PP production in Russia up by 31% in Jan-Oct 2020

MOSCOW (MRC) -- Russia's overall polypropylene (PP) production increased in the first ten months of 2020 by 31% year on year to about 1,529,000 tonnes. ZapSibNeftekhim accounted for the main increase in the output, according to MRC's ScanPlast report.

Russian plants' total PP production dropped to 152,000 tonnes in October from 158,200 tonnes a month earlier ZapSibNeftekhim and Poliom's production capacitites were shut for maintenance. Russia's overall PP production reached 1,529,000 tonnes in January-October 2020, compared to 1,170,300 tonnes a year earlier. Six out of eight producers raised their capacity utilisation, with a new producer - ZapSibNeftekhim - accounting for the main increase in the output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk raised its capacity utilisation in October, the plant's production rose to 51,800 tonnes versus 49,200 tonnes a month earlier. The Tobolsk plant's overall PP production reached 404,600 tonnes in January-October 2020, up by 7% year on year.

ZapSibNeftekhim, the Tobolsk producer, manufactured about 32,000 tonnes of PP in October, compared to 42,300 tonnes in September. The plant's overall output totalled 357,000 tonnes in the first ten months of 2020.

Omsk Poliom shut its production for a scheduled turnaround in October, having produced 5,800 tonnes of PP, as a result, compared to 17,100 tonnes a month earlier. Overall, the Omsk plant produced 150,500 tonnes of PP in January-October 2020, down by 14% year on year.

Nizhnekamskneftekhim produced 17,700 tonnes of propylene polymers in October versus 18,300 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer reached 182,500 tonnes in the first ten months of 2020, compared to 174,900 tonnes a year earlier.

Tomskneftekhim produced 13,500 tonnes of propylene polymers in October versus 7,000 tonnes a month earlier, in September, the producer shut its production for a two-week maintenance. The Tomsk plant's overall PP output reached 123,200 tonnes in January-October 2020, up by 1% year on year.

Ufaorgsintez's October PP production was 7,600 tonnes versus 3,200 tonnes in September; the Ufa producer carried out scheduled maintenance works in the first two months of autumn. The Ufa plant's overall output of polymer reached 97,700 tonnes in January-October 2020, down by 9% year on year.

Neftekhimiya (Kapotnya) produced 11,900 tonnes of PP in October, compared to 12,400 tonnes a month earlier. The plant's overall PP output reached 124,300 tonnes in the first ten months of 2020, up by 2% year on year.

Stavrolen (LUKOIL) increased its capacity utilisation in October, and, as a result, it produced 11,700 tonnes of propylene polymers versus 8,600 tonnes in September. The Budenovsk plant's overall production of propylene polymers exceeded 89,400 tonnes in the first ten months of 2020 versus 85,500 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Indonesia must make policy changes to ensure it can keep subsidizing its ambitious biodiesel program, the head of a government agency in charge of collecting and managing palm oil export levies, reported Reuters with reference to a virtual conference on Wednesday.

The world's biggest producer of palm oil makes it mandatory for diesel to be blended with 30% bio content (B30), but plans to increase this to 40% have been delayed due to funding issues.

"The price gap between crude palm oil and diesel widened in 2020, posing a challenge to the sustainability of the support program.. especially the mandatory biodiesel program," Eddy Abdurrachman, president director of the Estate Crop Fund Agency (BPDP), told the Indonesian Palm Oil Conference.

It was projected that in 2021 there would be a significant increase in funds needed, Eddy said, estimating that Indonesia will consume 9.59 million kilolitres of biodiesel next year.

Indonesia's biofuel program aims to maximize domestic use of palm oil and cut imports of oil, but a slump in crude prices this year has made it less economical.

"Policy adjustments are required," Eddy said.

Paulus Tjakrawan of the Indonesian Biofuel Producer Association told the conference that the price gap between the bio component in biodiesel, fatty acid methyl esters (FAME) made from palm oil, and diesel rose to around USD400 per tonne in 2020 from around USD100 last year.

Indonesia needed to either increase palm levies, impose an excise tax on fuel or make palm companies contribute to subsidies to sustain the program, Bustanul Ariffin, an economist at the Institute for Development of Economics and Finance, told the conference, adding the program may suffer a 12.2 trillion rupiah (USD865.25 million) deficit next year.

Since June this year, Indonesia has collected a maximum USD55 levy per tonne on palm oil exports, regardless of the price.

Indonesia's chief economic minister, Airlangga Hartarto, told Reuters in September there were plans to revise its palm oil export levy rules to allow higher collection when prices increase, but no regulation has been issued yet.

Energy ministry official Dadan Kusdiana told the conference Indonesia's 2020 biodiesel consumption was equivalent to 165,250 barrels of oil per day and saved the country USD3.09 bln in foreign exchange and 25.6 million tonnes of carbon.

Although biodiesel promises lower emissions, land clearance to grow palm oil has raised concern about deforestation.

As MRC wrote before, Indonesia's largest petrochemical producer Chandra Asri and Netherlands-based storage and terminal operator Vopak are planning to set up an infrastructure joint venture in Indonesia. The two companies signed a letter of intent on 5 October to set up the partnership, which aims to establish a new jetty and tank farm business that will serve third-party customers and to build secondary infrastructure at Chandra Asri's new petrochemical complex, the Indonesian firm said.

Chandra Asri's second petrochemical complex will include a 1.1mn t/yr naphtha-based cracker, 450,000 t/yr high-density polyethylene (HDPE) unit, 300,000 t/yr low-density polyethylene unit (LDPE) and a 450,000 t/yr polypropylene (PP) unit. The producer is aiming to commission the complex in 2024, barring any delays because of the Covid-19 pandemic.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- BASF and the Swedish packaging manufacturer BillerudKorsnas have cooperated to develop a home-compostable paper laminate for flexible packaging, said the company.

The move comes amid the market shift from plastic to paper-based packaging and towards more recycling. Conventional multi-layer flexible films are difficult to recycle.

The multi-layer film consists of three basic components: BillerudKorsnas‘ paper, a sealing layer made of BASF’s certified home compostable and partly bio-based biopolymer and BASF’s water-based adhesive which joins the film to the paper. It can be used to produce wraps with individually adjusted barrier properties, e.g. for cookies, cereal bars and dairy items. All components are certified home-compostable according to official European certification schemes for home-composting.

It can be used to produce wraps with individually adjusted barrier properties, for example for biscuits, ice cream, cereal bars and dairy items as well as wrappers for fish, meat and cheese.

“Our joint development represents a shift to paper-based and compostable material in order to replace traditional laminates for food packaging - meeting hygiene and barrier requirements, maintaining form and enabling many design possibilities just like conventional packaging but with the decisive added benefit that it is home-compostable,” said Markus Saari, business development manager at BillerudKorsnas.

As MRC reported previously, German chemicals maker BASF said in early November it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic. BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in India’s Gujarat state.

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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- Chevron Corporation has made a 2021 organic capital and exploratory spending program of USD14 billion and lowered its longer-term guidance to USD14 to USD16 billion annually through 2025, accoring to The Daily.

This capital outlook will continue to prioritize investments that are expected to grow long-term value and deliver higher returns and lower carbon, including over USD300 million in 2021 for investments to advance the energy transition.

“Chevron remains committed to capital discipline with a 2021 capital budget and longer-term capital outlook that are well below our prior guidance,” said Chevron Chairman and CEO Michael Wirth.

“With our major restructuring behind us and Noble Energy integration on track, we’re prepared to execute this program with discipline.”

Chevron’s capital guidance of USD14 to USD16 billion annually from 2022 to 2025 is significantly lower than its previous guidance of USD19 to USD22 billion, which excluded Noble Energy.

During this time period, as capital is expected to decrease for a major expansion in Kazakhstan, the company expects to increase investments in a number of Chevron’s advantaged assets, including its world class position in the Permian, other unconventional basins, and the Gulf of Mexico.

He added: “Chevron is in a different place than others in our industry. We’ve maintained consistent financial priorities starting with our firm commitment to the dividend. We took early and swift action at the beginning of the pandemic to prudently allocate capital, reduce costs and protect our industry-leading balance sheet. And we’ve completed a major acquisition and restructuring that positions our company to deliver higher returns and grow long-term value.”

As MRC reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations. The force majeure circumstances were declared on 1 September, 2020. CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur. The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- Through November, broadly one sixth of Europe's overall ethylene capacity was offline, according to Chemweek with reference to OPIS records.

The reduction in cracker capacity was sufficiently large to tighten the supply of ethylene and propylene, as the remaining petrochemical producers looked to maintain strong run rates in the region.

The major units that have seen reduced capacity through maintenance or operational issues included the 1.31-million metric tons/year Geleen and 940,000-metric tons/year Moerdijk crackers in the Netherlands; the 865,000-metric tons/year Wilton plant in the UK, which is partly ethane fed; the 625,000-metric tons/year Stenungsund facility in Sweden, also partly ethane fed; the 400,000-metric tons/year plant at Porvoo in Finland; and the 310,000-metric tons/year Wesseling cracker in Germany. The Porvoo plant is expecting a restart in early December.

OPIS is an IHS Markit company.

As MRC reported earlier, Borealis announces that its new naphtha cavern in Porvoo, Finland has now been safely commissioned as of October 2020. Having invested around EUR25 million in the construction of this 80,000 m3 facility, Borealis can now source and store naphtha for its Porvoo operations from the global market in a more flexible, cost-efficient, and secure way. The cavern can also accommodate renewable naphtha, making it possible for Borealis customers in future to draw on certified renewable polypropylene (PP) and polyethylene (PE), as well as renewable base chemicals, ethylene, propylene and phenol.

We remind that the light-feed 625,000-metric tons/year Borealis steam cracker at Stenungsund, Sweden, is expected to restart operations in the fourth quarter this year after a fire broke out at the plant in May, 2020. The cracker has been under force majeure ever since after the blaze at the plant on 10 May, which was subsequently brought under control the following day.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC