Neste renewable hydrocarbons cut carbon footprint by more than 85%

MOSCOW (MRC) -- Neste recently conducted a life cycle assessment (LCA) study on the environmental impacts of the usage of its 100% renewable feedstock, Neste RE, said Hydrocarbonprocessing.

It shows a greenhouse gas (GHG) emission reduction of more than 85% over the life cycle when Neste RE was used to replace conventional fossil feedstock in the chemical and polymers industry. The study thereby confirms the results from earlier studies on Neste’s feedstock for the polymers industry.

The study followed a “cradle-to-gate” approach, taking into account the renewable raw materials used, the refining process based on Neste’s NEXBTL technology, all transportation steps along the value chain, as well as end-of-life emissions. The LCA study and its results were reviewed by an external panel of experts from VTT Technical Research Centre of Finland Ltd, Quantis GmbH and Aequilibria Srl-SB.

Compared with fossil feedstock, Neste RE’s GHG emissions are more than 85% smaller, corresponding to a carbon footprint of 0.45kg CO2-equivalent per kg of Neste RE. The study also concludes that fossil resource depletion is reduced by more than 85% when virgin fossil feedstock is switched to Neste RE.

As a concrete example, the study also evaluated the impact on the product’s environmental performance when Neste RE is used in the production of polypropylene, a common polymer used in various everyday applications such as cars, fashion, electronics and food packaging. For this particular polymer, the GHG emission reduction over the life cycle of the product is more than 80%, taking into account not only the life cycle emissions of Neste RE, but also the processing of Neste RE into renewable polypropylene plastic. This corresponds to a carbon footprint of 0.90kg CO2-equivalent per kg of renewable polypropylene, resulting in significant potential for the global polypropylene industry to contribute to GHG savings. Fossil resource depletion is reduced by more than 75% in the production of renewable polypropylene.

“The study provides clear confirmation of the positive impact provided by Neste RE feedstock. It underpins the potential for polymers manufacturers and brands to achieve their climate goals. Considering Neste RE is available here and now, it is a solution which supports reaching even ambitious goals already in the short and medium term”, says Maiju Helin, Head of Stakeholder Management from Neste’s Renewable Polymers and Chemicals business unit.

Renewable Neste RE is produced primarily from waste and residue oils and fats of renewable origin, such as used cooking oil. Neste RE can also be produced from chemically recycled waste plastics. Polymers produced from Neste RE have the same high quality as those made from conventional fossil feedstock, and are safe to use, even in sensitive applications in the healthcare, toy and food industries, among others. Neste RE can be used on its own or in a blend with fossil feedstock. It is a drop-in solution suitable for the existing production infrastructure.

We remind that in July, 2021, Finnish Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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.

Neste (Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company is the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. In 2020, Neste's revenue stood at EUR11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products.

MRC

US Government asks oil-and-gas companies to help lower fuel costs

US Government asks oil-and-gas companies to help lower fuel costs

MOSCOW (MRC) -- The White House has been speaking with U.S. oil and gas producers in recent days about helping to bring down rising fuel costs, according to two sources familiar with the matter, said Hydrocarbonprocessing.

Energy costs are rising worldwide, in some cases leading to shortages in major economies like China and India. In the United States, the average retail cost of a gallon of gas is at a seven-year high, and winter fuel costs are expected to surge, according to the U.S. Energy Department. Oil-and-gas production remains below the nation's peak reached in 2019.

"We are closely monitoring the cost of oil and the cost of gas Americans are paying at the pump. And we are using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets," a White House official said, without addressing whether it has been in touch with the industry.

U.S. crude oil recently hit $80 a barrel for the first time in seven years, as the Organization of the Petroleum Exporting Countries and their allies known as OPEC+ restrict output. The average retail price of a gallon of gasoline has risen to USD3.29, according to AAA figures. The U.S. Energy Department said on Wednesday that household heating costs are expected to rise dramatically this winter for all fuels, but particularly for heating oil and propane.

U.S. oil production has been slow to rebound from 2020, when output dropped during the coronavirus outbreak. Production hit a record of nearly 13 million barrels per day (bpd) in late 2019, but the U.S. Energy Department said Wednesday that output will only average 11 million bpd in 2021, rising to 11.7 million bpd in 2022. Natural gas prices are up sharply this year, the result of supply shortages and stronger-than-expected demand in Europe and Asia.

President Joe Biden's administration has been conducting internal discussions about rising fuel costs, one of the two sources added. U.S. shale producers, who are responsible for the boom in crude oil output in the last 10 years, have been less willing to drill for more oil after years of weak financial performance, and have instead focused on cutting spending to boost returns for investors.

As per MRC, ExxonMobil Synthetics (ExxonMobil) announced it is responding to customer needs and has confirmed plant feasibility to significantly increasing high viscosity metallocene polyalphaolefin (High Viscosity mPAO) synthetic base stock production. The demonstration of higher production capability is a result of a successful plant trial and planned subsequent expansion of the Baytown manufacturing facility in Texas, USA that has been serving customers for 100 years. This resulted in a proven run rate of approximately 20% over design basis and would move the capacity to 60 kilo-tons of High Viscosity mPAO production per year for the plant.

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

KBR awarded nitric acid technology contract by Hanwha

KBR awarded nitric acid technology contract by Hanwha

MOSCOW (MRC) -- Global engineering firm KBR announced it has been awarded a dual-pressure nitric acid technology contract by Hanwha Corporation for its new plant at Yeosu, South Korea, said the company.

Under the terms of the contract, KBR will provide license, basic engineering design and technical support to Hanwha for a 1,200 tonne/day dual-pressure nitric acid plant. Nitric acid is an intermediate chemical used to produce various products including fertilizers, plastics and dyes.

"KBR is proud to be selected by Hanwha to deliver our leading dual-pressure nitric acid technology that offers tangible CAPEX and OPEX benefits, including reduced net energy consumption through efficient energy recovery," said Doug Kelly, KBR president, Technology.

"This contract highlights KBR's continued commitment to bringing energy-efficient sustainable technologies to the industry."

As MRC reported earlier, in July 2021, KBR was awarded technology licensing contracts by PKN Orlen for KBR's leading Solvent Deasphalting (SDA) and Residue Fluid Catalytic Cracking (RFCC) technologies as part of PKN's Bottom-of-the-Barrel project for its Plock Refinery in Poland.

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.

Since 1954, KBR said it has licensed 76 grassroot nitric acid plants globally.

Gazprom Neft may raise its oil output by 10% in 2022

Gazprom Neft may raise its oil output by 10% in 2022

MOSCOW (MRC) -- Gazprom Neft could increase oil production in 2020 by 10% year on year, reported S&P Global with reference to CEO Alexander Dyukov's statement on Oct. 14.

Dyukov previously said the company was seeking to push hydrocarbons output to 100 million mt in 2021 even if oil production limitations under the OPEC+ pact remained in place, from 96.1 million mt in 2020.

"Considering that next year demand for oil may continue to grow, next year we could increase production by 10%, maybe more, but it will depend on quotas set by the ministry," Dyukov said during the Russian Energy Week conference in Moscow.

He expressed hope that oil prices would not reach USD100/b, but that "everything was possible."

Gazprom Neft, like other Russian producers, is subject to quotas under the OPEC+ agreement.

In accordance with OPEC+ efforts to counter the impact of the coronavirus pandemic, the company cut oil output to about 1.06 million b/d in May 2020, compared to 1.33 million b/d in April 2020, when the deal was not yet in effect, according to the energy ministry's data.

As MRC informed earlier, in August, 2021, Gazprom Neft redeemed BO-01 and BO-04 series bonds ahead of schedule on 24 August. Bonds were repaid ahead of schedule at the outstanding part of the par value, while the coupon yield was paid for the coupon period, on the date of payment of which the securities are repaid ahead of schedule. Bond issues with a total par value of Rb15 bln. were placed in 2016 with maturity in 2046.

Gazprom Neft (headquartered in St. Petersburg, part of Gazprom, which owns 95.68% of its shares) is one of the largest Russian oil companies. In 2015, Gazprom Neft remained one of the leaders in the oil industry in terms of key performance indicators - the level of operating profit and return on invested capital. In 2015, Gazprom Neft produced 79.7 mln tonnes of hydrocarbons, increasing production by more than 20% compared to 2014 and thus achieving the highest production growth in the Russian oil industry.

Gazpromneft - Moscow Oil Refinery is a subsidiary of Gazprom Neft. The plant's production capacity is 12.15 mln tonnes/year of hydrocarbons. The company produces motor gasolines, diesel, marine and aviation fuel, fuel oil, high-octane additives to motor gasoline, bitumen and gases for various purposes, as well as polypropylene (PP). And in 2010, Moscow Oil Refinery and SIBUR created a joint venture for PP production - NPP Neftekhimiya LLC.
MRC

Ukrainian PE imports down by 4% in Jan-Sep 2021

MOSCOW (MRC) -- Overall polyethylene (PE) imports to the Ukrainian market dropped in the first nine months of 2021 by 4% year on year to 196,600 tonnes. Imports of all PE grades decreased, with few exceptions, according to MRC's DataScope report.

Last month's PE imports to Ukraine were 25,500 tonnes versus 25,900 tonnes in August, local companies reduced their purchasing of low density polyethylene (LDPE) and high density polyethylene (HDPE). Thus, overall PE imports reached 196,600 tonnes in January-September 2021, compared to 204,200 tonnes a year earlier. Imports of all PE grades decreased, except for ethylene copolymers, with HDPE accounting for the greatest reduction in shipments.

The supply structure by PE grades looked the following way over the stated period.


Last month's HDPE imports fell to 7,300 tonnes from 8,000 tonnes, shipments of polyethylene for extrusion blow moulding (EBM) decreased. Overall HDPE imports totalled 62,700 tonnes in the first nine months of 2021 versus 73,400 tonnes a year earlier.

September LDPE imports were 7,300 tonnes versus 8,300 tonnes a month earlier, Ukrainian companies faced limited purchases of PE in Azerbaijan and Russia. Overall LDPE imports reached 59,700 tonnes in January-September 2021, down by 2% year on year.

Last month's imports of linear low density polyethylene (LLDPE) were 8,700 tonnes, compared to 7,300 tonnes in August, shipments of film grade LLDPE from Saudi Arabia increased. However, overall LLDPE imports were 59,500 tonnes in January-September 2021, which equalled the last year's figure.

Imports of other PE grades, including ethylene-vinyl-acetate (EVA), totalled 14,700 tonnes over the stated period, compared to 10,600 tonnes a year earlier.

MRC