Air Liquide to support liquid hydrogen plant development in South Korea

MOSCOW (MRC) -- Air Liquide Engineering & Construction has signed an agreement with Doosan Heavy Industries to support the construction of a liquid hydrogen plant in Changwon, South Korea, accoring to Chemweek.

To be built within the grounds of Doosan’s site in the city, once complete, the plant will be able to produce five tonnes of liquid hydrogen per day to service hydrogen stations nationwide.

In a statement released today (14th Dec), Air Liquide said it will provide the engineering and procurement of the hydrogen liquefier.

David Maloney, Vice-President and Chairman of Air Liquide Engineering & Construction commented, “We are proud to partner with Dooosan and contribute to the development of the liquid hydrogen plant in South Korea to support the country’s transition to a low-carbon economy.”

“Drawing on our more than 50 years of experience in hydrogen, we provide our customers with state-of-the-art technologies and solutions that enable delivery of such important projects to contribute to the development of clean mobility and a more sustainable future.”

The first industrial hydrogen production is envisaged in early 2023.

As MRC informed earlier, in September 2020, Air Liquide finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%. After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.

We remind that Sasol's world-scale US ethane cracker with the capacity of 1.5 mln tonnes per year reached beneficial operation on 27 August 2019. Sasol's new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities that came online and will provide feedstock to the company's six new derivative units at Sasol's Lake Charles multi-asset site.

Ethylene and propylene are feedstocks for producing 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.
MRC

Sempra to buy remaining stake in Mexican unit in USD6.13 B deal

MOSCOW (MRC) -- Sempra Energy said on Wednesday it would buy the remaining stake in a Mexican unit in a deal valued at USD6.13 billion as it eyes new investments in renewables and energy storage amid growing global demand for cleaner fuels, said Reuters.

The company currently owns 66.43% of Infraestructura Energetica Nova SAB de CV (IEnova), according to Refinitiv Eikon data, and its all-share offer for the rest implies a 15.2% premium to the stock's closing price on the Mexican exchange.

The deal comes shortly after the Mexican government unveiled a second package of 29 infrastructure investments worth some 228 billion pesos (USD11.36 billion), aimed at lifting the nation's ailing economy.

The package included Costa Azul, a USD2 billion LNG export plant being built by a Sempra unit in the country's Baja California area. The proposed plant is one of the biggest privately funded energy projects in Mexico and is the only LNG export project to reach a final investment decision this year.

Oil and gas companies around the world have pushed back decisions on new LNG terminals this year after the coronavirus pandemic hammered energy demand and prices, ending a long run of rising LNG investments as Asian countries tried to meet their rising energy demand and diversify fuel sources.

Sempra shares will trade on the Mexican stock exchange following the deal, and the company will combine IEnova with its North American liquefied natural gas export infrastructure unit Sempra LNG, it said. The company said the new unit, Sempra Infrastructure Partners, would focus on the development and construction of North American LNG export and natural gas infrastructure alongside renewable energy generation.

We remind that PetroChina has nearly doubled the amount of Russian crude being processed at its refinery in Dalian, the company's biggest, since January 2018, as a new supply agreement had come into effect. The Dalian Petrochemical Corp, located in the northeast port city of Dalian, was expected to process 13 million tonnes, or 260,000 bpd of Russian pipeline crude in 2018, up by about 85 to 90 percent from the previous year's level. Dalian has the capacity to process about 410,000 bpd of crude. The increase follows an agreement worked out between the Russian and Chinese governments under which Russia's top oil producer Rosneft was to supply 30 million tonnes of ESPO Blend crude to PetroChina in 2018, or about 600,000 bpd. That would have represented an increase of 50 percent over 2017 volumes.

Ethylene and propylene are feedstocks for producing 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.
MRC

Phillips 66 lowers 2021 spending budget after pandemic hit

MOSCOW (MRC) -- US oil refiner Phillips 66 on Monday set its 2021 capital budget at USD1.7 billion, around 43% lower than forecast for the previous year, as the energy industry struggles to recover from the blow of the COVID-19 pandemic, reported Reuters.

The coronavirus crisis and resulting lockdowns upended global travel and fuel demand, creating a supply glut that pushed US crude oil prices briefly into negative territory in April.

West Texas Intermediate crude futures have recovered much of those losses on the back of COVID-19 vaccine progress, although they have shed about 23% of their value so far this year.

Phillips 66 Chief Executive Officer Greg Garland on Monday warned that market conditions remain challenging, even as smaller rival HollyFrontier Corp last month outlined plans to double its spending next year, counting on an expected recovery in fuel demand.

Garland said the company's focus will be on cutting expenditures and for 2021, it will prioritize completion of projects in progress and renewable fuels, which have seen a demand surge this year.

Phillips 66 said its 2021 budget includes capital expenditures of USD776 million on the refining segment and USD610 million on midstream.

As MRC wrote before, in October 2020, US refiner Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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.
MRC

Indaver and INEOS Styrolution set to team up as technology partners

MOSCOW (MRC) -- Indaver, a leader in sustainable waste management, and INEOS Styrolution, global leader in styrenics, are set to team up as technology partners in a project funded by the EU LIFE programme, the European Union’s funding instrument for the environment and resource efficiency, according to Chemweek.

The project, which is planned for a duration of four years, will demonstrate the production of acrylonitrile-butadiene-styrene (ABS) based on recycled feedstock.

The project, called “LIFE ABSolutely Circular” aims at demonstrating the environmental and economic benefits of using advanced recycling technologies to close the loop of plastic recycling.

An initial key objective of the project is to demonstrate for the first time the production of ABS based on recycled feedstock taking advantage of advanced recycling technologies. The project is also planned to demonstrate scaling of the solution from lab scale to demo plant and ultimately to commercialisation.

The ABS copolymer is used in a broad range of applications in many industries including automotive, healthcare, electronics, household, and toys/ sports/ leisure. The material significantly contributes to societal well-being with a well-balanced mix of properties. It is robust, dimensional stable, leightweight and has an aesthetic surface appearance. It is also compliant with food contact regulations and is easy to process.

Paul De Bruycker, CEO at Indaver comments: “We are looking forward to develop a demo plant and an upscaling plan to achieve the objectives of this project. We are thrilled to work on a solution that allows us to take advantage of the amazing properties of styrenics while eliminating the impact on the environment and on future generations.”

Dr. Alexander Gluck, President EMEA at INEOS Styrolution: “We are excited about this project as we believe there is intrinsic value in plastics products after usage. We share the vision with Indaver to turn plastic waste into valuable resources instead of letting it end up in landfills.”

As MRC reported earlier, in August 2020, INEOS Styrolution, the styrenics subsidiary of Ineos, signed a joint development agreement with Recycling Technologies (Swindon, UK), a specialist plastic recycling technology provider, to advance the development of polystyrene (PS) recycling in Europe. The agreement recognizes the commercial value of post-consumer plastic waste to prevent it being incinerated or ending up in landfill, the company said.

According to MRC's ScanPlast report, October ABS shipments to the Russian market virtually remained at the previous month's level, totalling 5,060 tonnes. Overall consumption of material in the country was 37,120 tonnes in the first ten months of 2020, down by 6% year on year.

INEOS Styrolution is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 85 years of experience, INEOS Styrolution helps its customers succeed by offering the best possible solution, designed to give them a competitive edge in their markets. The company provides styrenic applications for many everyday products across a broad range of industries, including Automotive, Electronics, Household, Construction, Healthcare, Packaging and Toys/ Sports/ Leisure. In 2018, sales were at 5.4 billion euros. INEOS Styrolution employs approximately 3,500 people and operates 20 production sites in ten countries.
MRC

PKN Orlen to acquire biogas plant into biomethane installation

MOSCOW (MRC) -- Poland’s PKN Orlen group is to acquire an agricultural biogas plant operated by Bioenergy Project and plans to transform it into a biomethane installation, said the company.

PKN’s subsidiary Orlen Poludnie will oversee the project. Financial details were not disclosed. Orlen added that to secure the plant’s supply chain it would also acquire Biozec, which is responsible for the sale and distribution of thermal energy produced by the Bioenergy Project plant, with a 1.99MW capacity.

The targeted renewables include 1.7 GW of offshore wind farms and about 800 MW of onshore wind and solar photovoltaic (PV) plants. A biofuel and hydrogen fuel output expansion is also in the plans.

The group presented its ORLEN2030 strategy on Monday, including commitments to achieve a net zero carbon footprint by 2050 and pursue carbon dioxide (CO2) reduction targets for 20% less emissions from existing refining and petrochemical assets and 33% from the power generation business in 2030.

PKN Orlen said in a press release that its transformation path until 2030 revolves around renewable energy and advanced petrochemicals. It intends to actively manage its business portfolio on a CAPEX budget totalling PLN 140 billion (USD 37.4bn/EUR 31.2bn) by the end of the decade and this would include PLN 85 billion set aside for these two particular segments. The rest will be invested to bolster the efficiency of the group’s existing assets.

The group expects its new strategy to drive a two-and-a-half-fold increase in earnings before interest tax, depreciation and amortisation (EBITDA) to around PLN 26 billion. The power generation, petrochemical and refining segments are seen to each make a PLN-7-billion contribution in 2030.

"We will spend a total of approximately PLN 140 billion on our strategic objectives, which will generate a total of PLN 195 billion EBITDA over the next 10 years. The diversified business will provide us with financial stability and will enable us to consistently build value for our shareholders,” said Daniel Obajtek, president of the PKN Orlen management board.

As MRC informed earlier, the only Czech refinery and major petrochemical producer Unipetrol will be renamed Orlen Unipetrol from 1 January. Unipetrol is 100% owned by the Orlen Group.

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