Borealis restarts its cracker in Stenungsund

MOSCOW (MRC) -- Borealis has fully resumed production at its steam cracker in Stenungsund, Sweden, reported Polymerupdate.

Thus, the cracker with the capacity of 625,000 mtyear of ethylene was restarted on 15-17 January, 2021.

Meanwhile, the status of the force majeure on the products from this cracker remains unclear at the moment.

Force majeure at Stenungsund was declared after a fire started at the cracker on 10 May last year. A restart of the cracker was initially planned for the fourth quarter of 2020, a Borealis spokesperson told OPIS in September.

As MRC reported previously, the company began the process of the cracker restart in early January, 2021.

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.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
MRC

Sumitomo Chemical plans to achieve carbon neutrality by 2050

MOSCOW (MRC) -- Sumitomo Chemical has decided to establish a Carbon Neutral Strategy Council and a Carbon Neutral Strategy Cross-Functional Team on February 1, 2021, in order to promote and formulate the Sumitomo Chemical Group’s strategies for achieving carbon neutrality by 2050, according to Kemicalinfo.

Sumitomo Chemical’s approaches to carbon neutrality strategies:

- To minimize greenhouse gas emissions associated with the Group’s production activities through innovation, and provide and deploy new technologies across the world.
- To drive innovations for greenhouse gas emissions reduction regarding materials used in society, and provide products and solutions that contribute to carbon neutrality from a Life Cycle Assessment perspective.
- To actively engage in the development of technologies for recovery, separation, use and storage of greenhouse gasses emitted from other industries and from communities, and help the process by becoming part of a system that implements such technologies in society.
- To take on the long-term challenge of developing carbon negative technologies to reduce the absolute volume of greenhouse gas in the atmosphere.

A Carbon Neutral Strategy Cross-Functional Team is also set up as an administrative office for the Council. This is a cross-sectoral team led by executive officers supervising research planning and coordination, responsible care, and related functions.

The team will play a major role in incorporating into the company’s strategies multifaceted approaches unique to a diversified chemical company, such as society-wide implementation of innovative energy-storage and energy-saving technologies, the establishment of effective carbon cycles, promoting the supply and use of hydrogen (including ammonia), and contributing to reducing greenhouse gas emissions in the livestock and agricultural sectors.

As MRC reported earlier, in December 2020, Sumitomo Chemical and Axens signed a license agreement of ethanol-to-ethylene technology Atol for Sumitomo Chemical’s waste-to-polyolefins project in Japan. In the project, to promote circular economy, Axens’ Atol technology will transform ethanol produced from waste into polymer-grade ethylene that will be polymerized in Sumitomo Chemical’s assets into polyolefin, a key product in the petrochemical industry.

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

French energy group Total buys 20% stake in India's Adani Green Energy

MOSCOW (MRC) -- French oil and energy group Total has agreed to buy a 20% minority stake in India's Adani Green Energy Limited (AGEL) from Adani Group, as Total builds up its presence in the renewable energy sector, said Reuters.

Total said on Monday that its purchase of the stake in AGEL would give Total a seat on the board of directors of AGEL. Total and Adani had earlier struck a partnership deal back in 2018 in the LNG sector.

"Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties," Total CEO and Chairman Patrick Pouyanne said.

"Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas," he added.

As MRC informed earlier, Total and Engie (Paris, France) will cooperate in developing, building, and operating green hydrogen production and storage facilities at the 500,000-metric tons/year La Mede biorefinery at Chateauneuf-les-Martigues, France, to create supplies for biofuel output.

As MRC wrote earlier, within the framework of its net zero strategy, Total will convert its Grandpuits refinery (Seine-et-Marne) into a zero-crude platform and will invest more then EUR500 mln into this project. By 2024 the platform will focus on four new industrial activities: production of renewable diesel primarily intended for the aviation industry, production of bioplastics, plastics recycling and operation of two photovoltaic solar power plants.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

Halliburton points to oil industry recovery after profit beat

MOSCOW (MRC) -- Halliburton Co predicted a recovery in the global oil and gas industry from the second quarter after the oilfield services provider beat profit estimates on cost cuts and modest gains in activity following last year's slump, said Hydrocarbonprocessing.

Crude oil prices are holding to gains from a rebound in late-2020 from a coronavirus-induced slump, with Brent crude hovering around USD55 per barrel on Tuesday after averaging around $45 in the last three months of 2020. This has encouraged producers to complete more wells and add rigs. North America rig count was 410 at year-end, compared with 341 in the third quarter.

"We view 2021 as a bit of a transition year, and 2022 is when we see the global rebalancing of supply and demand," Chief Executive Officer Jeff Miller said on a post-earnings call, adding that he expected more consolidation in the industry. Miller said he is optimistic that the upturn in activity in North America would continue, while international markets would bottom out during the first quarter and improve as the year unfolds.

However, he expects pressure to improve shareholder returns will hold output flat this year to 2020 exit levels. Halliburton, which kicked off fourth-quarter earnings for service providers, said revenue from North America jumped 25.8% from the third quarter, while international revenue rose 0.4%.

Completion and production business revenue was 15% higher in the fourth quarter, compared with the preceding three months. The company expects revenue from the business to rise 3% to 5% in the current quarter from the fourth, though operating margins are expected to fall 150 to 200 basis points.

Drilling and evaluation revenue rose 1.9% sequentially and is expected to increase in the low single digit in the first quarter from the fourth. Total revenue of USD3.24 billion beat analysts' estimates of USD3.21 billion, while adjusted net income was 3 cents above estimates at 18 cents per share, according to Refinitiv IBES data.

Halliburton, like its customers, has cut its capital spending and reduced its workforce, as energy demand and prices tumbled last year. The cost cuts helped the company generate free cash flow of USD1.15 billion in 2020, above the USD1 billion it had targeted.

Still, profit slumped 43.9% and revenue tumbled 37.6% from the fourth quarter of 2019 as activity levels were still well below year-ago levels. Rivals Schlumberger and Baker Hughes are scheduled to report results later in the week.
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

Caribbean Gas Chemical JV starts up USD1-billion methanol, DME plant in Trinidad and Tobago

MOSCOW (MRC) -- Mitsubishi has announced the startup of commercial operations at its new USD1-billion methanol and dimethyl ether (DME) joint venture (JV) facility at La Brea, Trinidad and Tobago, said Chemweek.

The plant has a nameplate production capacity for 1 million metric tons/year (MMt/y) of methanol and 20,000 metric tons/year of DME.

The plant began operating commercially on 18 December 2020, it says. The facility is operated by Caribbean Gas Chemical Ltd. (CGCL), a JV of Mitsubishi Gas Chemical (MGC), Mitsubishi Corp., Mitsubishi Heavy Industries Engineering (MHIE), National Gas Co. (NGC) of Trinidad and Tobago, and Massy Holdings. Feedstock for the plant is sourced primarily from domestic natural gas fields.

The CGCL JV was established in March 2013, with shareholders MGC and Mitsubishi each owning 26.25%, NGC holding 20%, MHIE 17.5%, and Massy 10%. Mitsubishi Corp. currently handles around 2.5 MMt/y of methanol, an amount equivalent to approximately 10% of global offshore trading, it says. Global demand for methanol is approximately 81 MMt/y, with that total expected to increase steadily in step with GDP growth, it says.

The final investment decision for the plant was taken by Mitsubishi in September 2015 after the three Mitsubishi group companies signed an initial agreement with NGC and Massy in April that year. MGC provided its process technology for the plant, while MHI built the facility under an engineering, procurement, and construction contract. Commercial production was scheduled originally for March 2019. MGC, Mitsubishi, and Massy will sell the output globally.

Earlier this month Methanex (Vancouver, British Columbia, Canada) announced it would continue to idle indefinitely its 875,000-metric tons/year Titan methanol facility at Couva, Trinidad, after halting production at the plant in March 2020 due to the COVID-19-related downturn in manufacturing activity worldwide. Methanex’s other methanol facility in Trinidad, the 1.822-MMt/y Atlas plant, also at Couva, continues to operate with a natural-gas supply agreement due to expire in 2024.

As MRC reported earlier, in December 2020, MCC acquired a ‘greenfield’ property at a large integrated site on the Mississippi River in Geismar, Louisiana, the US. It also plans to advance its feasibility study for the design and construction of a 350,000mt Methyl Methacrylate (MMA) plant, which will be based on its proprietary ALPHA technology. Currently, the project is in the early engineering stage and the final investment decision (FiD) is expected to take place in early 2022. If the project gets approval, the plant would commence production in 2025.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

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.
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