Shell and QatarEnergy,agree to ljointly pursue investments in UK hydrogen projects

MOSCOW (MRC) -- QatarEnergy and Royal Dutch Shell have agreed to join forces to pursue investments in blue and green hydrogen projects in the UK that might be able to reduce carbon emissions in industrial clusters and transport sectors, with a focus on the London metropolitan area, reported S&P Global with reference to the companies' statement on Oct. 19.

This is the first hydrogen agreement between both companies, and will target "integrated and scalable opportunities," the companies said.

The agreement was signed on the sidelines of the UK Global Investment Summit, they said. The UK, which released its hydrogen strategy Aug. 17, supports both renewable '"green" production by electrolysis of water as well as fossil fuel-derived "blue" production with carbon capture and storage.

The QatarEnergy, Shell investments may include low carbon fuels and technologies, they said.

Middle East oil and gas companies are in a race with Australian peers to develop blue hydrogen, developed from natural gas, while oil majors such as Shell are bringing in global technological expertise to lower hydrogen costs.

QatarEnergy is the world's largest LNG exporter.

As MRC wrote previously, in September 2021, Japan's Mitsubishi signed a memorandum of understanding with Shell to consider producing around 165,000 mt/year of blue hydrogen near Edmonton, Canada, in the late 2020s with an eye to convert it into ammonia for exports to Japan.

We remind that Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

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

MOSCOW (MRC) -- China's August gasoline, gasoil and jet exports recovered 27.3% to 2.59 million mt in September from a 13-month low at 2.03 million mt in August, but left fewer export quotas for Q4, reported S&P Global with reference to data from the country's General Administration of Customs late Oct. 18.

The country's total exports of the three products between January and September dipped 1.5% year on year to 33.7 million mt, according to the data.

This brought the export quota availability for October-December at 3.3 million mt, suggesting a further reduction in 2021 outflows, unless new quotas are issued, sources said.

Market sources expected Chinese oil companies would suspend exporting gasoline and gasoil in November and December following a month-on-month reduction in October due to tight supply in the domestic market, while export quotas were running out.

Moreover, it was unlikely that Beijing would allocate additional quotas for the remainder of the year, leaving oil companies with little choice but to save quotas for exporting jet fuel, which face poor demand in China, sources said.

China's September gasoline exports have recovered from a 30-month low of 568,406 mt in August, to 920,000 mt in September, up by 61.9% on the month. This followed the new quota allocation in August, which enabled the refineries to resume exports. This mostly included PetroChina's refineries. But the gasoline exports were still 20.8% lower from last year's 1.16 million mt.

Gasoil outflows also recovered by 43.3% to 780,000 mt last month, from more than a six-year low of 544,480 mt in August. The exports were, however, 34.9% lower from last September at 1.2 million mt.

Despite the year-on-year fall in September exports, the total gasoline exports were still up by 1.5% to 11.79 million mt over January-September. The exports of gasoil were also 10.9% higher at 15.72 million mt over the same period. Meanwhile, the 17-month low throughput in September with higher gasoline and gasoil exports have resulted in tight supplies in domestic market, which pushed up prices.

China processed 13.7 million b/d of crude in September, extending a downward trend by edging down 0.7% from August levels, data from National Bureau of Statistics on Oct. 18.

As MRC informed earlier, China's crude oil imports fell 4.7% on the month to 10.03 million b/d in September, accrding to the latest data from the General Administration of Customs, or GAC, on Oct. 13. The reduction indicated weak momentum for imports for the rest of the year, analysts said.

We remind that China's oil consumption is likely to peak around 2026 at about 16 million barrels per day and that of natural gas by around 2040, said a top executive of Sinopec Corp. in September 2021.

We also remind that in August 2021, China Petroleum and Chemical Corp, also known as Sinopec, the world's petrochemical major, launched the first phase of the Gulei refining complex in Zhangzhou city in China’s southeastern Fujian province. The refining complex, a 50:50 joint venture between Sinopec’s Fujian Petrochemical Company Ltd and Taiwan Xuteng Investment Company Ltd, invested 27.8 billion yuan (USD4.28 billion) in the first phase. That will result in an 800,000 tonnes per annum ethylene plant, a 600,000 tonnes per annum styrene unit and seven other downstream petrochemical units, Sinopec said.

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 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) -- Overall polypropylene (PP) production in Russia increased in the first nine months of 2021 by 12% year on year to 1.537 mln tonnes. Four producers increased their output, according to MRC's ScanPlast report.

Russian producers' September PP production fell to 169,700 tonnes from 173,600 tonnes a month earlier, Ufaorgsintez shut its production for a two-week scheduled maintenance. Russia's overall PP output reached 1.537 mln tonnes in January-September 2021, compared to 1.378 tonnes a year earlier. Four out of seven producers increased their capacity utilisation, with SIBUR Tobolsk/ZapSibNeftekhim traditionally accounting for the greatest growth in the output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk/SapSibNeftekhim raised its capacity utilisation in September, the plant's production was 94,800 tonnes versus 94,500 tonnes a month earlier. Tobolsk complex's overall PP output reached 813,400 tonnes in the first nine months of 2021, up by 20% year on year.

Poliom slightly reduced its capacity utilisation last month, having produced about 17,400 tonnes of PP versus 18,100 tonnes in August. Overall, the Omsk plant produced 154,700 tonnes of PP over the stated period, up by 7% year on year.

Nizhnekamskneftekhim produced slightly less than 17,800 tonnes of propylene polymers in September versus 19,000 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer reached 165,100 tonnes in January-September 2021, compared to 164,800 tonnes a year earlier.

Tomskneftekhim produced 13,400 tonnes of propylene polymers last month, compared to 13,200 tonnes in August. The Tomsk plant's total PP output reached 114,500 tonnes over the stated period, up by 5% year on year.

Ufaorgsintez conducted a two-week scheduled turnaround in September, the plant's total PP production was 4,800 tonnes versus 11,200 tonnes a month earlier. The Ufa plant's overall output of polymer reached 88,300 tonnes in the first nine months of 2021, down by 3% year on year.

NPP Neftekhimiya (Kapotnya) produced 10,400 tonnes last month, compared to 12,400 tonnes in August. The plant's overall PP output reached 111,000 tonnes over the stated period, down by 1% year on year.

Stavrolen (Lukoil) produced slightly over 11,200 tonnes of propylene polymers in September versus 9,200 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers reached 90,300 tonnes in January-September 2021, down by 16% year on year.

MRC

MOSCOW (MRC) -- His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office and Chairman of the Executive Committee of ADNOC’s Board of Directors, has launched a landmark clean energy partnership between the Abu Dhabi National Oil Company (ADNOC) and EWEC (Emirates Water and Electricity Company), according to Hydrocarbonprocessing.

The strategic partnership, which is the largest of its kind in the oil and gas industry, will see up to 100% of ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources, making ADNOC the first major oil and gas company to decarbonize its power at scale through a clean power agreement and strengthening the company’s position as one of the world’s least carbon-intensive oil and gas producers.

Simultaneously, EWEC will benefit from long-term electricity offtake for its current and future renewable and clean power sources, which include solar and nuclear power, enabling continued investment in transformative innovations to decarbonize the energy sector.

This progressive approach supports the United Arab Emirates (UAE) Net Zero by 2050 Strategic Initiative and enhances ADNOC’s pathway to decarbonization while enabling sustainable future growth. It also underpins the UAE’s bold and strategic approach to enable a lower carbon future.

Commenting on the agreement, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan emphasized the importance of capitalizing on opportunities to achieve the UAE 2050 Net Zero Emissions Target.

The agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and His Excellency Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ and Chairman of EWEC.

The clean energy partnership reinforces ADNOC’s role as a leading global supplier of lower carbon oil and gas products and builds on its legacy of responsible hydrocarbon production. Murban, ADNOC’s flagship crude grade, already has a carbon intensity that is less than half the industry average, a figure that will be further improved as a result of this agreement.

Murban was made more accessible to global market participants following the start of trading of the Murban Futures Contract on ICE Futures Abu Dhabi (IFAD) earlier this yr, and is well positioned as the lowest carbon crude oil of choice for countries and refiners seeking to lower the carbon intensity of their hydrocarbon products.

On the refined products side, the new partnership will further reduce the carbon intensity of ADNOC products. For example, ADNOC is a large producer of aviation fuel, which is sold to customers both locally and globally. The new clean energy agreement will lower the carbon intensity of ADNOC’s aviation fuel, positioning it as one of the lowest carbon intensity Jet-A1 fuels available and an important enabler of ongoing decarbonization efforts in the aviation sector.

As part of the partnership, the clean energy supplied to ADNOC will be validated via I-REC Clean Energy Certificates registered by EWEC.

EWEC has a growing portfolio of renewable and clean energy projects, led by Noor Abu Dhabi, the world’s largest single-site solar power plant. Noor Abu Dhabi produces approximately 1.2 gigawatts of power resulting in a carbon footprint reduction of 1 MM metric tons per yr, which is equivalent to taking 200,000 cars off the road. EWEC is also developing the Al Dhafra Solar PV IPP project, which will be the new world’s largest single-site solar power plant, using approximately 4 MM solar panels to generate enough electricity for approximately 160,000 homes across the UAE. Upon full commercial operation, Al Dhafra Solar PV is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 MM metric tons per yr, equivalent to removing approximately 470,000 cars from the road.

The new clean energy partnership will accelerate ADNOC’s sustainability goal of decreasing its greenhouse gas (GHG) emissions intensity by 25% by 2030 and offers the potential for additional value and operational efficiencies.

As MRC wrote before, in August 2021, ADNOC partnered with Fertiglobe for the sale of blue ammonia to Idemitsu in Japan, for use in its refining and petrochemicals operations.

We remind that in June 2021, Indian refining giant Reliance Industries signed an agreement with ADNOC to build a multi-billion-dollar chemical project in Ruwais, marking the group’s first investment in a greenfield overseas project.

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.
MRC

MOSCOW (MRC) -- Reliance Industries Limited (RIL) and bp’s fuel and mobility joint venture, Reliance BP Mobility Limited (RBML), has launched its first Jio-bp branded Mobility Station at Navde, Navi Mumbai, Maharashtra, according to Hydrocarbonprocessing.

According to the Jio-bp statement, working in a challenging pandemic-affected environment, Jio-bp is bringing a network of world-class Mobility Stations offering multiple fueling choices to the customers. While reimagining mobility solutions in India, the Jio-bp brand is poised to provide an unmatched and distinctive customer experience. The existing network of over 1400 fuel pumps will be rebranded as Jio-bp, presenting a new range of customer value propositions over the coming months.

India's market for fuels and mobility is rapidly growing. It is expected to be the fastest-growing fuels market in the world over the next 20 yrs. Jio-bp Mobility Stations are designed to help meet this growing demand and are ideally located to suit customer convenience. They bring together a range of services for consumers on the move - including additivised fuels, EV charging, refreshments & food, and plan to offer more low carbon solutions over time.

The joint venture is well-positioned to become a leader in fuels and mobility by leveraging Reliance’s vast presence and deep experience in consumer businesses across India, with its hundreds of millions of customers in Jio and Reliance Retail, and bp’s extensive global experience in high-quality differentiated fuels, lubricants, convenience and advanced low carbon mobility solutions.

Instead of regular fuels, Jio-bp Mobility Stations across the country will offer additivised fuel, at no extra cost. The fuel offering will contain internationally developed ‘ACTIVE’ technology, which forms a protective layer on critical engine parts to help keep the engines clean.

Jio-bp will also set up a network of EV Charging Stations and Battery Swap Stations, at its Mobility Stations and other standalone locations - Mobility Points. The joint venture aims to become a leading EV charging infrastructure player in India.

As MRC informed before, bp expects to invest around USD2 billion in low carbon energy in 2021, rising to USD3-4 billion in 2025 and aiming for around USD5 billion in 2030. bp’s strategy aims to significantly expand its low carbon energy interests, with a target of having developed 20GW net of renewable assets by 2025 and aiming for 50GW by 2030.

We remind that RIL has taken off-stream one of its polypropylene (PP) plants in Jamnagar, India for a scheduled maintenance. Thus, this unit with an annual capacity of 400,000 tons/year of PP was shut on 5 August 2021 and remained idle for approximately one month.

According to MRC's ScanPlast report, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

bp is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. bp’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, bpP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.

Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.
MRC