BASF approved for battery materials JV with Hunan Shanshan Energy

MOSCOW (MRC) -- BASF has been granted regulatory approval to form a joint venture (JV) with battery materials supplier Hunan Shanshan Energy to cater for the electric vehicle (EV) market in China, said the company.

German chemicals giant BASF and major Chinese producer of lithium battery materials Ningbo Shanshan on 31 August established joint venture BASF Shanshan Battery Materials to focus on the fast-growing electric vehicle industry.

Ningbo Shanshan in May unveiled an agreement with BASF to transfer a 19.6438pc stake of its subsidiary Shanshan Energy to BASF, and also to purchase 31.3562pc of Shanshan Energy from other shareholders. BASF will hold 51pc of Shanshan Energy, while Ningbo Shanshan will reduce its share to 49pc from 68.6438pc after the deal. The deal was completed yesterday, with Shanshan Energy renamed BASF Shanshan Battery Materials.

Shanshan Energy operated Ningbo Shanshan's battery cathode material business. Established in 2003, Shanshan Energy focuses on production of lithium-ion cathode materials including lithium nickel cobalt manganese oxide (NCM), lithium cobalt oxide (LCO) and lithium manganate. Shanshan Energy shipped 16,722t of LCO, NCM and lithium manganate in January-June, up by 85pc on the year.

As per MRC, BASF reported a better-than-expected second-quarter net profit as it managed to increase volumes and prices thanks to strong demand. Low commodity prices during the coronavirus pandemic weighed on BASF’s earnings last year, but the German group recorded a rapid recovery so far in 2021 as the global economy picked up faster than expected.

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.

BASF SE (headquartered in Ludwigshafen) - the world's largest manufacturer of chemical products for the industry, including the extraction and processing of oil and gas; has more than 150 production sites in the world, including a number of production lines in the Russian Federation.
MRC

MOSCOW (MRC) -- Warren Buffett's Berkshire Hathaway Inc said trimmed or eliminated its stakes in several pharmaceutical companies, and reported a small new stake in a Merck & Co (MRK.N) spinoff, Organon & Co (OGN.N), said Reuters.

In the second quarter, Berkshire said it exited a USD180 million stake in Biogen Inc (BIIB.O) and reduced investments in Abbvie Inc (ABBV.N), Bristol-Myers Squibb Co (BMY.N) and Merck. It also shed a USD411 million stake in paint maker Axalta Coating Systems Ltd (AXTA.N), a Berkshire holding since 2015.

The changes were disclosed in a regulatory filing detailing Berkshire's U.S.-listed holdings as of June 30. Berkshire has been a net seller of stocks in 2021, including in the second quarter when it sold USD1.1 billion more stocks than it bought. That suggests Buffett and his investment managers Todd Combs and Ted Weschler remain wary of valuations as stock prices regularly set new highs.

The Standard & Poor's (.SPX) has doubled from its March 2020 trough early in the COVID-19 pandemic. Berkshire has instead bought back about USD14.3 billion of its own stock between January and late July though its share price also set records, and now sits just 2% below its May 7 peak.

Berkshire also reported lowered stakes in Chevron Corp (CVX.N), General Motors Co (GM.N), media company Liberty Global Plc (LBTYA.O), insurance broker Marsh & McLennan Cos (MMC.N) and US Bancorp (USB.N). It reported increased stakes in supermarket chain Kroger Co (KR.N), home furnishings chain RH (RH.N) and Marsh rival Aon Plc (AON.N), which under regulatory pressure called off a $30 billion merger with Willis Towers Watson Plc last month.

As per MRC, Wanhua Chemical, a global leader in the production and marketing of polyurethanes, petrochemicals and fine chemicals, has received the inaugural “Excellence Award” from Axalta. The Excellence Award is given to suppliers, who exhibit progressively exceptional overall quality, service, technology and total capacity performance for three consecutive years or longer. The Excellence Award winner also demonstrates an exceptional commitment to helping Axalta achieve its strategic initiatives.

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) -- US Energy Secretary Jennifer Granholm authorized the country's emergency oil reserve to loan 1.5 million barrels of crude to an ExxonMobil refinery in Louisiana to relieve fuel disruptions in Hurricane Ida's wake, reported Reuters.

Earlier, President Joe Biden directed Granholm to use all tools, including the Strategic Petroleum Reserve (SPR), to keep gasoline flowing in the storm's aftermath.

"It's important to know that the region hit by it (Ida) is a key center of our nation's oil production and refining infrastructure...that's why we're not waiting to assess the full impact of the storm," Biden said.

The loan to the Baton Rouge refinery is aimed to "alleviate any logistical issues of moving crude oil within areas affected by Hurricane Ida to ensure the region has access to fuel as quickly as possible," the Energy Department said.

Several refineries including Baton Rouge remained cut off from crude and products supplies from the south via ship and barge after portions of the Mississippi River were closed by several sunken vessels.

The Energy Department said it encourages refiners to prioritize refined products for the affected region.

Ida cut through multiple US regions, devastating parts of Louisiana. On Wednesday rains caused massive flooding in the US Northeast. Roughly 1.5 million barrels of daily offshore crude production is currently shut in, according to federal data from Wednesday. US energy companies, prevalent along the Gulf Coast, were straining to get operations working again due to lingering loss of electrical power and other problems related to storm damage.

Biden noted that the Environmental Protection Agency approved emergency fuel waivers for Louisiana and Mississippi to increase the availability of gasoline. The EPA issued the waivers last week, allowing winter-grade fuel to be sold out of season to avoid shortages. The SPR had 621.3 million barrels of crude in stock as of last week, according to the Energy Department, the lowest since August 2003, data showed. The oil will have to be paid back to the SPR at a later date with interest.

As MRC informed earlier, ExxonMobil said last week it was restarting its 517,700 b/d refinery at Baton Rouge, Louisiana, after it was shut down ahead of Hurricane Ida.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- The Indian government is planning to phase out single-use plastics leading to complete elimination. But concerns revolve around the availability of alternatives and plastic waste management systems, said RFI.

A government committee has identified the single use plastic (SUP) items to be banned based on an index of their utility and environmental impact.

In the three-stage ban, the first category of SUP items proposed to be phased out are plastic sticks used in balloons, flags, candy, ice-cream and ear buds, and thermocol that is used in decorations.

The second category, proposed to be banned from July 1, 2022, includes items such as plates, cups, glasses and cutlery such as forks, spoons, knives, straws, trays; wrapping and packing films used in sweet boxes; invitation cards; cigarette packets; stirrers and plastic banners that are less than 100 microns in thickness.

A third category of prohibition is for non-woven bags below 240 microns in thickness. This is proposed to start from September next year.

As per MRC, the European Parliament has recently voted to ban single-use plastics across the board in an attempt to stop the unending stream of plastic pollution making its way into the oceans. Such plastic products include things like straws, plates, cups and cotton buds, and can take several centuries to degrade in the oceans where they are increasingly observed to be consumed by marine life. According to the European Commission, such plastics make up 70 percent of all marine litter.

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) -- China Petroleum and Chemical Corp, also known as Sinopec, the world's petrochemical major, plans to spend 30 billion yuan (USD4.6 billion) on hydrogen energy by 2025 as the state oil and gas major pivots to producing natural gas and hydrogen as part of becoming a carbon-neutral energy provider by 2050, according to Hydrocarbonprocessing.

Asia's biggest oil refiner plans to become China's largest company to produce hydrogen for use as a transportation fuel, targeting annual capacity of 200,000 tons of hydrogen refuelling by 2025.

"Sinopec will expand forcefully into making hydrogen from renewable energy, and zero in on hydrogen for transportation fuel and using green hydrogen for refining," acting Chairman Ma Yongsheng said.

The company aims to produce more than 1 million tons of so-called green hydrogen from renewable energy sources between 2021 and 2025, as well as add 400 megawatts of solar power generation capacity for supplying electricity to charge vehicles. Sinopec has so far built 20 hydrogen filling stations, with another 60 under construction or in the planning and approval stage. The company produces about 3 million tons per year of hydrogen from non-renewable energy sources that is mainly used in oil refinery and petrochemical processes.

China's natural gas consumption is expected to rise 13.3% in 2021 amid a strong economic recovery and Beijing's push to replace coal with lower-carbon gas, Ma said. That level of growth should continue over the next three years.

Like state-run peers PetroChina and CNOOC Ltd that are prioritising natural gas development over oil, Sinopec plans to boost gas output in the second half of 2021 by 13.5% from a year earlier, compared with 13.7% growth in the first six months.

Sinopec maximized its refinery operations in the first half, pushing throughput to 126.11 million tons of oil, or about 5.1 million barrels per day, up 13.7% from a year earlier when demand was curtailed by the outbreak of COVID-19.

As MRC reported earlier, in August 2021, Sinopec launched the first phase of the Gulei refining complex in Zhangzhou city in China’s southeastern Fujian province. The refining complex, a 50:50 joint venture between Sinopec’s Fujian Petrochemical Company Ltd and Taiwan Xuteng Investment Company Ltd, invested 27.8 billion yuan (USD4.28 billion) in the first phase. That will result in an 800,000 tonnes per annum ethylene plant, a 600,000 tonnes per annum styrene unit and seven other downstream petrochemical units, Sinopec said.

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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC