SABIC, BASF & Linde team up to develop solutions for electrically heated steam cracker furnaces

MOSCOW (MRC) -- Saudi chemical manufacturing company SABIC has signed a joint agreement with BASF and Linde to develop and demonstrate solutions for electrically heated steam cracker furnaces, according to Arab News.

The partners have already jointly worked on concepts to use renewable electricity instead of the fossil fuel gas typically used for the heating process. With this innovative approach focusing on one of the petrochemical industries’ core processes, the parties strive to offer a promising solution to significantly contribute to the reduction of CO2 emissions within the chemical industry.

Steam crackers play a central role in the production of basic chemicals and require a significant amount of energy to break down hydrocarbons into olefins and aromatics. Typically, the reaction is conducted at temperatures of about 850 degrees Celsius in their furnaces. Today, these temperatures are reached by burning fossil fuels. By using electricity from renewable sources, the fundamentally new technology has the potential to reduce CO2 emissions by as much as 90 percent.

BASF and SABIC have bundled their extensive know-how and intellectual property in developing chemical processes together with their longstanding experiences and knowledge in operating steam crackers, while Linde contributed with its intellectual property, expertise in developing and building steam cracking furnace technologies and driving future industry commercialization.

The partners applied for financial grants at the EU Innovation Fund and the funding program Decarbonization in Industry (new program of the German Federal Ministry for the Environment).

The parties are evaluating construction of a multi-megawatt demonstration plant at BASF’s Ludwigshafen site, targeted for start-up as early as 2023, subject to a positive funding decision.

As MRC informed earlier, BASF, the world's petrochemical major, aims is to electrify its production processes for basic chemicals, which are currently based on fossil fuels. The project envisions an additional offshore wind farm with a capacity of 2 gigawatts (GW) to provide the Ludwigshafen chemical site with green electricity and enable CO2-free production of hydrogen.

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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Moody's Investors Service has downgraded Deer Park Refining Limited Partnership to "Baa3" from "Baa2", the rating agency said, while placing the stock on review for a further downgrade, reported Reuters.

The decision comes after Shell Oil Co, a subsidiary of Royal Dutch Shell Plc, agreed to sell its controlling interest in Deer Park Refining to partner Mexican state oil company Petroleos Mexicanos, or Pemex.

This makes Deer Park Refining, a Texas-based facility, the first foreign refinery that Pemex will own solely in its history. The Mexican company said it plans to control and run the refinery after the deal is settled by late this year.

"The review for downgrade of the Baa3 ratings further reflects Moody's expectation that following the sale, Deer Park ratings will be driven predominantly by its standalone credit dynamics and the much-weaker credit profile of Pemex," the agency said in a statement.

"The Baa3 rating still benefits from a multi-notch rating uplift, which is primarily linked to Shell and also factors in several credit-enhancing arrangements, including shareholder loans and liquidity support arrangements, committed by both Shell and Pemex."

As MRC informed before, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- Chevron Phillips Chemical broke ground on a new world-scale unit for on-purpose 1-hexene in Old Ocean, Texas, near its Sweeny facility, said the company.

With a capacity of 266 KTA, the new asset grows the company’s total U.S. 1-hexene capacity to 650 KTA at a time of rising customer demand. 1-hexene is central to manufacturing high-performance plastic products.

The project will harness Chevron Phillips Chemical’s proprietary, on-purpose 1-hexene technology, which produces exceptional purity comonomer grade 1-hexene from ethylene. Construction is expected to commence during the third quarter of 2021, with project startup in 2023, and is expected to involve 600 construction jobs at its peak. Once operational, the project will support more than 50 full-time positions.

"The new unit will provide additional flexibility and production to meet anticipated demand from our growing customer base, while establishing a strong foundation for future growth,” said Mitch Eichelberger, executive vice president of polymers and specialities. “This new asset will also serve as a catalyst to advance the local economy as a source of job creation. We are very proud to be part of this community and look forward to bringing this project to life."

The new 1-hexene unit in Old Ocean will enjoy significant advantages in infrastructure, feedstock availability and operational expertise. It will also benefit from the latest technology advances to achieve energy and emissions efficiency improvements. Once operational, it will further the company’s position as a leading 1-hexene supplier. Chevron Phillips Chemical already operates the world’s largest on-purpose 1-hexene unit and two full-range alpha-olefin units at its Cedar Bayou plant in Baytown, Texas.

Earlier it was reported that the American Chevron Phillips Chemical (CP Chem), one of the world's largest petrochemical companies, on April 26 stopped production at cracking unit No. 1592 in Cedar Bayou (Texas, USA) in order to carry out scheduled maintenance work. It is expected that repair activities at this enterprise with a capacity of 850 thousand tons of ethylene per year will continue until May 3 of this year. Chemical emissions to the atmosphere are expected within about seven days.

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) -- At the Ordinary and Extraordinary Shareholders’ Meeting, shareholders approved, almost unanimously, the resolution to change the company’s name from Total to TotalEnergies, thereby anchoring its strategic transformation into a broad energy company in its identity, according to Hydrocarbonprocessing.

In tandem with this name change, TotalEnergies is adopting a new visual identity.

This new name and new visual identity embody the course TotalEnergies has resolutely charted for itself: that of a broad energy company committed to producing and providing energies that are ever more affordable, reliable and clean.

As MRC reported earlier, within the framework of its net zero strategy, Total will convert its Grandpuits refinery (Seine-et-Marne) into a zero-crude platform and will invest more then EUR500 mln into this project. By 2024 the platform will focus on four new industrial activities: production of renewable diesel primarily intended for the aviation industry, production of bioplastics, plastics recycling and operation of two photovoltaic solar power plants.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

1. EIA revises down its forecast of India oil demand due to rising COVID-19 cases

MOSCOW (MRC) -- The rapid increase in COVID-19 cases in India has led to various travel restrictions, which reduced the consumption of transportation fuels such as gasoline and diesel. As a result, EIA revised down its forecast for petroleum consumption in India in the May Short-Term Energy Outlook (STEO), according to Hydrocarbonprocessing. EIA estimates that petroleum consumption in India declined by 0.4 million barrels per day (b/d) (8%) to 4.7 million b/d between March and April. India’s petroleum consumption data, released after the May STEO’s publication, revealed a similar decline of 0.3 million b/d (6%) over the same period. Reduced travel in India will likely continue, so it also revised down petroleum consumption in May and June from the April STEO. EIA expects India’s consumption of petroleum and other liquids will return to previously forecast levels by July.


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