne in north central France. Once completed, the bio-refinery will process 400,000 tons of feed per year, producing up to 170,000 tons of sustainable aviation fuel, 120,000 tons of renewable diesel and 50,000 tons of renewable naphtha for production of bioplastics.

We remind, Honeywell announced Zhenhua Petrochemical Co. Ltd will use Honeywell UOP’s C3 Oleflex technology for propane dehydrogenation to process 1 million metric tons per year of polymer-grade propylene for a proposed plant in Dongying City, Shandong Province, China.

As MRC reported earlier, in May, 2020, Honeywell announced that Enterprise Products Partners L.P. will use Honeywell UOP’s C3 Oleflex technology in its second propane dehydrogenation plant, called "PDH 2". Located near Mont Belvieu, Texas, PDH 2 will produce 750,000 metric tons per year of polymer-grade propylene as part of Enterprise’s expansion of propylene manufacturing capacity.

Propylene is the main feedstock for the production of polypropylene (PP).

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.

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