Shell declared force majeure on some oil deliveries due to damage from Hurricane Ida

Shell declared force majeure on some oil deliveries due to damage from Hurricane Ida

MOSCOW (MRC) -- Royal Dutch Shell Plc, one of the largest operators in the Gulf of Mexico, declared force majeure on some oil deliveries due to damage from Hurricane Ida, which has crippled U.S. offshore oil production, said Reuters.

More than three-quarters of the U.S. Gulf of Mexico's offshore oil output remained shut following Ida. Crude buyers said the full restart of production remained unclear due to extensive damage to various facilities. The hurricane was one of the most devastating for offshore producers since back-to-back storms in 2005 cut output for months.

Shell has a majority stake in the Mars offshore field in the Gulf of Mexico, where it was still assessing damage that has kept production offline for nearly two weeks. "Crews are working to complete a comprehensive assessment of the damage and to the degree possible, assess how long production from our Mars corridor assets will be impacted," company spokesperson Curtis Smith said in a statement.

Force majeure is a legal provision used by companies during unforeseen events such as hurricanes when they cannot meet contractual obligations. Shell is one of the largest U.S. Gulf producers, with output of approximately 150 million barrels of oil equivalent per year. U.S. offshore crude production totaled more than 600 million barrels in 2020, according to U.S. Energy Department figures.

Asian buyers including China and South Korea have stepped up purchases of Gulf-produced crude in recent months, and now face lengthy delays before shipments arrive as oil companies assess damage from Ida. China's Unipec, the trading arm of Asia's top oil refiner Sinopec, is expecting late September and early October deliveries of Mars crude, the Gulf sour benchmark, to be disrupted, trade sources said.

The Louisiana Offshore Oil Port, the largest deepwater export terminal for loading crude oil, also remained offline as of Thursday. U.S. oil exports sank in the most recent week, falling to 2.3 million barrels per day, a fall of 700,000 bpd, as a result of the shut ins.

Shell has started to send personnel to its Appomattox platform in the gulf while damage assessments are continuing at its West Delta-143 (WD-143) offshore facilities. Those facilities serve as the transfer station for all production from Shell's assets in the Mars corridor in the Gulf of Mexico to onshore crude and natural gas terminals.

As MRC informed previously, Royal Dutch Shell plc. said in November that its petrochemical complex of several billion dollars in Western Pennsylvania is about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

US oil refineries must wait weeks for power and water to be restarted after Hurricane Ida

US oil refineries must wait weeks for power and water to be restarted after Hurricane Ida

MOSCOW (MRC) -- Louisiana oil refineries shut by Hurricane Ida could take weeks to restart, costing operators tens of millions of dollars in lost revenues as they wait for water and electrical power to be restored, reported Reuters with reference to analysts' statement.

Ida slammed into Port Fourchon, Louisiana, in late August packing 150-mile-per-hour (240 km-per hour) winds that knocked out power to much of the state. Utility outages are hampering refinery, shipping and pipeline operators' ability to resume operations.

Louisiana Governor Jon Bel Edwards advised residents of areas hit by the storm not to return until utilities can be restored. These areas include the homes of refineries operated by PBF Energy Inc, Phillips 66 and Valero Energy Corp.

"Like everyone else, we are waiting on the results of the utility’s damage assessment and their plans for re-energizing the grid," said Michael Karlovich, spokesman for PBF Energy, which shut its 190,000-barrel-per-day Chalmette, Louisiana, refinery.

Spending on repairs and lost revenue could cost each company could tens of millions of dollars. Last year, after Hurricane Laura struck the Lake Charles area in western Louisiana, Citgo Petroleum Corp (PDVSAC.UL) reported repair expenses were USD29 million net of insurance recoveries. A nearby Phillips 66 plant was out of commission for up to seven weeks due to lack of power and wind damage.

In Plaquemines Parish, home to Phillips 66's storm-idled Alliance refinery, officials have been told to expect power will be out three weeks, said parish spokeswoman Jade Duplessis.

ExxonMobil said it began restart procedures at its 520,000-bpd Baton Rouge, Louisiana, refinery after external power supply was returned. The plant was running at half-capacity into the storm and halted operations only when power was jeopardized.

Most refineries generate internal electrical power using gases produced in the refining process. But electricity supplied by utilities such as Entergy Corp is required for the needed balanced power supply.

The time to restart the refinery units or entire refineries would begin after power was restored. Some refiners, like Marathon Petroleum Corp at its 578,000-bpd Garyville, Louisiana plant, are using diesel generators to make repairs so it begin restarting once a stable power supply is restored.

As MRC informed before, 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. 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.

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

LyondellBasell gains ISCC PLUS certification for certain PE and PP grades to extend Circulen product line to North America

LyondellBasell gains ISCC PLUS certification for certain PE and PP grades to extend Circulen product line to North America

MOSCOW (MRC) -- LyondellBasell has announced the company has obtained the International Sustainability and Carbon Certification (ISCC) PLUS certification for certain grades of polyethylene (PE) and polypropylene (PP) produced at four of its US manufacturing sites, as per the company's press release.

ISCC PLUS certification is a globally-recognized system for providing traceability of recycled and renewable-based materials across the supply chain.

ISCC PLUS certification enables LyondellBasell to extend its Circulen suite of products to customers in North America and offer mass balance certificates for these products. The company will begin North American Circulen production with its CirculenRevive products, which are polymers produced from plastic waste through an advanced recycling process1, initially using feedstock provided by third parties. LyondellBasell expects to gradually ramp up production to meet growing demand over the coming years.

