Reliance Industries announces expansion of its PET recycling capacity

MOSCOW (MRC) -- Indian refining giant Reliance Industries (RIL) is doubling its polyethylene terephthalate (PET) recycling capacity by setting up a recycled polyester staple fiber (PSF) manufacturing facility in Andhra Pradesh, according to The Hindu.

The move is part of RIL's commitment to lead the industry on circular economy, enhance its sustainability quotient and bolster the entire polyester and polymer value chain.

As a part of this endeavour, Srichakra Ecotex India will build and operate exclusively for RIL the new recycled PSF - Recron GreenGold and PET flakes wash-line in Andhra Pradesh.

RIL's initiative to more than double its recycling capacity to 5 billion post-consumer PET bottles will ensure India maintains over 90% recycling rate.

RIL is focusing on sustaining India's post-consumer PET recycling rate which is currently the highest in the world.

As MRC reported earlier, in June 2021, Reliance Industries signed an agreement with Abu Dhabi National Oil Co (ADNOC) to build a multi-billion-dollar chemical project in Ruwais, marking the group’s first investment in a greenfield overseas project. Reliance, which operates the the world’s biggest refining complex at Jamnagar in western India, is becoming more international in its focus. Previously, it has bought stakes in some overseas explorations and manufacturing assets.

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.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC

1. Evonik posts strong earnings for H1 2021 and raises outlook for 2021

MOSCOW (MRC) -- Evonik has raised its outlook for 2021 after posting strong earnings in the first half. Demand for Evonik products increased significantly worldwide with sales prices also rising, as per the company's press release. "We have emerged out of the crisis stronger than before and have made substantial gains in the first half," said Christian Kullmann, chairman of the board of management. "This positive dynamic will continue into the second half. Therefore, we are confident about raising our outlook. From today’s perspective we will even end up in the upper part of the range.” For 2021 Evonik now expects adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) of between EUR2.3 billion and EUR2.4 billion for the full year. Previously the range was EUR2.1 billion to EUR2.3 billion. The outlook for sales is now EUR13 billion to EUR14.5 billion, up from a previously expected EUR12 billion to EUR14 billion. Last year Evonik posted adjusted EBITDA of EUR1.91 billion and sales of EUR12.2 billion.


MRC

MOSCOW (MRC) -- The financial and production indicators of PJSC "Nizhnekamskneftekhim" (NKNKh, part of the TAIF) grew rapidly in the first half of 2021. Thus, NKNK's net profit increased by more than 8 times over the stated period to Rb24.9 bln from Rb2.9 bln a year earlier, reported Realnoe Vremya.

It should be noted that in 2019, the company's net profit before the introduction of restrictions during the pandemic was Rb23.7 bln.

The company's revenue for the first six months of 2021 was Rb118.2 bln versus Rb67.1 bln a year earlier. Gross profit rose to Rb38 bln, up by Rb21.6 bln from the first half of 2020 (Rb16.5 bln).

Sales profit rose to Rb29 bln from Rb9.4 bln in 2020.

Nizhnekamskneftekhim turned out to be one of the leaders in terms of industrial growth dynamics. The output of the company's products grew by 15.5% in the first half of 2021, compared to the pandemic period. "This is due to the recovery of the global economy and the growing demand for polymer products in the world, "said Rafinat Yarullin, Director General of OAO Tatneftekhiminvest-holding, at one of the meetings.

Thus, PJSC "Nizhnekamskneftekhim" produced 1.35 mln tons of marketable products of all types in the first six months of 2021. The plant's overall production increased by 170,000 tonnes (20%) year on year.

The output of rubbers rose by 74,000 tonnes year on year in the first half of 2021. Overall, 336,400 tonnes of rubbers were produced at the plant in January-June 2021, compared to 262,700 tonnes a year earlier. The output of plastics was 357,400 tonnes.

According to experts, the positive production and financial results of NKNKh were achieved due to the favourable situation in the global markets.

"This year, world prices for most grades of polymers have renewed their historic highs. Domestic prices went up, following the global prices. Wholesale prices for motor fuels, polymers, rubbers grew by 13%-50%. Large-scale chemical plants expect the maximum level of revenues, profits and taxes, "noted R. Yarullin.

Analysts predict Nizhnekamskneftekhim's strong performance in the future, already due to growing production amid a recovery in demand for petrochemical products and an expansion of the product range.

As reported earlier, Nizhnekamskneftekhim continues construction of the Ethylene-600 olefin complex in accordance with the schedule, despite the claims of Rostekhnadzor due to the adjustment of the project documentation, the general director of the company Ayrat Safin said in April 2021 at the international forum on energy efficiency and ecology in Kazan.

