Mammoet completes first stage of work that leads to construction of PDH/PP blocks of Polish Grupa Azoty chemical plant

MOSCOW (MRC) -- Tasked by company Grupa Azoty ((Tarnow, Poland), one of the main players on the European fertilizer and chemical market, Mammoet recently completed the first scope of work that will lead to the construction of the propane dehydrogenation and polypropylene (PDH/PP) blocks of its client’s chemical facility, according to Hydrocarbonprocessing.

The project took place in the town of Police, in the northwest of Poland, and involved the lifting and transport of more than 480 items from a small port to the construction site six kilometers away.

“We are happy to announce the completion of the first stage of our collaboration with Grupa Azoty Polyolefins,” says Jakub Walasek, Branch Manager for Mammoet Poland. “This is one of the biggest projects in Poland in recent years and we were entrusted to deliver some of the largest items ever moved on Polish roads.”

Among the items transported by Mammoet, 5 were extremely large with a weight between 600-800t, and the largest was around 900t. The size of many of those items required the company to look for efficient and sometimes creative ways to get them from the port to their final location.

Characteristic of this first scope of the project with Grupa Azoty Polyolefins was certainly its complexity. There were multiple items to be moved, and many of them came in different shapes and sizes. Mammoet used PST’s and conventional axle lines for the transport. The largest item, called the PP splitter, required the use of two times double 16 axle lines PST’s in dolly configuration with turntables.

As MRC wrote previously, in late January 2021, Grupa Azoty said the first large propylene tank had been installed at its EUR1.5-billion (USD1.82 billion) PDH and PP project at Police, Poland.

We remind that the scheduled startup of Grupa Azoty’s flagship Polimery PDH and 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 ScanPlast report, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
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Kemira to close Montevideo office in May in a move to optimize use of its sites

MOSCOW (MRC) -- Kemira has announced the closure of the Montevideo office in Uruguay effective from May 1, 2021, as per the company's press release.

This action is aligned with the company's global strategy to optimize the use of its sites and reduce operational costs by implementing remote work when possible.

With this change, the personnel based at the Montevideo office will work remote or be transferred to Kemira’s office located at the UPM Plant in Fray Bentos, where Kemira has been established since 2007.

This action will not result in a reduction of Kemira’s staff.

As MRC reported earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Saudi plans to sell 1% of Aramco

MOSCOW (MRC) -- Saudi Arabia's crown prince said in televised remarks that the kingdom was in discussions to sell 1% of state oil firm Saudi Aramco to a leading global energy company, said Reuters.

Crown Prince Mohammed bin Salman said Aramco, the world's biggest oil company which listed on the Saudi bourse in late 2019, could sell further shares including to international investors within the next year or two. "There are talks now for the acquisition of a 1% stake by a leading global energy company in an important deal that would boost Aramco's sales in ... a major country," he said, without elaborating.

"There are talks with other companies for different stakes, and part of Aramco's shares could be transferred to the (Saudi) Public Investment Fund and a part listed ... on the Saudi bourse," he said in an interview aired by Saudi TV marking the fifth anniversary of Vision 2030.

The Aramco initial public offering in 2019 was seen as a pillar of the economic diversification programme aimed at attracting foreign investment. Aramco raised USD25.6 billion in the IPO and later sold more shares under a "greenshoe option" to raise the total to USD29.4 billion.

The crown prince in 2016 announced a plan to raise as much as USD100 billion via an international and domestic listing of a 5% stake in Aramco. In 2017 sources said Chinese state-owned companies PetroChina and Sinopec had written to Aramco to express an interest in a direct deal.

Listing plans were halted in 2018 and when they were revived the following year the deal found little interest beyond the Gulf. Riyadh scaled back its ambitions and canceled roadshows in New York and London, selling a 1.7% stake and relying on mainly domestic and regional buyers. The proceeds of that offer were transferred to the Public Investment Fund (PIF), Prince Mohammed’s vehicle of choice to transform the Saudi economy and diversify away from oil revenue.

As MRC informed earlier, 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 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 polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Trafigura sells first carbon-offset naphtha cargo

MOSCOW (MRC) -- Trafigura sold the first cargo of naphtha, a refined oil product used in plastics, for which the carbon emissions from production to delivery were offset, said Hydrocarbonprocessing.

The move reflects a growing trend among oil and gas firms to market their products as cleaner and to secure a future for the fossil fuel industry amid an accelerating energy transition. Trafigura said in a statement it had sold the cargo, which was shipped last week from Corpus Christi, Texas and is due to arrive in the Brazilian Port of Aratuo, to Brazil's Braskem.

The global commodities trader said that it had used the most energy efficient vessel available at the time and the speed of the voyage was adjusted to reduce emissions further. The Geneva-based company added that the cargo was offset with nature-based projects in Indonesia known as REDD+, which are independently verified by the Verified Carbon Standard.

REDD projects emerged from the UN climate negotiations and aim to reduce emissions from deforestation and forest degradation. REDD+ goes beyond this to include sustainable forest management, conservation and increasing forest carbon stocks.

Rival trading firm Vitol began offering green liquefied natural gas (LNG) cargoes last month, whereby the offsets would mitigate emissions from wellhead to delivery. In January, Occidental Petroleum said it had sold the first ever 100% carbon-neutral shipment of crude to India.

Some companies have begun seeking a premium price for what they call cleaner petroleum products. Trafigura did not detail the costs of the cargo versus a regular naphtha shipment but said it was a service provided to Braskem. Although carbon credits do not reduce the pollution from a barrel of oil, their proponents say they help finance clean-energy efforts that otherwise would not be profitable.

As per MRC, Trafigura Group Pte Ltd, (Trafigura), one of the world’s leading independent commodities trading companies, completed the acquisition of the majority of the downstream assets of Pampa Energia SA. These assets include more than 250 service stations and the Ricardo Elicabe refinery (BBR) located in Bahia Blanca.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

MRC

ExxonMobil makes another oil discovery offshore Guyana

MOSCOW (MRC) -- ExxonMobil, the largest private US company, has made an oil discovery at the Uaru-2 well in the Stabroek Block offshore Guyana, reported Reuters.

Uaru-2 will add to the previously announced gross discovered recoverable resource estimate for the block, which is currently estimated to be approximately 9 billion oil-equivalent barrels.

“The Uaru-2 discovery enhances our work to optimally sequence development opportunities in the Stabroek Block,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “Progressing our industry-leading investments and well-executed exploration plans are vital in order to continue to develop Guyana’s offshore resources that unlock additional value for the people of Guyana and all stakeholders.”

In January 2020, ExxonMobil announced that Uaru-1 was the 16th discovery in the Stabroek Block.

In March 2021, ExxonMobil secured a sixth drillship, the Noble Sam Croft, for exploration and evaluation drilling activities offshore Guyana. A fourth project, Yellowtail, has been identified within the block with anticipated start up in late 2025 pending government approvals and project sanctioning. This project will develop the Yellowtail and Redtail fields, which are located about 19 miles (30 kilometers) southeast of the Liza developments.

ExxonMobil anticipates at least six projects online by 2027 and sees potential for up to 10 FPSOs to develop its current recoverable resource balance.

The start-up of Liza Phase 2 remains on target for 2022, as the Liza Unity FPSO prepares for sail away from Singapore to Guyana later this year. The Unity FPSO has a production capacity of 220,000 barrels of oil per day at peak rates. The hull for the Prosperity FPSO vessel, the third project at the Payara Field, is complete, and topsides construction activities have commenced in Singapore with a startup target of 2024.

As MRC informed previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have just entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
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