SIBUR-Neftekhim and Linde Gas Rus signed agreements for the utilization of carbon dioxide

MOSCOW (MRC) -- SIBUR -Neftekhim and Linde Gas Rus signed agreements on implementation in 2021-2022. a project for the utilization of carbon dioxide (CO2) generated in the technological process of the Sibur enterprise in Dzerzhinsk, the company said.

SIBUR -Neftekhim will build an infrastructure for the transportation to the Linde Gas Rus site of crude CO2 obtained as a by-product in the process of ethylene oxide synthesis. In turn, Linde Gas Rus will build a unit to bring the quality of this gas to the level of a commercial product, applicable, among other things, in the food industry, and will sell it to end consumers.

Thus, it is planned to utilize about 25 thousand tons of 100% CO2 annually. All work, including at the SIBUR production site, will be performed by Linde Gas Rus under an EPC contract.

The implementation of the project is an integral part of SIBUR's sustainable development strategy, which provides for a 15% reduction in greenhouse gas emissions by 2025.

Earlier it was reported that production problems arose at the SIBUR ethylene glycol production facility in Dzerzhinsk at the end of February. Market sources said the problems were resolved in the middle of the week by 1 March.

Ethylene and propylene are the main feedstocks for the production of PE and 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

COVID-19 - News digest as of 01.06.2021

1. Global energy transition clouds oil-gas outlook despite post-pandemic boost this year

MOSCOW (MRC) -- Global energy transition is creating uncertainty for an estimated USD14 trillion worth of oil and gas assets that have long depended on an indefinite rise in demand to offset risks despite a pandemic boost this year, reported Reuters with reference to consultancy Wood Mackenzie's statement. As the world recovers from the COVID-19 pandemic, oil and gas demand is set to go beyond the record 160 million barrels of oil equivalent per day reached in 2019, it said in a report. “After six years of weaker prices, upstream is fitter and leaner than ever,” Woodmac said, adding that the sector will generate as much cash flow this year at USD60 per barrel as it did at USD100 prior to the 2014 price crash.

MRC

Lotte Chemical conducts annual maintenance at its Daesan cracker

Lotte Chemical conducts annual maintenance at its Daesan cracker

MOSCOW (MRC) -- South Korea's Lotte Chemical has shut its naphtha-fed steam cracker in Daesan for an annual maintenance, reported S&P Global.

Thus, the company began the turnaround at this cracker with the capacity of 1.1 million mt/year of ethylene and 550,000 mt/year of propylene on 15 May, 2021. Lotte expects to resume production at this facility on 23 June.

The maintenance at Lotte's Daesan cracker is likely to limit cargoes to China -- the biggest propylene buyer.

As MRC informed earlier, Lotte Chemical restarted its fire-hit naphtha-fed steam cracker in Daesan in early December, 2020. Thus, the facility began trial runs of naphtha on 7 December, 2020, and the company achieved commercial production on 8 December. The cracker was shut on March 4, 2020, following an explosion, which injured more than 30 people.

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.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.
MRC

PVC imports to Russia up by 59% in Jan-Apr 2021, exports down by 12%

MOSCOW (MRC) -- Imports of suspension polyvinyl chloride (SPVC) into Russia totalled 8,600 tonnes in the first four months of 2021, up by 59% year on year. At the same time, exports decrease by 12%, according to MRC's DataScope report.

April SPVC imports to Russia dropped to 1,000 tonnes from 4,300 tonnes in March. The rise in export prices of acetylene resin in China and large purchases in March led to lower imports in April. Overall imports totalled 8,600 tonnes in the first four months of 2021, compared to 5,400 tonnes a year earlier, with resin from China accounting for the main increase in imports.

At the same time, despite higher PVC prices in foreign markets, Russian producers, conversely, reduced their export sales. Overall exports were 66,100 tonnes in January-April 2021 versus 75,000 tonnes a year earlier.
MRC

Trinseo and ETB to explore construction of bio-based 1,3-butadiene pilot plant in Europe

MOSCOW (MRC) -- Trinseo, with ETB's support, will conduct a feasibility study to explore the construction of a bio-based 1,3-butadiene pilot plant in Europe, as per Trinseo's press release.

Thus, Trinseo and ETB have signed a letter of intent to collaborate on the development of purified bio-based 1,3-butadiene. This will see the two companies combine their respective technology and process expertise to accelerate the development of viable, renewably sourced material solutions.

Under the partnership, the companies will jointly explore opportunities to scale up ETB's unique single-stage process to produce bio-based 1,3-butadiene from ethanol using polyfunctional catalyst technology.

The collaboration will initially focus on demonstrating the viability of sustainable ethanol-based synthetic rubber in support of green tire production. To underline this mutual commitment, the partners will conduct a feasibility study to explore the construction of a dedicated bio-based 1,3-butadiene pilot plant in Europe. Once operational, it is intended that the pilot plant will include a purification unit to achieve a purity target of 99.7%.

Bio-based butadiene is considered a vital first component in the value chain for enabling the replacement of fossil-based raw materials with renewable sources, thereby reducing the environmental footprint of consumer products, such as performance tires throughout their lifecycle. It also represents a key milestone in Trinseo’s transformation as a sustainable solutions provider.

Within the past six months, Trinseo achieved International Sustainability and Carbon Certification (ISCC) and has become the first synthetic rubber provider globally to gain mass balance certification. In addition, Trinseo recently announced a business collaboration with BASF in the area of circular feedstocks, with the aim of strengthening the efforts of both companies in the development and management of styrene with an improved environmental profile.

It is anticipated that the pilot plant evaluation study will be completed by the close of 2021. Both companies share the long-term ambition of scaling up live production globally.

As MRC reported earlier, Trinseo and its affiliate companies in Europe have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe. Effective May 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 EUR105 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR105 per metric ton;
- MAGNUM ABS resins - by EUR160 per metric ton;
- TYRIL SAN resins - by EUR170 per metric ton.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of Rb 192,000-203,000/tonne, CPT Moscow, including VAT, whereas HIPS prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT. And prices of Gazprom neftekhim Salavat's GPPS were not adjusted in early May.

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 USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC