TotalEnergies and Daimler Truck to jointly develop hydrogen ecosystem for transportation in Europe

TotalEnergies and Daimler Truck to jointly develop hydrogen ecosystem for transportation in Europe

MOSCOW (MRC) -- TotalEnergies and Daimler Truck AG have signed an agreement on their joint commitment to the decarbonization of the road freight in the European Union, as per Total's press release.

The partners will collaborate in the development of ecosystems for heavy-duty trucks running on hydrogen, with the intent to demonstrate the attractiveness and effectiveness of trucking powered by clean hydrogen and the ambition to play a lead role in kickstarting the rollout of hydrogen infrastructure for transportation.

The collaboration includes hydrogen sourcing and logistics, dispensing of hydrogen in service stations, development of hydrogen-based trucks, establishment of a customer base as well as other areas.

In particular, TotalEnergies has the ambition by 2030 to operate directly or indirectly up to 150 hydrogen refueling stations in Germany, the Netherlands, Belgium, Luxemburg and France.

As part of the collaboration, Daimler Truck is also to supply hydrogen-powered fuel-cell trucks to its customers in the Netherlands, Belgium, Luxemburg and France by 2025. The truck manufacturer will support its customers to ensure easy operability and highly competitive uptime.

Alexis Vovk, President Marketing & Services at TotalEnergies and member of the Executive Committee said: “Hydrogen will have its role in TotalEnergies' journey to decarbonize mobility, especially in European long-haul transportation. Our company is actively exploring all aspects of the value chain of Hydrogen for mobility, from production to supply and distribution, and is building important partnerships to this effect. We want to build a multi-energies company with the ambition to get to Net Zero by 2050, together with society. Therefore, the creation of a European network of H2 truck stations for mobility is one of the key challenges we intend to tackle. We are proud to partner with a motivated player like Daimler Truck to develop CO2-neutral truck mobility through a harmonized approach.”

In order to develop these projects and to establish hydrogen-based transportation as a viable option, both companies want to jointly investigate the means of reducing the Total Cost of Ownership (TCO) of hydrogen truck operations, in line with their common approach to work together with authorities on the regulatory framework in the European Union.

TotalEnergies is a global multi-energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables and electricity. Its 105,000 employees are committed to energy that is ever more affordable, cleaner, more 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.

As MRC informed before, with its name change from Total to TotalEnergies amid its transition from fossil fuels, the major oil company is investing more in renewables and energy storage while decreasing emissions from its natural gas business.

We remind that TotalEnergies has recently inaugurated the extension of Synova in Normandy, the French leader in recycled polypropylene production. TotalEnergies is therefore doubling its mechanical recycling production capacity for recycled polymers, to meet growing demand for sustainable polymers from customers, such as Automotive Manufacturer (Auto OEM) and the construction industry.

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

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

Shell, Baker Hughes sign collaboration agreement to accelerate energy transition

Shell, Baker Hughes sign collaboration agreement to accelerate energy transition

MOSCOW (MRC) -- Shell Global Solutions BV and energy technology company Baker Hughes have signed a broad strategic collaboration agreement to accelerate the global energy transition by helping each other achieve their respective commitments for net-zero carbon emissions and advancing solutions to decarbonize energy and industrial sectors, as per Shell's press release.

The memorandum of understanding (MoU) intends to build on the existing relationship between Shell and Baker Hughes in key areas:

- Shell will initially provide selected Baker Hughes US sites with power and renewable energy credits and the companies will negotiate renewable power for Baker Hughes’ sites in Europe and Singapore.
- Shell and Baker Hughes also agreed to broader collaboration to identify other opportunities to accelerate each other’s transition to net-zero carbon emissions by 2050, such as Baker Hughes providing low-carbon technology solutions for Shell’s LNG fleet.
- The two companies will further explore potential opportunities to co-invest and participate in new models to decarbonize energy and industrial sectors.

Harry Brekelmans, Projects & Technology director at Shell, said: “Shell and Baker Hughes both have clear ambitions to decarbonize and have already made progress through technical innovations. I’m proud of the work that has been done so far, and with this new agreement, we are taking it one step further. It will enable us - and our partners - to push the boundaries of what can be achieved and move even closer toward our net-zero targets.”

As a first step in the collaboration, the parties seek to finalize Shell’s supply of certain Baker Hughes US facilities with power and renewable energy credits for a two-year period.

In 2021, Baker Hughes’ global renewable electricity consumption was 22%, and with this agreement, it is expected to grow by 2% to 24% annually.

Shell and Baker Hughes will also negotiate supply of up to 100 GWh of renewable power for Baker Hughes facilities in Europe and explore the development of an on-site solar solution for Baker Hughes’ chemical blending plant in Singapore.

Shell and Baker Hughes will further collaborate to explore additional opportunities to help Baker Hughes accelerate its transition to net-zero carbon equivalent emissions, including Shell providing low-carbon transportation and fuel solutions for Baker Hughes.

In turn, Shell will evaluate opportunities for Baker Hughes to provide low-carbon solutions for Shell’s LNG fleet through technology upgrades and compressor re-bundles. Baker Hughes will also help Shell develop digital solutions to accelerate decarbonization across Shell’s global assets and operations.

In addition to advancing each other’s own emissions reductions, Shell and Baker Hughes will collaborate to explore opportunities to offer solutions for hard to abate industries globally.

As MRC informed earlier, 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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (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

EIA predicts crude oil prices to go down in November and through 2022

EIA predicts crude oil prices to go down in November and through 2022

MOSCOW (MRC) -- The EIA forecasts that crude oil prices will begin declining in November 2021 and will decline through 2022, according to Hydrocarbonprocessing.

We expect that the price of WTI will fall from an average of USD76/b in January 2022 to USD62/b in December and that the price of Brent will fall from USD79/b in January 2022 to USD66/b in December, said EIA.

Since the third quarter in 2020, global demand for crude oil and petroleum products has increased faster than production, which has led to inventory draws and increasing crude oil prices.

In February 2020, before the World Health Organization declared COVID-19 a pandemic, the spot price for Brent crude oil averaged USD56 per barrel and USD51/b for West Texas Intermediate (WTI). The spot prices for Brent fell to USD18/b and WTI to USD17/b in April 2020 because of the significant decline in demand caused by the pandemic.

Prices have since increased and are now above pre-pandemic levels because of returning demand and slow global oil production growth. In October, the price of Brent crude oil averaged USD84/b, and the price of WTI averaged USD81/b, the highest nominal prices since October 2014. In the EIA's November Short-Term Energy Outlook (STEO), they forecast that global liquid fuels inventories will begin building in 2022, driven by rising production from OPEC+ and the United States, which will contribute to falling crude oil prices.

The futures markets are similarly showing high prices in the near term compared with longer-dated contracts. Crude oil stock levels, among other factors, affect the relationship between near-term and longer-term futures prices.

Differences in prices between crude oil contracts for delivery in the near term compared with contracts for delivery at later dates indicate market expectations that stock draws will moderate. Low crude oil inventories, both globally and in the United States, have put upward price pressure on near-dated contracts, whereas longer-dated contract prices likely reflect expectations of a more balanced market. Because of the upward price pressure on the near-term contracts, near-dated contracts have higher prices than longer-dated contracts, a situation referred to as backwardation. When near dated contracts have lower prices than longer-dated contracts, it is known as contango.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

API updates GHG compendium to improve emissions reporting

API updates GHG compendium to improve emissions reporting

MOSCOW (MRC) -- The American Petroleum Institute (API) updated its Compendium of GHG Emissions Methodologies for the Natural Gas and Oil Industry, said Hydrocarbonprocessing.

This is the foundational reference used by companies and governments across the world as methodologies for reporting GHG emissions from natural gas and oil operations, including for API’s climate-related reporting template released earlier this year.

The fourth edition of the compendium includes expanded methodologies for LNG, as well as carbon capture, use and storage.

"As COP26 discussions continue, America’s natural gas and oil industry remains focused on driving progress on climate solutions, including enhanced GHG emissions reporting, while meeting the world’s growing energy demand,” API Vice President of Corporate Policy Stephen Comstock said. “Many companies have reported on GHG indicators for over 20 years, and we are committed to continuous improvement, including this comprehensive update of methodologies in the API compendium. The updated compendium was developed in consultation with our members and stakeholders around the world and reflects the industry’s leadership on sustainability issues and efforts to drive consistency and transparency in climate reporting."

As per MRC, BP said it will remain a member of the American Petroleum Institute (API) after the largest U.S. oil and gas trade lobby group addressed some differences with the British energy company over climate change. BP, which plans to sharply cut its oil output and boost its renewable energy capacity over the next decade, said in a report that despite "uneven progress", the API was "heading in the right direction". The API has faced growing pressure from member companies and activist groups to change its policies relating to climate change and drilling regulations.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

bp and Aker successfully sell combined block of shares in Aker BP

bp and Aker successfully sell combined block of shares in Aker BP

MOSCOW (MRC) -- Following the announcement on November 10, 2021 regarding a possible block sale of shares in Aker BP, bp and Aker confirmed on 12 November that they successfully sold 18,010,000 Aker BP shares, representing a combined approximate 5% of shares in the company, at a price of NOK 310 a share, according to Hydrocarbonprocessing.

bp sold 7,718,571 shares, representing an approximate 2.1% stake in Aker BP, for a total of NOK 2.39 B.

Following the sale, bp now holds an approximate 27.85% interest in Aker BP, Aker 37.14% and the free float of the company has increased to 35%. bp and Aker have entered into a 6-mos lock-up for their remaining shares in Aker BP, subject to certain exemptions.

J.P. Morgan and Pareto Securities acted as Joint Global Coordinators, and Joint Bookrunners with DNB Markets, a part of DNB Bank ASA, Goldman Sachs International and Morgan Stanley & Co. International plc in the sale. Advokatfirmaet BAHR AS acted as Norwegian legal advisers.

As MRC wrote previously, in October, 2021, BP announced plans for a USD269 million investment in three projects at its Cherry Point Refinery in Washington state, aimed at improving the refinery’s efficiency, reducing its carbon dioxide (CO2) emissions and increasing its renewable diesel production capability. The investment is aligned with bp’s aims to be net zero across its operations by 2050 or sooner and to reduce the carbon intensity of the products it sells by 50% by 2050 or sooner.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (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, BP 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.
MRC