Linde, Snam to collaborate on clean hydrogen projects in Europe

MOSCOW (MRC) -- Linde announced it has signed a memorandum of understanding (MoU) with Snam to jointly develop clean hydrogen projects and related infrastructure in Europe. Snam, a world leading energy infrastructure company, owns and operates the largest natural gas transmission network in Europe, having approximately 42,000 kilometers of pipeline across the continent, said the company.

Linde and Snam will work together to promote key technologies along the hydrogen value chain and develop opportunities for joint investments in commercial projects in the areas of production, distribution, compression and storage.

"Hydrogen is expected to play a significant role in achieving the European Green Deal goals," said Steve Angel, Chief Executive Officer, Linde. "We are pleased to collaborate with Snam, a recognized leader at the forefront of the energy transition, in the development of the clean hydrogen economy in Europe."

"With this agreement, we combine the know-how and innovative capabilities of both Linde and Snam in order to contribute to scaling-up hydrogen and reaching climate goals, aligned with the European Hydrogen Strategy," said Marco Alvera, Chief Executive Officer, Snam. "The collaboration with one of the world's leading companies in the sector strengthens our role as operator along the hydrogen value chain and lays the foundation for new joint projects."

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 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.

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 unrivaled pipeline network of circa 1,000 kilometers to reliably supply its customers. Linde has installed close to 200 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 GmbH.

MRC

Sinopec-SK Wuhan Petrochemical to restart its cracker in Wuhan in H2 December

MOSCOW (MRC) -- SKGC's joint venture Sinopec-SK Wuhan Petrochemical plans to restart its naphtha-fed steam cracker in Wuhan in the second-half of December as scheduled after the turnaround and debottlenecking, reported S&P Global with reference to the source's statement.

The cracker was shut down in October, S&P Global Platts reported previously.

SK Wuhan's steam cracker is able to produce 800,000 mt/year of ethylene and 400,000 mt/year of propylene.

After the debottlenecking, the cracker's ethylene production capacity will be increased to 1.1 million mt/year and propylene capacity to 550,000 mt/year.

The company will add a new 60,000 mt/year butadiene unit at the plant.

As MRC informed earlier, South Korea's SK Global Chemical (SKGC) shut its small No. 1 naphtha-fed steam cracker in Ulsan permanently on Dec. 10 due to aging-related issues. The No. 1 steam cracker is able to produce 200,000 mt/year of ethylene and 140,000 mt/year of propylene. The company will keep normal operations of its No. 2 steam cracker at the same location.

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

SKGC shuts No. 1 cracker in Ulsan permanently on December 10

MOSCOW (MRC) -- South Korea's SK Global Chemical shut its small No. 1 naphtha-fed steam cracker in Ulsan permanently on Dec. 10 due to aging-related issues, reported S&P Global with reference to a company source's statement on Dec. 11.

The No. 1 steam cracker is able to produce 200,000 mt/year of ethylene and 140,000 mt/year of propylene.

The company will keep normal operations of its No. 2 steam cracker at the same location.

The No. 2 unit is able to produce 660,000 mt/year of ethylene, 350,000 mt/year of propylene and 110,000 mt/year of butadiene.

As MRC wrote before, South Korea's SK Global Chemical restarted its naphtha cracker in late January 2018, after a brief but unplanned one-day shutdown. The 660,000 tonnes-per-year (tpy) naphtha cracker was expected to be operating normally the following day after the restart.

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

COVID-19 - News digest as of 11.12.2020

1. Australia moves into top three countries for renewable investment

MOSCOW (MRC) -- Australia has moved into the three most attractive countries in the world for renewables investment for the first time due to rapid solar photovoltaic (PV) deployment, research shows, said Hydrocarbonprocessing. In a bi-annual index of the top 40 renewable energy markets worldwide by consultancy EY, the United States held on to top spot, followed by China. Australia rose to third place, from fourth in the last ranking in May, while India climbed to fourth from seventh due to record low solar tariff bids and a new target for renewables generation, EY said. Australia has deployed more than 10 gigawatts of roof-mounted solar PV, by far the largest per capita rooftop-PV deployment in the world. Its plans for renewable energy export links to Asia also helped elevate its position. However, Australia’s renewables investment fell in the second quarter due to the COVID-19 crisis and policy uncertainty and the government continues to subsidize both the natural gas and oil refining industries as part of efforts to revitalize the economy.


MRC

Crude oil futures buoyed by vaccine momentum ahead of possible FDA approval

MOSCOW (MRC) -- Crude oil futures continued their upward trajectory during mid-morning Asian trade Dec. 11 as vaccine momentum intensified following an endorsement of the Pfizer-BioNTech vaccine by the US Food and Drug Administration advisory committee, and crude demand from India and China also supporting sentiment, reported S&P Global.

At 10:58 am Singapore time (0258 GMT), the ICE Brent February contract was up 15 cents/b (0.3%) from the Dec. 10 settle to USD50.41/b, while the January NYMEX light sweet crude contract was up 22 cents/b (0.47%) at USD47/b. Both markers had closed at nine-month highs on Dec. 10, with the ICE Brent February contract rising 2.84% to settle at USD50.25/b and the January NYMEX light sweet crude contract rising 2.77% to settle at USD46.78.

The risk-on sentiment in the market intensified after a committee of experts on the Vaccines and Related Biological Products advisory committee voted that the FDA grant the Pfizer-BioNTech Vaccine an Emergency Use Authorization

With the committee's endorsement, the vaccine is one step closer to receiving the EUA. The final decision from the FDA could come in "the next couple" of days, according to Marion Gruber, the director of the FDA's vaccine research office.

The vaccine has already been approved in Canada, Bahrain, Saudi Arabia and the UK, the last of which began distributing the vaccine on Dec. 8.

"Oil prices broke key chart resistance and climbed to a nine-month high despite a large build in US inventories [reported on Dec. 9]. The rally was propelled by FDA's warm gesture towards a wider distribution of Pfizer's COVID-19 vaccine in a meeting on Thursday (Dec. 10), which raised prospects for a faster economic recovery and removal of lockdown measures," Margaret Yang, strategist at DailyFX told S&P Global Platts Dec. 11.

"Besides, continuous strengthening of iron ore and copper prices reflected strong demand from Asia, which also brightened the energy demand outlook," she added.

To this, Stephen Innes, chief global strategist at Axi in a Dec. 11 note said: "Asia continues to provide much of the backstop for physical with unquenchable oil purchases by China teapots and multiple Indian producer tenders in the pipeline and the softer US dollar is helping the overall commodity cause."

Meanwhile, uncertainty over the US stimulus package -- seen by many to be key to boosting US economic recovery and oil demand -- continued to persist in the market, as lawmakers failed to reach an agreement on contentious issues including the Senate Republican's demand of a "liability shield" for businesses and entities such as schools and universities.

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% 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