Petrobras plans to improve its refineries

MOSCOW (MRC) -- Brazil’s Petrobras said in a securities filing that it will invest USD300 million through 2025 to improve the efficiency of its refineries, an initiative the company is calling RefTOP, said Reuters.

Petrobras said the investment was accounted for in its 2021. Petrobras said the investment was accounted for in its 2021-2025 strategic plan, which has already been presented to shareholders.

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 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) -- State run Hindustan Petroleum has shut a 70,000 barrel per day (bpd) crude unit at its Vizag refinery in Southern India after a fire broke out on Tuesday, the company said in a statement, said Reuters.

The 166,000 bpd Vizag refinery has three crude units. “The fire has been extinguished. Cooling operations are in progress. There are no casualties and there is no risk to the public,” the company said, adding other refinery operations are continuing as normal.

As MRC informed earlier, Hindustan Petroleum Corp.'s Mumbai refinery will start full scale operation at a higher capacity of 190,000 barrels per day (bpd) by end-June or in July. HPCL had fully shut the 150,000 bpd Mumbai refinery in western Maharashtra from April 1 for maintenance and capacity expansion, Surana said at a press conference to announce March quarter earnings.

As MRC informed previously, India's HPCL-Mittal Energy Limited, or HMEL, will start a new 500,000 mt/year polypropylene (PP) plant in Bhatinda in 2021. The company has an existing 440,000 mt/year PP unit at the same site.

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) -- Lummus Technology announced an award for its butadiene extraction (BDE) technology from Korea Petrochemical Ind. Co., Ltd. (KPIC). The BDE unit will be part of KPIC's Onsan Chemical Plant in Ulsan, Republic of Korea, said the company.

"With this award, KPIC is recognizing the value and experience that Lummus offers in terms of providing a butadiene extraction technology with the most environmentally-friendly design and the largest global market share," said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. "We look forward to strengthening our partnership with KPIC and supporting their production of value-added products at Onsan."

The project scope for this award includes the technology license, basic engineering and training services. Once complete, the unit will produce 146,000 MTA of butadiene, which will also lead to the production of more valuable products from existing C4 streams and generate feed for an existing olefins conversion unit.

Lummus has been licensing the BASF BDE technology since 1990. This technology, which is based on using the n-methylpyrrolidone solvent, is the preferred butadiene extraction technology worldwide. The key advantages are its low operating, investment and maintenance costs, its environmentally-friendly design, and Lummus' extensive worldwide experience licensing this technology for commercial use. Click here to learn more about the technology and its advantages.

As per MRC, Nizhnekamskneftekhim (NKNKH, part of TAIF Group) signed contracts with Lummus Technology LLC for the provision of licenses and technologies for the production of ethylbenzene, styrene and propylene for the olefin complex. Facilities include a 250 ktpa ethylbenzene and styrene unit using EBOne and CLASSIC SM technologies, and a 150 ktpa olefin metathesis unit for polymer-grade propylene using Lummus' ethylene dimerization and olefin conversion technology Technology. The units will operate as part of the olefin complex under construction (EP-600).

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) -- Lower CO2 emissions, energy saving and greater safety - these are the key objectives of the new railway siding constructed on the Versalis plant site in Mantua and put into service a few weeks ago to transport KA oil to Radici Chimica SpA in Novara, according to Plastiker.

KA oil is one of the main chemical intermediates used in the production of adipic acid, which is then utilized in polyamide 6.6 production, the core business of Radici Chimica and the basis of subsequent RadiciGroup manufacturing processes for its plastics engineering and advanced textile solutions businesses. Versalis, Eni’s chemical subsidiary, produces KA oil in its Mantua plant from which RadiciGroup buys tens of thousands of tons per year.

Massimo De Petro, CPO for Strategic Materials and Logistics of RadiciGroup: “Before the railway siding was built, the intermediate went by truck from the Versalis site in Mantua to the nearby railway freight yard of Mantova Valdaro and then travelled by rail to Radici Chimica in Novara, where there has been a goods station on the premises for some time. On account of this new investment, we can now manage KA oil logistics solely by tank car, thus ensuring greater safety in the handling and transportation of the material.”

Construction work on the Versalis siding began in September 2019 and finished in March 2021. After the first trial loads, the siding became operational in mid-April. The goal is to reach maximum capacity by July and achieve full sustainability in the transport of a fundamental raw material for Radici Chimica’s operations.

As MRC reported earlier, there is more uncertainty over Versalis’ plans for its Porto Marghera, Italy cracker closure following local media reports that the company has taken the earlier declaration for a Spring 2022 stoppage, off the table, said the company in April, 2021.

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.

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

MOSCOW (MRC) -- The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), increased 1.2% on a sequential three-month-moving-average (3MMA) basis in May, according to CISION with reference to ACC's statement.

This follows a 1.0% increase in April. The CAB was up 18.6% on a year-on-year (YOY) basis, as the year-ago period included the deep trough of the COVID-19 recession.

“The latest CAB reading is consistent with marked expansion of commerce, trade, and industry,” says Kevin Swift, chief economist at ACC.

In May, production-related indicators were positive. Despite some recent weakness in housing - a reflection of higher interest rates and prices as well as labor and supply-side constraints - trends in construction-related resins and related performance chemistry were solid. Aided by strength in automotive markets, resins and chemistry used in other durable goods were strong. Gains in plastic resins used in packaging and for consumer and institutional applications were positive. Performance chemistry for industry was largely positive. Exports were positive, while equity prices gained, reaching new records. Product and input prices were positive, as were inventory and other supply chain indicators.

As MRC informed before, Russia's output of chemical products rose in March 2021 by 5.4% year on year. Thus, production of basic chemicals increased year on year by 6.7% in the first moths months of 2021. March production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in February. Overall output of polymers in primary form totalled 2,740,000 tonnes over the stated period, up by 8.5% year on 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.
MRC