Engro Corporation will use Honeywell technology for integrated propane dehydrogenation complex

MOSCOW (MRC) -- Engro Corporation will use Honeywell UOP C3 Oleflex technology to produce 750,000 metric tons per year of on-purpose propylene at its new complex in Karachi, Pakistan, said Hydrocarbonprocessing.

Propylene is the primary component in a variety of plastic products that are rapidly growing in demand, and this project will mark the first use of C3 Oleflex in Pakistan. UOP will provide technology licensing and basic engineering design, in addition to services, equipment, catalysts and adsorbents for the proposed plant.

“Our proposed integrated propane dehydrogenation complex can be a significant milestone for Engro and Pakistan for the domestic growth of polypropylene, and enrichment of the petrochemicals landscape for the country,” said Ghias Khan, president and CEO, Engro Corporation. “With our commitment to further invest in projects that are catalysts for growth in Pakistan and after studying the commercial feasibility of a propane dehydrogenation complex, we have selected Honeywell UOP as a technology partner based on its extensive experience and cutting-edge solutions that have advanced Oleflex projects globally."

“This facility will allow Engro to expand its portfolio in the region, and optimize the production of polypropylene, a key ingredient in plastics, resins and fibers,” said Laura Leonard, vice president and general manager, Honeywell UOP Process Technologies. “Our Oleflex technology enables the conversion of propane into high-quality propylene, which is rapidly growing in demand in the Middle East and South Asia."

Since 2011, the majority of new dehydrogenation projects globally have been based on UOP C3 Oleflex technology. Global production capacity of propylene from Oleflex technology currently stands at approximately 10.2 million metric tons per year.

Honeywell UOP’s C3 Oleflex technology converts propane to propylene through catalytic dehydrogenation. The technology is designed to have a lower cash cost of production and higher return on investment when compared to competing dehydrogenation technologies. Its low energy consumption, low emissions and fully recyclable, platinum-alumina-based catalyst system helps minimize its impact on the environment. The independent reactor and regeneration design of the Oleflex technology helps maximize operating flexibility and onstream reliability.

Having a rich history of over 50 years, Engro Corporation is Pakistan’s premier conglomerate with a diverse portfolio of businesses across the four verticals of energy and related infrastructure, agricultural outputs, petrochemicals and telecommunication infrastructure. With decades of experience in petrochemicals and a commitment to further develop its footprint in the petrochemicals vertical, Engro started conducting the commercial feasibility of the Polypropylene facility, based on PDH technology, in April 2019. Recently, the group had announced to invest over USD30 million to conduct engineering, design and technical studies for its proposed Polypropylene complex.

Before that Pakistani manufacturer Engro Corp has selected W.R. Grace & Co.'s polypropylene (PP) technology. Grace & Co for a new propane dehydrogenation unit (PDH) and PP production in Karachi. The 750 ktpa propane dehydrogenation unit is the first PP plant to be built in Pakistan and "aims to meet the growing demand in the local PP market and reduce the country's dependence on imports," W.R. Grace & Co.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Indian refiners, anticipating a lifting of U.S. sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year, company officials told Reuters.

The world's third-largest oil consumer and importer halted imports from Tehran in 2019 after former U.S. President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.

U.S. President Joe Biden's administration and Iran have been involved in indirect talks to revive the pact for Tehran to curb its nuclear activities in exchange for a lifting of sanctions. Analysts expect Iran to ramp up crude exports to 1.5 million barrels per day in the fourth quarter when sanctions are lifted.

India, used to be Iran's second biggest oil client after China, buying as much as 480,000 bpd in the fiscal year beginning April 2018. Several Indian state refiners, whose refineries are suited to the crude, have committed to buy Iranian oil once sanctions are lifted.

State-run Bharat Petroleum Corp, which plans to tap the spot market for 45% of its overall imports, will buy Iranian oil if sanctions are lifted, a company spokesman said. High sulphur distillate-rich Iranian crude suits BPCL's Kochi refinery and costs USD2-USD2.5/barrel less than similar grades, he said, adding that Iran's proximity means India also has lower freight costs.

Hindustan Petroleum Corporation (HPCL) also said it would buy Iranian crude if the price is right and it is suitable. "HPCL will consider buying Iranian oil depending on techno economic suitability as and when sanctions are lifted and situations are conducive for commercial transactions," chairman M. K. Surana told Reuters.

Top refiner Indian Oil Corp is also expecting to reduce spot purchases and can easily process about 2 million tons (14.6 million barrels) of Iranian oil this fiscal year, said a company source, who declined to be named as he is not authorised to speak to media. The IOC plans to buy 56% of its imports through term contracts this fiscal year.

Indian refiners have raised the share of spot purchases versus term contracts to gain from cheaper barrels available in a surplus market. After the halt in Iranian oil, Indian had diversified its imports and raised its share of U.S. oil. An official at Mangalore Refinery and Petrochemicals Ltd said his company would also cut spot purchases and buy Iranian oil.

As per MRC, India's IG Petrochemicals Ltd (IGPL) plans to build a phthalic anhydride plant with an annual capacity of 80,000 tonnes in the western state of Gujarat. The company said the new plant will start operating in three years, adding that it plans to raise funds for the new project through its investments and loans. The new manufacturing facilities will help IG Petrochemicals meet the growing demand for manufacturing products such as paints, plasticizers, polyvinyl chloride (PVC), unsaturated polyester resins, and more, IGPL said in a statement.

According to MRC's ScanPlast Report, April production of unmixed PVC in Russia was 79,400 tonnes from 90,200 tonnes a month earlier, RusVinyl decreased capacity utilisation. Total PVC production in Russia reached 346,100 tonnes in January - April 2021 against 350,800 tonnes a year earlier, a decrease in production volumes was seen from all producers, the only exception was the Bashkir Soda Company, which showed a minimum increase.
The structure of PVC production by plants looked the following way over the stated period.
MRC

MOSCOW (MRC) -- Japanese oil refiner Idemitsu Kosan Co more than halved its profit forecast for the three years to March 2023 as the COVID-19 pandemic hit fuel demand, forcing it to make a tougher assumption for longer-term demand, reported Reuters.

Idemitsu revised its 3-year business plan unveiled in November 2019, now predicting an accumulated net profit of 220 billion yen (USD2 billion) for the three years ending March 2023, instead of its earlier target of 480 billion yen.

“It has only been a year and a half, but the environment has undergone tremendous changes with the unprecedented crisis of coronavirus pandemic, green recovery and carbon-neutral declaration by the Japanese government,” Idemitsu President Shunichi Kito told a news conference.

The company now estimates local demand for petroleum products will fall 30% by 2030 from 2019 levels, and 80% by 2050, instead of its 2019 assumption of 20% and 70% respectively.

“But we want to work positively by taking this as a turning point and an opportunity,” Kito said, citing a plan to turn some of its refineries into platforms for advanced materials such as lithium solid electrolytes and for cleaner fuels such as renewable energy, hydrogen and ammonia.

The company also aims to achieve carbon neutrality by 2050 through energy and material transition, including a plan to slash its thermal coal output by making no investment in new mines. Idemitsu, however, will continue the development of natural gas assets in Vietnam and other Asian countries to meet growing demand for the fuel, Kito said.

For the year to next March, Idemitsu forecast a 143% increase in net profit to 85 billion yen, with an estimated refinery run rate of 83%, up from 78% a year earlier.

Its domestic sales and exports of fuels are expected to rise 2.6% and 6.6% respectively.

As MRC informed earlier, Japan's Idemitsu Kosan took off-stream its naphtha cracker in Japan for a turnaround on September 7, 2020. The cracker remained under maintenance by end-October, 2020. Located at Tokuyama, Japan, the cracker has an ethylene production capacity of 690,000 mt/year and propylene production capacity of 110,000 mt/year. Idemitsu Kosan also operates another cracker in Chiba, Japan, with an ethylene production capacity of 410,000 mt/year.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC

MOSCOW (MRC) -- Colonial Pipeline's communications system for shippers came back online late May 18 after experiencing problems for most of the day, again disrupting operations even though the petroleum products artery is up and running again after being halted for nearly a week following a cyberattack, reported S&P Global.

Refined products shippers were unable to make nomination changes on Colonial for most of the day, despite the line resuming normal operations May 13, sources said.

Colonial halted all pipeline operations May 7 because of a ransomware attack, restricting the primary artery for gasoline and refined products from delivering more than 100 million gal/d of fuels. Colonial stretches more than 5,500 miles from the Houston refining hub to New York Harbor, supplying about 45% of all the gasoline and diesel fuel consumed on the East Coast.

A combination of regional shortages and panic-buying caused 50% or more of gas stations in North Carolina, South Carolina, Georgia, Virginia, Florida, and Washington to run out of fuel, and some regional shortages were continuing May 18.

The Colonial attack comes just as US fuel demand was quickly growing since bottoming out in January from the ongoing coronavirus pandemic, and just ahead of the busy summer driving season.

The cyberattack exposed the particular vulnerability not only of the US' energy infrastructure, but particularly of the pipeline sector that has only voluntary federal guidelines and multiple potential weak points in older technology in more rural field offices.

The Colonial restart came after the federal government had taken several steps to expedite fuel transportation, including waiving certain fuel standards, eliminating restrictions on truckers' driving hours, and preparing to issue waivers on Jones Act-qualified tankers to move waterborne products.

As MRC informed previously, Valero Energy chartered an oil products' tanker for storage in the US Gulf Coast on Friday amid a cyber attack that shut the Colonial pipeline, the biggest US fuel pipeline.

Besides, last week, Marathon Petroleum, the largest US refiner, said it could meet its supply commitments but was working to find alternative ways to ship motor fuels to the eastern United States if the Colonial Pipeline shutdown is extended.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- BP and Eni have entered into talks to merge their oil and gas operations in Angola to form one of Africa's largest energy companies, said Reuters.

The two companies have signed a non-binding memorandum of understanding and are in discussions on a joint venture that will include their LNG facilities, they said in a statement. A business plan will be agreed to allow the companies "to capture future opportunities in exploration, development and possibly portfolio growth, both in Angola and regionally."

Spinning off oil and gas assets is seen as a way for BP and Eni to squeeze more out of their oil and gas assets as the two companies prepare to shift towards renewable energy. The two companies have successful joint ventures in Norway, which serve as a model for the Angolan model.

"We see the combined Angola asset JV position providing for improved capital allocation, cost synergies, business efficiencies and an enhanced focus on value over volume," Santander analyst Jason Kenney said in a note. Reuters reported last month that Eni was considering spinning off oil and gas operations in West Africa and the Middle East into new joint ventures to help reduce debt and fund its shift to low-carbon energy. The report said Eni had held discussions with BP.

Oil and gas production from both Angolan portfolios would reach around 200,000 barrels of oil equivalent per day, BP and Eni said in a statement. The 50-50 joint venture will also be self-funded, the companies said.

"The aim is to create a long-term future for operations in the country that will have a material portfolio of production, reserves and exploration prospects - one of the largest in sub-Saharan Africa," BP's head of production and operations Gordon Birrell said in an internal statement seen by Reuters. The talks are expected to last several months, according to a company source.

As per MRC, Rosneft, the largest state oil company in the Russian Federation, was the first Russian oil company to decide to develop its hydrogen business. British BP will act as a partner. Together they will study the prospects for new projects using renewable energy sources (RES), as well as the use of technologies for capturing, utilizing and storing CO2. Earlier in Russia, Gazprom and Novatek spoke about their intention to create a hydrogen business and new technologies for the disposal of harmful emissions.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

BP plc (until May 2001 - British Petroleum) is a British oil and gas company, the second largest publicly traded oil and gas company in the world.
MRC