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US EPA proposes compliance deadline extension for biofuel laws

November 24/2021

MOSCOW (MRC) -- The US Environmental Protection Agency on Thursday proposed an extension to 2020 and 2021 deadlines for oil refiners to prove compliance with the nation's biofuel blending mandates, reported Reuters with reference to the agency's statement.

The extension could help oil refiners that have slowed or stopped buying credits to prove they have complied with the blending requirements, amassing huge outstanding liabilities in the process. The EPA's move would allow those refiners, such as Monroe Energy and PBF Energy Inc, to spread their debt over a longer period of time.

The short positions, which the refiners built up over the last year, were a bet that President Joe Biden will ultimately side with refiners and their union supporters and roll back the law known as the US Renewable Fuel Standard (RFS), Reuters previously reported.

Under the RFS, oil refiners must blend billions of gallons of biofuels into their fuel mix, or buy compliance credits from those that do. The EPA, which administers the RFS, can grant some refiners exemptions to the law if the refiners prove the obligations are financially harmful.

As MRC informed previously, in July 2021, Northern California regulators directed two of the state's largest oil refineries to slash their fine particulate air pollution, which will require costly modifications at the plants.

We remind that Chevron Corp is considering permanently closing the gasoline-producing fluidic catalytic cracker (FCC) at its 112,229 barrel-per-day (bpd) Pasadena, Texas refinery as part of a possible reconfiguration of the plant. Idling the shut 52,000-bpd FCC would be part of converting the refinery on the Houston Ship Channel to a simpler hydroskimming configuration.

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.
Author:Margaret Volkova
Tags:bioplastics, crude and gaz condensate, petrochemistry, recikling, Chevron, PBF Energy, USA.
Category:General News
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