COVID-19 - News digest as of 05.10.2021

1. Repsol produces renewable hydrogen from biomethane in Spain

MOSCOW (MRC) -- Repsol has produced its first renewable hydrogen derived from biomethane at its Cartagena, Spain, refinery complex, said the company. In a major milestone for the clean fuel economy, Repsol has produced renewable hydrogen using biomethane as a raw material in Cartagena, Spain – and the company says it is a world first. Announcing its achievement today (Oct 4), Repsol said the produced ten tonnes of hydrogen, made from 500MWh of biomethane, has been used to manufacturer low-carbon fuels. Part of Repsol’s effort to utilise state-of-the-art technologies to transform waste into products with high value, the effort is believed to have prevented approximately 90 tonnes of CO2 into the atmosphere.

MRC

Poliom shut PP production

Poliom shut PP production
MOSCOW (MRC) -- Poliom (joint venture of SIBUR and Gazprom Neft) shut down its polypropylene (PP) production for a scheduled turnaround, according to ICIS-MRC Price report.

According to the company's customers, the Omsk producer has shut production on 4 October to carry out scheduled maintenance works. The outage will be short and will take a little less than two weeks.

The plant's annual production capacity is 230,000 tonnes.

It is also worth noting that Stavrolen intends to shut PP production from 22 October for turnaround for 26 days.
The plant's annual production capacity is 120,000 tonnes.

Poliom, one of the largest PP producers in Russia, started its operations in 2013. Poliom was formed as a joint venture of such companies, as Gazprom Neft (25%), SIBUR (25%) and the Titan Group of Companies (50%), in 2014. In July 2019, SIBUR and Gazprom Neft consolidated 100% of the authorized capital of Poliom LLC.
The range of manufactured products is about 100 PP grades. The propane-propylene fraction, which comes from the Omsk Oil Refinery Gazprom Neft, is the main feedstock for the plant's production. SIBUR provides distribution of finished products in the market of the Russian Federation and the CIS countries. The plant is certified according to international standards. The best developments and technologies are used at Poliom to ensure a zero-waste production cycle.
MRC

SIBUR completes merger with TAIF

SIBUR completes merger with TAIF

MOSCOW (MRC) -- Russian petrochemical companies Sibur International and TAIF Group have finalised a deal to merge and create the largest petrochemical company in the country and one of the biggest in the world, said Interfax.

"Under the agreement, TAIF shareholders will receive a 15% stake in the new combined company in exchange for 50% plus 1 share in JSC TAIF. To ensure faster integration and higher efficiency of the combined entity’s operations and investment program, the parties have agreed on an early exercise of an option for the remaining stake of TAIF’s shareholders," said a statement released by both companies.

Following the completion of all ongoing investment projects, the new combined company will be among the top five producers of polyolefin and rubber globally. The company’s investment program will yield further growth of chemical non-commodity exports and import substitution, and also unlock new ways of tackling sustainability and environmental challenges.

The deal brings together the two companies’ expertise in major investment projects and facilitates efficient distribution of feedstock, which will boost the Russian Republic of Tatarstan’s petrochemical cluster and pave the way for new partnerships.

JSC TAIF is the parent company of the largest private group in Russia. Its key business lines include oil refining and gas processing, chemicals and petrochemicals, energy, and investments. Its chemical and petrochemical product portfolio comprises 581 commodities, with around 40% of products exported.

In Russia, TAIF Group is one of the biggest plastics and rubber producers as well as being the world’s biggest isoprene rubber producer.

Dmitry Konov, Chairman of the Management Board at Sibur Holding, said: "This combination of industry leaders represents a significant step in the evolution of the Russian petrochemical sector. We are combining our competencies, energy and ambition to lay the groundwork for what is sure to become a global leader."

Ruslan Shigabutdinov, General Director of JSC TAIF, added: "Today the TAIF Group is entering a new stage of its development. The combination of our petrochemical businesses with Sibur will enable the new company to assert its leadership in the global market and become a top-5 global petrochemical producer."

Earlier it was reported that the European Commission approved the deal on 1 October.

As MRC reported, on 23 April this year, SIBUR announced a merger with TAIF by exchanging 15% of its shares for 50% + 1 share in TAIF. The scope of the transaction includes only TAIF's petrochemical and generating companies. TAIF together with SIBUR will spend more than 1 trillion rubles. for the implementation of joint projects. In total, the companies plan to implement over 30 projects.

