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Austrian OMV to present new, sustainability-focused strategy in early 2022

September 08/2021

MOSCOW (MRC) - Austrian oil and gas group OMV plans to speed up restructuring and announce a new, sustainability-focused strategy early next year, according to Hydrocarbonprocessing with reference to new Chief Executive Alfred Stern's statement to journalists.

"There is no way around optimising towards sustainability," Stern said, adding that the group was committed to the Paris climate goals.

The chief executive, who took the helmet from Rainer Seele on Sept. 1, kept it open whether OMV would withdraw from its profitable business with fossil energies and whether it would invest in renewables.

"We will make our strategy based on where we can differentiate ourselves, where we believe we can beat the competition."

As MRC reported earlier, OMV reported utilization of 83% at its European refineries in H1, 2021, down by 3% on the year yet "relatively resilient in light of the COVID-19 impact." It expects the utilization rates at its European refineries to remain at the 2020 level this year. Last year its refineries reported 86% utilization. The company's refineries in Europe ran at 85% utilization in Q2, up from 81% in the year-ago quarter.

We remind that OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the sites ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

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.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austrias largest listed industrial companies.
Author:Margaret Volkova
Tags:Europe, PP, PE, crude and gaz condensate, propylene, ethylene, petrochemistry, OMV, sustainable development, Austria.
Category:General News
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