Nexus and Shell to scale up commercial production of chemicals from plastic waste

MOSCOW (MRC) -- Nexus Fuels LLC (Nexus) and Shell announce a supply agreement, for 60,000 tons over four years, of pyrolysis liquid made from plastic waste, which is then converted into chemical products, according to Hydrocarbonprocessing.

Nexus, a leader in plastic waste molecular recycling, will supply fully circular, ISCC Plus-certified product from its plant in Atlanta.

This enhanced collaboration follows a year of continuous, high-quality supply to Shell’s chemical plant in Norco, Louisiana, USA, where it has been used in the liquid cracker to make chemicals that are the raw materials for everyday items. The new agreement builds on that success and on a common desire to find solutions to plastic waste pollution and progressing a low-carbon future. It is a next step towards Shell’s ambition to use one million tons of plastic waste a year in its global chemical plants by 2025.

Jeff Gold, Nexus chief executive officer, said “We appreciate Shell’s support of Nexus to convert waste plastics to virgin-molecule feedstocks and back into chemical products. Their teams have been great partners and share our philosophy and vision for improving our environment.”

Thomas Casparie, executive vice president of Shell’s global chemicals business, said “Real-world, in-plant testing and application is key to proving technologies and scaling up production of chemicals from plastic waste. This new supply agreement with Nexus is built on that solid foundation and is a positive step towards providing our customers with bigger volumes of sustainable, circular chemicals.”

As MRC informed before, Royal Dutch Shell plc. said earlier this month that its petrochemical complex of several billion dollars in Western Pennsylvania is about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

Ethylene and propylene are feedstocks for producing 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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Manufacturing sales up 1.5 per cent in September, StatCan says

MOSCOW (MRC) -- Led by the wood, chemical, and food industries, Canadian manufacturing sales rose 1.5 per cent to USD53.8 billion in September, according to new figures from Statistics Canada, said Canplastics.

The increase followed a revised drop of 1.4 per cent in August compared with the 2.0 per cent decrease that was initially reported.

The result for September matched the average expectations of economists surveyed by financial data firm Refinitiv. Sales rose in 13 of the 21 manufacturing sectors as the wood industry climbed 9.6 per cent in September to a record $3.3 billion due to higher sales at sawmills and wood preservation manufacturers.

The chemical industry rose 6.7 per cent to USD4.5 billion, while the food industry increased 1.3 per cent to USD9.2 billion for the month.

StatCan also said that manufacturing sales in constant dollars rose 2.1 per cent, indicating a larger volume of products was sold in September.

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

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