Alpek newly acquired rPET facility to start up in Q3 2021

Alpek newly acquired rPET facility to start up in Q3 2021

MOSCOW (MRC) -- Alpek (Monterrey, Mexico) expects to finish commissioning and begin production at a Reading, Pennsylvania, recycled polyethylene therephthalate (PET) facility in the third quarter of 2021, reported S&P Global with reference to CEO Jose de Jesus Valdez' statement.

DAK Americas, Alpek's US subsidiary, bought the facility in late-May for USD98.1 million at an auction in the bankruptcy case of California recycled PET producer CarbonLite.

Valdez said the recycling and pelletization facility is one of the largest recycled PET units in the Americas, and can produce food-grade pellets.

The acquisition brought Alpek's total recycled PET capacity to 282,000 mt, "reaffirming its position as the largest PET recycler in the Americas and achieving the company's target of supplying its customers with 25% of rPET content before 2025," Valdez said.

Thailand-based Indorama Ventures, the world's largest virgin PET manufacturer, bought CarbonLite's rPET facility in Dallas, Texas, at the bankruptcy auction for USD63.87 million, and TGS Shelf II Acquisition LLC, an affiliate of Houston private equity firm The Sterling Group, bought a third CarbonLite facility in Riverside, California, at the auction for USD57.5 million, according to bankruptcy records.

Indorama is one of Alpek's partners in a major PET/purified terephthalic acid complex awaiting further construction near Corpus Christi, Texas. Valdez said July 22 he had no update on the progress of that project, which is undergoing a cost review throughout 2021. Alpek, Indorama and their partner Far Eastern New Century, aim to finalize engineering and construction contracts by year-end so construction can begin in early 2022.

The project includes a 1.1 million mt/year PET plant and an upstream 1.3 million mt/year purified terephthalic acid (PTA) unit. The three companies bought the unfinished project out of prior owner M&G Chemical's bankruptcy in 2018 for USD1.25 billion.

Since then, they have evaluated costs to restart construction that M&G halted in October 2017, and those efforts were suspended in 2020 amid COVID-19 restrictions.

When an analyst asked whether Alpek would buy a larger stake in the project and proceed if one or both partners decided not to push forward with it, Valdez said the company would consider those options if that situation arises.

Valdez noted that demand for virgin PET and polypropylene, which Alpek also produces, was seen strong as COVID-19 vaccinations have improved market confidence, which has strengthened the global economy. PP is heavily used in the automotive sector for dashboards, door panels and other vehicle plastics, but also is used to make plastic food takeout containers, carpet, and other products.

"Alpek has reached 1.2 million tons this period, setting a record for any second quarter in our history and achieving an 8% increase year-on-year," CFO Jose Carlos Pons De La Garza added.

Volumes in the company's plastics and chemicals segment rose 45% on the year, while polyester segment volumes rose 1%.

As MRC informed earlier, Mexican polyester producer Alpek reported a rise in Q2 net income because sales rose faster than costs. Quarter on quarter, sales rose because of higher prices and margins. Alpek did not discuss year-on-year trends. Quarter on quarter, Alpek noted higher margins for PET. In addition, margins for PP maintained their strength for longer than expected following the winter storms that hit the US in mid-February. Quarter on quarter, EBITDA fell because the rise in feedstock costs was not as pronounced as it was in the first quarter. Such increases cause positive inventory and carry-forward effects for the segment's earnings.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 411,200 tonnes in the first six month of 2021, up by 12% year on year. Russian companies processed 62,910 tonnes in June, compared to 85,890 tonnes a month earlier.

Alpek operates two main business segments, focused on polyester, and plastics and chemicals, and is a leading producer of purified terephthalic acid (PTA) and polyethylene terephthalate (PET). It is also the largest EPS manufacturer in the Americas.
MRC

Eni to deliver carbon-neutral LNG cargo to Taiwanese CPC Corporation

Eni to deliver carbon-neutral LNG cargo to Taiwanese CPC Corporation

MOSCOW (MRC) -- Italy's Eni said Aug. 6 it had agreed to deliver a carbon-neutral LNG cargo to Taiwan's CPC Corp. at the Yung An receiving terminal as the Italian company looks to move forward with its decarbonization strategy, reported S&P Global.

A number of global LNG players have started offering carbon-neutral LNG cargoes, including Shell, BP and Russia's Gazprom, as buyer interest in securing greener LNG continues to grow.

Eni said it would source the LNG from the Bontang liquefaction facility in Indonesia as part of its contract with Eni Muara Bakau, the joint venture operated by Eni that owns and operates the Jangkrik gas field.

"This is a milestone transaction for Eni, which shows how the company is moving forward in its decarbonization strategy while creating value for its LNG portfolio through own equity projects," it said in a statement.

The greenhouse gas emissions related to the entire value chain of the LNG cargo are to be offset through the retirement of high-quality nature-based credits, Eni said.

Eni's long-term strategy aims to achieve full carbon neutrality in its products and operations by 2050, with intermediate reduction targets of net lifecycle emissions (Scope 1, 2, 3) of 25% by 2030 and 65% by 2040 compared with 2018 levels.

As MRC informed previously, Italian energy group Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
MRC

Phillips 66 invests in software developer in a move to expand its advanced analytics capabilities

Phillips 66 invests in software developer in a move to expand its advanced analytics capabilities

MOSCOW (MRC) -- Phillips 66 is driving to expand its advanced analytics capabilities with an investment supporting Seeq, a developer of software applications for analyzing and sharing insights on process manufacturing data, according to Hydrocarbonprocessing.

The investment is through the Altira Group, a venture capital firm that counts Seeq as one of its portfolio companies. It is the first investment by Phillips 66’s Digital Ventures organization, which is part of the AdvantEdge66 program launched by the company to drive digital transformation and innovation.

“Data can yield incredible value and insights when properly gathered and refined through advanced analytics,” said Zhanna Golodryga, Senior Vice President and Chief Digital and Administrative Officer for Phillips 66. “That’s why it’s important for us to collaborate with companies to advance innovation in the digital and analytics spaces. This investment provides a pathway for us to help Seeq grow and continue to improve its products, which we believe will be beneficial for our digital transformation journey.”

Seeq is a privately held virtual company headquartered in Seattle with a comprehensive set of process manufacturing and Industrial Internet of Things software applications.

As MRC informed previously, Worley has been recently awarded a front-end engineering services contract by Phillips 66 to convert its San Francisco refinery in Rodeo, California, USA into a renewable fuels-manufacturing facility. Under the contract, Worley will provide front-end engineering design services for the facility, which will be executed by Worley’s North America West team with support from Worley’s Global Integrated Delivery team.

Besides, in October 2020, Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,300 employees committed to safety and operating excellence. Phillips 66 had USD55 billion of assets as of Dec. 31, 2020.
MRC

Petrobras hires adviser to sell Braskem stake

Petrobras hires adviser to sell Braskem stake

MOSCOW (MRC) -- The oil company Petroleo Brasileiro SA (Petrobras) hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA, reported Reuters with reference to three sources familiar with the matter.

Earlier Thursday, Petrobras executives said in a conference call with investors that they had hired advisers to sell its stake in Braskem, without giving further details.

Brazilian conglomerate Novonor, formerly known as Odebrecht, resumed the sale of its majority stake in Braskem in April, but did not still found a buyer. However, Morgan Stanley, adviser to Novonor, has received offers for certain Braskem assets. The company has factories in Brazil, Mexico and the United States.

Considering the complexity of selling units to different buyers, Petrobras decided to hire an advisor to analyze potential transactions.

Petrobras, which is also interested in selling its stake in the company, favored a sale through a share offering, but Novonor, as a controlling shareholder, prefers an acquisition because it seeks a premium for its voting shares.

As MRC informed before, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

Saudi Aramco Q2 profit surges almost 4 times

Saudi Aramco Q2 profit surges almost 4 times

MOSCOW (MRC) -- Saudi Aramco, the world's largest oil company, said Aug. 8 that its hydrocarbons production fell 8% to 11.7 million boe/d in the second quarter from the year-earlier period due to OPEC+ cuts, but its profit surged almost four times thanks to higher oil prices and a recovery in worldwide demand, reported S&P Global.

Net income soared to USD25.5 billion in the second quarter from USD6.6 billion a year earlier, the company said in an earnings statement.

Aramco's total hydrocarbon production, which averaged 12.7 million boe/d in the second quarter of 2020, fell mainly due to OPEC+ cuts this year, CEO Amin Nasser said in a media call with journalists.

"Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery gains momentum," Nasser said in the statement. "While there is still some uncertainty around the challenges posed by COVID-19 variants, we have shown that we can adapt swiftly and effectively to changing market conditions."

The Q1 dividend of USD18.8 billion was paid in the second quarter, and the Q2 dividend of USD18.8 billion will be paid in the third quarter, the company said.

Aramco is working on boosting its maximum sustainable capacity to 13 million b/d from 12 million b/d and expects most of the increase to come from offshore fields, Nasser said on the call. Fields that will contribute to production increments are Zuluf, Marjan and Berri.

Saudi Aramco expects global oil demand to rise by the end of 2021 and in 2022 on economic recovery and higher oil demand, particularly in the US and China, the CEO added.

"Our expectation that recovery will continue, yes variants are having a certain impact; however we are seeing more openings of economies and we expect by year end the demand will be around 99 million b/d," he said. "There is strong economic recovery that we see and demand rebound especially from the US and China and we expect it to be at a 100 million b/d next year as a forecast for total demand."

OPEC in July put 2021 global oil demand at 96.58 million b/d and 2022 at 99.86 million b/d.

Capital expenditure was USD7.5 billion in the second quarter, up 20% from a year earlier and the company expects 2021 total to be approximately USD35 billion.

Aramco is still doing its due diligence to buy a 20% stake in the oil-to-chemicals unit of Reliance Industries (RIL), the CEO said. The deal could not progress in 2020 after the oil price crash and demand destruction caused by the pandemic, which saw Aramco tighten its belt.

"India is a very important market for us. We continue to review opportunities in India," he said. "We are still doing our due diligence (on the Reliance deal). We were delayed a little bit because of COVID 19 but we are back on track doing our due diligence."

As MRC informed earlier, Mukesh Ambani, chairman and managing director of RIL, said in June, 2021, he expects the company's deal with Saudi Aramco to materialise this 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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC