Total refinery and petrochemical platforms to be solar powered

MOSCOW (MRC) -- French oil major Total, which is making a major push to develop its renewable energy portfolio, said on Friday it had bought 2.2 gigawatts (GW) of solar projects in Texas, adding to a rush of acquisitions elsewhere this year. It said it would cover all power consumption at its US production sites, including its refining and petrochemical platforms, from its solar power and energy storage assets, reported Reuters.

Europe's top energy companies have outlined plans to curb emissions and boost renewable energy output as they come under pressure from investors. Total is looking to wean itself off a reliance on oil and plans to market more electricity to clients.

It aims to add some 10 GW in renewable energy production capacity a year and to reach 35 GW by 2025.

Its latest deal in the US also involves 600 megawatts (MW) of battery storage assets. Total said it was buying the portfolio from SunChase Power and private energy investment firm MAP RE/ES, but did not give financial details.

The group is now developing close to 4 GW of renewable energy capacity in the United States, it said, adding that construction of the first two Texan solar projects was expected to start later this year.

Total, which reports 2020 earnings next week, said in January it would pay USD2.5 billion for a share in India's Adani Green Energy Limited (AGEL) and its solar power assets, its biggest investment yet in renewables.

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 ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020).

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.
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Eastman starts up new Nanjing dimethylaminoethanol unit

MOSCOW (MRC) -- Eastman Chemical Co. (Kingsport, Tenn) announced the startup of its new dimethylaminoethanol (DMAE) unit at its Nanjing, China site, said the company.

The addition will significantly increase the company’s DMAE capacity, support additional sales in Asia, and further strengthen Eastman’s global leadership in alkyl alkanolamines like DMAE, which is used primarily as an intermediate in water treatment.

Led by Site Manager Lisa Xiao Yan Chen, the project began several years ago and overcame several unexpected obstacles, including COVID-19.

“Even with a global pandemic, the construction had a perfect safety record,” said Sabine Ketsman, vice president and general manager of Eastman’s care chemicals and animal nutrition. “I’m very proud of our entire team."

Ketsman stressed that water treatment is vital in addressing increased water scarcity across the world. “The need for clean water truly affects people’s daily lives and personal well-being,” she said. “This is a great example of how our products and chemistries contribute to enhancing the quality of life in a sustainable way."

Eastman, the world’s largest producer of DMAE and other alkyl alkanolamines, has similar units in Belgium and the United States. Its Nanjing site makes methylamines and dimethylacetamide and has an existing alkanolamines unit that produces DMAE, MDEA, MMEA and MDIPA. Additional growth projects are planned.

We remind that in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, Texas.

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.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.
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Linde sees 2021 double-digit earnings growth after Q4 beat

MOSCOW (MRC) -- U.S.-German industrial gas producer Linde beat expectations with fourth quarter earnings and said it was targeting a 11-13% rise in adjusted earnings per share in 2021 irrespective of economic conditions, said the company.

The supplier of gases such as oxygen, nitrogen and hydrogen to factories and hospitals said its fourth-quarter adjusted earnings per share were USD2.30, above the USD2.14 expected on average by analysts according to a Refinitiv poll.

Linde also reported a 12% rise in adjusted EPS for 2020, citing price increases and productivity gains, and forecast first-quarter EPS growth of 16% to 19%. “I have confidence in our ability to grow EPS double-digit percent irrespective of the macro environment while also leveraging any economic recovery,” Chief Executive Steve Angel said in statement.

Linde’s sectors with strongest growth were healthcare and electronics, with sales up 9% and 8%, respectively, due to both higher pricing and volume growth, with the coronavirus pandemic boosting demand for oxygen.

Linde’s biggest competitor Air Liquide is due to report on Feb. 10, while smaller U.S. rival Air Products on Thursday reported first-quarter earnings below expectations, citing, among others, lower demand caused by the COVID-19 pandemic.

Linde has large, long-term contracts in industries such as healthcare, food, beverages, electronics and energy, which help the company sustain steady performance during economic downturns, with customers ranging from Gazprom to Exxon Mobil.

As per MRC, Linde has signed an agreement with BorsodChem (Kazincbarcika, Hungary) for the long-term supply of nitrogen, oxygen, and compressed air to BorsodChem’s chemical complex in Kazincbarcika, including the construction of a new air separation unit (ASU).

As per MRC's DataScope report, December SPVC imports to Russia dropped to 0,600 tonnes from 1,600 tonnes in November. High PVC prices in foreign markets and a seasonal decline in demand in the last two months have put serious pressure on import purchases of PVC from Russian companies. Thus, overall imports were 40,800 tonnes in January-December 2020, compared to 50,900 tonnes a year earlier, with PVC from China and the United States accounting for the main reduction in imports.

Linde’s Frankfurt-listed shares were up 1.6% at 1130 GMT, and are up 53% since mid-March when the spread of the coronavirus triggered a sell-off in global stocks, topping the European chemicals sector index.

MRC

COVID-19 - News digest as of 05.02.2021

1. OMV sees no turnaround of refineries in 2021

MOSCOW (MRC) -- Austrian oil and gas group OMV expects a recovery in the oil price in 2021 after its 2020 results were hit by the coronavirus pandemic although it does not see an improvement in the utilization rate of European refineries, reported Reuters. OMV said on Thursday that its fourth-quarter operating profit fell by a third to 524 million euros ($629.38 million) on revenues down 18% to 4.956 billion euros as pandemic-related travel restrictions keep a lid on fuel demand.



MRC

Crude oil futures stronger on hopes of pandemic easing, improved fundamentals

MOSCOW (MRC) -- Crude oil futures continued on an upward trajectory during mid-morning trade in Asia Feb. 4, as the abatement of the pandemic situation and simmering hopes over a US stimulus package provided a boost to oil markets already invigorated by an uptick in demand and the start of Saudi Arabia's output cut, reported S&P Global.

At 11:11 am Singapore time (0311 GMT), the ICE Brent April contract was up 44 cents/b (0.74%) from the Feb. 4 settle to USD59.28/b, while the March NYMEX light sweet crude contract was up 40 cents/b (0.71%) to USD56.63/b.

The bullish step in the oil market comes amid signs that the pandemic is starting to ease globally, with expectations of a colossal US stimulus package also inspiring confidence among investors that the economic climate will soon improve.

"There are a number of factors behind crude's rise, but head and shoulders above all of them is the observation that the coronavirus might finally be retreating. It is a natural abatement for most part, but it is also being helped by increased vaccine coverage," Vandana Hari, CEO of Vanda Insights, told S&P Global Platts Feb. 5.

"Investors are confident that this is the beginning of the end for the pandemic as it can be seen that infection, hospitalization and fatality numbers have steadily been dropping in the past two to three weeks globally," Hari added.

Analysts added that the demand outlook for oil has improved significantly as the pandemic situation has alleviated.

In a Feb. 5 note, Stephen Innes, chief global market strategist at Axi brought to attention that two VLCCs were scheduled to deliver North Sea oil to China in late March, adding this "confirms that real demand is driving the front end of the curve."

Analysts also said that investors viewed Saudi Aramco's release of the official selling prices with a bullish hue. OSPs for Saudi Aramco's crude into Asia remained unchanged for March, while OSPs for buyers in Europe and the US were raised.

The release of Saudi Aramco's OSPs follows the start of Saudi Arabia's 1 million b/d output cut, which began on Feb. 1, and has curtailed supply in the market.

"The Saudis had a very different view of demand when they announced their output cuts but, being hawkish, they will likely persist with them regardless of the strong demand. This could see Brent hurtling past the USD60/b mark," Hari concluded.

As MRC informed previously, 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 ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC