US Gulf Coast oil industry struggles to recover from Hurricane Ida

US Gulf Coast oil industry struggles to recover from Hurricane Ida

MOSCOW (MRC) -- The engine of the US offshore energy industry struggled to recover from Hurricane Ida as a lack of crews, power and fuel left companies unable to fully assess the damage to offshore facilities, reported Reuters.

Ports were reopening and some pipelines restarted as companies completed post-storm evaluations. However, larger hurdles remained for offshore producers and some refiners that struggled to get enough power to begin restarts.

Five days after the hurricane churned through offshore oil and gas fields, the extent of the damage to key facilities was still unknown. Crews have not returned to three-quarters of the evacuated platforms and more than 90% of production remained offline, government data showed.

The White House sought to ease regional fuel shortages, authorizing the release of 1.5 million barrels of crude oil to Exxon Mobil to produce gasoline. Four large refineries in the state remain shut.

Fuel and power shortages have hampered recovery. About 860,000 homes and businesses in the state lacked power. More than a third of gasoline stations in Louisiana were without fuel, according to tracking firm GasBuddy.

The shortages included aviation fuel for helicopters that conduct post-hurricane aerial evaluations and ferry workers to and from platforms. Ida's winds crushed fuel depots and helicopter pads used by transport firms.

Royal Dutch Shell, the largest Gulf of Mexico producer, has resumed just 20% of its usual production, the company said. An offshore facility that connects three large oil production basins was damaged by the storm, though the extent of it was not immediately clear, it said.

Pipeline operator Enbridge said it continues to evaluate its Gulf of Mexico facilities and offshore production remained shut. Damages to offshore oil facilities could cost insurers about USD1 billion, estimated CoreLogic.

Overall Gulf of Mexico output declined by 240,000 barrels, according to government data, an unusual reversal. Production restarts are taking longer than after past storms, analysts said, in part because of the extent of infrastructure damage.

As MRC informed before, Shell found evidence of building damage at its 230,611-bpd Norco, Louisiana refinery. But sources familiar with plant operations did not know the extent of the damage or time needed to make the repairs. Shell is awaiting the restoration of external electrical power to the Norco refining and chemical plant complex.

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

Polyplastics Co., decided to construct the new polymerization plant in Taiwan

Polyplastics Co., decided to construct the new polymerization plant in Taiwan

MOSCOW (MRC) -- Polyplastics Co., Ltd. has decided to construct the new polymerization plant with the production capacity of 5,000 tonnes per year at Polyplastics Taiwan Co., Ltd., said the company.

As a highly heat-resistant super engineering plastic, LCP is used in a wide range of industrial fields, mainly electronic components used in information and communication equipment such as personal computers and smartphones, and its market has continued to expand at a high growth rate. In recent years, the market demand has increased along with the increase in investment for 5G equipment, and it is expected that the applications of LCP will continue to expand with the full-scale support for 5G millimeter waves.

We have the LCP polymerization plant with the production capacity of 15,000 tons/y at the Fuji Plant (Fuji City, Shizuoka Prefecture), and PTW has been responsible for the compounding process in the manufacturing of LCP products. This new polymerization plant enables PTW to have the integrated production of LCP products from polymerization to compounding and LCP polymerization. In the future, by expanding PTW’s LCP polymerization plant, the Polyplastics Group as a whole will achieve the production capacity of 25,000 tons/y of LCP polymerization.

To respond to the global market of LCP which is expected to expand rapidly in the future, we will continue to make efforts to earn the trust of our customers with high performance, high quality and stable supply as a top manufacturer of LCP based on the further growth strategy of LCP business.

As per MRC, Polyplastics (Tokyo, Japan) plans to build a 20,000-metric tons/year cyclic olefin copolymer (COC) production facility in Leuna, Germany, with the plant scheduled to be operational by mid-2023. No investment figure has been given. The plant will be operated by its fully owned subsidiary Topas Advanced Polymers and will more than double the company’s current COC output. Polyplastics already has an existing COC production plant in Oberhausen, Germany, but says the new facility will help meeting growing demand worldwide for COC polymers.

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.

Polyplastics Taiwan Co., Ltd. Is a joint venture company that manufactures and sells engineering plastic invested by Polyplastics Co., Ltd. (75% stake) and Chang Chun Group (25% stake) (Headquarters: Taipei, Plant: Kaohsiung).
MRC

TotalEnergies signs USD27 bln oil, gas, solar deal in Iraq on acute energy crisis in the country

TotalEnergies signs USD27 bln oil, gas, solar deal in Iraq on acute energy crisis in the country

MOSCOW (MRC) -- French giant TotalEnergies signed a USD27-billion contract to invest in oil, gas and solar production in Iraq Sunday, as the country faces an acute energy crisis, according to France24.

The announcement of the deal, supposed in part to reduce Iraq's reliance on fossil fuels, came as Oil Minister Ihsan Ismail signed the contract at a Baghdad ceremony with TotalEnergies chief Patrick Pouyanne.

TotalEnergies has not directly confirmed to AFP the value or duration of the contract, which was signed after months of negotiations and several visits by Pouyanne. But the French major plans initially to invest USD10 billion in infrastructure, the proceeds of which will then allow a second round of investments of USD17 billion, the officials said.

"This is the largest investment in Iraq by a Western company," Ismail said. "Implementing these projects is the challenge we face now."

Iraq has immense reserves of oil and gas. Despite being the number two producer in the Organization of the Petroleum Exporting Countries, it is experiencing an acute energy crisis and chronic blackouts that fuel social discontent.

Officials justify the lack of investment and the dilapidated state of its energy network by citing falling oil prices, which represent more than 90% of state revenue.

As MRC informed previously, in June 2021, TotalEnergies and Novatek signed a Memorandum of Understanding (MoU) to jointly work on sustainable reductions of the CO emission resulting from the production of liquefied natural gas (LNG) including with the use of renewable power, to develop large-scale carbon capture and storage solutions (CCS) and to explore new opportunities for developing decarbonized hydrogen and ammonia.

We remind that in November 2019, Total disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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.

TotalEnergies is a broad energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables, and electricity. The company rebranded itself from Total to TotalEnergies during Q2 2021. The French firm has announced allocating part of surplus revenues to share buybacks. Its 105,000 employees are committed to energy that is ever more affordable, clean, reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
MRC

Kazanorgsintez participated in the Tatarstan Oil, Gas & Petrochemicals Forum 2021

Kazanorgsintez participated in the Tatarstan Oil, Gas & Petrochemicals Forum 2021

MOSCOW (MRC) -- Kazanorgsintez PJSC participated in the Tatarstan Oil, Gas & Petrochemicals Forum 2021, said the company.

Within the Forum, the Company presented its stand at the 28th International Specialized Exhibition “Oil, Gas & Petrochemicals” and applied to the Best Exhibit, Project or Technology Contest where polycarbonate PC-008UL1 from Kazanorgsintez won Grand Prix.

Kazanorgsintez polycarbonate grade PC-008UL1 along with other products was presented at the company's stand. During the tour of the exhibition the exposition was presented to the President of the Republic of Tatarstan Rustam Minnikhanov by the General Director of Kazanorgsintez PJSC Farid Minigulov.

Kazanorgsintez polycarbonate grade PC-008UL1 has no analogues among Russian manufacturers. It displays unique strength and optical characteristics and also contains stabilizing additives that prevent the destruction of products from atmospheric phenomena including sunlight.

The presented grade is intended for the manufacture of products by extrusion and can also be processed by injection molding. It is worth reminding that Kazanorgsintez is the only manufacturer of polycarbonates in Russia. The production is carried out using the most secure phosgene-free process developed by the Japanese Asahi Kasei Corporation (Asahi Kasei). The production complex in Kazan was launched in 2009. In 2022 the works on increasing the capacity from 65 to 100 thousand tons per year shall be fully completed.

The Tatarstan Oil, Gas & Petrochemicals Forum 2021 is one of the largest international events of the Russian Oil and Gas industry. Every year representatives of Federal authorities, delegations of Russian regions, representatives of neighboring countries, Russian and foreign science, sectorial ministries and departments officials, senior staff and leading specialists of industrial enterprises from all over Russia, near and far abroad become participants of exhibitions and business events within the framework of the Forum. In 2021, the Forum brought together four major industry exhibitions, including: the 28th International Specialized Exhibition "Oil, Gas. Petrochemistry, the 15th Specialized Exhibition "Eco-technologies and Equipment of the XXI Century", the 11th Specialized Exhibition "Geo-Kazan: Geological Exploration. Geodesy. Cartography", the 7th International Specialized Exhibition "Interplastics. Kazan".

Earlier it was reported that the subsidiaries of the Italian engineering company Maire Tecnimont S.p.A. received a contract for the construction of a new Kazanorgsintez plant (KOS, part of TAIF) for the production of high-pressure polyethylene (LDPE) / ethylene vinyl acetate (EVA) at the existing KOS complex in Kazan (Tatarstan, Russia). The capacity of the new enterprise will be 100,000 tonnes of LDPE / EVA per year.

According to MRC's ScanPlast, in June the estimated consumption of LDPE in Russia fell to 45,190 tonnes against 47,780 tonnes a month earlier. Russian manufacturers have increased export sales of polyethylene (PE). In the first six months of the year, the estimated consumption of LDPE in Russia amounted to 280,850 tonnes, which is 2% less than a year earlier. PE output decreased, while export volumes increased.

Kazanorgsintez PJSC is one of the largest enterprises in the Russian Federation (TAIF Group of Companies). It produces 40% of all Russian polyethylene and is its largest exporter. Currently, PE, polycarbonate (PC), polyethylene pipes, phenol, acetone, bisphenol A are produced. KOS is the only Russian PC manufacturer. There are 170 types of products in total. The annual production volume is 1.6 million tonnes. The enterprise is the largest Russian manufacturer of low-pressure polyethylene (HDPE) pipes. The annual production capacity of HDPE is 540,000 tonnes, and LDPE - 225,000 tonnes.
MRC

Fire broke out at Hyosung Ulsan No. 1 PDH unit

Fire broke out at Hyosung Ulsan No. 1 PDH unit

MOSCOW (MRC) -- Hyosung Chemical Corporation, one of South Korea's largest industrial conglomerates, has shut production at its No. 1 propane dehydrogenation (PDH) units at Ulsan, South Korea complex, after a fire broke out here, which took responders up to ten hours to extinguish, according to CommoPlast with reference to local media reports.

This PDH unit's production capacity is 200,000 mt/year of propylene. It was shut on 4-5 September.

No casualties were reported.

According to a statement from the Ulsan Ministry of Defense, the fire first broke out from Hyosung Chemical Yongyeon Plant 1 at 8:43 PM on 4 September 2021. Initial investigation showed the cause of the fire was a gas leak at the propylene plant.

The authorities ordered the company to stop all manufacturing processes and discharge residual gas for safety precaution. Damage assessment is taking place and it is unsure how long the plant would remain offline.

At the Ulsan complex, Hyosung owns three PP lines with a combined capacity of 550,000 tons/year and two PDH units with total outputs of 500,000 tons of propylene/year.

As MRC informed earlier, in February 2021, Linde announced that it has partnered with Hyosung Corporation (Hyosung), to build, own and operate extensive new liquid hydrogen infrastructure in South Korea.

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.
MRC