Dow to spend USD294 million on air pollution control under DOJ settlement

MOSCOW (MRC) -- Dow will spend approximately USD294 to install and operate air pollution control and monitoring technology at 4 US chemical facilities as part of a settlement with The Department of Justice (DOJ), the US Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ), according to Chemweek with reference to a statement by the DOJ.

The settlement resolves allegations that Dow and its subsidiaries Performance Materials NA Inc. and Union Carbide Corporation violated the Clean Air Act by failing to properly operate and monitor industrial flares at their petrochemical facilities, which resulted in excess emissions of harmful air pollution.

The technology will be used to reduce flaring and the resulting harmful air pollution from 26 industrial flares at the companies’ facilities at Hahnville and Plaquemine, Louisiana and Freeport and Orange, Texas.

The complaint, filed Tuesday along with the settlement, alleges that Dow and its subsidiaries “oversteamed” their flares and failed to comply with other key operating parameters that ensure the volatile organic compounds (VOCs) and hazardous air pollutants contained in the gases routed to the flares are effectively combusted.

Once fully implemented, the pollution controls required by the settlement are estimated to reduce harmful air emissions of VOCs by more than 5,600 tons per year. The settlement is also expected to reduce toxic air pollutants, including benzene, by nearly 500 tons per year.

“This settlement will improve air quality in Texas and Louisiana by eliminating thousands of tons of harmful air pollution each year,” says Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “The agreement, which requires Dow to reduce emissions from its facilities in Texas and Louisiana, demonstrates the Justice Department’s and EPA’s continuing efforts, together with our state partners, to reduce harmful air pollution from unnecessary and improper flaring in order to protect the American public by bringing sources of air pollution into compliance with the Clean Air Act.”

Under the terms of the settlement, Dow will also perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of the four covered plants and pay a civil penalty of USD3 million. The LDEQ will receive USD675,000 of the USD3 million total civil penalty, and Dow will perform three state-authorized “beneficial environmental projects” in Louisiana that were negotiated by Louisiana.

As MRC reported earlier, in September, 2020, Dow and Luhai, an integrated waste management company located in Xiamen, China, announced their collaboration to give plastics waste collected by Luhai a second life, thereby increasing the circularity of plastics in China. The agreement is in line with Dow’s new sustainability targets to Stop the Waste by enabling one million metric tons of plastic to be collected, reused or recycled through its direct actions and partnerships by 2030.

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.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

Teamsters at Marathon St. Paul Park refinery begin strike

MOSCOW (MRC) -- Nearly 200 refinery workers represented by the International Brotherhood of Teamsters in St. Paul Park, Minnesota, walked out on strike after failing to agree on a new contract with Marathon Petroleum by the end of 2020, said Reuters.

The union voted to authorize a strike at Marathon’s 102,000-barrel-per-day refinery in St. Paul Park in December of 2020.

“At this time, we have safely assumed operation of the refinery with trained and qualified personnel,” a company spokesman said.

As per MRC, Marathon Petroleum plans to permanently close two small US oil refineries in Martinez, California, and Gallup, New Mexico, the company said, eliminating 800 jobs in response to lower fuels demand. The largest US refiner by volume had earlier idled the two facilities following weak demand due to COVID-19 outbreaks in the United States. US refiners on average idled about 20% of total processing capacity on falling vehicle and air travel.

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

Reliance Industries spins off O2C business

MOSCOW (MRC) -- Reliance Industries Ltd has completed spin-off of the firm’s oil-to-chemical business into a new unit that will help it pursue growth opportunities with strategic partnerships, reported Kemicalinfo with reference to the company's statement.

The oil-to-chemical (O2C) business unit holds Reliance’s oil refinery and petrochemical assets and retail fuel business but not upstream oil and gas producing fields such as KG-D6 and textiles business.

“Reorganising refining and petrochemicals as oil-to-chemicals (O2C) reflects new strategy as well as management matrix,” the company said in a post earning investor presentation.

Reliance started work on hiving off the O2C business into a separate unit last year for a possible stake sale to companies such as Saudi Aramco.

It values the O2C business at USD75 billion and has been in talks with Saudi Arabian Oil Co (Aramco) for sale of a 20% interest.

The company, however, did not mention discussions with Aramco, which are said to have hit a valuation roadblock.

The reorganisation would “drive the move towards further downstream and closer to customers” and “provide sustainable and affordable energy and materials solutions to meet India’s growing needs,” the firm said in the presentation.

Reliance O2C Limited houses oil refining and petrochemical plants and manufacturing assets, bulk and wholesale fuel marketing, and Reliance’s 51% interest in retail fuel joint venture with BP of the UK.

The O2C unit also houses the firm’s Singapore and the UK-based oil trading subsidiaries and marketing subsidiary, Reliance Industries Uruguay Petroquimica SA.

It also houses Reliance Ethane Pipeline Limited that operates a pipeline between Dahej in Gujarat and Nagothane in Maharashtra as well as 74.9% stake that Reliance holds in the joint venture with Sibur.

Its very large ethane carriers, gas pipelines such as one that transports coal-bed methane from its CBM blocks, overseas oil and gas asset holding company Reliance Industries (Middle East) DMCC, and domestic exploration and production assets would not form part of the O2C unit.

Ambani had in July 2019 stated that the process of spinning of O2C into a separate subsidiary would be completed by early 2021.

