Phillips 66 refinery sale offers test of investors views on pace of transition to electric vehicles

MOSCOW (MRC) -- US refiner Phillips 66's decision to market a Louisiana oil processing plant offers a key test of investors' views on the pace of the transition to electric vehicles, reported Reuters with reference to refinery industry experts.

Phillips 66, the fourth largest US refiner, on Tuesday said it has put its 255,600 barrel per day (bpd) Alliance plant on the market, citing "the evolving energy landscape." The 50-year-old plant makes gasoline, diesel and jet fuel for US and Latin American markets.

Reuters on Tuesday reported Phillips 66 is in talks with a potential buyer. A spokesman declined to comment, calling any talks confidential.

Analysts said potential buyers may be willing to make a contrarian bet on motor fuel demand, pointing to private equity firms and rival Gulf Coast refiners Motiva Enterprises, Valero Energy Corp and PBF Energy.

Motiva, Valero and PBF did not reply to messages asking about interest in the Alliance refinery.

"While there are a lot of uncertainties out there - mainly regulatory in terms of climate change or COVID mandates - the economic dust has settled so buyers are likely to get more serious again," said Garfield Miller, chief executive of investment banker Aegis Energy Advisors.

A private equity firm might consider buying Alliance as the anchor for a move into motor fuel, seeing Phillips 66 and other oil companies exit as an opportunity, he said.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

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

MOSCOW () -- The US Environmental Protection Agency has recommended retroactively lowering biofuel blending mandates for 2020, two sources familiar with the matter said, after the agency sent a proposal on the mandates to the White House for review, reported Reuters.

The move could provide immediate relief to oil refiners that have to comply with the blending requirements. It also is likely to drag the Biden administration further into a clash between oil refiners and the biofuels industry over the requirements.

Under the US Renewable Fuel Standard Program, oil refiners must blend billions of gallons of biofuels into the nation's fuel mix, or buy tradeable credits, known as RINs, from those that do.Farmers and biofuel producers argue that reducing mandates harms demand for their products, though refiners reject that claim and say the costs of the program puts blue-collar refinery jobs at risk.

The EPA confirmed on Thursday that the agency had sent the biofuel blending proposal to the White House's Office of Management and Budget (OMB). "The proposal aims to get the (Renewable Fuel Standard) program back on track while addressing challenges stemming from decisions made under the prior administration," an EPA spokesperson said in a statement.

The agency was also expected to recommend to the White House reducing mandates for 2021, while boosting mandates for 2022 above the previous two years, Reuters reported earlier this month, citing sources. The agency did not provide details on the proposal or confirm Reuters' reporting.

Lowering mandates retroactively for 2020 could benefit in particular merchant refiners such as PBF Energy and Delta Air Lines' Monroe Energy, which slowed or halted purchases of renewable fuel credits this year as they lobbied the Biden administration for regulatory relief.

Those refiners and others had amassed earlier this year a more than US1 billion shortfall in the credits they need to comply with the mandates, an apparent bet that the Biden administration would let them off the hook or that the credit prices would fall.

The deadline for refiners to prove compliance with the 2020 requirements was extended in April to Jan. 31, 2022. Reducing the mandates would help refiners who have outstanding obligations for that compliance year.

As MRC informed earlier, in April 2021, the US Environmental Protection Agency asked industry groups for their input on the future of the nation's biofuel policy after it ends its current phase in 2022. The consultations will provide a new opportunity for the oil, corn and biofuel lobbies to reshape the regulation, called the Renewable Fuel Standard, which has bitterly divided the two industries for more than a decade. Under the RFS, oil refiners must blend increasing billions of gallons of biofuels into the nation's fuel mix each year or buy trade able credits from those that do.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- PT Chandra Asri Petrochemical Tbk (CAP), Indonesia’s largest integrated petrochemical company, has significantly boosted sustainability through Nalco Water’s 3D TRASARTM Cooling Water Technology, which enables effective remote and digital monitoring of water operations, according to Hydrocarbonprocessing.

Since the 3D TRASAR system was first installed at Chandra Asri’s plant in Cilegon, Banten in 2015, the company has gradually moved more of its water monitoring to the program and in 2020, reported its largest ever savings in water, energy, greenhouse gas emissions and waste.

In 2020, Chandra Asri’s Cilegon plant achieved annual savings of 348 million liters of water; 6 million kWh of energy; 470,000 m3 of wastewater and 2100 metric tonnes of CO2.

Allan Yong, Ecolab senior vice president and market head, Southeast Asia, hopes the progress made by Chandra Asri will inspire other companies to look at how they can use water more efficiently.

“The population growth and speed of development in Asia requires businesses to carefully manage resources with a focus on resilience and responsible operations,” says Yong. “Ecolab is committed to helping companies like Chandra Asri achieve their operational efficiency and sustainability goals. Harnessing 3D TRASAR for water management will help reduce costs and improve efficiency and sustainability.”

At Chandra Asri’s Cilegon plant, five 3D TRASAR systems are fitted to the facility’s cooling towers and dilution steam generation system to manage water quality to desired standards. In cooling towers, the technology continuously ensures proper cycle concentration, achieving the best use of water. When used in boilers and heat exchangers, 3D TRASAR technologies can reduce the potential of corrosion and deposit buildup and help maintain high energy efficiency and asset integrity.

Erwin Ciputra, President Director and CEO at Chandra Asri said Ecolab’s 3D TRASAR helped the company in its ongoing goal to drive continuous improvement.

Nalco Water’s 3D TRASAR controllers and sensors, connected through Ecolab's Refined Knowledge platform, deliver real-time data through intuitive online dashboards, allowing Chandra Asri to gain unparalleled visibility into their operations and quickly act to mitigate potential issues. Measurements recorded by the system include pH level, oxidation reduction, conductivity and more. In addition to reporting the measurements of key metrics in the water, 3D TRASAR can also make regular injections of chemicals into the system to ensure levels stay within expected parameters.

As MRC reported earlier, in H1 July, 2020, CAP received commercial production at its linear low denisty polyethylene (LLDPE)/high density polyethylene (HDPE) plant in Cilegon (Indonesia) and started ramping up its capacity utilisation. On May 22, the company was forced to reduce the capacity utilisation at this plant with a capacity of 400,000 mt/year of LLDPE/HDPE due to various technical issues.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased.

Thailand's Siam Cement Group (30%) and Indonesian PT Barito Pacific and (64.87%) are the main owners of Chandra Asri.
MRC

MOSCOW (MRC) -- Huntsman is expanding its performance products facility in Petfurdo, Hungary, said the company.
The multimillion-dollar investment project will expand capacity for polyurethane (PU) catalysts and specialty amines, scheduled for completion in mid-2023.

Huntsman has received a USD3.8m investment grant from the Hungarian government for the expansion at the brownfield facility to meet growing demand in the PU, coatings, metalworking and electronics industries.

The specialty amines range are used to produce automobile seats, mattresses and energy-efficient spray foam insulation for buildings. The latest generation of products in this portfolio supports efforts to lower emissions and odours of consumer products.

“This additional capacity builds upon our previous expansions to further improve our capability and expand our product range of polyurethane catalysts and specialty amines,” said Huntsman senior vice president for performance products Chuck Hirsch.

“With consumers increasingly demanding cleaner, eco-friendly solutions, this expansion will position us well for significant growth with these global sustainability trends."

As MRC informed earlier, Nanjing Jinling Huntsman, a joint venture between Huntsman and Sinopec Jinling, shut the propylene oxide plant in Nanjing (Nanjing, Jiangsu Province, China) in November, 2020 for scheduled maintenance works. This plant with a capacity of 240,000 tonnes/year of propylene oxide was close by late November.

According to MRC's ScanPlast report, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2020 revenues of approximately USD6 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets.
MRC

MOSCOW (MRC) -- Colonial Pipeline, the nation's largest fuel line, has restarted its main gasoline and distillate lines after it shut the lines as a safety precaution ahead of Hurricane Ida, reported Reuters with reference to the company's statement.

Despite the partial shutdown, fuel supply continued to be available throughout the southeast from the numerous terminals located along the supply route.

The lines went back into operation before midnight on Monday, the company said.

We remind that, as MRC informed before, the fourth-largest US refiner Phillips 66 said earlier this month that it put the smaller of its two Louisiana refineries up for sale amid continued losses and an uncertain future for motor fuels. The company is holding talks with a potential buyer on the sale of its 255,600 barrel-per-day (bpd) Alliance refinery in Belle Chasse, Louisiana, according to two people familiar with the matter. The identity of the potential buyer could not immediately be learned. US refiners have closed or sold oil processing plants as the COVID-19 pandemic slashed demand for gasoline and jet fuel, generating losses for the industry.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC