SK and Monolith sign MoU to produce green hydrogen, carbon black in South Korea

MOSCOW (MRC) -- SK Inc has signed an agreement with US-based green hydrogen company Monolith Materials to create a joint venture for the production of clean hydrogen and carbon black products in South Korea, said Koreaherald.

According to the strategic investment arm of the country’s third-largest conglomerate, the joint venture will produce hydrogen and carbon black products. The US hydrogen maker will provide necessary technology while SK Inc. will be in charge of production, sales and distribution.

Though hydrogen itself is colorless, it is given different color descriptors based on its source and production method. Just like blue hydrogen, turquoise hydrogen is produced by breaking natural gas into hydrogen and carbon. The major difference is, carbon is generated in a solid state during the production of turquoise hydrogen, not in a gaseous state during that of blue hydrogen.

Because turquoise hydrogen doesn’t emit carbon, some classify it as green hydrogen. Also, turquoise hydrogen is relatively cheaper than blue hydrogen, because it doesn’t require carbon capture and storage facilities.

"Solid carbon can be processed into carbon black, the main component of tires and mechanical rubber goods," an SK Inc. official said.

The official added that SK Inc. aims to further utilize the solid carbon as raw materials for electric vehicle batteries. The company plans to begin a research and development project to verify whether the solid carbon can be used for anodes inside EV batteries. Anodes, made of graphite, are one of the four key components of EV batteries, including cathodes, separators and electrolytes.

As per MRC, SK Inc has led an investment round to help US-based green hydrogen company Monolith Materials expand its operations. The investment will support expansion of Monolith’s green hydrogen production facility in Nebraska and further SK’s strategy to make carbon-neutral energy accessible to global markets as part of a commitment to Environmental, Social and Corporate Governance (ESG) management practices.

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.

SK Global Chemical is a division of SK Group, Korea's first refinery in operation for over 50 years. SK Group has more than 70 thousand employees working in 113 offices around the world. Its largest enterprises produce mainly petrochemical products.
MRC

MOSCOW (MRC) -- Repsol has raised its renewable energy target to 6 gigawatts by 2025 and 20GW by 2030 as part of a wider strategy update on its path to become a zero emissions energy company by mid-century, according to Upstream.

The Spanish oil and gas company previously had aimed for 5.2GW of renewables by 2025 and 12.7GW by 2030.

“The upgrade of our targets demonstrates the solid progress the company is making towards becoming carbon neutral by 2050," chief executive Josu Jon Imaz told analysts and investors.

"Ambition, technology, and project execution are enabling us to increase the speed at which we will achieve this target.”

Repsol currently has 1.1GW of wind and solar power in operation in Spain and Chile, and a 11.7GW pipeline of renewable projects, also in the US and other countries.

The company is “large enough” to become a leading player in the energy transition, but “small enough in the (oil and gas) universe to feasibly transform the portfolio with attractive opportunities,” Repsol said in a presentation as part of its ‘low carbon day’.

Repsol also has stepped up its ambition for the production of green hydrogen by 40% to 0.55GW in net electrolyser capacity by 2025, and by 60% to 1.9GW in net electrolyser capacity by 2030.

The new green energy goals are expected to help Repsol reach its planned emissions reduction faster.

The company has announced an absolute emission reduction target for the first time. It is committed to reducing 55% of emissions from operated assets (Scope 1 and 2) and 30% of net emissions (Scope 1, 2, and 3) by 2030.

Repsol’s faster build-up of renewables and green hydrogen capacity is also reflected in its investment plan. The company has earmarked EUR6.5 billion (USD7.5 billion) in spending into its low carbon businesses in the 2021 to 2025 period, EUR1 billion more than previously planned.

As MRC informed earlier, the “Cracker of the Future” consortium has announced two new member companies: Repsol and Versalis (Eni) have recently joined the consortium.

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.

Repsol is headquartered in Madrid, Spain. In the 2020 Forbes Global 2000, Repsol was ranked as the 645th-largest public company in the world. It has more than 24,000 employees worldwide.
MRC

MOSCOW (MRC) -- Worley has been awarded a services contract for a residue upgrade project at Aramco’s Ras Tanura refinery, as per Worley's press release.

The project will convert low-value refinery residue into higher-value products including gasoline, jet fuel and ultra-low sulfur diesel.