TAIF JSC is the parent company of the largest non-public group in the Russian Federation. The group's netted revenue over the past 12 months amounted to more than RUB 720 billion. TAIF plans to enter the production of commercial products in the amount of more than 1.7 trillion rubles by 2035. per year, for this planned investment of 1.8 trillion rubles. for the next 15 years.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.) .
MRC

Irkutsk Polymer Plant installed the last unit of large-sized heavy equipment

Irkutsk Polymer Plant installed the last unit of large-sized heavy equipment

MOSCOW (MRC) - The Irkutsk Polymer Plant (IZP, Irkutsk Oil Company project, INK) has installed the last unit of large-sized heavy equipment (KTO) at the polyethylene production site, the company said.

The specialists raised and installed a 500-ton blowing hopper at a height of 60 m, in a special metal frame for collecting blowing products. In total, 44 units were installed at the construction site, which were delivered to Ust-Kut in the fall of 2020 from the port of South Korea.

Work on preparation for the installation of the bunker lasted more than two months at the IZP. In total, specialists assembled 500 tons of metal structures. The base of the frame is fixed on a reinforced concrete foundation 17 m high. Two cranes with a lifting capacity of 1600 and 750 tonnes were used to install the bunker.

"The main technically difficult part of the work has been completed. Currently, large-tonnage crane equipment is being dismantled in order to open further work fronts. The work done is one of the key ones this year," said Alexander Dyadkin, deputy director of IZP.

In August, the heaviest piece of equipment was installed at the construction site - a polymerization reactor, the weight of which is about 530 tonnes, and the height is over 40 m. The reactor was also installed vertically on the foundation using two cranes. The editing took eight hours. One of the largest units was also installed - a deethanizer, more than 80 m long and weighing more than 350 tonnes. Work on the installation of large-sized heavy-weight equipment at the Irkutsk Polymer Plant began in June 2021 and proceeded in accordance with the established schedule.

Irkutsk Oil Company is implementing the construction of a polymer plant in Ust-Kut as part of the creation of a gas chemical cluster, including facilities for the production, treatment, transportation and processing of gas. The production capacity will be 650 thousand tonnes of polyolefins per year.

The Japanese engineering company Toyo Engineering was involved in the construction of the plant, which is responsible for the design, supply of equipment and materials. The general contractor for the construction of polyethylene and ethylene plants is Gemont.

The construction site employs engineers and workers from all over Russia, as well as from Japan, Turkey, France, Holland, and the United States. The launch of the facility in the Ust-Kutsk region will create 1,600 new jobs.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Irkutsk Oil Company LLC unites companies engaged in geological exploration, exploration and production of hydrocarbons at 41 license areas in Eastern Siberia. INK's main production asset is the Yaraktinskoye field in the Irkutsk region. Nikolay Buinov is the main owner of INK through JSC INK-Capital (INKK). The European Bank for Reconstruction and Development owns 4.4% in the capital of INKK, Goldman Sachs - 3.75%.
MRC

Repsol produces renewable hydrogen from biomethane in Spain

Repsol produces renewable hydrogen from biomethane in Spain

MOSCOW (MRC) -- Repsol has produced its first renewable hydrogen derived from biomethane at its Cartagena, Spain, refinery complex, said the company.

In a major milestone for the clean fuel economy, Repsol has produced renewable hydrogen using biomethane as a raw material in Cartagena, Spain – and the company says it is a world first.

Announcing its achievement today (Oct 4), Repsol said the produced ten tonnes of hydrogen, made from 500MWh of biomethane, has been used to manufacturer low-carbon fuels.

Part of Repsol’s effort to utilise state-of-the-art technologies to transform waste into products with high value, the effort is believed to have prevented approximately 90 tonnes of CO2 into the atmosphere.

Aside from the above project, Repsol is already deploying a multitude of projects throughout the renewable hydrogen value chain, such as the developments of a 2.5MW and a 10MW electrolyser in Petronor.

Repsol has committed to installing renewable hydrogen production with a capacity of 552 megawatt equivalent by 2025 and 1.9 gigawatt equivalent by 2030 on the Iberian peninsula.

As per MRC, Maire Tecnimont S.p.A. announces that its subsidiary Tecnimont S.p.A. has been awarded a contract by Repsol for the realization of a polypropylene (PP) Unit and a linear low density polyethylene (LLDPE) unit on an EPC (Engineering Procurement and Construction) Lump Sum Turn-Key basis, as part of Repsol’s expansion of Sines Industrial Complex in Portugal.

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.

Repsol is a global multi-energy company established in Spain and listed on the Spanish Stock Exchange for 25 years. Its products are distributed in nearly 100 countries to around 24 million customers. Repsol Industrial Complex in Sines is the largest chemical site in Portugal.
MRC