Sinopec increases daily gas supply to cope with cold snap

Sinopec increases daily gas supply to cope with cold snap

MOSCOW (MRC) -- Chinese state-owned oil and gas major Sinopec has increased daily natural gas supply to the north of the country by more than 10 million cubic meters in a bid to meet demand from local residents and enterprises amid cold weather, reported S&P Global with reference to the company's statement on its official website Nov. 22.

This equates to nearly 6% of the state owned company's annual gas supply and 10% of its domestic gas output. Sinopec currently supplies a total of 180 million cu m/day of natural gas to the country including both domestic and imported sources, the company said, noting that its daily gas production reached a record high of 99.79 million cu m on Nov. 21.

The ramp-up in gas supply is on account of another cold snap. China's Central Meteorological Observatory issued a "blue" warning on Nov. 19, signaling a cold front was expected to sweep across the whole country over Nov. 20-23, bringing blizzards, strong winds and a temperature drop of more than 14 degrees Celsius from north to south.

This is the third cold warning issued by the observatory so far this winter. The last two warnings were released in mid-October and early November. China has been ramping up gas supply from all sources including pipeline gas contracts with Central Asia.

Sinopec has built up an effective natural gas working storage volume of 1.79 billion cu m, including at the Wen 96, Jintan, Wen 23 and Ganghua storage sites, Sinopec said, adding that it has secured 27.2 Bcm of domestic and foreign natural gas resources for ensuring supply in the winter-spring season.

Sinopec is currently working on the second dock of its Tianjin LNG terminal, which is part of the Tianjin LNG phase 2 project, and is expected to be ready for putting it into operation by the end of November, it said. This will further alleviate gas shortages in the region.

As MRC informed earlier, China's Sinopec Corp said last Wednesday it plans to build a 1-MMtpy crude-to-olefin plant, having completed successful trial processing crude oil directly into olefin at its subsidiary plant in Tianjin, without giving further details. Thus, the top Asian refiner is one of the world's few companies that have applied the technology at an industrial scale. ExxonMobil is another firm equipped with such technology, 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 1,868,160 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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

Eni and BF partner to develop sustainable agricultural products for bio-refineries

Eni and BF partner to develop sustainable agricultural products for bio-refineries

MOSCOW (MRC) -- Eni and the BF Group have partnered to develop sustainable agricultural products for biofuel production, according to Hydrocarbonprocessing.

Through an equal joint venture (50% Eni, 50% BF), projects will be developed to research and experiment with agricultural seeds from oil plants to be used as feedstock at Eni's bio-refineries. Furthermore, the agreement between the companies provides for the purchase by Eni of a minority stake in BF Bonifiche Ferraresi's subsidiary and for Eni's entry into BF's share capital by means of a reserved capital increase.

The agreement builds on a strong track record of collaboration between Eni and BF in the agricultural sector for the development of economic diversification initiatives, skill transfer and support for entrepreneurship in Italy and abroad.

The agreement is of strategic importance as Bonifiche Ferraresi, at 7,750 hectares, is the largest Italian farm in terms of utilized agricultural surface area and Eni produces advanced biofuels at its bio-refinery in Gela and Venice Porto Marghera, one of the tools to help contain CO2 emissions in the transport sector. As of 2023, Eni will no longer use palm oil in its production processes.

The testing and experimentation activities of the joint venture will be carried out at Bonifiche Ferraresi’s “Open Sky Laboratories” in Sardinia and will be aimed at assessing the ability to replicate production processes currently used in Italy in the other countries in which Eni operates, Africa in particular. The joint venture will also focus on the development of training programmes for personnel for agro-feedstock project development sectors.

The initiative is part of Eni's strategy for achieving full carbon neutrality by 2050, which includes green refining as a strategic element, with production capacity expected to double to around 2 MM tons by 2024 and a further increase to 5/6 MM tons expected by 2050.

As MRC wrote earlier, Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality 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 the first nine months of 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 PP random copolymers decreased significantly.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
MRC

Cosmo Films launches barrier metalized BOPP Film

Cosmo Films launches barrier metalized BOPP Film

MOSCOW (MRC) -- Cosmo Films Ltd., a global leader in specialty films for flexible packaging, labeling and lamination applications as well as synthetic paper, has launched Enhanced Barrier Metalized BOPP Film specially designed for packaging applications with very high moisture and good oxygen barrier properties and high metal bond, said the company.

A film specially innovated for applications like flexible packaging for lamination, packaging of biscuits, snacks, bakery products, chocolates and personal care products like shampoo sachets; the film can be used as a sandwich layer in multilayer laminate structures. The end pack can be used for all food and personal care applications where moisture barrier is of utmost importance.

With a thickness range of 15& 18 ?m, the film is suitable for adhesive lamination, which provides a good heat seal strength and facilitates cold seal adhesive reception on the non-metallic side.

Talking about the product launch, Mr. Pankaj Poddar, Group CEO, Cosmo Films Ltd. said, “We carefully evaluate the expectations of our customers, and engineer products which are best suited for them. The Enhanced Metalized BOPP Film is an apt addition to our range of barrier films which not only improve the shelf life of the packaged product, but also help in creating mono material eco-friendly structures."

Cosmo Films Limited, a Global Leader in Films for Packaging, Labelling, Lamination and Synthetic Paper and an emerging player in Specialty Chemicals, Polymers & Pet care announced expansion by setting up the world’s largest BOPP film production line at Aurangabad with annual rated capacity of 67,000 MT.

As MRC informed earlier, Cosmo Films introduced BOPP based heat resistant (HR) films. The films have been engineered to work as printing layer replacing BOPET film in multi-layer laminates for various packaging applications in both food and non-food segments. The company has also launched a barrier version of the film.

Established in 1981 and founded by Mr. Ashok Jaipuria, Cosmo Films today is a global leader in specialty films for packaging, lamination, labeling and synthetic paper. With engineering of innovative products and sustainability solutions, Cosmo Films over the years has been partnering with worlds’ leading F&B and personal care brands and packaging & printing converters to enhance the end consumer experience. Its customer base is spread in more than 100 countries with sales & manufacturing units in India and Korea and additionally sales & distribution base in Japan, USA, Canada and Europe.
MRC

ExxonMobil extend agreement with FuelCell Energy for CC technology

ExxonMobil extend agreement with FuelCell Energy for CC technology

MOSCOW (MRC) -- FuelCell Energy, Inc., a global leader in fuel cell technology with a purpose of utilizing its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy - has signed a six-month extension with ExxonMobil to continue collaboration on carbonate fuel cell technology for the purpose of capturing carbon dioxide from industrial facilities and power generation, according to Hydrocarbonprocessing.

The agreement will now continue until April 30, 2022. The parties are discussing an ExxonMobil pilot in Rotterdam, the Netherlands, as well as potentially additional ExxonMobil or third-party locations, to deploy FuelCell Energy’s carbonate fuel cell platform to capture carbon dioxide emissions. A decision on the Rotterdam project is expected in 2022, dependent on achieving technical milestones over the next six months.

In addition to pilot project deployments, FuelCell Energy and ExxonMobil are discussing the next phase of carbon capture development.

“ExxonMobil is working to develop breakthrough solutions in carbon capture, hydrogen and biofuels and identify commercially viable technologies the world will need to achieve the goals of the Paris Agreement,” said Vijay Swarup, vice president of research and development for ExxonMobil Research and Engineering Company. “We are pleased to continue working with FuelCell Energy to further advance this unique high efficiency carbon capture solution.”

As MRC reported before, ExxonMobil said earlier this month it is on track to meet its 2025 emissions reduction targets by the end of this year - four years earlier than planned - and has vowed to ramp up investments to further cut emissions.

We remind that ExxonMobil plans to build its first, large-scale plastic waste advanced recycling facility in Baytown, Texas, and is expected to start operations by year-end 2022. By recycling plastic waste back into raw materials that can be used to make plastic and other valuable products, the technology could help address the challenge of plastic waste in the environment. A smaller, temporary facility, is already operational and producing commercial volumes of certified circular polymers that will be marketed by the end of this year to meet growing demand.

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

Global petrochemical market suffers from price volatility - SIBUR CEO D. Konov

Global petrochemical market suffers from price volatility - SIBUR CEO D. Konov

MOSCOW (MRC) - Record gas prices have a significant impact on the petrochemical market, said RBK with reference to the words of SIBUR head D. Konov.

Dmitry Konov, Chairman of the Board of SIBUR Holding, said that the "main evil" for the petrochemical market this year is not the rise in prices, but the speed and frequency of their change. "The main evil - and this is true for both us and the consumer - is not some absolute level of prices, but the speed and frequency of their changes. When prices rise and fall by 30% month by month, this is bad," Konov said.

He noted that this year there were many such phenomena that led to record gas prices. This includes interruptions in American production, an accident at the Urengoy plant for preparing condensate for transport, and force majeure events in Europe. Konov stressed that as a result of this, "the long-standing established system is failing," which manifests itself in the hypervolatility of product prices and leads to anomalous delivery costs from one geography to another.

The head of SIBUR added that the price of "incoming raw materials" (liquefied carbon gas, etc.), which the company purchases, will increase by tens of percent, which will lead to an increase in production costs. He noted that in 2021 the cost of petrochemical products is higher than in 2020, but lower in comparison with the end of 2018. However, the price of raw materials is "much higher" than in 2019 and 2020, but is at the level of 2018.

“I think that the beneficiaries in terms of sales and prices have become any industries that produce a physical product. But the cost of any physical product has also become higher, therefore, on the one hand, we are beneficiaries due to the rise in prices for our products. - We, like everyone else, have increased the cost. In this sense, we have suffered and continue to suffer ", - concluded D. Konov.

Earlier, the international rating agency Fitch calculated how much Russia can earn on expensive oil. According to analysts, state revenues may even exceed the level of the pre-pandemic 2019. Earlier it was reported that SIBUR closed the deal to acquire 100% of TAIF JSC, which includes Nizhnekamskneftekhim, Kazanorgsintez and TGK-16.

Ethylene and propylene are the main raw materials 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 the first nine months of 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 PP random copolymers decreased significantly.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.)
MRC