Braskem and Casa dos Ventos announce wind power supply agreement to avert emission

MOSCOW (MRC) -- Braskem has signed an agreement for the purchase of wind power from Casa dos Ventos, one of the pioneers and largest investors in the development of wind power projects in Brazil, as per Braskem's press release.

The corporate power purchase agreement (PPA) is linked to the construction of a new wind power plant and provides for the supply of renewable energy for 20 years, with emissions avoided in the period estimated at around 700,000 tons of CO2. Casa dos Ventos will be responsible for directing the investment in building the new wind farm.

"This is our fourth long-term agreement for the acquisition of renewable energy and involves the largest volume acquired to date. With it, we will help build another power generation farm and strengthen our strategy of ensuring an energy matrix with a growing share of renewable energy in our operations and in the operations of the petrochemical chain, reaffirming our commitment to sustainable development. We are working hard to become a carbon neutral company by 2050, with the target of reducing by 15% our emissions by 2030, and this is just another step on this journey," said Gustavo Checcucci, Energy Director at Braskem.

In addition to acquiring energy, Braskem will have the option to acquire, subject to approval by government authorities, an ownership interest in the wind farms, creating the possibility for implementing a self-production model. "We created a custom model in which we are responsible for building and operating the wind farms, but we offer the possibility for our partners to become shareholders in these projects in the future. This is a win-win model, especially for the country, since it encourages an energy transition model for large consumers," explained Lucas Araripe, new business director at Casa dos Ventos.

In 2020, Braskem announced two other major agreements for the acquisition of renewable energy. The first agreement, announced in March, with the France-based multinational Voltalia , will enable the expansion of the Serra do Mel Solar Complex located in the state of Rio Grande do Norte, with generation capacity of 270 MW. The second agreement, announced in June, is a partnership with Canadian Solar that enables the construction of a solar plant in northern Minas Gerais state, with installed capacity of 152 MWp, which is sufficient to supply a city of 430,000 people.

In late 2018, the company signed an agreement with EDF Renewable for the purchase of wind power for 20 years. Through these four agreements, with Casa dos Ventos, Voltalia, Canadian and EDF Renewable, Braskem estimates that it will avoid around 1.5 million tons of CO2 emissions.

Braskem announced a public commitment to expand its efforts to become a carbon neutral company by 2050. To achieve this target, the company's strategy includes initiatives for carbon reduction, offsetting and capture, expansion of the I'm greenT portfolio, which comprises products focusing on the circular economy, as well as engagement over the next ten years to reach the proper disposal of 1.5 million tons of plastic waste.

Both Braskem and Casa dos Ventos are formal signatories to the Global Compact and to the 17 Sustainable Development Goals of the United Nations. The partnership, combined with Braskem's initiatives for the following decades, is aligned with the UN 2030 Agenda and the Paris Agreement for controlling the impacts from climate change.

As MRC wrote before, Brazil’s state-run oil company Petrobras is seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem. Odebrecht is seeking to sell its 38.3% stake in Braskem SA, while Petrobras aims to offload its 36.1% stake.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- U.S. refiners are girding for a painful slate of fourth-quarter earnings, reflecting the pressure of rising crude prices, weak demand due to renewed COVID-19 travel restrictions, and higher costs of associated with blending of renewable fuels into their products, said Hydrocarbonprocessing.

Seven U.S. independent refiners are projected to post an average earnings-per-share loss of USD1.51, down from a loss of USD1.06 in the third quarter of 2020, according to IBES data from Refinitiv. Both Credit Suisse and Tudor Pickering Holt cut lowered the price estimates of every U.S. independent refiner for the fourth quarter.

In the fourth quarter, independent refiners including Marathon Petroleum, Valero Energy and Phillips 66 coped with uneven demand due to a resurgence of coronavirus cases worldwide. Consumption of liquid fuels globally is estimated to have fallen by 9 million barrels per day in 2020, according to the U.S. Energy Information Administration.

Crude oil benchmarks rallied more than 20% in the quarter, which squeezed U.S. refining margins to less than USD10 a barrel on average - the threshold for which most refiners make money - for the majority of the fourth quarter. Meanwhile, tougher restrictions on socializing and businesses clamped down on traffic in states like California, the most populous U.S. state and one of the largest driving markets in the world. Travel on U.S. roads fell by 11% in November from the year-ago period, after a 9% drop in October, according to the U.S. Transportation Department.

Lockdowns in various European countries suppressed international flights and jet fuel demand in the quarter. Delta Airlines' refinery in Trainer, Pennsylvania, in early January posted a USD102 million refining segment loss in the fourth quarter, and a USD441 million loss on third party fuel sales.

In the fourth quarter, refiners also had to pay more for U.S. renewable fuel credits, which reached a three-year high earlier this month. The cost for Renewable Identification Numbers - the credits used for compliance with U.S. biofuels blending laws - increased by 47 cents per barrel from the third quarter due to rising ethanol and biodiesel prices.

Refiners are required, by law, to blend biofuels into their gasoline pool, or pay up so others can do the same. The pandemic has reduced blending activity generally, and as a result, fewer credits have been issued, increasing their costs. Credit Suisse analyst Manav Gupta said Phillips 66 will lose USD1.16 per share in the quarter. He had originally anticipated a 30-cent loss, but changed that due to lower refining earnings in the Gulf Coast, West Coast and Midwest markets.

"Sales will also see earnings down as crude price rose sharply quarter over quarter and lockdowns impacted volumes," said Gupta in a note. U.S. refining margins started to improve around the holiday season, and were around USD12.50 per barrel. Refining rates rose last week to their highest since March, government data showed. However, at about 80% of capacity, refiners are producing approximately 2 million fewer barrels than at the same time last year.

"While refiners may be getting paid the same amount for gasoline as last year, it's on much lower production," said Bob Yawger, director for energy market futures at Mizuho.

As per MRC, top oil exporter Saudi Arabia has cut supplies of February-loading crude for some Asian buyer by up to a quarter while meeting requirements of at least four others. This comes after Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day (bpd) in February and March under a deal between the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+.

As MRC wrote previously, Formosa Petrochemical Corporation (FPCC) was running its crackers in Taiwan at 100% capacity utilisation in end-December, 2020. The company"s crackers have combined ethylene production capacity of 2.935 million metric tons/year. Meanwhile, FPCC is planning overhaul of the smallest cracker in mid-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.

MRC

MOSCOW (MRC) -- Oil and gas producer Hess Corp forecast a small drop in output and set a USD1.9 billion budget for 2021, most of which will go to Guyana, touted as one of the most important new oil and gas discoveries in the last decade, said Hydrocarbonprocessing.

The company has been relying on its investment in offshore Guyana, one of the world's most important oil and gas blocks in the last decade, which is being developed by a consortium led by oil major Exxon Mobil Corp. Hess has allotted USD780 million, or 41% of its budget, to development activities in offshore Guyana.

"We also will continue to invest in an active exploration and appraisal program, with 12-15 wells planned on the Stabroek Block (offshore Guyana)," said Chief Operating Officer Greg Hill. Hess forecast net production to average about 310,000 barrels of oil equivalent per day (boepd) in 2021, excluding Libya, compared with 2020 estimate of 325,000 boepd.

For 2020, the New York-based energy company had estimated to spend USD1.8 billion. The company will also add a rig in the first quarter in North Dakota's Bakken shale play, adding to a single rig there since May. There were six rigs in the Bakken at the start of last year before the company slashed production to cope with a oil price crash.

Bakken net production is estimated to average about 170,000 boepd in 2021, which despite the addition of a rig, would be below 2020's estimated 190,000 boepd, partly hit by a planned 45-day turnaround activity at the Tioga Gas Plant in the third quarter cutting output by about 7,500 boepd in 2021.

As per MRC, top oil exporter Saudi Arabia has cut supplies of February-loading crude for some Asian buyer by up to a quarter while meeting requirements of at least four others. This comes after Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day (bpd) in February and March under a deal between the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+.

As MRC wrote previously, Formosa Petrochemical Corporation (FPCC) was running its crackers in Taiwan at 100% capacity utilisation in end-December, 2020. The company"s crackers have combined ethylene production capacity of 2.935 million metric tons/year. Meanwhile, FPCC is planning overhaul of the smallest cracker in mid-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.


MRC

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

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