"The ISCC PLUS certification of four of our North American sites will help us bring more sustainable solutions to our customers," said Ken Lane, LyondellBasell Executive Vice President of Global Olefins and Polyolefins. "By delivering these new CirculenRevive products, we are proving plastics have value beyond their initial use, in any application that virgin plastic is used. The ISCC PLUS certification helps us to accelerate our progress as an industry leader in the production and marketing of recycled and renewable-based polymers."

LyondellBasell secured the certification for its crackers in Channelview, Texas and its polymer sites in Lake Charles, Louisiana; La Porte, Texas; and Clinton, Iowa. The company plans to broaden the ISCC PLUS certification to its other North American polymer plants.

The ISCC PLUS certification is part of the company's multi-pronged approach to help advance the circular economy. In addition, LyondellBasell continues to develop its own proprietary advanced (molecular) recycling technology to enable a more efficient chemical conversion process and use less energy than other technologies.

As MRC reported earlier, LyondellBasell said in early August it was restarting the polymers and olefins units at its La Porte, Texas, facility following an acetic acid leak on 27 July, 2021, that killed two people. Both units are located in other parts of the La Porte site.

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.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

PPG appoints Tikkurila executive for EMEA operations

PPG appoints Tikkurila executive for EMEA operations

MOSCOW (MRC) -- PPG Industries Inc. (PPG) has announced the appointment of Meri Vainikka as vice president, architectural coatings (AC), Europe, Middle East and Africa (EMEA), north and east, effective immediately, as per the company's press release.

She will report to Tim Knavish, PPG executive vice president.

In this key leadership role, Vainikka will have full accountability for the AC EMEA north and east region, which includes the Tikkurila legacy business. She will work closely with the Tikkurila integration team to ensure an ongoing, effective transition over the coming months.

Vainikka joined Tikkurila in January 2017 as director, marketing communications. She was appointed senior vice president, offering in May 2017. In this role, she led strategic marketing, product management, and research and development (R&D) for the business.

As MRC reported earlier, in June 2021, PPG announced an expansion of its coatings manufacturing capacity in Europe for packaging applications. The investments at sites in The Netherlands and Poland will support growing customer demand in the region for the latest generation of coatings for aluminum and steel cans used in packaging for beverage, food and personal care items. The projects include a further expansion of the company’s location in Tiel, The Netherlands, which will increase the plant’s production capacity for PPG INNOVEL non-BPA internal coatings for beverage cans by 30%. Expected to be completed in the first quarter of 2022, the project follows a 50% expansion completed at the end of 2020.

BPA is the main feedstock for the production of polycarbonate (PC).

According to MRC's ScanPlast report, Russia's overall estimated consumption of polycarbonate (PC) granules in the Russian market were almost 56,000 tonnes in January-July 2021, down by 3% year on year (58,000 tonnes).
MRC

SK Global Chemical rebrands to SK Geo Centric in line with its strategy to be focused on recycling and eco-friendly materials

SK Global Chemical rebrands to SK Geo Centric in line with its strategy to be focused on recycling and eco-friendly materials

MOSCOW (MRC) -- Korea’s SK Global Chemical has changed its name to SK Geo Centric with effect from Sep. 1 as it adopts a strategy centered on recycling and eco-friendly materials, according to CHEManager.

“The plastic waste problem could turn into an opportunity. We will grow into the world’s largest urban oilfield company that converts plastic waste back into oil,” said SK Geo Centric CEO Na Kyung-soo.

The company’s primary goal is to establish facilities to process 900,000 t/y of plastic waste, which is equal to its annual domestic plastic production, by 2025, ramping up to 2.5 million t/y by 2027. It plans to invest about 5 trillion Korean won by 2025, both in South Korea and internationally, which will also include expanding capacity for green materials.

In addition, the Seoul-based group proposes to recycle 2.5 million t/y of plastic waste. It has signed Memoranda of Understanding with undisclosed domestic and international partners while it develops its own pyrolysis post-processing technology. Based on collaborations with overseas partners that own chemical recycling technologies such as solvent extraction, depolymerization and pyrolysis, SK Geo Centric intends to invest in plants both within and outside South Korea.

Besides, by working with the South Korean government and SMEs throughout the recycling chain, the company said it will build a recycling cluster that can process PE, PP, PET and complex materials.

“The plastic recycling market will grow by 12% by 2030, and the plastic waste market size is expected to reach 600 trillion Korean won by 2050. This implies that there is much room for growth,” said Na. “In the year 2025, we will create 600 billion Korean won in EBITDA from the eco-friendly and recycling sector to offset existing businesses, and also become a completely green company, even from a financial standpoint.”

SK Geo Centric will also increase production of eco-friendly materials from 500,000 t/y to 1.9 million t/y by 2025, and use bio-oil and pyrolysis oil in its plastics production rather than petroleum-based raw materials.

We remind that, as MRC reported before, South Korea's SK Innovation Co Ltd said in August, 2021, iit is considering spinning off and listing its growing battery business, taking a page out of rival LG Chem Ltd's playbook that is on track to list its battery unit this year. The move, announced by SK Innovation CEO Kim Jun earlier this year, comes as demand for electric vehicles (EVs) surges and carmakers partner with battery makers to ensure uninterrupted supplies.

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