TotalEnergies to accelerate development of recycled plastic

MOSCOW (MRC) -- TotalEnergies and Plastic Omnium have signed a strategic partnership that will see them join forces to design and develop new plastic materials, made from recycled polypropylene, which meet the demanding aesthetic and safety standards that apply to the automotive industry, said Hydrocarbonprocessing.

TotalEnergies and Plastic Omnium will pool their innovation and engineering skills to design new types of recycled materials that offer enhanced performance and are better for the environment while providing deliverable responses to the challenges raised by end-of-life plastics. These new materials, containing 20%–100% recycled materials sourced from industrial and domestic waste streams, have a CO2 impact as much as six times lower than using virgin materials.

The use of plastics in automotive bodywork plays a key role in cutting the automotive industry’s carbon emissions. They make it easier to improve aerodynamic performance and reduce the overall weight of vehicles, helping in turn to cut the amount of fuel used by internal combustion vehicles and increase the autonomy of electric vehicles.

Valerie Goff, Senior Vice President, Polymers at TotalEnergies says: “This partnership with Plastic Omnium is a great example of collaboration and innovation to develop ever-higher and environmentally friendly recycled plastic materials that help our OEM and vehicle manufacturer customers to reduce their carbon footprints. This project will also contribute to addressing the challenge of the circular economy and to our ambition of producing 30% recycled and renewable polymers by 2030."

Stephane Noel, President and CEO of Plastic Omnium Intelligent Exterior Systems, adds: “Recycling plastic materials is a challenge to us as manufacturers, and a vital issue for our planet. This exciting partnership paves the way to providing responses that are better integrated and more environmentally friendly, reflecting our customers’ and suppliers’ carbon neutrality goals. This is absolutely central to a strategic partnership that seeks to support the far-reaching transformation the industry is currently undergoing."

As per MRC, TotalEnergies said that it expected a big rise in renewable-based electricity, solar and wind forms of energy, partly due to a general increase in electrification in the industrial and business world. TotalEnergies added it expected that oil in general would plateau before 2030, while natural gas would continue to play a role as a transition fuel.

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.

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

MOSCOW (MRC) -- Oil prices rose slightly on Friday and posted their biggest weekly gain since late August, with market sentiment buoyed by easing concerns over the Omicron coronavirus variant's impact on global economic growth and fuel demand, reported Reuters.

The Brent and US West Texas Intermediate (WTI) crude benchmarks each posted gains of about 8% this week, their first weekly gain in seven, even after a brief bout of profit-taking.

Brent futures settled up 73 cents, or 1%, at USD75.15 a barrel, after falling 1.9% on Thursday. WTI rose 73 cents, or 1%, to USD71.67 after sliding 2% in a volatile session the previous day.

"Oil traders are coming out of their shell-shock and feeling more bullish as they recalibrate their demand expectations in the aftermath of the Omicron variation of the coronavirus," saidPhil Flynn, senior analyst price futures group in Chicago.

US consumer prices rose further in November to produce the largest year-on-year rise since 1982, government data showed, adding to bullish sentiment on oil demand.

Earlier in the week the oil market had recovered about half the losses suffered since the Omicron outbreak on Nov. 25, with prices lifted by early studies suggesting that three doses of Pfizer's COVID-19 vaccine offers protection against the Omicron variant.

"The oil market has thus rightly priced out the 'worst-case scenario' again, but it would be well-advised to leave a certain residual risk to oil demand in place," said Commerzbank analyst Carsten Fritsch.

Keeping a lid on prices are faltering domestic air traffic in China, owing to tighter travel restrictions, and weaker consumer confidence after repeated small outbreaks. Ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group, saying they had defaulted on offshore bonds. That reinforced fears of a potential slowdown in China's property sector, as well as the broader economy of the world's biggest oil importer.

As MRC informed previously, the average utilisation rate at China's four state-owned refiners fell to a five-month low of 80.6% in October from 81.5% in September while independent refiners also maintained run rates at low levels due to feedstock shortage. These would likely lead the country's crude throughputs to extend the downward trend in October from the 17-month low of 13.7 million b/d, or 56.07 million mt, in September, according to data from the National Bureau of Statistics.

The four state oil companies -- Sinopec, PetroChina, CNOOC and Sinochem - plan to process a total 7.67 million b/d of crudes in October, against their nameplate capacity of 9.52 million b/d, Platts data showed. This compared with a planned throughput of 7.7 million b/d in September. In November, the state-run refiners plan to lift throughput from the low base in October to boost gasoil and gasoline supplies for meeting domestic demand, refining sources 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.
MRC

MOSCOW (MRC) -- Shares in Brazil's Braskem SA plunged after state-run oil company Petrobras said it has yet to decide when and how to proceed with the proposed sale of its stake in the petrochemicals producer, said Hydrocarbonprocessing.

Petroleo Brasileiro SA, as Petrobras is formally known, said in a securities filing that it is still conducting studies on the planned deal. Shares in Braskem were down 5.8% at 54.65 reais in early trading in Sao Paulo, making it the biggest loser on the Bovespa index, which fell by 1.3%.

Petrobras, which owns 36.1% of Braskem, has repeatedly expressed its intention to sell its stake. The latest remarks came after the Estado de S. Paulo newspaper reported that Petrobras and Brazilian conglomerate Novonor were expected to start selling their stakes through a share offering in February.

Novonor, formerly known as Odebrecht, declined to comment. Last week the conglomerate said it was considering exiting its 38.3% stake in Braskem via a share offering.

Novonor had previously sought bidders for its stake in Braskem. After that process failed, various media outlets, including Reuters, reported that the company was planning to exit Braskem via a share offering.

We remind that Brazilian petrochemical producer Braskem's 450,000 mt/year PP plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, as per the company's statement as of Sept. 10. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.

Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.

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.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).

MRC

MOSCOW (MRC) -- DuPont announced that the STRATCO alkylation unit at the Fujian Refining and Petrochemical Co., Ltd (FREP) refinery in Quanzhou, Fujian Province, China, has successfully started up and completed the performance test, certifying that the unit is meeting performance guarantees, according to Hydrocarbonprocessing.

The STRATCO alkylation unit at FREP is designed to produce 7,700 bpd (300 kmta) of alkylate from a mixed butylene FCC feedstock.

This startup is the seventh successful STRATCO alkylation technology startup within Sinopec and allows compliance with the China VI standard which limits sulfur content in gasoline to a maximum of 10 ppm by generating low-sulfur, high-octane, low-rvp alkylate. As the world’s largest vehicle market in the world, China is committed to improving air quality in the country by introducing legislation, such as the China VI fuel standards, to reduce automobile-generated pollution.

Alkylate produced by Sinopec will meet both the current China VIA fuel standard and the VIB standard expected to come into force in 2023, which further reduce the levels of benzene, aromatics and olefins in the gasoline pool. As a paraffinic hydrocarbon, alkylate plays a key role in improving air quality and public health.

“Over the last several years, we have been able to work with multiple Sinopec refineries, building an energetic relationship and providing a reliable technology solution at each site. The consistency of our technology provides Sinopec the ability to deliver high quality alkylate to the gasoline pool, decreasing the environmental impact of its fuels. It has been a pleasure to work regularly with the Sinopec organization, a rapport that will continue throughout the lives of these seven units,” said Kevin Bockwinkel, global business manager, STRATCO Alkylation Technology.

With this startup at the FREP refinery, the total capacity of alkylate produced by STRATCO alkylation units in the Sinopec refinery network is 60,380 bpd (2,360 kmta).

As MRC wrote before, earlier this month, Amur Gas Chemical Complex LLC agreed and signed loan documents to finance the completion of Amur GCC’s construction. Amur GCC will act as the borrower; SIBUR and Sinopec will be sponsors proportional to their stakes (60/40, respectively) in the joint venture (JV). Upon completion of standard conditions precedent, AGCC will begin to draw on the loan which will total USD USD9.1bn and has a final maturity of 2035. Project costs in excess of USD 9.1bn will be covered by the JV parties pro rata.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time,
PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

1. Crude oil prices fall as China developer downgrades add to fears of demand outlook and on new restrictions to fight Omricon

MOSCOW (MRC) - Oil prices fell on Thursday on fears about the economic outlook in the world’s biggest oil importer following ratings downgrades to two Chinese property developers, and after some governments took measures to fight the Omicron varaint of the coronavirus, reported Reuters. Brent crude futures fell USD1.01, or 1.3%, to USD74.81 a barrel by 12:05 p.m. EDT (1705 GMT), backing off a session high of USD76.70. US West Texas Intermediate (WTI) crude futures were down USD1.00, or 1.4%, at USD71.36 after hitting a peak of USD73.34. On Thursday, ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group to “restricted default” status, saying they had defaulted on offshore bonds, while a source said that Kaisa had started work on restructuring its USD12 billion offshore debt.

MRC