Rolls-Royce partners with Shell in sustainable fuel

Rolls-Royce partners with Shell in sustainable fuel

MOSCOW (MRC) -- British engineering company Rolls-Royce said it would partner with oil company Shell to work on the development of sustainable aviation fuel (SAF) in line with both their plans for net zero emissions by 2050, said Reuters.

The pair signed a memorandum of understanding (MoU) which Rolls-Royce said would help with plans to certify 100% SAF for use in planes. In the aviation sector, its biggest business, Rolls-Royce plans to make all its commercial engines compatible to run on 100% SAF, which produces up to 70% less carbon than conventional fuel, by 2023.

The challenge for SAFs is that there is a shortage of supply, which the Shell partnership could help address. "We believe that working together on these aims can deliver benefits for both the development of new innovations as well as collaborating to find ways to unlock the net carbon emissions reduction potential of technology that is already in use today," he said.

As MRC informed previously, in late May, 2021, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

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

76% of employees have antibodies to COVID-19 at Tomskneftekhim

76% of employees have antibodies to COVID-19 at Tomskneftekhim

MOSCOW (MRC) --- 76% of employees have antibodies to COVID-19 at Tomskneftekhim, the press service of the enterprise reports.

Nevertheless, at the Tomsk enterprises of SIBUR, a mandatory mask regime remains, as well as the need to observe social distance in personal interaction and other measures to prevent infection with COVID-19.

The press service of the enterprise notes that the collective immunity at Tomskneftekhim has developed from people who have had COVID-19, including asymptomatic ones, as well as vaccinated employees. Before the start of the mass vaccination against COVID-19 in Tomsk, all employees of Tomskneftekhim were tested for antibodies. SIBUR, as a responsible employer, contributes to providing employees with the maximum information to make an informed and balanced decision, as well as to provide them with the opportunity to get vaccinated.

"Testing of all employees of the enterprise for antibodies allowed us to collect information on the share of herd immunity. There are those who want to vaccinate. And our key task is to help them organizationally. Special thanks to the employees of the enterprise who have shown concern for their own health and the health of their colleagues. Despite the achieved results, the enterprise continues to operate a set of anti-virus measures aimed at creating a safe working environment for personnel, "says Vladimir Pleshkov, General Director of Tomskneftekhim.

Collective immunity of more than 70% belongs to two Tomsk enterprises of SIBUR: Tomskneftekhim and the R&D center NIOST. "Creating a safe work environment is a priority for the employer. As for employees, the degree of personal responsibility to themselves and their loved ones is more important than ever. NIOST's collective immunity is 73%," says Olga Khovanskaya, NIOST executive director.

In 2020, SIBUR allocated more than 2.9 billion rubles for measures to prevent the spread of COVID-19 at its enterprises in the regions of its operation. During the coronavirus pandemic, a rotational regime was introduced at Tomskneftekhim. The enterprise is included in the list of strategic organizations in the region. The main production personnel, who ensure a smooth production process, underwent testing before entering the shift. The internal rotational regime at the enterprise lasted for more than 4 months. The Tomsk enterprise did not stop work for a single day, ensuring the production of polyethylene and polypropylene.

SIBUR also provided significant assistance to medical institutions in the territories of its presence: epidemiological kits for medical personnel were sent to the Stroitel medical unit. About 1000 pulse oximeters were transferred by Tomskneftekhim to the region for distribution to medical organizations.

According to the ScanPlast of MRC, Tomskneftekhim produced about 13,300 tonnes of propylene polymers in May against 12,800 tonnes a month earlier. For five months, the production of polypropylene at the Tomsk enterprise reached 64,800 tonnes, which is 1% more than in 2020.

LLC "Tomskneftekhim" was opened after the transformation of TNHK in 2003. It is a subsidiary of PJSC SIBUR-Holding, which is one of the backbone enterprises of the Russian Federation. At the end of 2019, the authorized capital of Tomskneftekhim amounted to 6.5 billion rubles, sales revenue - 13.2 billion rubles, net profit - 1.9 billion rubles.
MRC

Nizhnekamskneftekhim reaches its design capacity for the production of polyethylene glycol

Nizhnekamskneftekhim reaches its design capacity for the production of polyethylene glycol

MOSCOW (MRC) - Nizhnekamskneftekhim has reached its design capacity for the production of polyethylene glycol - NPEG-2400, from which a superplasticizer of fifth generation concrete mixtures is made, Realnoe Vremya reports.

The new technology allows the concrete to be stored longer before being placed. For two years, from 2019 to 2020, in the Scientific and Technological Center of PJSC "Nizhnekamskneftekhim", a macromer of unsaturated polyethylene glycol of the NPEG-2400 brand was developed. The technology of synthesis and methods of analysis of the finished product were worked out.

Based on the results obtained, a report on research work and initial data for the design of production were issued. For the production of NPEG-2400, one of the operating lines of the oligomers and glycols plant was reequipped. Pilot tests began in November 2020.

Already at the end of the first week of testing, the NPEG-2400 was received, which fully meets the technical requirements for the finished product. During the next month, the synthesis technology was tested in the factory, and the production capacity of 10,000 tons per year was reached. Since January 2021, the design capacity of the NPEG-2400 production has been reached.

NPEG-2400 is an unsaturated polyethylene glycol ether. Due to the presence of a double bond in the polyglycol molecule, it has the ability to further polymerize, which makes it an extremely valuable product. Its main application is the production of superplasticizers for concrete mixes. A superplasticizer is a chemical additive that is introduced into a cement or concrete mixture in order to improve its physicochemical characteristics.

The main consumer of NPEG-2400 is the world leader in the production of reagents for concrete - the Swiss company SIKA, which has enterprises in Asia, Europe and America. Earlier it was reported that NKNK has mastered the production of thermoplastic elastomers. The products are used for the manufacture of road surfaces, which improves the quality and durability of asphalt. Thermoplastic elastomers are also used in the production of roofing materials.

The largest petrochemical holdings in Russia - SIBUR and TAIF - in April announced plans to combine their assets. Within the framework of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company. The merged company of SIBUR and TAIF will include the parent company of the Tatarstan group, as well as two of its chemical plants and an energy company, including NKH and KOS.

According to the ICIS-MRC Price Report, Russian factories have reduced the cost of PS this month under pressure from external markets and the declining cost of raw materials. Nizhnekamskneftekhim has reduced the cost of the polymer by a greater amount than other plants.

PJSC "Nizhnekamskneftekhim" (NKNKH) is one of the largest Russian producers of petrochemical products. The production complex of the company includes ten factories of the main production and ten departments (railway transport, main ethylene pipelines, etc.). NKNKh produces over 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is a part of TAIF Group.

MRC

July PVC prices in Russia break another record

July PVC prices in Russia break another record

MOSCOW (MRC) -- An acute shortage of suspension polyvinyl chloride (SPVC) in Russia has put a major pressure on prices for the past two months. The situation is aggravated by the upcoming maintenance shutdowns at two large producers' production capacities. Russian producers raised their July prices by Rb5,000-47,000/tonne, according to ICIS-MRC Price report.

Global polyvinyl chloride (PVC) prices are no longer putting pressure on the Russian market. During the summer months, an acute shortage is the main factor behind the price rise in Russia. At the same time, the shortage of resin intensified in July due to scheduled shutdowns for maintenance at the two largest plants. An acute shortage led to another wave of price increases, and July PVC prices increased by Rb5,000-47,000/tonne, reaching new record levels.

Traditionally, in the summer months, PVC prices reach their maximum values on the back of strong demand and tight supply in Russia. But this year the situation with prices in the market was aggravated by the global shortage and the impossibility of import purchases of resin from a number of regions, particularly, in the USA and Europe. China, with its complex logistics, has become the only destination for suspension imports for Russian consumers.

Converters have reported tight supply from domestic producers since the beginning of the year. But the deficit reached its peak in July because of the shutdowns for turnarounds at Bashkir Soda Company and SayanskKhimPlast, which are planned for two weeks from 10 July and 14 July, respectively. The total capacity of the two plants is about 590,000 tonnes/year.

Imports of resin rose in June, and imports are expected to be quite high in July as well. But imports are not sufficient to meet demand, at the same time most of the planned PVC shipments have been already scheduled for shipments to the end consumer and will not be sold in the free market.

Discussions on July shipments of Russian PVC began in the second half of last week, and most deals were traditionally agreed upon in the first days of negotiations. At the same time, it should be noted that two out of four producers have insignificant quantities for shipment to converters this month because of the shutdowns for repairs.

Overall, deals for Russian resin with K64/67 were done in a very wide range: Rb151,000-200,000/tonne CPT Moscow, including VAT for quantities up to 500 tonnes, compared to Rb150,000-171,000/tonne CPT Moscow, including VAT, in June. Thus, SPVC prices more than doubled year on year.
MRC

BP and Lukoil seek to exit Iraqi oil projects due to unattractive investment environment

BP and Lukoil seek to exit Iraqi oil projects due to  unattractive investment environment

MOSCOW (MRC) -- BP and Lukoil want to quit their Iraqi energy projects due to the current investment environment, the country's oil minister said, as OPEC's second biggest producer faces an exodus of international oil companies that want to exit unattractive contracts, reported S&P Global.

Lukoil wants to sell its stake in West Qurna 2 to Chinese companies, Ihsan Ismaael said in a video posted online.

"The investment environment in Iraq is not appropriate to maintain major investors," Ismaael said in the video addressing some members of parliament. "All major investors either are looking for another market or looking for another partner."

Officials from BP, Lukoil and the Iraqi oil ministry weren't immediately available for comment.

BP and Lukoil would join ExxonMobil, which is seeking to sell its stake in the southern oil field of West Qurna 1.

BP is lead contractor of the Rumaila oil field, where it has a 38% stake alongside CNPC's 37% holding and the rest is shared between state-owned Basrah Oil Co. and the State Oil Marketing Organization, its partners in a technical service contract that expires in 2034.

The southern field of Rumaila is the country's biggest with a production capacity of about 1.5 million b/d out of the country's 5 million b/d production capacity and estimated 17 billion barrels of recoverable oil remaining.

Lukoil has a 75% stake in the southern mega field West Qurna 2 with state-owned North Oil Co holding the remainder.

Iraq is considering buying Exxon's 32.7% stake in West Qurna 1, Ismaael said May 3, as the US major seeks to exit one of the world's largest oil fields with expected recoverable reserves of over 20 billion barrels.

Ismaael had previously said Iraq was in talks with potential unnamed US energy companies to take over Exxon's stake. Other partners in West Qurna 1 are PetroChina (32.7%), Japan's ITOCHU Corp. (19.6%), Indonesia's Pertamina (10%), and Iraq's Oil Exploration Co. (5%).

International oil companies in Iraq operate some of the country's biggest fields in return for a per barrel fee linked to production. The terms of the contracts have been a point of contention over the years, although Iraq needs international expertise to run these fields.

Exxon's exit from the southern West Qurna 1 field may be similar to Shell's 2018 divestment of its stake in Majnoon, where operations are now managed by Basrah Oil Co., the minister said May 3.

As MRC informed earlier, Russian energy major Lukoil (Moscow) is studying several potential petrochemical projects in Russia and Bulgaria, with investment decisions expected to be made on two of them in 2021.

Thus, Lukoil announced an investment decision in June, 2019, to proceed with a 500,000-metric tons/year polypropylene (PP) plant at its Kstovo refinery. In September this year it selected Lummus Technology’s Novolen PP technology and basic design engineering for the facility’s production unit. Kstovo is one of Lukoil’s largest crude refineries in Russia with a throughput of 17 million metric tons/year, with the company recently adding a catalytic cracking unit that almost doubled the refinery’s production of propylene feedstock to 300,000 metric tons/year.

At Budennovsk in Russia’s far south west, the company’s Stavrolen petchems complex currently has the capacity to produce 350,000 metric tons/year of ethylene, 300,000 metric tons of polyethylene (PE), 120,000 metric tons/year of PP, and 80,000 metric tons of benzene. Lukoil has for several years been considering construction of a new gas chemicals plant at Stavrolen to crack more ethane extracted from associated petroleum gas produced by its oil and gas fields in the north of the Caspian Sea. The potential new plant would raise Stavrolen’s ethylene and PE output to around 600,000 metric tons/year each, and increase PP production to 200,000 metric tons/year.

Ethylene and propylene are the main feedstocks for the production of PE and PP, respectiverly.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Lukoil is one of the leading vertically integrated oil companies in Russia. The main activities of the company include exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest privately-owned oil company in the world in terms of proven hydrocarbon reserves. Lukoil's production capacities include polyethylene polypropylene. The structure of Lukoil includes one of the largest petrochemical plant in Russia - Stavrolen.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC