Huntsman completes Gabriel Performance Products acquisition

MOSCOW (MRC) -- Huntsman says it has completed the acquisition of Gabriel Performance Products, a maker of epoxy curing agents for coatings, adhesives, and sealants, for USD250 million, according to Chemweek.

Gabriel’s prior owner was private equity firm Audax (Boston, Massachusetts). The deal was announced on 7 December.

Gabriel generated USD106 million in revenue during 2019, and operates three manufacturing facilities in Ohio, Pennsylvania, and South Carolina. The deal’s purchase price represents a multiple of about 11 times (x) Gabriel’s 2019 EBITDA.

As MRC reported earlier, in late December, 2020, SK Capital Partners completed the acquisition of a 39.75% stake, roughly 42.4 million shares, in titanium dioxide maker Venator from Huntsman for roughly USD100 million. The deal includes a 30-month option for the purchase of Huntsman’s remaining approximate 9.5 million shares by SK at US2.15/share. Huntsman spun off Venator in a 2017 initial public offering.

We remind that Nanjing Jinling Huntsman, a joint venture between Huntsman and Sinopec Jinling, shut its propylene oxide plant in Nanjing (Nanjing, Jiangsu Province, China) on November 1, 2020, for scheduled maintenance. This plant with a capacity of 240,000 tonnes/year of propylene oxide was closed until approximately 25 November.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's DataScope report, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately USD7 billion. The company's chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operates more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions.
MRC

MOSCOW (MRC) -- Ridgewood along with its Austin and Dastur Air Liquide and the Austin at the University of Texas at Austin, have been selected to carry out the design and feasibility for India’s largest industrial carbon capture and utilization (CCUS) project at the 13.7 MMtpy Koyali refinery of Indian Oil Corporation Ltd. (IOCL), said Hydrocarbonprocessing.

Dastur is the prime contractor and will lead the project. According to the International Energy Agency (IEA), industrial greenhouse gases (GHG) from steel, cement, fertilizer plants and refineries make up more than a quarter of all GHGs and are practical targets for implementing CCUS. Enhanced oil recovery (EOR) is a major use of CO? to increase an oil field’s recovery from about 40% to 70% of original oil in place, while also storing the CO? permanently underground.

IOCL is India’s leading refiner, operating 11 of the country’s 23 refineries. The refinery at Koyali, near Vadodara, is its flagship refinery, and has the potential to capture over 5000 tonnes per day (tpd) or more than 1.5 mtpa of CO? for large scale EOR operations. The CO? captured from its hydrogen generation units will be primarily used for EOR at the Oil and Natural Gas Commission’s (ONGC) oilfield at Gandhar, Gujarat, near Koyali. The project will examine the technical viability, economic cost and feasibility of capturing CO?; develop technical specifications, designs and plans; review and identify necessary approvals and permits required; and analyze the environmental benefits of the CCUS project. In addition to EOR and food and beverage applications, it will consider various alternative applications for the captured CO to make the project technically and economically feasible.

Shri S.S.V. Ramakumar, Director (R&D) and Board member of IOCL said, "This sustainability initiative from IOCL is probably the first of its kind industrial scale carbon capture project in a large refinery in India. IOCL hopes to capture over 250-500 thousand tons of CO? in a year initially and to use the CO? for cost-effectively enhancing oil production from ONGC’s oil fields. In this ambitious and path breaking project, we were pleased to receive global interest from many global firms. We are happy that Dastur Energy along with Air Liquide and the UT Austin, Bureau of Economic Geology will help us analyse and design not only a state-of-the-art commercial scale capture system, but also an economically viable model of carbon capture that can be a fore runner for CCUS in India."

The project is funded by the United States Trade and Development Agency (USTDA), as part of its mission to promote the development of sustainable infrastructure projects and fostering economic growth in partner countries like India. “This project is an ideal example of the groundbreaking work USTDA supports and makes possible,” said Todd Abrajano, Chief Operating Officer and Head of the Agency. “This innovative solution – the first of its kind in India – is showing how American technology can help reduce GHG emissions in refinery operations while enhancing the energy security of India through EOR."

Atanu Mukherjee, President and Chief Executive Offier of Dastur, said, “Close on the heels of our recent US Department of Energy win to implement industrial carbon capture at Arcelor Mittal Burns Harbor USA and a landmark project at a Middle East national oil major to implement carbon capture for the lowest cost EOR, I am delighted that Dastur will be able to apply its expertise along with Air Liquide and UT-BEG, to chart the path for the first CCUS project in India of this magnitude. Industrial scale carbon capture and utilization through EOR can be an economically attractive model for India in reducing carbon emissions, enhancing energy security and contributing to the vision of an Atma Nirbhar Bharat."

Dastur will draw upon its Austin, TX based affiliate Dastur Energy’s intellectual property and capabilities in the areas of energy engineering, carbon capture, EOR, energy supply chains, energy economics, and low-carbon fuels for conceiving and designing this project.

As MRC reported earlier, oil producers face an unprecedented challenge to balance supply and demand as factors including the pace and response to COVID-19 vaccines cloud the outlook, according to an official with International Energy Agency's (IEA) statement.

We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- SAP SE and DNV GL, one of the largest independent management and quality assurance experts, said they have teamed up to deliver a new industry cloud solution, Corrosion Under Insulation (CUI) Manager, designed to tackle a major problem facing the integrity of oil and gas plants, according to Hydrocarbonprocessing.

Corrosion Under Insulation Manager is one of the latest industry cloud solutions built and run on the open SAP Cloud Platform. These industry solutions use intelligent technologies, such as artificial intelligence and advanced analytics, to create compelling user experiences and to digitalize and automate operations. SAP and partners focus on solutions for the core business of our customers in their industries to help optimize end-to-end processes and to enable the development of new and differentiating business models.

“In collaboration with DNV GL, we will deliver the first industry cloud solution for the oil and gas industry,” said Benjamin Beberness, SAP Oil and Gas Business Unit global vice president.

CUI is the largest maintenance cost for offshore and onshore installations with insulated pipes. In close collaboration with the industry, DNV GL has developed a new risk-based methodology, published a new recommended practice and turned the insights into an easy-to-use interface with the CUI Manager. Through the strength of DNV GL’s models and the integration with SAP Asset Intelligence Network and the SAP Asset Strategy and Performance Management application, this solution will provide an efficient and standardized way to address the risk of CUI.

CUI Manager continuously assesses and calculates the CUI risk, helping integrity engineers and managers prevent failure, increase safety and manage hidden threats. It optimizes asset strategy and planning by providing detailed, instant insights on current and planned risk as well as the resulting cost development. The solution’s full integration with SAP Asset Strategy and Performance Management enables calculation and visualization of the complete risk picture using SAP Cloud Platform.

“The combination of DNV GL’s deep technical insight and state-of-the-art software solutions with SAP’s cloud-based solutions for intelligent asset management will generate significant value for our customers,” said DNV GL - Oil & Gas, CEO, Liv A. Hovem. “We look forward to bringing additional solutions to the market jointly with SAP in the near future.”

As MRC reported earlier, oil producers face an unprecedented challenge to balance supply and demand as factors including the pace and response to COVID-19 vaccines cloud the outlook, according to an official with International Energy Agency's (IEA) statement.

We remind that the COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We also remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Italian oil and gas group Eni has put on hold the sale of Australian gas assets it values at around $1 billion after they failed to attract satisfactory bids, two sources close to the matter said, confirming a press report, said Hydrocarbonprocessing.

One of the sources said offers had been well below what Eni had expected. A spokesman for Eni said the group would not comment on a press report.

"However, Eni confirms its strategy of rationalisation of its production portfolio, which will only become effective when conditions are met for the assets concerned to be adequately valued," he said. News that the sale process had been halted was reported first by Italian daily MF on Tuesday.

The disposal of its Australian gas assets is part of Eni's plans to sell non-core assets to raise cash after the global downturn triggered by the coronavirus pandemic, and its drive to focus on cleaner fuels.

Eni and its adviser Citi had expected binding bids for the gas assets in Australia by the end of November, two sources had said.

As MRC informed earlier, Abu Dhabi National Oil Co, the UAE's biggest energy producer, has awarded Italy's Eni and Thailand's PTTEP an exploration concession amid plans to boost oil production capacity by 25% to 5 million b/d by 2030. The Eni-PTTEP consortium won rights to look for oil and gas in Offshore Block 3, the second award in ADNOC's second bidding round, the company said in a statement Dec. 21. Occidental Petroleum won the first concession in the second bidding round, which was launched in 2019.

As MRC reported previously, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

MRC

MOSCOW (MRC) -- Versalis, Eni's chemical company and a leader in the production and marketing of elastomers, and AGR, company that owns technology for the devulcanization of post-consumer elastomers, have signed an agreement to develop technological innovations and new products and applications with recycled rubber, reported GV.

The aim of the agreement is to pool their respective expertise to develop and market a new range of elastomer-based products made from granulated rubber from post-consumer products, thus meeting the growing circular economy needs of manufacturers of tyres and other rubber products.

Versalis will make available the laboratories of its research centres in Ravenna and Ferrara (both Italy), as well as the necessary equipment for development, both in terms of formulation and technology. AGR will make its technological platform available at its plant in Cumiana (Turin, Italy). The initiative will be developed in collaboration with the EcoTyre Consortium, which manages a national network for the collection and processing of ELTs (End-of-Life Tyres) from which granulated rubber will be obtained.

With this new circular economy initiative, Versalis aims to expand the range of Versalis Revive products, made of recycled materials. This will include the elastomeric materials segment, in which it is leader in terms of technological and application expertise.

As MRC informed before, Versalis, the chemicals subsidiary of Eni (Rome, Italy), has reduced production at its 65,000-metric tons/year acrylonitrile-butadiene-styrene (ABS) plant at Mantova, Italy, to 50% until at least February 2021 due to one of its suppliers declaring force majeure.

We remind that in 2019, Versalis unveiled plans to increase production capacity for ABS at its Mantua, Italy, facility. The project will boost ABS capacity at its existing unit by 30,000 t/y. The engineering phase ha already begun, and production was scheduled to start in 2020.

According to ICIS-MRC Price report, ABS imports into Russia rose in the first eleven months of 2020 by 2% year on year to 32,000 tonnes from 31,300 tonnes a year earlier. South Korean shipments accounted for 62% (19,900 tonnes) in January-November 2020 versus the share of 58% (18,200 tonnes) a year earlier. .

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC