First propylene tank installed at Grupa Azoty PDH/PP plant at Police, Poland

MOSCOW (MRC) -- Grupa Azoty (Tarnow, Poland) says the first large propylene tank has been installed at its EUR1.5-billion (USD1.82 billion) propane dehydrogenation (PDH) and polypropylene (PP) project at Police, Poland, said Chemweek.

The tank, weighing 585 metric tons, was successfully transported to the construction site in a three-day operation, it says.

The tank will have a storage capacity for up to 1,400 metric tons of propylene and is the first of five that will be used to store product from the PDH unit, for onward supply to the adjacent PP plant. The first propylene tank was built at Gdynia shipyard in Poland, it says.

The scheduled start-up of the Polimery Police project was delayed by three months from the fourth quarter of 2022 into the first quarter of 2023 due to the impact of the COVID-19 pandemic, Grupa Azoty confirmed in November. Project construction was 32% complete in November, it said at the time. Hyundai Engineering is the general contractor. The complex at Police will include a 437,000-metric tons/year PDH plant, feeding a similar-capacity PP unit.

As per MRC, the scheduled startup of Grupa Azoty’s (Tarnow, Poland) flagship Polimery Police propane dehydrogenation (PDH) and polypropylene (PP) project at Police, Poland, has been delayed to the first quarter of 2023 due to the impact of the COVID-19 pandemic/

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.
MRC

MOSCOW (MRC) -- Shares of Reliance Industries Ltd fell as much as 4.7% in early trade on Monday after the Indian conglomerate posted a sharp drop in quarterly revenue from its dominant oil-to-chemicals business, reported Hydrocarbonprocessing.

Reliance, which operates the world’s largest refining complex, said on Friday revenue from its oil-to-chemicals division fell nearly 30% in the three months ended Dec. 31.

Total revenue slid 21% to 1.24 trillion rupees, and the company said its operations and revenue during the period were impacted by the COVID-19 pandemic.

Reliance, led by billionaire Mukesh Ambani, has built leading consumer-facing businesses in recent years to diversify away from its mainstay energy arm, but a coronavirus-driven slump in fuel demand has weighed on the Mumbai-headquartered group’s recent results.

RIL’s cyclicals business reporting has become opaque, with no disclosures on gross refining margin (GRM) data this time around, BOB Capital Markets said in a note over the weekend.

“We need to see earnings traction to justify the recent surge in stock price as the rally factors in positives from debt reduction. O2C (the oil to chemicals business) earnings growth remains elusive in the current pandemic-led uncertainty,” the brokerage added.

Reliance, which did not share the GRM, announced a reorganisation on Friday, according to which it now houses its oil refining, fuel retailing and petrochemicals operations together.

Reliance shares gained about 5.8% last week in the run-up to the results but were flat for this year after a more than 32% gain last year.

The company raised about USD26 billion last year from investors like Google and Facebook for its digital and retail arms.

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

MOSCOW (MRC) -- DuPont de Nemours, Inc., Corteva, Inc. and The Chemours Company announced on Friday that they have entered into a binding memorandum of understanding containing a settlement to resolve legal disputes originating from the 2015 spin-off of Chemours from E. I. du Pont de Nemours and Company (EID), said Chemweek.

Cmpanies aimed to establish a cost sharing arrangement and an escrow account to be used to support and manage potential future legacy per- and polyfluoroalkyl substances (PFAS) liabilities arising from events prior to 1 July 2015, the day the spin-off was completed.

Chemours filed suit against DuPont in June 2019, alleging DuPont stuck it with environmental liabilities tied to perfluorooctanoic acid (PFOA), a bio-persistent PFAS chemical used to produce Teflon. The suit claimed that DuPont vastly underestimated the liabilities assigned to Chemours under the separation agreement and chose a spin-off specifically to maximize the offloading of liabilities.

The agreement replaces the February 2017 PFOA Settlement and subsequent amendment to the Chemours Separation Agreement.

According to the terms of the cost sharing arrangement, Chemours agrees to a 50-50 split with DuPont and Corteva, DuPont’s former agricultural business, of certain qualified expenses over a term not to exceed twenty years or $4 billion of qualified spend and escrow contributions. Under the existing Letter Agreement from 1 June 2019, DuPont and Corteva will each bear 50% of the first USD300 million (up to USD150 million each) and thereafter, DuPont bears 71% and Corteva bears the remaining 29%. DuPont's share of the potential USD2 billion would be approximately USD1.36 billion and Corteva's approximately USD640 million.

The companies also agree to establish a USD1 billion maximum escrow account to address potential future PFAS liabilities. Subject to the terms of the arrangement, contributions to the escrow will be made by Chemours, on one hand, and DuPont and Corteva, on the other hand, annually over an eight-year period. Over such period, Chemours will deposit a total of USD500 million into the account and DuPont and Corteva will deposit an additional USD500 million pursuant to the terms of their existing Letter Agreement. The escrow provides for a one-time replenishment mechanism if the escrow account balance has less than USD700 million at 31 December 2028.

After the term of this arrangement, Chemours' indemnification obligations under the Chemours Separation Agreement would continue unchanged, subject to certain exceptions set forth in the memorandum of understanding. Chemours will waive specified claims, including claims regarding the construct of its 2015 spin-off from EID. DuPont, Corteva and Chemours will dismiss the pending arbitration regarding those claims.

In addition, DuPont, Corteva and Chemours have agreed to resolve the matters in the Ohio multi-district PFOA litigation for USD83 million. DuPont will contribute USD27 million, Corteva will contribute USD27 million and Chemours will contribute USD29 million to the settlement. The agreement resolves approximately 95 pending cases as well as unfiled matters. The case of Travis and Julie Abbott v. E.I. du Pont de Nemours and Company is not included in the settlement and is presently pending appeal. These amounts are not subject to the new cost sharing arrangement.

Ed Breen, DuPont Chairman and CEO; Jim Collins, Corteva CEO and Mark Vergnano, Chemours President and CEO said in a joint statement that the agreement will “provide a measure of security and certainty for each company and our respective shareholders using a transparent process to address and resolve any potential future legacy PFAS matters."

It was erlier reported, DuPont is investing USD400 million in the production capacity of Tyvek nonwoven fabric made from high density polyethylene (HDPE) at its site in Luxembourg. A new building and a third work line at the production site will be constructed. The launch of new facilities is scheduled for 2021.

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 DuPont Corporation, founded in the USA in 1802, operates in more than 70 countries. The company produces specialty chemicals, offers goods and services for agriculture, food production, electronics, communications, security and protection, construction, transport and light industry. In Russia, DuPont has 100% control over the DuPont Khimprom plant since 2005, and in 2006 established a joint venture between DuPont - Russian Paints and Russian Paints.
MRC

MOSCOW (MRC) -- OQ Chemicals (Monheim am Rhein, Germany) has announced sales control, effective immediately, for its US oxo intermediate products, according to Chemweek.

The measure is due to “recent increased demand and current shortages of supply for US oxo intermediate products produced at the Bay City, Texas, site,” it says.

The company will allocate global supply for all unfilled and future purchase orders “among our contract customers for whom we have received forecasted demand and our internal demand until the third quarter of 2021,” it says.

OQ Chemicals announced a price rise earlier this month for its oxo intermediate products in the Americas, effective 1 February 2021, due to rising demand and raw material costs. In December it also imposed a price increase for the same products, effective 1 January 2021.

As MRC wrote before, 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 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.

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

MOSCOW (MRC) -- Saudi Aramco's shareholders may consider selling more shares of the company if market conditions are right, reported Reuters with reference to the statement of the head of the kingdom's sovereign wealth fund (PIF), Yasir al-Rumayyan, in a televised news briefing.

The Saudi government sold over 1.7% stake in Aramco in an initial public offering (IPO) in 2019 that raised a record USD29.4 billion.

The listing has triggered more IPOs in the kingdom, which is also seeking to deepen its capital markets under reforms aimed at reducing its reliance on oil.

As MRC informed earlier, in October 2019, McDermott International announced that it had been awarded a contract by Saudi Aramco and Total Raffinage Chimie (Total) for their joint venture (JV) Amiral steam cracker project at Jubail, Saudi Arabia. Amiral is a JV in which Aramco holds 62.5% and Total the rest. The plant, designed to produce 1.5 million metric tons/year (MMt/y) of ethylene, will be one of the world's largest mixed-feed crackers.

Aramco and Total launched their USD5-billion Amiral JV project in October 2018. The steam cracker will be fed with a mixture of 50% ethane and refinery off-gases. It will supply ethylene to a downstream 1 MMt/y polyethylene manufacturing complex and other petrochemical products. The project aims to fully exploit operational synergies with the adjacent refinery, owned by Satorp, another JV between Aramco and Total. Third-party investors, including Daelim and Ineos, will locate plants at the value park adjacent to Amiral with a combined investment of USD4 billion. A final investment decision is expected in 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.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC