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

Ontario invests USD350,000 for plastic sheeting maker to produce face shields

MOSCOW (MRC) -- The Ontario provincial government is investing USD350,000 in clear plastic sheeting maker Integrated Packaging Films (IPF), of Ayr, Ont., to help the firm with the production of an additional four million face shields per month for use during the second wave of COVID-19, said Canplastics.

The funding will be used to help the company create new jobs and increase production of PET film by 49 per cent for use in the additional face shields.

"As a manufacturer of clear plastic sheeting for over 23 years, Integrated Packaging Films is excited to work towards protecting Ontarians against the COVID virus,” IPF president Bill Mechar said in a statement. “With the help of the government’s Ontario Together Fund, we will increase capacity of clear film and offer Canadian manufacturers locally made materials for fabricating face shields. This expansion will also create several new full-time jobs in our Ayr facility."

As MRC informed earlier, in response to urgent needs by medical professionals for protective equipment to combat COVID-19, Solvay is supplying high-performance, medical-grade transparent film to Boeing for its production of face shields.

According to MRC's DataScope report, Russian companies decreased their purchasing of PP in foreign markets in October including due to the reduction of export quotas from some producers, imports amounted to 17,900 tonnes against 19,900 tonnes a month earlier. Thus, overall PP imports into Russia reached 181,100 tonnes in January-October 2020, compared to 152,100 tonnes a year earlier. Purchasing of all grades of propylene polymers in foreign markets increased, with homopolymer PP imports accounting for the most noticeable rise.

Founded in 1997, IPF produces films for automotive, food, pharmaceutical, cosmetic, printing, and consumer packaging markets.
MRC

Linde triples production capacity for hydrogen refueling stations

MOSCOW (MRC) -- Linde and the Dalian Bingshan Group have signed an agreement to establish a joint venture company that will manufacture hydrogen refueling stations in Dalian, China (Liaoning province) to supply fuel cell-powered vehicles, starting in 2021, said Hydrocarbonprocessing.

As a result, Linde will triple its production capacity for hydrogen refueling stations in the next few years. The new production facility in Dalian has been designed to meet the requirements of the rapidly growing APAC markets.

“The Asian market has long been one of the pioneers in hydrogen-based mobility solutions. Due to our many years of successful cooperation with our joint venture partner, this is the ideal location for us to expand capacity," said Dr. Alexander Unterschuetz, senior vice president Components, Linde Engineering.

In 2014, Linde started the world's first small series production for hydrogen refueling stations in Vienna. The IC90 and Twin IC90 systems to be manufactured in Dalian are based on the Ionic Compressor technology developed by Linde in Vienna. This technology has proved to be energy-efficient and space-saving. A sufficient infrastructure of hydrogen refueling stations is considered one of the key prerequisites for the market success of emission-free fuel cell vehicles.

Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest liquid hydrogen capacity and distribution system in the world. The company also operates the world's first high-purity hydrogen storage cavern coupled with an unrivalled pipeline network to reliably supply its customers. Linde is at the forefront in the transition to clean hydrogen and has installed over 190 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest electrolysis technology through its newly formed joint venture ITM Linde Electrolysis.

Linde and the Dalian Bingshan Group have been running a successful joint venture in Dalian since 2005. As Linde Engineering's most important production facility in China, the company produces and sells large air separation plants and other plant components.

As MRC informed earlier, Linde has entered into a long-term agreement with Samsung Electronics to supply ultra-high purity industrial gases for the South Korean tech giant’s latest semiconductor facilities in Pyeongtaek, South Korea. Currently the main supplier of industrial gases to Samsung’s existing facilities in Pyeongtaek, Linde said this second agreement will see the company build, own and operate air separation plants in Samsung’s latest world-class manufacturing complex.

As MRC informed earlier, Linde GmbH and Shell have announced an exclusive collaboration agreement on ethane-oxidative dehydrogenation (E-ODH) technology for ethylene production. The catalytic process is an alternative route to ethane steam cracking, offering the potential of economic advantages, acetic acid co-production and significantly lower overall carbon footprint through electrification of power input.

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.
MRC