Reliance owns and operates twin oil refineries at Jamnagar in Gujarat, with a combined capacity of 68.2 million tonnes per annum.

The company holds a 66.6% stake in the KG-D6 block where it is investing about USD5 billion in developing a second set of gas discoveries along with BP. It also has a similar stake in the NEC-25 block in the Bay of Bengal and operates two CBM blocks in Madhya Pradesh. These upstream assets are not part of the O2C unit.

“Reliance O2C (is) one of the most integrated manufacturers of value-added fuels, chemicals and materials,” the presentation said. “O2C to maximize downstream, reduce transportation fuels and create clean and green energy platforms.

Reliance for the first time reported integrated earnings of the O2C business in its third quarter financial results. Previously, refining and petrochemical businesses were reported separately while fuel retailing revenue was part of the firm’s overall retail business.

In the October-December 2020 earnings statement, refining and petrochemical as well as fuel retailing businesses earnings were reported as one. As a result, it did not give refining margins – the most sought after number to assess the firm’s oil refining business.

The company’s EBIDTA grew 10.35% to Rs 9,756 crores (USD1.33 billion) for the period ended December 31, 2020 as against EBIDTA of Rs 8,841 crores (USD1.2 billion) for the previous quarter.

Net sales saw an increase of 10.05% to Rs 83,838 crores (USD11.49 biilion) for the period ended December 31, 2020 as against net sales of Rs 76,184 crores (USD10.44 biilion) during the previous quarter.

As MRC informed earlier, in September 2020, RIL released a detailed plan to carve out its oil-to-chemicals business into a separate entity for a potential stake sale. As per the scheme, RIL’s O2C assets, including its refining, petrochemicals, fuel retail (majority interest only) and bulk wholesale marketing businesses, along with its assets and liabilities, will be transferred to a new unit. The new unit will include the refining and petrochemical plants and manufacturing assets at RIL’s Jamnagar, Dahej, Hazira, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki and Hosiarpur locations.

It will also include all assets relating to RIL’s ongoing refinery and petrochemical projects that are being commissioned or near completion, the company said. RIL had officially announced its proposal to transfer its oil-to-chemicals (O2C) business to a separate entity in April.

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.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

COVID-19 - News digest as of 25.01.2021

1. Lotte Chemical plans to acquire JSR elastomers business

MOSCOW (MRC) -- Lotte Chemical has recently completed its due diligence on potential acquisition of JSR’s elastomers business, according to Chemweek with reference to a local press report from Business Korea. Lotte Chemical has selected Nomura Securities as its lead manager for the acquisition, says the report. JSR’s elastomers unit produces emulsion styrene-butadiene rubber (E-SBR), solution styrene-butadiene rubber (S-SBR), polybutadiene rubber, and isoprene rubber. IHS Markit data says that JSR is the largest producer of SBR in Japan, accounting for a combined capacity of 210,000 metric tons. Lotte Chemical established a joint venture (JV) with Versalis (Milan), the chemicals arm of Eni (Rome), and has been operating 100,000-metric tons/year S-SBR facilities for high-performance tires since 2017.




MRC

Baker Hughes secures order to expand digital capabilities and reduce emissions

MOSCOW (MRC) -- Baker Hughes announced an order with Petrobras to provide a suite of digital solutions across Petrobras sites in Brazil, said Hydrocarbonprocessing.

The order, booked in the fourth quarter 2020, will further expand Petrobras’ digital capabilities following a third quarter 2020 order for a three-year frame agreement across multiple Baker Hughes Digital Solutions product lines. Baker Hughes will support Petrobras’ thermal plants; refineries; gas treatment units; production plants; offshore platforms; and floating production, storage and offloading units (FPSO) with its technologies, ensuring the latest regulatory requirements are achieved. The order includes flare monitoring and calibration technologies, cybersecurity and remote monitoring services, and interconnected machinery protection systems and sensors.

"Through our integrated suite of technologies, we can leverage data and the power of our software and hardware systems to significantly advance Petrobras’ digital transformation journey,” said Rami Qasem, executive vice president of Digital Solutions at Baker Hughes. “In addition, our deep domain expertise in industrial asset management will support Petrobras with reducing risks and emissions while maintaining safer operations."

Baker Hughes technologies use real-time analytics to help customers improve machinery health, eliminate unplanned outages, reduce downtime, and avoid catastrophic failures. Petrobras will benefit from several capabilities across Digital Solutions product lines, including: Bently Nevada's latest generation Orbit 60 system, System 1 software licenses, and remote monitoring services for advanced industrial asset management.

Panametrics’ Flare.IQ advanced flare gas monitoring and optimization system, and FlareCare services and parts for reduced carbon and methane emissions. Nexus Controls’ distributed control systems, cybersecurity services and human-machine interface (HMI) upgrades for safer and more reliable operations.

As MRC informed earlier, private equity firm SK Capital Partners has closed the acquisition from Baker Hughes of its specialty polymers business and renamed it NuCera Solutions. The acquisition was first announced in July 2020.

As MRC informed earlier, SK Global Chemical (SKGC), one of the largest producers of petrochemical products in South Korea, plans to permanently close cracking unit No. 1 in Ulsan (Ulsan, South Korea) on December 8 this year.
According to a letter from the company to its customers, production at this 190,000 tonnes of ethylene and 135,000 tonnes of propylene per year will be halted due to unfavorable market conditions. However, SKGC will continue to supply ethylene to its domestic customers from other crackers.

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