Force majeure on Lake Charles VCM, PVC of Westlake Polymer remains in force in December

MOSCOW (MRC) -- As of 8 December, Westlake Polymers has left in force the declared on Aug. 31 force majeure on its North American polyvinyl chloride (PVC) and upstream vinyl chloride monomer (VCM) plants, after Hurricane Laura adversely impacted its Lake Charles, Louisiana, complex, reported S&P Global.

Westlake's shutdown of its Lake Charles complex idled 38% of its US VCM production, resulting in two VCM plants with a combined capacity of 952,318 mt/year going offline. The complex also has three upstream chlor-alkali plants with a combined capacity of 1.27 million mt/year of chlorine and 1.36 million mt/year of caustic soda - 46% of the company's overall North American chlor-alkali capacity.

Westlake Chemical was in the process of a restart following the loss of electricity from Hurricane Laura on 27 August when the arrival of Hurricane Delta on 9 October interrupted the process.

Hurricane Delta appears to have wreaked minimal damage to chemical facilities in Lake Charles, Louisiana, just six weeks after Hurricane Laura blew through the region, severely damaging major electricity transmission lines that left facilities offline for weeks.

Westlake Chemical said in a statement on Oct. 12 that initial assessments after Delta's Oct. 9 landfall showed "very limited physical damage" to its Lake Charles complex, and facilities were "in the process of restarting."

According to MRC's ScanPlast report, Russia's overall PVC production reached 891,200 tonnes in the first eleven months of 2020, down by 0.3% year on year. However, two producers managed to increase their PVC output.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

OQ hikes carboxylic acid prices due to supply, demand

MOSCOW (MRC) -- OQ Chemicals (Monheim am Rhein, Germany) is raising its prices globally for carboxylic acids, starting 1 January 2021 or as contracts allow, reported Chemweek.

The company says that due to supply and demand the price of 2-ethylhexanoic acid (2-EHA) will rise in Europe by EUR85/metric ton (USD103/metric ton), in the US by USD0.05/lb, and in the rest of the world by USD110/metric ton. The prices of n-butyric acid and isobutyric acid will each increase in the US by USD0.05/lb and USD110/metric ton in the rest of the world but will not rise in Europe.

As MRC wrote earlier, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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.

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC

HollyFrontier plans to double capex in 2021, boost renewables spending

MOSCOW (MRC) -- U.S. refiner HollyFrontier Corp has outlined plans to nearly double its capital expenditure in 2021, boosting its renewables investment and counting on an expected recovery in fuel demand after the coronavirus pandemic tanked consumption, said Hydrocarbonprocessing.

The refiner said it plans to spend between USD1.05 billion and USD1.15 billion next year, up from the USD475 million to USD550 million slated for 2020. This year the coronavirus pandemic slashed driving and sent the global economy into a tailspin, leading refiners to decrease output and figure out how to stay profitable in a year of little demand.

U.S. refiners’ utilization rate is still down more than 10 percentage points from the same time last year, Energy Information Administration data showed. Including its unit Holly Energy Partners LP, the company expects to spend between USD1.09 billion and USD1.21 billion in 2021.

The Dallas, Texas-based refiner said it would spend around $500 million to USD530 million on its renewables business next year, compared with USD130 million to USD145 million in 2020.

The coronavirus pandemic has decreased demand for traditional fuels like gasoline and diesel and in some instances has accelerated refiners’ plans to increase investments in renewable fuels. HollyFrontier was one of a handful of refiners earlier this year to announce a move toward renewable diesel, made from feedstock such as used cooking oil from fast-food restaurants.

With renewable diesel, refiners can take advantage of incentive programs, in particular California’s Low Carbon Fuel Standard, in which refiners can generate tradable credits with production of lower carbon-intensive fuels. Refiners can sell the credits to other fuel producers for profit.

Meanwhile, Democratic President-elect Joe Biden has pledged to move the United States to a zero-carbon emissions scheme by 2050, and legislation supporting demand for products like renewable diesel could garner bipartisan support.

Earlier this year, HollyFrontier converted a 52,000-barrel-per-day refinery in Cheyenne into a renewable diesel plant and said it plans to spend about USD650 million to USD750 million over the next 18 months to expand its renewables portfolio.

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

Advanced unit obtains SIDF approval on SAR 3 bln project financing loan

MOSCOW (MRC) -- Advanced Petrochemical Co. said its 85%-owned subsidiary, Advanced Polyolefins Co. (APOC), obtained a conditional approval to secure SAR 3 billion loan from Saudi Industrial Development Fund (SIDF), according to a bourse statement, said Argaam.

The loan, which can be disbursed until June 2025, is repayable in 16 semi-annual installments, starting July 2026, over a period of eight years. The loan will be guaranteed by mortgage on all fixed assets of APOC to SIDF, in addition to providing corporate guarantees from the shareholders of APOC.

The loan facility will be utilized to finance the construction of propane dehydrogenation (PDH) and polypropylene (PP) plants with a nameplate capacity to manufacture 843,000 tons per annum (p.a.) of propylene and 800,000 tons p.a. of polypropylene in Jubail Industrial City.

The binding loan agreement with SIDF will be signed after completing other procedures required by SIDF. No related parties are involved in the deal. In March 2020, Advanced announced the signing of a partnership agreement between its subsidiary, Advanced Global Investment Co. (AGIC), and SK Gas Petrochemical Pte. Ltd. (SKGP), a unit of SK Gas Co. Ltd, Argaam earlier reported.

Under the agreement, the newly-incorporated APOC, a closed joint-stock firm, will build and operate a PDH and PP complex with a design capacity of 843,000 metric tons per annum of propylene and 800,000 metric tons per annum of polypropylene in Jubail Industrial City.

The project, worth USD1.8 billion (SAR 6.75 billion), will be financed by equity (25% ) and bank loans (75%). APOC expects to begin construction by 2021 and commercial operations will likely commence by H2 2024. In October this year, Advanced signed an amendment to the partnership agreement by adding an isopropanol (IPA) plant with a capacity of 70,000 tons per annum, along with the PDH and PP plants that were already announced earlier.

Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

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

ExxonMobil announces emission reduction plans, expects to meet 2020 goals

MOSCOW (MRC) -- ExxonMobil said it plans further reductions in greenhouse gas emissions over the next five years to support the goals of the Paris Agreement and anticipates meeting year-end 2020 reductions, said the company.

ExxonMobil plans to reduce the intensity of operated upstream greenhouse gas emissions by 15% to 20% by 2025, compared to 2016 levels. This will be supported by a 40% to 50% decrease in methane intensity, and a 35% to 45% decrease in flaring intensity across its global operations. The emission reduction plans, which cover Scope 1 and Scope 2 emissions from operated assets, are projected to be consistent with the goals of the Paris Agreement. The company also plans to align with the World Bank’s initiative to eliminate routine flaring by 2030.

“These meaningful near-term emission reductions result from our ongoing business planning process as we work towards industry-leading greenhouse gas performance across all our business lines,” said Darren Woods, chairman and chief executive officer of Exxon Mobil Corporation. “We respect and support society’s ambition to achieve net zero emissions by 2050, and continue to advocate for policies that promote cost-effective, market-based solutions to address the risks of climate change.”

ExxonMobil’s plans will leverage the continued application of operational efficiencies, and ongoing development and deployment of lower-emission technologies.

The plan is the result of several months of detailed analysis and includes input from shareholders.

Since 2000, the company has invested more than USD10 billion researching, developing and deploying lower-emission technologies, including nearly USD3 billion at cogeneration facilities that more efficiently produce electricity and reduce related emissions.

In 2018, ExxonMobil announced plans to achieve by year-end 2020, a 15% decrease in methane emissions and a 25% reduction in flaring, compared with 2016 levels. The company anticipates meeting both by year end. Detailed emissions performance is reported in annual publications, including the Energy and Carbon Summary.

The company has supported the Paris Agreement from its inception and continues to support US government participation in the framework. ExxonMobil assesses its business strategy and plans against a range of scenarios, including those that meet the objectives of the Paris Agreement, which assume progress in technologies, infrastructure and government policies related to climate change.

The company supported the Oil and Gas Climate Initiative’s announcement to reduce methane and carbon intensity for upstream operations. It also deployed new technologies throughout its operations to reduce flaring and methane emissions, while working to test new technologies to detect and measure fugitive emissions. ExxonMobil publicly supports the regulation of methane from new and existing sources and issued a methane regulatory framework for governments to consider as they draft new policies.

As MRC reported earlier, ExxonMobil underttook a planned shutdown at its cracker in Singapore. The company halted operations at the cracker for maintenance on September 14, 2020. The cracker was expected to remain off-line till end-October, 2020. Located at Jurong Island, Singapore, the cracker has an ethylene production capacity of 1 million mt/year and a propylene production capacity of 450,000 mt/year.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC