Petrobras CEO calls bio jet fuel key for de-carbonizing

MOSCOW (MRC) -- The chief executive of Brazil's state-run oil company Petrobras, Roberto Castello Branco, said biofuels, especially those for the aviation industry, will be key for "de-carbonizing" transportation in coming years, a goal for energy transition, reported Reuters.

Brazil, a major corn and sugarcane producer and a country with a more diversified energy matrix than its neighbors, is also a large consumer of domestic ethanol, with pure gasoline supplies a rarity.

"For the future, we are evolving to bio jet fuel, which will be very important for de-carbonizing transportation, so we are focusing on ships and aircraft," he said at the CERAWeek energy conference on Tuesday.

Aviation biofuels are biomass-derived fuels from plants or waste used to power aircrafts. They produce lower CO2 emissions than conventional jet fuel.

Petrobras is among the region's largest exporters of low-sulfur marine fuel. Competitors including Venezuela's PDVSA and Mexico's Pemex have not showed much progress in recent years in producing low-sulfur fuels that exports markets demand.

Brazil increased 4.4% its imports of refined products, mainly diesel, to 34.2 million cubic meters in 2019 but also boosted fuel exports 2.6% that year, including fuels for the maritime and aviation industries, to 13.7 million cubic meters, according to figures by the nation's oil regulator.

Asked about how a giant company such as Petrobras, which has focused on keeping production costs low, can move faster to achieve energy transition, Castello Branco said that "elephants can dance and fly as well."

"Petrobras was known as an elephant, a state oil company very big and too bureaucratic, very slow-moving. We are looking for fast solutions and diagnosis for solving problems as we are living in a technology-driven world."

The company aims to capture 25 million tonnes of carbon dioxide (CO2) through 2025 while reducing emissions from its fossil fuel operations.

As MRC informed 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.

We remind that Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July, 2020. She said during the company"s recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras"s stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the company"s stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

We also 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 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.

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.

Trinseo raises March PS and ABS prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) in Europe, according to the company's press release.

Effective March 1, 2021, or as existing contract terms allow, the contract and spot prices for the products listed below rose as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR520 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR520 per metric ton;
- MAGNUM ABS resins - by EUR430 per metric ton.

As MRC informed before, Trinseo last raised its prices for all PS and ABS on February 1 2021, as stated below:

- STYRON GPPS -- by EUR40 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech HIPS - by EUR40 per metric ton;
- MAGNUM ABS resins - by EUR200 per metric ton.

According to ICIS-MRC Price report, prices of Nizhnekamskneftekhim's PS is expected to rise by Rb20,000/tonne in early spring under the pressure of a sharp and significant increase in feedstock prices and strong demand in the PS market. The main market players said they expect the shortage of PS to remain in March. Penoplex announced plans to raise prices of its material by Rb20,000/tonne.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
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Chevron Phillips Chemical names Bruce Chinn CEO

MOSCOW (MRC) -- Chevron Phillips Chemical Company LLC (Chevron Phillips Chemical) has announced that Bruce Chinn, currently president, Chevron Chemicals, will become chief executive officer. B.J. Hebert, currently executive vice president and chief operating officer, will become president and chief operating officer, as per the company's press release.

Chinn and Hebert will succeed into the CEO and president roles held by Mark Lashier, who is retiring from Chevron Phillips Chemical. These changes will be effective April 1, 2021.

“It has been a great privilege to serve as president and CEO of Chevron Phillips Chemical,” said Lashier. “From growing our world class international manufacturing asset base to advancing key sustainability initiatives, I am incredibly proud of what we have achieved together. Throughout our 20-year history, we have maintained a culture where employees truly care about each other, our customers and communities, demonstrated by our strong safety, operational and financial performance.”

Chinn is a chemical industry veteran with more than 35 years of relevant experience. He began his career at DuPont where he held positions of increasing responsibility in manufacturing, technical, and business leadership. He joined Chevron in 2006 and held executive leadership roles in refining and at facilities in Venezuela, Richmond, California, and Pascagoula, Mississippi. Chinn is active in his community and industry, currently serving as vice chairman of the American Institute of Chemical Engineers Foundation Board of Trustees and a member of the Executive Leadership Council. He holds a bachelor’s degree in chemical engineering from Texas A&M University.

“Bruce is a proven leader with a multidimensional background in international operations and business, which positions him well to drive the company’s strategy and continue Chevron Phillips Chemical’s trajectory of operational and financial success,” said Kevin J. Mitchell, executive vice president, finance and chief financial officer at Phillips 66 and member of the Chevron Phillips Chemical Board of Directors.

Hebert joined Chevron Phillips Chemical in 2020 as executive vice president and chief operating officer. He has more than 30 years of experience in the chemical industry and served as president of Occidental Chemical (OxyChem) for three years prior to joining Chevron Phillips Chemical. During his tenure with OxyChem, he held numerous roles of increasing responsibility including senior vice president, basic chemicals; vice president and general manager, vinyls; and manufacturing director, chemicals. Hebert began his career with Vista Chemicals, where he served in plant and operations engineering roles. He holds a bachelor’s degree in chemical engineering from McNeese State University and a Master of Business Administration from Southern Methodist University.

“Since he joined Chevron Phillips Chemical last year, B.J. has demonstrated a strong focus on safe, reliable operations and established himself as an energetic and forward-thinking leader,” said Michael E. ("Mike") Coyle, president, Manufacturing, Chevron and member of the Chevron Phillips Chemical Board of Directors. “We look forward to seeing the company continue to thrive under Bruce and B.J.’s leadership.”

As MRC reported earlier, in March 2018, Chevron Phillips Chemical, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year. This unit is one of the largest and most energy efficient crackers in the world. In September 2017, the company announced the successful commissioning and start-up of two new Marlex polyethylene (PE) units in Old Ocean, Texas, based on the company’s proprietary MarTech technologies. Together, these assets form the bulk of the company’s US Gulf Coast Petrochemicals Project (USGCPP), which was first announced in 2011.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
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Sika develops recycling process for concrete

MOSCOW (MRC) -- Sika, a producer of construction chemicals, says it has developed a recycling process for old concrete, said Chemweek.

The technology breaks old concrete down into gravel, sand, and limestone in a process that binds about 60 kilograms (kg) of carbon dioxide (CO2) per metric ton of crushed concrete demolition waste. The company says the development will make a significant contribution to reducing the ecological footprint of the construction industry.

"In the five largest EU countries alone, roughly 300 million [metric tons] of old concrete are generated every year. With complete recycling of these materials, up to 15 million metric tons of CO2 emissions can be captured,” says Paul Schuler, CEO of Sika.

About 25–30% of all waste generated in the EU is construction demolition waste materials, many of which could be recycled, according to the European Commission. Sika says that recycling these materials is particularly crucial in dense urban areas, because this is where most old concrete accumulates.

Comparative testing of Sika’s process has demonstrated that new concrete containing recycled content performs similarly to an all-new product, the company says. Further process optimization can be achieved through the development of additional chemical additives, Sika says.

"We are already developing complementary chemical additives and quality enhancers, and are pushing the industrialization of our new technology,” says Frank Hoefflin, CTO at Sika.

As MRC informed earlier, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

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.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
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US chemical production rises 0.8% in January - ACC

MOSCOW (MRC) -- The US Chemical Production Regional Index (US CPRI) rose 0.8% in January following a 1.4% gain in December and a 1.1% gain in November, according to CISION with reference to the American Chemistry Council (ACC).

During January, chemical output expanded in nearly all regions. The Gulf Coast region showed the largest gain, with smaller gains seen in the Midwest, Southeast, Ohio Valley, and Northeast regions. Output was flat in the Mid-Atlantic region and edged lower in the West Coast. The US CPRI is measured on a three-month moving average (3MMA) basis.

Chemical production continued to expand in chlor-alkali, fertilizers, organic chemicals, synthetic rubber, plastic resins, manufactured fibers, industrial gases, and synthetic dyes and pigments, measured on a 3MMA basis. Production eased for coatings, adhesives, crop protection, consumer products, and other specialty chemicals.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. The manufacturing recovery continued for a sixth consecutive month in January, with overall factory activity up by 1.0% (3MMA). The trend in production increased in many key chemistry end-use industries, with the strongest gains seen in food and beverages, appliances, motor vehicles, aerospace, construction supplies, fabricated metal products, iron and steel products, petroleum refining, oil and gas extraction, plastic products, structural panels, textile products, and furniture.

Compared with January 2020, US chemical production remained off by 0.6% on a year-over-year (Y/Y) basis, the twentieth straight month of Y/Y declines, but showed continued improvement compared with earlier in the year. Chemical production remained lower than a year ago in all regions except in the Gulf Coast region, which was up 2.5% Y/Y.

The chemistry industry is one of the largest industries in the United States, a USD565 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry. The US CPRI was developed to track chemical production activity in seven regions of the United States. The US CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in January reflects production activity during November, December, and January.

As MRC informed before, ACC’s chemical activity barometer (CAB), a leading economic indicator and composite index of industry activity, rose 1.5% in January, following a 1.3% increase in December, on a sequential three-month moving average (3MMA). The barometer was up 1.3% on a year-on-year (YOY) basis in January.

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.

Ethylene and propylene are feedstocks for producing 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.

The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $565 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, representing ten cents out of every dollar in U.S. exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.
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