Nolato completes acquisition of U.S.-based GW Plastics

MOSCOW (MRC) -- Swedish polymer product and component maker Nolato Group has completed its acquisition of U.S. medical technology company GW Plastics, as per Canplastics.

First announced in August 2020, the deal sees GW Plastics’ seven global manufacturing facilities joining Nolato’s 25-plus facilities around the world. Bethel, Vermont-based GW Plastics has also subsequently rebranded to Nolato GW Inc.

Just over four-fifths of GW Plastics’ business will be reported under the Medical Solutions business area, with the remainder reported under Industrial Solutions. The transaction is expected to have a marginal positive effect on Nolato’s earnings per share for the current year.

The acquisition means Nolato has a solid global position on the three key continents of Asia, Europe, and North America. Headquartered in Torekov, Sweden, Nolato is a global solutions provider specializing in developing and manufacturing products in polymer materials such as plastic, silicone, and TPE for leading companies within the healthcare, automotive, and consumer electronics industries.

"We believe Nolato aligns exceptionally well with GW Plastics’ business and culture, and together we’ll offer our customers the same predictability and engagement they have come to rely on,” said GW Plastics president and CEO Brenan Riehl. “Our customers will now be able to enjoy the support and scale of the entire Nolato Group with its comprehensive product development, engineering services, and extensive global manufacturing network. The combined capabilities and synergies between our companies are second to none and we look forward to leveraging them for our customers’ benefit."

As MRC informed earlier, at an investment cost of about SEK 30m (EUR 3.3m), the Medical division of Nolato is to expand its production site in Mosonmagyarovar/Hungary. The Swedish group plans to build a new hall with a production area of 3,500 m2. Subsidiary Nolato Magyarorszagdie will be able to use the new space, which includes additional clean room capacity, from 2013 onwards. According to local media reports, the expansion will result in raising current employee levels from 400 to around 450.

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.
MRC

Vantage completes surfactant intermediate expansion in Germany

MOSCOW (MRC) -- Vantage Specialty Chemicals (Chicago, Illinois) says it completed in October an expansion of capacity for n-methyltaurine at Leuna, Germany, to support growing demand for sulfate-free and mild surfactants. N-methyltaurine is an intermediate for the synthesis of taurate surfactants, reported Chemweek with reference to the company's statement.

Ramping up production is a first step toward making the Leuna site the company’s expertise center for sulfate-free solutions, says Alexander Snell, senior vice president/EMEA at Vantage. The company is creating a platform that will support customers looking for sulfate-free surfactant systems, “by leveraging our existing infrastructure and integration within the Leuna industrial complex and improving its potential,” says Snell.

Vantage acquired the Leuna complex through the acquisition of specialty surfactants maker Leuna Tenside in 2018.

As MRC informed before, in December 2019, the Total's refinery in Leuna awarded Bilfinger two further major contracts worth roughly EUR30 million: the first involves exchanging the reactor systems; the second, performing the turnaround for the plant’s POX methanol facility. Total’s refinery Mitteldeutschland in Leuna is one of the most modern industrial plants in Europe.

We remind that Total is evaluating new gas cracker project in South Korea as part of petchems growth strategy.

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.
MRC

Japanese crude runs recover to 13-week high at 71.7%

MOSCOW (MRC) -- Japan's crude run rates in the week ended Nov. 14 shot up to 71.7%, the highest in 13 weeks since its mid-August peak during the summer driving season, as refiners raised their crude throughput for the upcoming winter heating demand season, reported S&P Global.

The crude run rates rose from 68.4% in the previous week as Japanese refiners raised their crude throughput by 4.7% to 2.48 million b/d, data released Nov. 18 by the Petroleum Association of Japan showed.

The Nov. 8-14 run rate was the highest since the week ended Aug. 15 when runs stood at 71.8%. Japan's installed refining capacity, however, fell from 3.5188 million b/d to 3.4578 million b/d as of Oct. 8 due to nameplate capacity changes at ENEOS refineries.

The increase in refinery runs came after Cosmo Oil restarted its sole 86,000 b/d crude distillation unit at its Yokkaichi refinery on Nov. 9 after completing scheduled maintenance. This followed the Nov. 5 restart of ENEOS' 120,000 b/d No. 1 CDU at its 270,000 b/d Negishi refinery after a planned turnaround.

Japan's kerosene stocks fell 5% week on week to 17.39 million barrels on Nov. 14, the PAJ said Nov. 14, because of the country's accelerating shipments of the heating oil.

The country's estimated domestic kerosene shipments surged 59.6% week on week to 2.48 million barrels in the week to Nov. 14, according to S&P Global Platts calculations based on PAJ data.

The estimated Nov. 8-14 kerosene shipments were highest since March 1-7 when the shipments stood at 2.71 million barrels, Platts calculations showed.

Estimated domestic kerosene shipments had soared 66.5% in four weeks to 6.51 million barrels Nov. 14, up from 3.91 million barrels in the previous four weeks to Oct. 17, according to Platts calculations.

The strong prompt demand is slowing Japan's stockpiling of kerosene. The Nov. 14 kerosene stocks fell 1.4% from a year ago, according to Platts data.

As MRC informed before, Eneos Corp, permanently shut the 115,000 barrels-per-day (bpd) crude distillation unit at its Osaka refinery on September 30 as planned. The refiner, which was formerly known as JXTG Nippon Oil & Energy Corp and is now under Eneos Holdings Inc, is shifting its joint venture with PetroChina Co to Eneos’ Chiba refinery after shutting the venture’s Osaka refinery.

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.
MRC

Successful start-up of LAMINOL sulfur removal and recovery unit for Antwerp refinery

MOSCOW (MRC) -- Frames has supplied, and successfully commissioned, a hydrogen sulfide (H2S) removal unit, based on Frames’ proprietary LAMINOL technology, to a refinery in Antwerp, Belgium, said Canplastics.

With significantly lower cost of ownership than conventional caustic scrubbers and solid bed type H2S removal processes, the LAMINOL process is suitable for low to mid sulfur loads. Researching the most effective solution to comply with the refinery’s stringent flue gas SOX emission limits, various technologies were evaluated during the conceptual design phase, including flue gas treatment and caustic scrubbers. Frames’ LAMINOL technology was selected as most effective, while meeting the refinery’s total cost of ownership requirements. Working to a fast track schedule, the modular H2S removal system was quickly installed and commissioned.

Instead of treating the flue gas directly, the LAMINOL technology removes sulfur components from the distillation overhead gas containing up to 60% H2S before it is combusted in the process furnace. Treating the waste gas in a stand-alone modularized unit meant that the unit was much easier to integrate into the existing refinery facility. The gaseous sulfur removed is converted into elementary sulfur in solid form.

“LAMINOL is a highly effective, and economically attractive, method for deep H2S removal at high concentrations,” says Lennard Spit, gas treatment specialist, Frames. “And unlike many other removal systems, the technology is robust and capable of infinite turndown and handling feed gas fluctuations that are more representative of ‘real world’ refinery waste streams."

Frames LAMINOL technology is the result of an in-house R&D program initially developed and applied in the biogas market where it provides a cost-effective alternative to conventional biogas sweetening processes. The LAMINOL technology is capable of selectively removing H2S from CO2 rich gas streams to a few ppm even at near atmospheric gas pressure and is suitable for treating any gas stream.

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

Imperial Oil to boost spending, slightly raise output amid volatile recovery

MOSCOW (MRC) -- Canada's Imperial Oil , one of the country's biggest crude producers and refiners, said that it would raise capital spending and production next year as a volatile recovery of energy demand continues, reported Reuters.

Chief Executive Brad Corson said at the company’s virtual investor day presentation that a recovery in global energy demand looked to be “highly uncertain” and dependent on the spread of COVID-19. Pandemic travel restrictions have crushed fuel demand, depressing oil prices and forcing producers to cut costs and jobs.

Imperial plans to spend CD1.2 billion (USD917.01 million) in 2021, up 33% from 2020. Upstream production looks to rise 5% to 415,000 barrels of oil equivalent per day.

The company, majority owned by US oil major Exxon Mobil Corp, said it would also aim to reduce greenhouse gas emissions intensity, a measure of pollution per barrel, by 10% by the end of 2023 from 2016 levels.

Imperial said it has already cut emissions intensity by more than 20% since 2013 and will achieve further reductions by improving productivity at its Kearl site and adopting new technologies.

As MRC wrote previously, in July 2020, Imperial Oil said delayed turnarounds at its 120,000 b/d Sarnia, Ontario, refinery and one of three cokers at the Syncrude facility in Western Canada from the second quarter to the third quarter as it continues to assess the impact of the coronavirus on its operations.

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.
MRC