Shell to reduce refinery portfolio by more than half

MOSCOW (MRC) -- Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe, said Hydrocarbonprocessing.

The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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

Louisiana Parish Council approves tax exemption for PBF Energy refinery project

Louisiana Parish Council approves tax exemption for PBF Energy refinery project

MOSCOW (MRC) -- A Louisiana parish council has approved a property tax exemption for a project that a company official said could be the saviour of independent refiner PBF Energy and its Chalmette, Louisiana refinery, said Hydrocarbonprocessing.

The exemption, approved late on Tuesday, will save PBF ГЫВ91 million over 10 years in property taxes for a new renewable diesel unit, according to documents filed by PBF with the council of St. Bernard Parish on the east side of New Orleans. PBF wants to use the tax break to attract a partner for the conversion of an idled hydrocracker, which made diesel from gas oil, into a renewable diesel unit that will make the truck fuel from animal fats.

"We see this project here not only as the saviour of the refinery but also the saviour of the company," said Chalmette refinery manager Steven Krynski, in remarks made before the council prior to the vote. Krynski said the company is $1.4 billion in debt from the downturn brought about by the COVID-19 pandemic in 2020, when lockdowns and work-from-home policies reduced demand for fuel. "Very few people realise how close we came to closing down last year not only as a refinery but as a company," Krynski said.

The renewable diesel produced by the plant will offset the cost of credits refiners need to comply with U.S. biofuel laws. In June, PBF posted outstanding biofuel and emissions credit obligations for the first quarter of 2021 amounting to USD848.3 million, up from USD118.4 million for the same quarter a year ago.

The renewable diesel unit is to be built between Oct. 1, 2021 and the end of 2023, according to the documents presented to the council. The project will create 600 jobs during construction and 20 new permanent jobs at the refinery after the unit is built. The refinery currently employs 516 people.

As MRC informed earlier, BF Energy has completed its acquisition of Shell’s 157,000 bbl/day Martinez refinery near San Francisco, California. The USD1bn deal, agreed in June 2019, was completed effective 1 February 2020.

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.
MRC

HyPower picks hydrogen technology from Air Liquide for Daxing complex

HyPower picks hydrogen technology from Air Liquide for Daxing complex

MOSCOW (MRC) -- Beijing HyPower has completed the installation of eight hydrogen dispensers at its Daxing hydrogen station using technology provided by Air Liquide, said the company.

A brand-new hydrogen station, which is believed to be the largest in the world, is now operational in Beijing, China – and it features Air Liquide technology. Open from today (8th July), the station boasts a capacity of nearly five tonnes per day, capable of refuelling 600 hydrogen fuel cell vehicles a day.

Owned and operated by Beijing Hypower Energy Technology, the station is part of the 200,000 square-meter Beijing International Hydrogen Energy Demonstration Zone. Capable of refuelling 600 hydrogen fuel cell vehicles a day, the facility features eight hydrogen dispenser units which were supplied and installed by Air Liquide Houpu Hydrogen Equipment.

Air Liquide Houpu also provided commissioning and training services to the station’s employees to ensure smooth operation. Commenting on the installation, Francois Abrial, Member of the Air Liquide Group’s Executive Committee supervising Asia Pacific, said, "We are proud to contribute to the construction of the world’s largest hydrogen station by leveraging Air Liquide’s state-of-art technology."

"We are convinced that hydrogen will play a key role in the transition to a low-carbon society. We will continue to work with our partners to develop the hydrogen energy infrastructure network in China and support its ambition for hydrogen mobility."

Air Liquide has said it will continue to contribute to the progress of hydrogen mobility in China and low-carbon industrial hydrogen, investing in the development and construction of stations, while accelerating the development of local low-carbon hydrogen production in key areas.

Zha Zhiwei, Chairman of Beijing Hypower Energy Technology, added, “Air Liquide boasts rich experience in the whole value chain of hydrogen energy. With its hydrogen equipment and installation service, Air Liquide Houpu has played a fundamental role in building the Daxing hydrogen refuelling station, the biggest in the world." "We look forward to deepening cooperation with Air Liquide to contribute to the deployment of hydrogen refuelling stations and energy transition in China."

As per MRC, Air Liquide signed a new long-term contract with Russian steel producer Severstal to supply oxygen to its CherMK site in Cherepovets, Russia. 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.

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.
MRC

Hexpol completes acquisition of Unica

Hexpol completes acquisition of Unica

MOSCOW (MRC) -- Swedish polymers group Hexpol has completed its previously announced EUR48m acquisition of Union de Industrias (Unica), said the company.

HEXPOL has completed the previously announced acquisition of 100% of Union de Industrias C.A., S.A. (Unica) from Espiga Capital, a Spanish based Private Equity firm. Unica is a significant player in Rubber Compounds in Spain, supplying several demanding customers in the automotive, construction and agriculture sectors.

”Through the acquisition of Unica, we will strengthen our position in Rubber Compounds for demanding customers in Spain and other EU countries. Unica will be a perfect complement to our existing operations in Spain, mainly active in other sectors."

During the last few years, Unica has made significant investments in equipment and technology and is well positioned to support the transforming automotive market in Southern Europe. The company’s strong and experienced Management Team will stay with the company and further drive growth and technical excellence.

"I am pleased to welcome the Unica team, which we have great respect for, to the HEXPOL Group. Unica’s focus on customer satisfaction and quality fits perfectly in our Group."

As per MRC, Hexpol acquired 100% of VICOM 2002 S.L., a Spanish Polymer Compounder active in the interesting and growing product segment “wire and cable”. VICOM’s turnover 2020 amounted to some EUR30 mln, is profitable and employs some 30 people in its production facility in Barcelona.

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.

Unica operates a compounding facility in Corella, Navarra, Spain. It has about 80 employees and had sales of EUR40m last year. Hexpol bought Unica from Spanish private equity firm Espiga Capital.
MRC

ACC Chemical Activity Barometer up in June by 19.5% YOY

ACC Chemical Activity Barometer up in June by 19.5% YOY

MOSCOW (MRC) -- The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), rose by 0.8% in June on a three-month moving average (3MMA) basis following a 1.3% gain in May. On a year-over-year (YOY) basis, the barometer rose 19.5% in June (3MMA), as the year-ago period was hit hard by COVID-19 shutdowns, accoriding to Chemical Engineering with reference to ACC's statement.

The unadjusted data show a 0.1% decline in June, primarily due to weakness in equities, following a 1.3% gain in May. The diffusion index reached 85% in June. The diffusion index marks the number of positive contributors relative to the total number of indicators monitored. The CAB reading for May was revised upward by 0.73 points and that for April was revised upward by 0.35 points. The June data are provisional and subject to revision.

“In summary, the latest CAB reading is consistent with expansion of commerce, trade and industry,” said Kevin Swift, chief economist at ACC. “The year-over-year gains have likely peaked, suggesting a potentially slower pace of expansion.”

The CAB has four main components, each consisting of a variety of indicators: 1) production; 2) equity prices; 3) product prices; and 4) inventories and other indicators.

In June, production-related indicators were positive. Trends in construction-related resins and related performance chemistry were solid. Resins and chemistry used in other durable goods were strong. 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 fell back. 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 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.

The CAB is a leading economic indicator derived from a composite index of chemical industry activity. Due to its early position in the supply chain, chemical industry activity has been found to consistently lead the US economy’s business cycle, and the barometer can be used to determine turning points and likely trends in the broader economy. Month-to-month movements can be volatile, so a three-month moving average of the CAB reading is provided. This provides a more consistent and illustrative picture of national economic trends.
MRC