Under the contract, Worley will provide early front-end engineering design (pre-FEED), front-end engineering design (FEED) and project management services for the entire project. These services cover upgrades to the atmospheric and vacuum gas oil from the crude distillation unit, and an upgrade to the atmospheric gas oil from the Khuff condensate unit.

Advisian, Worley’s consulting business, led the front-end conceptual studies evaluating multiple process configurations. This included the development of cost estimates for possible options, integration of technology licensors, and optimization of existing brownfield assets.

“Worley has a long-standing relationship with Aramco and this important project builds on our extensive experience at the Ras Tanura refinery,” said Mark Brantley, President of Europe, Middle East and Africa at Worley. “We will combine our global refining and in-kingdom engineering and project management expertise to continue delivering sustainable operations to Aramco, while also remaining committed to upskilling our Saudi workforce.”

As MRC wrote before, Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), said in June 2021 that he expects the company's deal with Saudi Aramco to materialise this year. RIL had in 2019 announced its interest to sell 20% stake in the company’s flagship chemicals and refining business to Saudi Aramco in a deal valued at USD15 billion. Last fiscal, RIL carved out its oil-to-chemicals business into a separate entity, to facilitate on boarding of strategic partners like Aramco.

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.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

MOSCOW (MRC) -- Britain threw refiner Essar Oil UK a lifeline with a phased tax payment deal, allowing it to keep producing just as the country struggles with motorists draining petrol stations in a panic-driven buying frenzy, said Hydrocarbonprocessing.

Essar Oil (EOUK), which runs the 200,000 barrel-per-day Stanlow refinery, had been in talks with HM Revenues & Customs (HMRC) over extending a January deadline to repay hundreds of millions of pounds in deferred taxes. "With this time to pay arrangement, we now have significant runway to stabilise our balance sheet which has been adversely impacted by the pandemic," EOUK's Chief Financial Officer Satish Vasooja said in a statement.

Britain, which is preparing to hold the COP26 global climate summit in Glasgow in November, has seen drivers snarled in queues to fill their tanks and dozens of forecourts closed, with fuel prices reaching record levels. "The improved environment around margins gives us the confidence to continue to serve as one of the UK key fuel suppliers with a 16% market share," Vasooja added.

A post-Brexit shortage of truck drivers, exacerbated by a halt to truck-driving-licence testing during COVID lockdowns and people leaving the haulage industry, has sown chaos through supply chains, raising the spectre of shortages and price rises.

Essar Oil has said it still needed to pay 223 million pounds ($305 million) to HMRC by January. It said the new deal with HMRC was designed to fit with its revenues.

"Road fuel sales volumes from EOUK’s Stanlow, Northampton and Kingsbury terminals over the last weekend (25—26 September) were up 22% against a "normal" weekend (pre-Covid)," Essar said as many petrol stations saw long queues.

As per MRC, Essar Oil (UK) Ltd resumed a cracking unit at its Stanlow facility, which had previously been shut down due to a power outage. This cracking unit with a capacity of 45,000 tonnes of ethylene and 165,000 tonnes of propylene was shut down on 11 September, 2019 due to a power failure.

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.
MRC

MOSCOW (MRC) -- Saudi Aramco has allocated full-term crude volumes to most Asia-Pacific refiners, with some buyers seeking incremental volumes to take advantage of the recent sharp cuts in official selling prices, sources at refineries in China, Japan, Malaysia and India told S&P Global Oct. 11.

Refiners in the region are expecting to receive full-term nominations following a cut in official selling prices as well as producers adding more crude supplies to the market, the sources said.

"Demand increase versus incremental, if Saudi and AG producers give enough to cover demand increase, market wont get support (and) vice versa," a crude oil trader in Singapore said.

Earlier this month, OPEC and its allies stuck to their original plan to increase crude oil production in November by just 400,000 b/d at the Oct. 4 meeting.

Oil prices have been on the rise amid stronger winter season demand, further boosted by spiralling gas and coal prices.

Though full allocations could sap spot appetite, stronger demand from key economies such as China, Japan and India may sustain momentum when trade commences this month, trade sources said.

"Saudi allocation will keep the spot market in a reasonable range, but the risk is demand, such as RongSheng tender, demand maybe very good this month," another crude oil trader in Singapore said.

As MRC reported earlier, Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), said in June 2021 he expects the company's deal with Saudi Aramco to materialise this year. Meanwhile, Yasir Al-Rumayyan, chairman of Saudi Aramco and the Governor of the Public Investment Fund, joined the board of Reliance as an independent director.

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.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC