INEOS and Hyundai sign MoU on hydrogen

MOSCOW (MRC) -- INEOS and Hyundai have signed a memorandum of understating (MoU) to explore potential joint hydrogen businesses, the European chemicals major said on 22 November, said the company.

Hyundai and INEOS will jointly investigate opportunities for the production and supply of hydrogen as well as the worldwide deployment of hydrogen applications and technologies. Both companies will initially seek to facilitate public and private sector projects focused on the development of a hydrogen value chain in Europe.

The agreement also includes the evaluation of Hyundai’s proprietary fuel cell system for the recently announced INEOS Grenadier 4x4 vehicle. This cooperation represents an important step in INEOS’ efforts to diversify its powertrain options at an early stage.

Hyundai’s proprietary modular fuel cell system, which evaluation vehicles will use, has already proven reliable and effective in the Hyundai NEXO SUV. The world’s first dedicated hydrogen-powered SUV has the longest driving range among hydrogen-powered vehicles in the market. Hyundai is one of leading company in the field of fuel cell technology having started the world’s first mass production of fuel cell electric vehicles in 2013.

"INEOS’ move into the development of a fuel cell electric vehicle and hydrogen ecosystem marks yet another milestone towards sustainable and clean transportation,” said Saehoon Kim, Senior Vice President and Head of Fuel Cell Center at Hyundai Motor Company. “Hyundai believes this will provide an important low-carbon option across a wide range of sectors. We also hope our decades-long expertise in hydrogen fuel cell work in synergy with INEOS’ expertise in field of chemistry to realize the mass production of green hydrogen and fuel cells for the Grenadier."

Peter Williams Technology Director INEOS, said, “The agreement between INEOS and Hyundai presents both companies with new opportunities to extend a leading role in the clean hydrogen economy. Evaluating new production processes, technology and applications, combined with our existing capabilities puts us in a unique position to meet emerging demand for affordable, low-carbon energy sources and the needs of demanding 4x4 owners in the future."

INEOS recently launched a new business to develop and build clean hydrogen capacity across Europe in support of the drive towards a zero-carbon future. The company currently produces 300,000 tons of hydrogen a year mainly as a by-product from its chemical manufacturing operations.

Through its subsidiary INOVYN, INEOS is Europe’s largest existing operator of electrolysis, the critical technology that uses renewable energy to produce hydrogen for power generation, transportation and industrial use. Its experience in storage and handling of hydrogen combined with its established know-how in electrolysis technology, puts INEOS in a unique position to drive progress towards a carbon-free future based on hydrogen.

In 2018, Hyundai Motor Group announced its mid- to long-term roadmap, Fuel Cell Vision 2030, to increase annual production of hydrogen fuel cell systems to 700,000 units by 2030.

As per MRC, Ineos declared force majeure on its low density polyethylene (LDPE) supplies from one of its plants in Cologne, Germany due to a power outage on November 11. The company could not be reached for comments at the time of publication, however. The force majeure is slated to last for 3 weeks. The company’s metalocene linear low density polyethylene (mLLDPE) unit at the same site was reported to be unaffected, meanwhile.

As MRC wrote before, a 660,000-metric tons/year phenol-acetone plant operated by Ineos in Gladbeck, Germany, was shut for maintenance from 27 October until 6 December, 2020.

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.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

Qatar Petroleum completes integration of Muntajat

MOSCOW (MRC) -- Qatar Petroleum announced that it has completed the successful integration of Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) Q.J.S.C. into Qatar Petroleum (QP), said Chemweek.

With this integration, Muntajat will continue to exist as a legal entity, while QP has been appointed as its Marketing Agent.

This milestone follows QP’s announcement of June 2020, in which it stressed that the integration will involve leveraging the combined set of human, technical, commercial, and financial capabilities of both entities, enabling Muntajat to expand its reach through QP’s global footprint.

H E Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, described the integration as “another successful landmark on the road to achieving our strategic objectives."

"We look forward to further enhancing Qatar Petroleum’s capabilities through our combined talent, experience and capabilities that will eventually benefit our worldwide network of downstream customers and keep us as the partner of choice providing superior high quality products and excellence in customer service," Minister added.

This integration marks another step towards achieving one of Qatar Petroleum’s strategic objectives of becoming a leader in the global downstream industry.

As MRC informed earlier, Qatar Petroleum is pleased to announce the commencement of supply of ultra low sulfur diesel (ULSD) by the QP Refinery in Mesaieed for the domestic transportation market, effective from today, bringing all diesel sold in the country to the highest specifications.

As MRC informed earlier, in July, the Chevron Phillips joint venture postponed final approval for a USD8 billion Gulf Coast plant, which it planned to approve next year with Qatar Petroleum.

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

Output of polymer products in Russia up by 1.5% in January-October

MOSCOW (MRC) -- Russia's output of products from polymers grew in October 2020 by 6.3% year on year.
However, this figure increased by 1.5% year on year in the first ten months of 2020, reported MRC analysts.

According to the Russian Federal State Statistics Service, October production of unreinforced and non-combined films rose to 124,000 tonnes from 117,600 tonnes a month earlier. Output of films products grew in January-October 2020 by 8.5% year on year to 1 104,900 tonnes.

Last month's production of non-porous boards, sheets and films dropped to 39,100 tonnes from 39,300 tonnes in September. Thus, overall output of these products reached 350,300 tonnes over the stated period, up by 5.1% year on year.

October production of porous polymer boards, sheets and films was 36,500 tonnes, up by 14.5% month on month.
Overall output of these products reached 266,000 tonnes in the first ten months of 2020, compared to 228,000 tonnes a year earlier.

October production of plastic bottles and flasks decreased to 1.6 bln items from 1.71 bln items a month earlier.
Overall output of these plastic products totalled 17,95 bln units over the stated period, compared to 16,87 bln units a year earlier.

Last month's production of polymer pipes, hoses and fittings exceeded 69,000 tonnes versus 68,300 tonnes in September. Overall output of these products was 592,200 tonnes in January-October 2020, up by 9% year on year.
October production of sacks and bags from ethylene polymers reached 2,274,000,000 units, compared to 2,881,000,000 units a month earlier.

Overall output of these plastic products totalled 25,44 bln units in the first ten months of 2020, compared to 21,31 bln units a year earlier. Last month's production of linoleum and floor coverings was 17,4 mln square metres, compared to 15,4 mln square metres in September.

Overall output of these products totalled 133,6 mln square metres over the stated period versus 126,2 mln square metres a year earlier. October production of plastic windows and door blocks reached 2,762 mln square metres and 103,200 square metres, respectively, versus 2,915 mln square metres and 112,500 square metres a month earlier.
Overall output of these plastic products totalled 22,446,000 square metres and 840,500,000 square metres, respectively, compared to 20,666,000 square metres and 846,500 square metres a year earlier.
MRC

COVID-19 - News digest as of 25.11.2020

1. Asia Distillates-Gasoil cash discount narrows, cracks dip

MOSCOW (MRC) -- Asia's cash differentials for 10 ppm gasoil gained on Friday backed by a firmer deal in the physical market, while refining margins for the industrial fuel dipped amid concerns that near-term supplies would likely outweigh demand, reported Reuters. Cash differentials for gasoil with 10 ppm sulphur content were at a discount of 13 cents a barrel to Singapore quotes on Friday, compared with a 14-cent discount on Thursday. Refining profit margins, also known as cracks, for 10 ppm gasoil slipped 8 cents to USD4.97 a barrel over Dubai crude during Asian trading hours. The cracks, however, have gained 6.7% this week. With surging COVID-19 cases and renewed lockdowns in several countries, the industrial and transportation demand will come under further pressure, trade sources said. The front-month time spread for 10 ppm gasoil, which has remained in a contango structure since early August, traded at a discount of 14 cents per barrel on Friday, Refinitiv Eikon data showed.

MRC

Rocheleau and Nordson ramp up production to support massive buildup of COVID-Test

MOSCOW (MRC) --Rocheleau Tool & Die Co. has ordered dozens of Nordson Corporation’s Xaloy screws and barrels to equip blow molding machines for use by manufacturers of pipettes that are essential components of COVID-19 test procedures, said the company.

International suppliers of products for medical testing have invested heavily to expand production of plastic laboratory consumables to meet global demand for COVID-19 testing. For the manufacture of LDPE pipettes, Rocheleau has encountered a massive demand for its blow molding systems. Rocheleau is equipping this machinery with Xaloy® components from Nordson, including bimetallic barrels with X-800 linings and Fusion™ barrier screws.

The Xaloy Fusion screw was specified for the project because of its ability to maintain a consistently low melt temperature while producing high output rates, noted Rob Cook, Nordson manager of processor sales in the Americas. “While regrind based on blow molding trim is more sensitive to process variables than virgin resin, the Fusion screw ensures a uniform melt,” said Mr. Cook. “The low melt temperature permits shorter cooling times and more parts per minute, and it supports pipette manufacturers’ use of heat-sensitive additives for certain products without the need to change the equipment setup."

The X-800® lining for the Xaloy barrels is a nickel-based alloy with tungsten carbide that provides a longer working life than alternative carbide inlays.

Rocheleau’s drive to meet urgent demand for pipettes exemplifies the important role that plastics have played in combating COVID-19, said Mr. Rocheleau. “As a family-owned business, we are grateful for the opportunity to make an impact on the pandemic by addressing an urgent, global demand for pipettes. It has been very encouraging for our employees to make this happen, knowing that they have made a contribution to the fight."

Xaloy screws and barrels are basic components for the extrusion and molding of medical products, personal protection equipment, and packaging used for combating COVID-19, noted Seeni Congivaram, director of sales and marketing for Xaloy® products. “Today, tubing and connectors, blood bags, procedure kits, and other medical devices are playing critical roles in addressing the surge of hospital cases caused by the pandemic. Film and sheet products have been essential for preventing the spread of coronavirus infection. And packaging containers have made it possible for millions of people in lockdown to get fresh food and hot meals."

As MRC informed earlier, crude oil prices settled at multimonth highs Nov. 23 as demand outlooks improved amid reports of progress on a third COVID-19 vaccine. NYMEX January WTI settled 64 cents higher at USD43.06/b, and ICE January Brent was up USD1.10 at USD46.06/b.

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, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC