SIBUR starts manufacturing new PP grades to produce raffia

MOSCOW (MRC) -- SIBUR started manufacturing new PP grades to produce raffia, specifically PP H043FF/3 and PP H063FF/3, which boost equipment performance and processing stability while being used for the high-speed production of flat film thread for soft woven packaging such as bags and big bags, waterproof roofing underlays, and twines, said the company.

The new grades greatly speed up the processing equipment performance owing to an improved melt flow rate, thus boosting production by up to 15% for heavy threads and by up to 23% for light threads. Processing companies can save on electricity costs on the back of a 5% lower temperature across extruder layers, pressure reduced by 10 bar for the extruder die and filter, and a better mix of chalk concentrate.

A selection of special additives developed by SIBUR PolyLab’s Compounding division helps bring reject rates down to zero when manufacturing film threads. The range of controlled parameters of PP batches is quite narrow, which ensures processing stability, reduces the frequency of process mode adjustments and results in a consistently higher quality of finished products. The new grades have also been praised by equipment manufacturers for their efficiency.

"We at Starlinger and also our customers who use new SIBUR polypropylene grades H043FF/3 and PP H063FF/3 for raffia production on Starlinger equipment report excellent processing capabilities. Together with SIBUR, the Starlinger extrusion specialists tested the new grades on the company's tape lines and circular looms. The grades achieved the best results in the extrusion process on Starlinger high-speed tape production lines: they ensure very stable production even at the top speeds of 550 m/min and the highest quality in raffia tape production. The excellent tape quality pays off during the weaving process: less tape ruptures and machine downtime greatly increase production efficiency. We recommend PP H043FF/3 and PP H063FF/3 to our customers, especially for AD*STAR block bottom bag production and other lightweight woven bags."

Peter Schmalholz, Head of R&D at Windmoller & Holscher Machinery: "The new SIBUR PP grade H063FF/3 for raffia has proven to run very well in test production on TIRATEX high-speed tape lines, offering excellent process reliability and achieving good tape quality at production speeds of 550 m/min, matching today’s increasing demands for economical production. Windmoller & Holscher Machinery therefore decided to include this grade in our reference list of recommended materials for the manufacturing of AD PROTEX® LS box-shaped sacks and other PP fabric products."

Pavel Lyakhovich, member of the Management Board, Managing Director at SIBUR’s Basic Polymer Division, said: “The new grades are our regular products which have already secured a loyal customer base and enjoy appreciation both in Russia and beyond. We are delighted to have been able to provide our partners with a solution that ensures a consistently high quality of their products and enhances manufacturing efficiency."

As MRC informed earlier, SIBUR, Russia’s top petrochemicals company, has ramped up its ZapSibNefteKhim plant in western Siberia to full capacity, signaling a shift in supplies of LPG away from Europe as more products are sold to Asia, said the company. SIBUR signed a deal in June to sell up to 1 million tons of polyethylene a year to China’s Sinopec from ZapSibNefteKhim, which uses LPG as a feedstock. The Russian company, one of the biggest petrochemical companies in the world, has been gradually cutting LPG exports to Europe as it boosts ZapSibNefteKhim’s capacity.

MRC's ScanPlast report said, 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.
MRC

COVID-19 - News digest as of 08.12.2020

1. South Africa to review petroleum product supplies after refinery shutdown

MOSCOW (MRC) -- South Africa will urgently conduct an assessment of petroleum products supply, the Department of Mineral Resources and Energy said on Saturday after the country's second-largest crude oil refinery shut down following a fire, said Hydrocarbonprocessing. The 120,000 barrel-per-day (bpd) Engen refinery in Durban, majority-owned by Malaysia's Petronas, ceased operations as investigations started into the cause of the fire on Friday. Engen said it was taking measures to ensure security of supply. The refinery shutdown comes at a crucial time for South Africa as it looks to kickstart an economy walloped by the COVID-19 pandemic. The South African Petroleum Industry Association (SAPIA) warned in May that the country was facing a diesel shortage due to a spike in demand as restrictions on movement eased.

MRC

Crude oil futures dip as most of California enters lockdown

MOSCOW (MRC) -- Crude oil futures ticked down during midmorning trading in Asia Dec. 7 as the rally spurred by OPEC+ partially extending production quotas tapered off after most of California entered into a lockdown, reported S&P Global.

At 11:02 am Singapore time (0302 GMT), the ICE February Brent contract was down 18 cents/b (0.37%) from the Dec. 4 settle at $49.07/b while the NYMEX January light sweet crude contract was down 18 cents/b (0.39%) at $46.08/b. Both markers rose 2.07% and 1.60%, respectively, in the week ended Dec. 5, with the rally driven by the OPEC+ easing production quotas Dec. 3 by 500,000 b/d in January 2021.

The alliance will set output levels every month, aiming to release crude gradually onto the market without tipping it into a supply glut during an uncertain recovery from the pandemic, ministers said Dec. 3.

However, the sentiment soured Dec. 7 after the reimposition of lockdown measures in Southern California and large parts of the Central Valley on Dec. 5. The restrictions came after intensive care capacity in these regions fell below a 15% threshold, and are expected to remain in place for at least three weeks, according to media reports.

"Some of the shine is coming off the OPEC rally as the reality of Xmas lite sets in with the bulk of Californians, one of the US's biggest road fuel demand states, are set to enter wide-sweeping new virus lockdowns," said Stephen Innes, chief global market strategist at AxiTrader, in a Dec. 7 note.

"Oil being a prompt contract, it does not have the luxury to look through "Grinchy" holiday season-imposed lockdowns, like other forward-looking assets," he added.

Meanwhile, oil prices could also be influenced by news about the US stimulus package, seen by the market as key to injecting life into the ailing US economic picture and shoring up demand for oil.

The increasing agreement in the political sphere that further fiscal response is needed for a US economic recovery portends well for ratification of a US stimulus bill.

"The prospect for another US COVID-19 pandemic stimulus package before end-2020 rose substantially as senior Republican lawmakers warmed to the US$908bn proposal put forth by a bipartisan group of lawmakers as a basis for a deal," UOB analysts said in a Dec. 7 note.

"House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer have already endorsed using the bipartisan proposal as the basis for negotiations while several Republican senators, including South Carolina's Lindsey Graham, a close ally of Trump, said that it contained elements for an agreement," they added.

As MRC invofmed 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% 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 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

Lotte Chemical restarts Daesan cracker in South Korea

Lotte Chemical restarts Daesan cracker in South Korea

MOSCOW (MRC) -- South Korea’s Lotte Chemical has restarted its fire-hit naphtha-fed steam cracker in Daesan, reported Chemweek.

Thus, the facility begins trial runs of naphtha on 7 December, and the company expects commercial production to be achieved on 8 December.

Lotte Chemical had initially planned to restart the cracker in September, then - in mid-November and finally - to early December.

As MRC wrote before, the cracker was shut on March 4 following an explosion, which injured more than 30 people.

Lotte Chemical has two steam crackers. The steam cracker in Daesan has a production capacity of 1.1 million mt/year of ethylene, 550,000 mt/year of propylene and 150,000 mt/year of butadiene, while the Yeosu steam cracker is able to produce 1.18 million mt/year of ethylene, 550,000 mt/year of propylene and 130,000 mt/year of butadiene.

We remind that Lotte Chemical shut down its Deasan cracker for maintenance turnaround on October 14, 2019. The cracker resumed production on November 10, 2019.

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.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.
MRC

Eni, Enel to build green hydrogen pilot projects to supply two refineries in Italy

MOSCOW (MRC) -- Eni and electricity utility company Enel say they will develop two green hydrogen pilot schemes aimed at supplying a pair of Eni’s refineries in Italy, said Chemweek.

The hydrogen will be produced using 10-megawatt (MW) electrolyzers powered by renewable energy, with both projects expected to start producing green hydrogen by 2022-2023, according to the Rome-based companies. Eni says the electrolyzers will be located near two of its refineries “where green hydrogen appears to be the best decarbonization option.” It did not specify which sites or the level of investment.

"This partnership in green hydrogen is part of Eni’s broader energy transition strategy. Our goal is to accelerate the reduction of our carbon footprint by implementing the best applicable low carbon solution, either green or blue, to reduce our direct emissions as well as switching to bio products to supply our clients," says Eni CEO Claudio Descalzi.

A closed loop system is planned, with the electrolyzers powered by renewable energy, with the refineries in the same locations, which will avoid “the construction of complex transport infrastructure to move hydrogen around,” says Enel CEO Francesco Starace. “We are looking forward to seeing green hydrogen supplying Eni’s refinery and biorefinery processes, and are working to have the first operating system in place before the end of our current three-year plan," he says.

Enel Group is also developing green hydrogen projects in Spain, Chile, and the US, with plans to expand its capacity to over 2 gigawatts by 2030, it says. Eni is studying other renewable hydrogen projects in Italy and the UK, where on 4 December it announced it had acquired a 20% stake in the UK’s ?6.0-billion (USD7.98-billion) Dogger Bank offshore wind development. The project will add 480 MW of renewable energy to Eni’s 2025 target of 5 GW of installed capacity from renewable sources.

As MRC reported earlier, in September 2020, Italy’s Eni proposed building bio-refineries in Abu Dhabi, according to the energy group’s chief executive Claudio Descalzi. The Italian oil major has been focusing on developing new clean technologies in recent years as it steps up preparations for a decarbonized future.

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 density 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