Shell restarting chemical facility in Geismar

Shell restarting chemical facility in Geismar

MOSCOW (MRC) - Royal Dutch Shell, the largest oil producer in the US Gulf of Mexico, said on Monday its Geismar chemical facility in Louisiana is restarting, two weeks after Hurricane Ida forced it shut, reported Reuters.

“The site continues to experience utility and feedstock constraints but has resumed loading capabilities and shipping product,” the company said in a statement.

The Norco to Kenner pipeline, which carries gasoline, diesel and jet fuel to the Shell terminal at the Louis Armstrong International Airport in New Orleans, has also been returned to service.

Shell’s Appomattox, Enchilada/Salsa, and Auger platforms continue to ramp up production, while its Mars, Ursa, and Olympus assets remain shut in, the company said. Meanwhile, damage assessments continued at the Shell Pipeline-operated West Delta-143 offshore facility.

As MRC wrote previously, 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.

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.
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TotalEnergies to keep its Port Arthur FCC shut for repairs until late September

TotalEnergies to keep its Port Arthur FCC shut for repairs until late September

MOSCOW (MRC) -- The gasoline-producing fluidic catalytic cracker (FCC) is expected to remain shut until the end of September at TotalEnergies SE’s 225,500-barrel-per-day (bpd) Port Arthur, Texas, refinery, reported Reuters with reference to sources familiar with plant operations.

Most units at the refinery remain shut following an unplanned plantwide outage on Thursday, one day before the large crude distillation unit (CDU) and coker were scheduled to shut for a planned overhaul, the sources said. The overhaul began over the weekend.

The only unit operating on Monday was a 35,000-bpd reformer, which converts refining byproducts into octane-boosting components added to unfinished gasoline.

Total did not reply to a request for comment on Monday.

Thursday's plantwide outage began with the shutdown of the 76,000-bpd FCC due to a worsening leak on a boiler. The FCC's shutdown cut off steam supply to the refinery, forcing the shutdown of the 60,000-bpd coker along with the 40,000-bpd ACU-2 crude distillation unit (CDU) and 51,000-bpd vacuum distillation unit 1 (VDU-1).

A leak then set off a small fire that was quickly extinguished on the 150,000-bpd ACU-1 CDU. So it and the 60,000-bpd VDU-2 were shut.

ACU-1, VDU-2 and the coker were scheduled to shut down on Friday for the overhaul planned to last about two months. The extensive overhaul is done every five years.

The FCC was previously shut for five days beginning Aug. 19 for repairs following a small fire.

As MRC informed previously, in June 2021, TotalEnergies and Novatek have 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

Indian MRPL signs six-month diesel export deal with BP

Indian  MRPL signs six-month diesel export deal with BP

MOSCOW (MRC) -- Indian refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) has signed a six-month deal to supply BP with 80,000 tons of diesel per month from October, said two trade sources close to the matter, said Reuters.

MRPL will supply diesel to BP for the Australian market at a premium of about USD1.40 a tonne for the six months, the sources said, with pricing based on the average of Argus and Platts' Mideast Gulf spot assessments of 10ppm sulphur gasoil.

The Indian refiner previously had a similar deal with trader Vitol for supplies over April-September this year, they added.

India's diesel demand has yet to reach pre-pandemic levels, though gasoline consumption is expected to surge to its highest in 2021/22 as people eschew public transport, preferring to use their own vehicles for safety reasons.

A rise in gasoline production is leading to surplus production of gasoil, which refiners are exporting. MRPL declined to comment on the deal while BP said it does not comment on its commercial activities.

As MRC informed before, in June 2015, MRPL successfully commenced commercial production of PP from its polypropylene plant as part of its phase-III refinery expansion and upgradation project in Mangaluru. The plant has a capacity to produce 4,40,000 tonnes of PP per annum. Feedstock for the PP plant - polymer grade propylene - is being produced from upstream petrochemical fluidised catalytic cracking unit of the refinery. Technology provider for the PP plant is Novolen of Germany. The plant has been engineered and constructed by Engineers India Ltd.

According to MRC's ScanPlast report, Russia's 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.

Mangalore Refinery and Petrochemicals Limited (MRPL), is an oil refinery at Mangalore and is a subsidiary of ONGC, set up in 1993. The refinery is located at Katipalla, north from centre of Mangalore city. The refinery was established after displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi.
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Borealis tests renewably-sourced feedstock at its cracker in Sweden

Borealis tests renewably-sourced feedstock at its cracker in Sweden

MOSCOW (MRC) -- The Borealis cracker in Stenungsund, Sweden, is carrying out its first test run of a feedstock derived solely from vegetable-based waste streams, as per the company's press release.

The test, which will be carried out throughout the month of September, should determine the extent to which this renewably-sourced feedstock can serve as a replacement for fossil fuel-based feedstocks. Renewable feedstocks form the foundation of , the Borealis portfolio of premium circular polyolefins. Being able to offer a viable alternative to conventional feedstocks will not only reduce the Stenungsund plant’s overall CO2 footprint, but also help Borealis customers maintain high product quality while meeting their own sustainability goals.

Crackers are plants that create the building blocks for the petrochemical industry. They perform the first step in producing resins and plastics. Crackers have traditionally “cracked,” or broken down, fossil fuel-based materials such as ethane and naphtha. But if they could also break down materials derived from renewable resources, crackers could become a crucial link in the industry transformation to greater circularity and sustainability. A successful pilot test would enable the Stenungsund cracker, already one of the most modern and flexible in Europe, to point the way towards more climate-neutral operations.

The September pilot will test volumes of around 1,000 tons of renewable feedstock. Testing should gauge any possible adverse effects on the cracker ovens. Another aspect is whether production timetables can be maintained, and if more frequent cleaning intervals are required. While the test quantity is small compared to the 1.5 million tons of conventional feedstock processed here each year, satisfactory results will enable the Stenungsund plant to gradually increase the share of renewable feedstocks in the mix. Importantly, the renewable feedstock used in the pilot boasts even greater sustainability because it is sourced exclusively from waste and residue streams - and not from crops grown for food and livestock feed.

Renewable feedstocks form the foundation of the Bornewables, a portfolio of circular polyolefins which offers the same material performance as virgin polyolefins, but with a lower carbon footprint. The Bornewables can be used for a wide range of applications across diverse sectors, including food packaging and hygiene. The entire Bornewables portfolio has received ISCC (International Sustainability & Carbon Certification) certification, meaning the traceability of the renewable, sustainably produced feedstock from its point of origin through the entire chain of custody is assured. Launched in 2020, the Bornewables portfolio is a powerful example of the ways in which Borealis is using its approach to put technology and innovation in the service of circularity.

As MRC reported earlier, in April 2021, Borealis commenced a new project to secure an increased supply of chemically recycled feedstock for the production of more circular base chemicals and polyolefin-based products. A feasibility study for a chemical recycling unit to be established at the Borealis production location in Stenungsund, Sweden, has been underway since then.

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.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala.
MRC

COVID-19 - News digest as of 14.09.2021

1. COVID-19 resurgence delays full oil demand recovery

MOSCOW (MRC) -- US petroleum consumption has recovered to pre-pandemic levels, but there has been a marked shift from consumer-facing sectors towards industry and freight transportation, mirroring the uneven economic recovery, reported Reuters. The total volume of petroleum products supplied to domestic customers climbed to 20.1 million barrels per day (bpd) in May, according to the Energy Information Administration. Volumes were down by less than 300,000 bpd (1.4%) from the same month in 2019, before the COVID-19 pandemic, and were actually 200,000 bpd (1.1%) above the pre-pandemic five-year average for 2015-2019.


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