BP completes industry-first autonomous vehicle trial at refinery

MOSCOW (MRC) -- BP has successfully completed an autonomous vehicle trial at its Lingen refinery in Germany, working with Oxbotica, a global leader in autonomous vehicle software. The trial was a world-first in the energy sector and the latest addition to the bp ventures technology portfolio, according to Hydrocarbonprocessing.

During the trial the vehicle travelled over 180km fully autonomously, safely navigating the extensive and complex environment of the bp refinery, including busy junctions, narrow paths, railway crossings, and multiple terrains, during both day and night and in unpredictable weather conditions. Oxbotica was able to deploy its autonomy software platform and integrate with the existing infrastructure within two hours of arriving on site.

Following the success of the trial, bp aims to progress to deploying its first autonomous vehicle for monitoring operations at the refinery by the end of the year.

The self-driving vehicles will enhance human operations and improve safety by increasing the monitoring for irregular conditions, faulty equipment and security threats, making it more frequent and around the clock. The autonomous vehicles’ enhanced analytics will help the site reduce the size of its current fleet.

Morag Watson SVP digital science and engineering, bp said: “This relationship is an important example of how bp is leveraging automation and digital technology that we believe can improve safety, increase efficiency and decrease carbon emissions in support of our net zero ambition.

“Lingen has 30 km of roads. Intelligent technology like this helps us make the incremental but equally critical improvements to our operations, so we can continue to focus on delivering the energy the world needs in the way that it wants. I am looking forward to working with Oxbotica to explore how we can unlock the full potential of autonomy.”

“This relationship is an important example of how bp is leveraging automation and digital technology that we believe can improve safety, increase efficiency and decrease carbon emissions in support of our net zero ambition," Morag Watson SVP digital science and engineering.

The announcement follows bp’s recent USD13m equity investment in Oxbotica. The partnership will give Oxbotica access to bp’s operations, retail sites and customer network, helping to unlock its potential.

Ozgur Tohumcu, CEO at Oxbotica said: “As part of our first refinery trial in Lingen, we showcased how autonomy improves safety, reduces emissions and improves productivity. The investment from bp will allow us to scale our autonomous software platform across the energy ecosystem with a number of planned use cases and unlock the true power of universal autonomy.”

Beyond the trial, bp believes that Oxbotica’s technology can help it to create an inherently safer operating environment for field workers through its reliable, repeatable, and predictable application.

The software can be installed into any vehicle and can work indoors, outdoors, underground, in any weather condition and any time of day or night. It has zero dependence on external infrastructure such as GPS or third-party mapping and is completely sensor- and platform-agnostic.

Erin Hallock, managing partner at bp ventures added: “Oxbotica’s technology makes autonomous vehicles safer due to improved vision, more efficient due to reduced downtime and less carbon intensive through forensic control of acceleration, braking and driving patterns. We are delighted to partner with a business at the forefront of the future of mobility that can modernise bp through autonomy and look forward to scaling the software across bp’s ecosystem.”

As MRC reported before, in early February, 2021, Rosneft Oil Company and BP signed a Strategic Collaboration Agreement focused on supporting carbon management and sustainability activities of both companies. The agreement builds on years of partnership between the two companies and formalises key elements of their collaboration on sustainability and work to identify carbon reduction activities and low carbon opportunities.

We remind that in late January 2020, Russian oil producer Rosneft said that its German subsidiary Rosneft Deutschland GmbH had completed the deal to acquire a 3.57% stake in Germany’s Bayernoil Raffineriegesellschaft mbH from BP.

We also remind that a fire at Ufaorgsintez (a subsidiary of ANK Bashneft, part of PJSC "NK Rosneft") did not lead to a shutdown of low density polyethylene (LDPE) and polypropylene (PP) production capacities. On 25 January, two containers with a methane-hydrogen fraction caught fire at the Ufa plant, and the blaze was extinguished in the morning of 26 January. The plant's customers said the fire was not critical for polymer production. PP production has been operating normally, whereas the LDPE production has temporarily reduced its capacity utilisation, thus, production of 158 grade polyethylene (PE) was suspended.

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). Supply of exclusively PP random copolymer increased.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

IOCL announces new refinery foundation and significant step towards energy self-reliance for India

MOSCOW (MRC) -- Prime Minister Shri Narendra Modi dedicated the Ramanathapuram - Thoothukudi natural gas pipeline and Gasoline desulfurization unit at Chennai Petroleum Corporation Limited to the nation on 17th February 2021 at 04:30 PM via videoconferencing. Prime Minister shall also laid the foundation stone of Cauvery basin Refinery at Nagapattinam, according to Hydrocarbonprocessing.

The event marks another significant milestone towards the Energy Aatmanirbharta for the nation. Governor and Chief Minister of Tamil Nadu, Union Minister for Petroleum and Natural Gas and Steel, and other Members of Parliament will also be present on occasion.

Ramanathapuram - Thoothukudi section (143 km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin Natural Gas pipeline (ETBPNMTPL) pipeline has been laid at the cost of about Rs 700 crore. It has generated 1.7 lakh man-days of employment. The pipeline shall utilize the gas from ONGC Gas fields and deliver indigenous natural gas as feedstock to M/s. Southern Petrochemical Industries Corp. Ltd. (SPIC) at Tuticorin and other industrial/commercial customers and CGD GAs.

The Gasoline Desulfurization unit at CPCL, Manali has been constructed at about Rs 500 crore, generating 18,000 man-days of employment. The gasoline desulfurization unit at CPCL, Manali refinery shall produce low sulphur (less than 8 ppm) environment-friendly gasoline, which will reduce emission and contribute towards a cleaner environment.

The grass-root refinery with 9 million tonnes per annum (MMTPA) capacity is to be set up at Nagapattinam by a JV between IndianOil and CPCL at an estimated project cost of Rs.31,500 crore. This project shall generate about 50 lakh man-days during the execution phase. The new refinery will produce MS and Diesel meeting BS-VI specifications and Polypropylene as a value-added product and anticipates approximately 80% indigenous sourcing of materials and services.

These projects would result in substantial socio-economic benefits and shall aid the development of transport and communication facilities, education facilities, downstream petrochemical industries, ancillary and small-scale industries.

As MRC informed before, India’s crude oil imports in December soared to the highest levels in nearly three years to more than 5 million barrels per day (bpd) as its refiners cranked up output to meet a rebound in fuel demand.

We remind that India’s Chemicals and Fertilisers Minister D V Sadananda Gowda said in mid-December, 2020, the demand for chemicals and petrochemicals is expected to rise 9% annually, and the size of the industry is likely to grow to USD300 billion by 2025.

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). Supply of exclusively PP random copolymer increased.
MRC

Ube temporarily suspends production at Ube-Fujimagari ammonia facility

MOSCOW (MRC) -- Ube Industries has temporarily suspended ammonia production at its Ube-Fujimagari factory in Yamaguchi, Japan, following the discovery of equipment problems, according to Apic-online.

The shutdown, which began on 25 Jan. 2021, is also expected to affect the production of downstream products that utilize ammonia as a raw material.

"We extend our sincere apologies for any inconvenience or concern this situation may cause our customers and business partners, and offer our assurance that we continue to work to ensure the quick and reliable restoration of production operations," the company noted.

As MRC reported previously, in September 2015, Ube Industries Ltd. launched Lotte Ube Synthetic Rubber Sdn. Bhd.- a joint venture of Lotte Chemical Corp. (40%), Lotte Chemical Titan Holding Sdn. Bhd. (10%), Ube Industries, Ltd. (40%), and Mitsubishi Corporation (10%) - for the manufacturing of butadiene rubber (BR) based in the Tanjung Langsat industrial park in Johor, Malaysia.

Lotte Ube Synthetic Rubber has a BR production capacity of 50,000 tonnes per year, becoming the fourth BR production facility of the UBE Group. With facilities in Japan (126,000 tonnes), Thailand (72,000 tonnes), China (72,000 tonnes) and now Mayasia, the Ube Industries Group has a combined annual BR production capacity of 320,000 tonnes.

Butadiene is one of the main feedstocks for the production of acrylonitrile-butadiene-styrene (ABS).

According to ICIS-MRC Price report, ABS imports into Russia totalled 2,700 tonnes in January 2021, compared to 2,600 tonnes a month earlier and 2,300 tonnes in January 2020.
MRC

Lanxess to acquire US consumer specialties firm Emerald Kalama for more than USD1 billion

MOSCOW (MRC) -- Lanxess says it has signed a binding agreement to acquire specialty chemicals manufacturer Emerald Kalama Chemical (Cuyahoga Falls, Ohio) for an enterprise value of USD1.08 billion; USD1.04 billion, after deducting debt-like items, reported Chemweek.

The transaction is expected to close in the second half of 2021, subject to approval by the relevant authorities, and it will be financed from Lanxess’s existing liquidity, the company says. The deal forms part of Lanxess’s targeted portfolio expansion in the consumer protection segment, the company says.

Affiliates of the private equity firm American Securities own a majority of Emerald Kalama, a company specialized in the production of specialties for the consumer segment, Lanxess says.

Emerald Kalama achieved 2020 sales of about USD425 million and EBITDA pre exceptionals of approximately USD90 million. Within three years following completion of the transaction, Lanxess expects an additional annualized EBITDA contribution of about USD30 million from synergy effects. The acquisition will be earnings-per-share accretive in the first fiscal year after completion, the company says.

“The businesses of Emerald Kalama Chemical are an ideal fit for us. We will further strengthen our consumer-protection segment and open up new application areas with strong margins, for example in the food industry and animal health sector. In addition, we will also enlarge our presence in our growth region of North America. All this will make us even more profitable and stable,” says Matthias Zachert, chairman of Lanxess.

Emerald Kalama generates about 45% of its revenue in North America. About 75% of its sales are from preservatives for food, household, and cosmetic applications; flavors and fragrances; as well as products for animal nutrition. The remaining 25% are from the company's specialty chemicals business for industrial applications, including the plastics and adhesives industries, Lanxess says.

Emerald Kalama has about 500 employees worldwide and runs production sites at Kalama, Washington; Rotterdam, Netherlands; and Widnes, UK. “Emerald Kalama Chemical has a very efficient set-up, bundling all its production activities at only three sites. That is why we expect to integrate the new business very quickly,” says Zachert.

As MRC informed before, in January, 2021, Lanxess completed the sale of its membrane business to French resource management firm SUEZ. The deal was previously announced in July, 2020, as Lanxess realigned its water treatment technologies segment, resulting in the sale of its reverse osmosis membrane business.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.

Lanxess is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
MRC

COVID-19 - News digest as of 01.03.2021

1. Chinese refiners cool on crude purchases as oil futures rally

MOSCOW (MRC) -- China's crude oil imports are set to slow in the second quarter after Brent prices hit a 13-month high, cooling demand and capping refiners' margins as they prepare to shut for planned maintenance, industry sources and analysts said, as per Hydrocarbonprocessing. Expectations of a recovery in global fuel demand and tighter oil supplies from Saudi Arabia and the United States pushed front-month Brent futures to their highest since January 2020 this week, up around 30% from January. Chinese independent refiners, who account for a fifth of the country's import demand, have become reluctant to buy cargoes as they enter a low-demand season, while domestic margins have yet to catch up with strong gains in international prices, the sources said.


MRC