The construction of the olefin complex is carried out within the framework of a memorandum of strategic cooperation concluded in June 2017 between TAIF Group, which includes Nizhnekamskneftekhim, and the German company Linde AG. The basic agreement on the design, supply of equipment and provision of services for the commissioning of the first stage of the future plant was signed between Nizhnekamskneftekhim and the Linde Engineering division. In February 2019, a contract for construction and installation works was signed with the Turkish company Gemont.

As MRC informed previously, NKNKh's revenue totalled Rb153.989 bln in 2020, down by Rb24.981 bln yera on year. The spread of the new coronavirus infection had a significant impact on the financial performance of Nizhnekamskneftekhim. Quarantines have been introduced in many countries of the world, restrictions have negatively affected economic growth and demand and, as a result, economic results.

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.

PJSC "Nizhnekamskneftekhim" (NKNKh) is one of the largest Russian manufacturers of petrochemical products. The industrial complex of the company includes ten major production plants and ten departments (Railway Transport, Ethylene pipelines, etc..). NKNKh produces more than 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is a member of TAIF Group of Companies.
MRC

MOSCOW (MRC) -- KBR and Petron Scientech Inc. (PSI) have announced they have signed an alliance agreement to license differentiated, energy-efficient, and sustainable technologies for renewable chemicals production, as per KBR's press release.

Under this agreement, KBR will be the exclusive licensor for PSI’s Ethylene Oxide/Ethylene Glycol (K-MEG), Alcohol Dehydration (K-SEET) and Maleic Anhydride (Max-Leic) technologies, which are used to convert ethanol into ethylene and further derivative chemicals used in a wide range of industry and consumer products.

PSI has developed these technologies over the past 30 years and is recognized as a leader in renewable ethanol and ethylene value chains and biorefineries. KBR will license these technologies and provide engineering services for new biorefineries as well as integrating the technologies in existing refineries and petrochemical plants to offer sustainable alternatives.

As MRC reported earlier, in July 2021, KBR was awarded technology licensing contracts by PKN Orlen for KBR's leading Solvent Deasphalting (SDA) and Residue Fluid Catalytic Cracking (RFCC) technologies as part of PKN's Bottom-of-the-Barrel project for its Plock Refinery in Poland.

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.

Petron Scientech Inc, (PSI) based in Princeton, New Jersey, is a leader in the field of integrated and hybrid biorefineries, production of ethanol from first and second generation feedstocks for gasoline additive, and industrial conversion of renewable ethanol into a variety of important chemical building blocks specifically, higher alcohols, bio ethylene, bio ethylene oxide (EO), bio ethylene glycols (MEG) and other ethylene applications.

KBR delivers science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long- term operations and maintenance services to ensure consistent delivery with predictable results.
MRC

MOSCOW (MRC) -- McDermott International has announced a contract award for the engineering, procurement, construction and commissioning (EPCC) of a new naptha hydrotreating unit and a new isomerization unit with associated facilities for the Barauni Refinery Expansion Project in Bihar, India, for Indian Oil Corporation Limited, said the company on its site.

"We welcome the opportunity to work on the expansion of the Barauni Refinery," said Mahesh Swaminathan, Senior Vice President, Asia Pacific. "Evolving the configuration will maximize output, ensure compliance with stringent emissions and quality standards and help meet the increasing energy requirements of India's domestic market."

The units treat heavy naphtha streams by removing sulphur, nitrogen and metal compounds to produce Bharat Stage-6 compliant gasoline. Bharat Stage-6 compliance produces a cleaner fuel to meet high emissions standards.

"This is our second award for the Barauni Refinery Expansion Project, which will bring great synergies for the scopes throughout project execution," said Neeraj Agrawal, McDermott's Country Manager, India. "McDermott supports the Make in India initiative with our local engineering and project execution capability and we look forward to applying this expertise to these projects."

The project will be executed from McDermott's Gurgaon office in India with support from teams in Perth, Australia, and Brno, Czech Republic. The scope includes project management, residual process design, detailed engineering, procurement, fabrication, inspection, transportation, installation, construction and all processes through to mechanical completion and commissioning. The work will commence in the third quarter of 2021.

As MRC reported earlier, in July 2021, McDermott International, Ltd announced it was awarded an engineering and procurement contract for a spent caustic treatment solution on the Gas Chemical Complex (GCC) project from Heat Transfer Technologies DMCC (HTT). The GCC project is owned by Baltic Chemical Plant LLC, a subsidiary of RusGazDobycha. It is the largest polyethylene (PE) integration project in the world and is located near Russia's shores in the Gulf of Finland.

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.

McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
MRC