PE production in Russia up by 9% in January-April

MOSCOW (MRC) -- Russia's overall polyethylene (PE) production totalled 1, 080,000 tonnes in the first four months of 2021, up by 9% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output, according to MRC's ScanPlast report.

April total PE production in Russia fell to 256,700 tonnes, whereas this figure was 283,900 tonnes a month earlier. Russian producers reduced the production of low density polyethylene (LDPE) and high density polyethylene (HDPE). Thus, overall PE production reached 1,080,500 tonnes in the first four months of 2021, compared to 993,000 tonnes a year earlier. The main increase in production volumes accounted on linear low density polyethylene (LLDPE), while the production of LDPE decreased.

The structure of PE output by grades looked the following way over the stated period.

April HDPE production reached 147,700 tonnes versus 175,900 tonnes a month earlier, Kazanorgsintez and ZapSibNeftekhim raised their HDPE output. Russian plants' overall HDPE output reached 653,500 tonnes in January-April 2020, up by 9% year on year.

Last month, the total output of LDPE decreased to 50,100 tonnes against 60,100 tonnes in March, Tomskneftekhim and Kazanorgsintez reduced their capacity utilisation (due to a shutdown for scheduled preventive maintenance). Thus, overall production of this PE grade totalled 228,400 tonnes over the stated period, down by 2% year on year.

April LLDPE production rose to 58,900 tonnes from 47,800 tonnes a month earlier, all producers increased their output. Overall LLDPE output rose to 198,600 tonnes in January-April 2021 from 159,100 tonnes a year earlier.


MRC

MOSCOW (MRC) -- Indonesia's consumption of biodiesel fell by 8.2% year on year in the first four months of 2021, data from the country's producers' association showed, as transportation demand remained muted due to the coronavirus pandemic, reported Reuters.

Domestic consumption of biodiesel was 2.669 million kilolitres in the January to April period, down from 2.907 million kilolitres last year, according to the Indonesian biodiesel producers' association (Aprobi).

"Transportation movement has still not recovered to 2019 levels," Paulus Tjakrawan, vice chairman of Aprobi told Reuters.

Biodiesel output however, edged 1.4% higher in January-April to 2.95 million kilolitres, compared to a year earlier. Meanwhile, exports were 16,637 kilolitres, the data showed, more than seven times higher than last year.

Indonesia is the world's biggest producer of palm oil, and its government has mandated that diesel must be blended with at least 30% of the edible oil.

Indonesia expects to consume 9.6 million kilolitres of biodiesel in 2022, up from the 9.2 million kilolitres targeted for this year, official data showed in April. By 2030, the data estimates the country will consume 14 million kilolitres of biofuel.

As MRC informed before, Indonesia's largest petrochemical producer Chandra Asri and Netherlands-based storage and terminal operator Vopak are planning to set up an infrastructure joint venture in Indonesia. The two companies signed a letter of intent on 5 October, 2020, to set up the partnership, which aims to establish a new jetty and tank farm business that will serve third-party customers and to build secondary infrastructure at Chandra Asri's new petrochemical complex.

Chandra Asri's second petrochemical complex will include a 1.1mn t/yr naphtha-based cracker, 450,000 t/yr high-density polyethylene (HDPE) unit, 300,000 t/yr low-density polyethylene unit (LDPE) and a 450,000 t/yr polypropylene (PP) unit. The producer is aiming to commission the complex in 2024, barring any delays because of the Covid-19 pandemic.

Ethylene and propylene are the main feedstocks for the production of polyethylene (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. LDPE and 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) -- South Korean industrial holding SK Inc has led an investment round to help US-based green hydrogen company Monolith Materials expand its operations, said Chemengonline.

The investment will support expansion of Monolith’s green hydrogen production facility in Nebraska and further SK’s strategy to make carbon-neutral energy accessible to global markets as part of a commitment to Environmental, Social and Corporate Governance (ESG) management practices.

In addition to the investment, SK Inc. will collaborate with Monolith Materials on future expansion into global markets. Monolith Materials is the first U.S. manufacturer to produce an industry-transforming hydrogen known as “green hydrogen” on a commercial scale using its proprietary methane pyrolysis process. Through this process, Monolith manufactures clean, economically sustainable hydrogen using 100% renewable energy. Monolith’s hydrogen is classified as green hydrogen, which is the cleanest hydrogen available today. Monolith also counts Mitsubishi Heavy Industries as a major investor.

“Monolith Materials’ proprietary green hydrogen production process supports SK’s initiative to lead the global transition to a hydrogen economy and make meaningful progress toward a more sustainable energy system,” said Moo-hwan Kim, executive vice president of SK Inc. “SK recognizes the critical role hydrogen plays in alternative energy sources, and we are encouraged by Monolith’s technology that advances clean hydrogen production."

SK Inc. led a consortium of investors that also included NextEra Energy Resources, LLC, a leading clean energy company headquartered in Juno Beach, Fla., and Perry Creek Capital. This round also included additional investment from current Monolith funders Azimuth Capital Management, Cornell Capital and Warburg Pincus.

Monolith Materials, which was founded in 2012, developed a process technology that uses renewable energy to convert natural gas into clean hydrogen and a solid carbon material called carbon black, a critical raw material in the automotive and industrial sectors. The company is currently in the operating stage of its first commercial-scale production facility in Hallam, Nebraska. Along with producing green hydrogen, the company recently announced its plans to produce clean ammonia at a second phase production facility nearby.

When its expansion is complete, expected to occur in 2024, Monolith Materials’ production of green hydrogen, clean ammonia and carbon black is expected to reduce greenhouse gas emissions by as much as 1 million metric tons per year compared to traditional manufacturing processes.

For SK, hydrogen has become a key part of its overall green energy growth strategy. SK Inc. is pursuing various strategies to foster hydrogen businesses, such as diversifying hydrogen production methods, expanding demand development and forming global partnerships. SK Inc. aims to secure clean hydrogen leadership and accelerate the global hydrogen ecosystem.

The Monolith investment also reinforces SK’s commitment to expanding its U.S. businesses. In 2019, SK Group Chairman Tae-won Chey committed to investing USD10 billion to create new jobs and opportunities for communities across the U.S. SK companies have more than 2,000 employees at sites in 10 states with plans that could more than triple its U.S. employee base in the next three years.

As per MRC, South Korean SK Global Chemical (SKGC) plans to start scheduled preventive measures at the end of May on line No. 1 for the production of paraxylene in Ulsan (Ulsan, South Korea). It is estimated that maintenance on this 450 ktpa paraxylene line will continue for approximately 45 days. The company also operates another line at its Ulsan facility with a capacity of 400,000 tonnes of paraxylene per year.

Paraxylene is used as a raw material for the synthesis of terephthalic acid, an intermediate product for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast, in March of this year, the total estimated consumption of PET in Russia amounted to 64,750 tonnes, which corresponds to the previous year (64,520 tonnes in 2020). Estimated PET consumption in the country increased in January - March 2021 compared to the same period last year by 5% and amounted to 182,300 tonnes.

SK Global Chemical is a division of SK Group, Korea's first refinery in operation for over 50 years. SK Group has more than 70 thousand employees working in 113 offices around the world. Its largest enterprises produce mainly petrochemical products.
MRC

MOSCOW (MRC) -- German chemical producer Wacker has begun building a new EUR30m liquid resins facility at its Nunchritz site near Dresden, Saxony, said the company.

This unit will supply key upstream products for formulating silicone-based building-protection agents and binders for exterior paints and industrial coatings. At the moment, only Wacker Burghausen site produces these substances. Scheduled to go on stream at the end of 2022, the new unit will close important material loops and so further increase the cost-effectiveness of Wacker integrated production system. Capital spending amounts to some EUR30 million.

WACKER uses silanes and liquid resins to formulate several specialty silicone grades: building-protection agents and concrete-protection creams contain these kinds of hydrophobic and hence water-repellent active ingredients, as do binders for exterior paints, corrosion-resistant protective coatings and heat-resistant powder paints. The company currently produces these additives at its liquid resins plant in Burghausen, where side-stream products resulting from the manufacture of silicones react with alcohol to become silanes and liquid resins. Our Burghausen and Nunchritz sites process these substances into silicone products for construction and coating applications.

WACKER now plans to manufacture these formulation ingredients in Nunchritz too. The foundations for a new liquid resins unit are now being laid in the northern part of the site. This unit will be able to process products obtained from the synthesis of methylchlorosilanes. “The decision to extend the production of silanes and liquid resins to Nunchritz enables us to respond with even greater flexibility to customer needs”, says WACKER’s Executive Board member Auguste Willems.

The investment benefits both the Nunchritz site and the integrated production system in Burghausen. Due to high demand for building-protection agents and coatings the liquid resins plant in Burghausen has been running at full capacity. "The new unit in Nunchritz closes material loops and increases the availability of key intermediates. This enhances our supply security throughout our integrated production system,” explains Willems. “The new setup offers us far more opportunities for supporting current market developments and for establishing production lines for new products if justified by demand."

In recent years, a healthy construction sector and demand for high-quality industrial coatings have meant that more and more silicone-based construction materials and binders need to be supplied. “Our specialties business is highly profitable,” says Dr. Robert Gnann, head of WACKER’s silicones division. “It is still too early to talk about capacity expansions exceeding this measure. But one thing is certain: the investment is an important basis for future growth. The expansion shows that we are determined to strengthen and further expand our market position in the building-protection and coating sectors."

The liquid resins plant is located on the site of a former tank farm not far from where a hybrid polymer facility is under construction. As already announced, this facility will produce silane-terminated hybrid polymer binders for high-performance adhesives starting late next year.

Details about capacities in terms of tonnes or pounds per year were not disclosed.

As per MRC, Wacker Chemie AG is moving forward with “Shape the Future,” its efficiency program initiated last November. The Munich-based chemical company has recenly announced that company management and employee representatives have agreed on a framework for the planned job cutbacks.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Air Liquide has signed a new long-term contract with Russian steel producer Severstal to supply oxygen to its CherMK site in Cherepovets, Russia, said the company.

PJSC Severstal and Air Liquide signed a new long-term contract for the supply of oxygen, nitrogen and argon to Cherepovets. Air Liquide is investing about 50 million euros in the construction of a modern air separation unit (ASU), which will increase energy efficiency and reduce the complex impact of Severstal's production processes on the environment.

Air Liquide will design, build and maintain a new ASP with a capacity of 2,000 tons of oxygen per day at the site of the Severstal Cherepovets Metallurgical Plant. The ASU will increase the total production capacity of Air Liquide in Cherepovets to 7,000 tons of oxygen per day, which will make this site one of the world's largest facilities producing industrial gases for the needs of the metallurgical industry. The project will be implemented by Air Liquide Severstal, a joint venture between Air Liquide and Severstal in 2005.

The Air Liquide Engineering and Construction team uses the latest technology to build this large-scale ASP. It is planned that the unit will be commissioned by the end of 2020. It will significantly improve energy efficiency and reduce CO2 emissions by 20,000 tons annually, which is comparable to the annual emissions of 7,500 vehicles. This will contribute to the Air Liquide Group's goal of reducing the carbon intensity of its business by 30% between 2015 and 2025.

This signing, involving the construction of the third ASU since 2007, installed and operated by Air Liquide in Cherepovets, along with the recent renewal of our original contract, reflects the long-term partnership and mutual trust that exists between Air Liquide and Severstal.

Alexander Shevelev, CEO of Severstal, said: “The signing of this agreement proves Severstal's commitment to sustainable development: we continue to reduce air emissions and improve energy efficiency in production. We are pleased that our colleagues from Air Liquide also share our commitment to environmental protection and demonstrate a responsible attitude towards the environment. Over the years of our cooperation, Air Liquide has demonstrated its ability to deliver high quality products and innovative services, and I hope that we will continue to work together to address environmental issues along with the development of production and beyond. "

Guy Salzgeber, Vice President of Air Liquide and Member of the Group's Executive Committee for Industry Europe, commented: “We are delighted to strengthen our long-term partnership with Severstal. The signing of this major contract and the renewal of the previous one demonstrate confidence in our ability to create value for our customers and maintain long-term performance, which is a key factor in driving profitable growth. We are also ready to accompany our customers in the energy transformation process by offering low carbon solutions to support the sustainable development of the industry. "

Severstal has been actively working to reduce greenhouse gas emissions for several years. The enterprises have implemented measures to reduce greenhouse gas emissions through the introduction of more efficient technologies, including improving the technologies for the production of iron and steel (reducing the consumption of limestone and dolomite), reducing the use of natural gas (using coke oven and blast furnace gases) and transferring a number of power boilers from solid to gaseous fuels (use of coke oven and blast furnace gases). The total volume of direct greenhouse gas emissions at Severstal in 2018 amounted to 22.1 million tons, which is 4.7% less than in 2016.

As per MRC, Air Liquide, one of the world's leading industrial gas companies, has three long-term gas supply contracts with BASF in Antwerp, Belgium. The company has signed a new 15-year agreement to resume air gas supplies to existing plants operated by BASF in the area, as well as to a new ethylene oxide plant being built by BASF.

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