OMV Petrom investment increases Petrobrazi refinery bio-blending capacity

MOSCOW (MRC) -- OMV Petrom, the largest energy company in Southeastern Europe, has invested approximately EUR21 million at the Petrobrazi refinery in order to increase the bio-blending capacity and to improve the infrastructure for the transport, unloading and storage of bio-components within the refinery, according to Hydrocarbonprocessing.

OMV Petrom supplies fuels with a volumetric bio-content of 6.5% in diesel and 8% in gasoline.

Following investments of approximately EUR21 million allocated, starting in 2018, Petrobrazi has increased the blending capacity of bio-content in fuels from 200,000 t to ~350,000 tpy of biofuels.

As per European regulations, the renewable energy content in transportation fuels must increase from 10% in 2020 to 14% in 2030, in order to support the reduction targets of greenhouse gas emissions arising from transportation. Bio-quota targets are set as energetic substitution targets, whereby each fuel has a different energy content defined.

“We are an energy company and we want to be part of the solution for a cleaner energy. We are investing in obtaining fuels with a high level of biofuel content, as well as in alternative solutions for mobility and in various others sustainable projects. It is a combined effort at all levels across our company, as we aim to reduce our carbon emissions by 27% by 2025 versus 2010”, said Radu Caprau, member of OMV Petrom executive board, responsible for Downstream Oil.

Petrobrazi has a total crude oil processing capacity of 4.5 MMtpy and, starting 2005, OMV Petrom has invested approximately EUR1.8 billion in the refinery. One third of this investment contributed to the reduction of the environmental impact. Through sustained investments, OMV Petrom has reduced the carbon emissions of its operations by 22% in 2019 vs. 2010. OMV Petrom is one of the first companies in Romania to sign the UN Global Compact, since 2013.

As MRC reported earlier, on 12 March, 2020, Austria’s OMV OMV, the international integrated gas and oil company headquartered in Vienna, and Mubadala Investment Company, the Abu Dhabi-based strategic investment company, signed an agreement that will give OMV a controlling stake in Borealis, one of Europe’s leading petrochemical companies. OMV, which currently owns a 36% stake in Borealis, will acquire an additional 39% from Mubadala, increasing its stake to 75%. Mubadala will retain a 25% interest.

And in late October, 2020, OMV and Mubadala Investment Company completed the transaction for OMV to acquire an additional 39% stake in Borealis from Mubadala.

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

ccording 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. At the same time, 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.

Romanian group OMV Petrom has become part of Austrian company OMV since 2004.
MRC

MOSCOW (MRC) -- Brenntag has announced an initial cooperation with CheMondis (Cologne, Germany), a B2B online marketplace for chemicals in Europe, said Chemweek.

Brenntag and CheMondis plan jointly to accelerate digital sales and marketing for the chemical industry. “Both companies recognize the increasing importance of online sales channels for the chemical industry and agreed to collaborate in this field,” Brenntag says.

The collaboration will start with making Brenntag’s portfolio for paints and coatings, and adhesives and sealants gradually available for online purchase on CheMondis in the German market.

"Over the last two years Brenntag has steadily built our Brenntag Connect e-commerce platform. The platform is now live in most of our mature markets. We see a strong upward trend in online business and with this complementary cooperation we extend our digital channels further,” says Maarten Stramrood, chief digital officer at Brenntag. “Our collaboration with CheMondis will provide our current and potential customers an even broader choice."

The collaboration “is a strong sign that online sales are becoming an increasingly important strategic component in the chemical industry,” says Sebastian Brenner, managing director of CheMondis. “Customers in our industry are demanding an online buying experience and CheMondis provides for that need."

CheMondis, founded in 2018 out of Lanxess as an independent start-up, says it has established “the leading open B2B marketplace for chemicals in Europe with more than 3,200 active companies and about 50,000 products listed.” Buyers have used CheMondis for several thousand digital transactions already, the company says.

As MRC informed earlier, Brenntag, the market leader in chemical and ingredients distribution, has reported a resilient third-quarter performance and says the impact from the COVID-19 pandemic on its business is “still limited". Net profit was down in the third quarter to EUR120.6 million (USD141.1 million) from a prior-year figure of EUR128.4 million on sales of EUR2.88 billion, down 7.7% year on year (YOY) on a constant currency basis. The company achieved YOY growth in operating EBITDA, up 4.9% to EUR264.4 million. The EMEA, APAC, and Latin America regions “showed a particularly good development,” but conditions in North America were tougher, Brenntag says. Group operating gross profit slipped 0.2% YOY to EUR690.6 million.

As MRC informed earlier, Brenntag Essentials and Brenntag Specialties. Each division will have a focus on customer- and supplier needs. The new operating model forms part of the company’s previously announced transformation program, Project Brenntag. Brenntag says that with the two new divisions it will better leverage on its strengths and sharpen its profile toward relevant industry segments.

In August 2020, Brenntag acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclose.

We remind, Russia's September production of sodium hydroxide (caustic soda) were 108,000 tonnes (100% of the basic substance) versus 99,200 tonnes a month earlier. Overall output of caustic soda totalled 945,600 tonnes in the first nine months of 2020, down by 1.6% year on year.
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced its third quarter 2020 financial results, said the company.

Reported net profit is THB 380 million in 3Q20 and THB 1,104 million for 9M20. Our performance this year provided us significant insights into the growth of the future market, while the company remains on a path towards enhanced incremental performance progress, from 4% ROCE towards our target ROCE of 15% by 2023.

In 3Q20 we delivered record sales volume of 3.6 million tonnes, registering growth of 18% year-on-year (YoY). Sales volume grew to 3.2 million tonnes, or 4% YoY on a comparable basis. This continuous volume growth is a clear indication of the resilient nature of the company’s products and the global access we have to our customers.
IVL achieved an operating cash flow of USD 354 million in 3Q2020 while operating cash flow for 9M20 was USD994 million, thus providing us ample liquidity of USD 2.5 billion in cash and cash equivalents as well as unused credit lines.
Project Olympus (a business transformation and cost excellence project) delivered a savings of USD 21 million in 3Q20 and USD 64 million in 9M20. Our full year budget of USD 76 million in savings is expected to exceed targets by over 15% in 2020 with relentless focus on multiple initiatives.

IVL has embarked in 2020 on a transformation journey that will enhance its business excellence and aims to deliver US$ 582 million of additional, sustainable, EBITDA by 2023. This target has been expanded from the US$ 352 million announced at our Capital Markets Day at the start of 2020 after a rigorous analysis process and the support of relevant domain experts to validate our operating teams’ initiatives in all of our three major business segments globally.

We are making progress towards our ESG targets and our pledge to recycle 750,000 tonnes of post-consumer PET, with a commitment of USD 1.5 billion towards our ESG and recycling infrastructure globally by 2025.
We have strengthened our leadership and recruited both digital and Lean Six Sigma function leaders to support technological adaption across IVL.

IVL is well on its way to implement S4 Hana (ERP) across our global operations and introduced a Global Business Service (GBS) office which will hallmark the delivery of our transformation journey.

As MRC informed earlier, Indorama Ventures Sines, a subsidiary of the world leader in the production of polyethylene terephthalate (PET) - Indorama Ventures Company Ltd (IVL), plans to halt production at the refined terephthalic acid (TPA) plant in Sines (Sines, Portugal) in mid-November to conduct planned preventive measures. Repair work at this enterprise with a capacity of 700,000 tonnes/year of TPA per year will continue for one month. Thus, this plant should return to work in mid-December this year.

As per ICIS-MRC Price Report, buying activity has improved in the Russian market of PET chips this week. Most producers reported a limited volume of free PET in the spot market. Converters' opinions regarding November demand in the preforms market differed. Some of them reported good sales, while others reported that demand was low and they have to sell preforms at a price close to their cost.

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
MRC

MOSCOW (MRC) -- Polyethylene (PE) imports into Kazakhstan dropped in the first nine months of 2020 by 12% year on year, totalling 139,300 tonnes. High density polyethylene (HDPE) accounted for the greatest increase in shipments, according to MRC's DataScope report.

September PE imports to Kazakhstan reached 12,200 tonnes versus 17,700 tonnes a month earlier, local companies reduced their purchases in Russia and Uzbekistan because of restrictions from local producers. Overall PE imports totalled 139,300 tonnes in the first nine months of 2020, compared to 124,100 tonnes a year earlier. Purchases of HDPE increased significantly, whereas imports of low density polyethylene (LDPE) decreased.

The structure of PE imports by grades looked the following way over the stated period.

September HPE imports fell to 9,800 tonnes from 14,700 tonnes, Russian and Uzbek producers significantly restricted their export sales. Overall HDPE imports totalled 115,200 tonnes in the first nine months of 2020, up by 19% year on year.

September LDPE imports dropped to 900 tonnes from 1,300 tonnes in August, several Russian producers simultaneously reduced their shipments because of scheduled turnarounds. Overall LDPE imports reached 14,100 tonnes over the stated period, down by 22% year on year.

September linear low density polyethylene (LLDPE) imports reached 1,500 tonnes versus 1,700 tonnes a month earlier. Overall LLDPE imports reached 10,000 tonnes in January-September 2020, up by 7% year on year.

MRC

MOSCOW (MRC) -- Baker Hughes has announced it is acquiring Compact Carbon Capture (3C), a pioneering technology development company specializing in carbon capture solutions, said Hydrocarbonprocessing.

The acquisition underpins Baker Hughes’ strategic commitment to lead in the energy transition by providing decarbonization solutions for carbon-intensive industries, including oil and gas and broader industrial operations.

The advancement of carbon capture technology solutions is widely considered critical to delivering the additional CO2 emissions reduction needed to meet global 2050 climate targets. In the energy and industrial sectors, carbon capture technology is among the most viable decarbonization paths for both retrofitting existing assets as well as for greenfield projects. 3C’s technology can address CO2 capture from different emission sources and can contribute significantly to the decarbonization of customers’ operations.

3C’s technology differs from traditional carbon capture solvent-based solutions by using rotating beds instead of static columns, effectively distributing solvents in a compact and modularized format. The rotating bed technology enhances the carbon capture process resulting in up to 75% smaller footprint and lower capital expenditures. In addition, 3C’s modular and scalable configuration can be easily deployed into existing brownfield applications and can be optimized for a broad range of capacity and applications, including offshore and industrial emitters.

Baker Hughes’ 100+ years of rotating equipment expertise, including in modularized and decarbonization process solutions, will provide an unmatched opportunity to scale and commercialize 3C’s technology. As part of the agreement, Baker Hughes will accelerate the development of the technology, leading to commercial deployment for customers globally.

"The addition of 3C to our energy technology portfolio complements our strategy, technology and manufacturing strengths in the area of carbon capture,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “This agreement highlights our deliberate and disciplined approach to invest in the energy transition. We are positioning our portfolio for new energy frontiers, and we believe there will be strong growth potential of carbon capture for both industrial applications and oil and gas projects. By incubating 3C’s technology, we can develop a roadmap to provide one of the industry’s lowest cost per ton carbon capture solutions."

“Our technology plays an important role in the energy transition, and we believe this agreement with Baker Hughes is the right step to grow,” said Torleif Madsen, CEO of 3C. “As we focus on our long-term vision to develop the world’s leading carbon capture offerings, we will leverage Baker Hughes’ strong brand and technology position in the energy industry to further expand our solution by complementing it with world-class turbomachinery and process solutions and access to a global customer base. This is an immense opportunity and we are proud to join the Baker Hughes team."

The acquisition further complements the existing Baker Hughes CCUS portfolio offering, which includes turbomachinery, solvent-based state of the art capture processes (CAP), well construction and management for CO2 storage, and advanced digital monitoring solutions. The agreement includes all intellectual property, personnel and commercial agreements. ABG Sundal Collier acted as advisors to 3C.

As MRC informed earlier, crude prices rose in mid-morning trade in Asia Nov. 16, as the market was comforted by the strong possibility that any new lockdowns in the US will be less severe than the nationwide lockdowns seen in spring, with the signing of the Regional Comprehensive Economic Partnership (RCEP) also providing a boost to sentiment.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

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