Shandong with state-run coal miner to fund mega refinery complex

Shandong with state-run coal miner to fund mega refinery complex

MOSCOW (MRC) -- China's Shandong province, the country's main independent oil refining hub, has turned to a deep-pocketed state-run coal miner to help fund a petrochemical complex it sees as key to the region's industrial future, said Reuters.

Shandong Energy Group, a provincial government-backed coal producer and utility operator, is set to take a 46.1% stake in the USD20 B Yulong Petrochemical plant, becoming the second-largest stakeholder in the project led by privately run aluminum smelter Nanshan Group, three sources said.

Shandong, China's No.3 economy by province, sees Yulong Petrochemical as a cornerstone project that will upscale its fragmented refining sector - made up of some 60 small oil processors - in line with Beijing's broader push to close inefficient plants and build large, competitive manufacturers.

However, the project, which began construction last October on a man-made island in the port city of Yantai, has faced funding challenges, given its size is similar to Nanshan Group's total assets of 137 B yuan (USD21.5 B) as at-end 2020, the sources said.

Under the latest shareholder structure finalized in late November, Nanshan will hold 51% of the venture, local state-run media dzwww.com reported. That compares with an 86% stake it held earlier in November according to qcc.com, a Chinese business registration portal.

Private chemicals group Wanhua and state-run Hualu Holdings share the remaining 2.9% stake, said two of the sources, who spoke on condition of anonymity because they're not authorized to speak to media. The sizable stake taken by Shandong Energy - a conglomerate specializing in coal mining and power generation with assets worth 693 B yuan (USD108.92 B) - reflected the Shandong provincial government's strong backing and would support bank lending to the project, the sources said.

A Yulong Petrochemical representative declined comment and referred all queries to the provincial government. Shandong government and Shandong Energy did not immediately reply to request for comment.

As per MRC, Oil prices fell 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. 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.

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

Evonik introduces its new silicone release coating

Evonik introduces its new silicone release coating

MOSCOW (MRC) -- Evonik, the expert in UV curable silicone release systems for over 30 years, has launched its new TEGO RC 1442 silicone release coating, as per the company's press release.

TEGO RC 1442 is based on Evonik’s existing RC 1400 series technology and delivers all the same easy release performance benefits customers are used to. Developed for fast curing pressure sensitive adhesive (PSA) applications, TEGO RC 1442 provides excellent anchorage to substrates and delivers stable release values over time, even under humid storage conditions.

“The increasing demand from our PSA market customers for globally available, easy-to-apply and high-performing UV curable products inspires us to continually review our portfolio to ensure that we deliver the solutions our customers need to meet changing market dynamics like the growth in online shopping,” said Stefan Stadtmueller, Global Head of TEGO RC Silicones at Evonik.

Ideal for release liners for use in all applications, TEGO RC silicones can be used for industrial release liners, self-adhesive labels, graphic arts, tapes and hygienic products including, food packaging and food contact applications.

As MRC informed earlier, in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,226,530 tonnes in the first ten months of 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.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik's corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 33,000 employees.
MRC

Toyo awarded refinery plant project in India

Toyo awarded refinery plant project in India

MOSCOW (MRC) -- Toyo Engineering India Private Limited, a wholly owned subsidiary of Toyo Engineering Corporation (Toyo-Japan), has been awarded a contract by Numaligarh Refinery Limited (NRL) for the Engineering, Procurement, Construction and Commissioning of a 3.55 MMtpy Diesel Hydro-treating (DHT) Unit in Assam state of India, Hydrocarbonprocessing.

NRL is a Public Sector Undertaking governed by the Ministry of Petroleum and Natural Gas (Govt. of India). NRL is undertaking a major expansion project from 3 MMtpy–9 MMtpy consisting of several process units with total project cost of Rs. 28,026 Crore, which is part of the government’s 2030 hydrocarbon vision for the economic growth to meet the deficit of petroleum products in Northeast India. This will be a single largest investment in North-East India.

This DHT will produce the diesel confirming to BS VI specifications by hydro treating a blend of refinery products. Toyo-India had executed another unit for NRL, back in 2006 on EPCm basis. In India, which has a vast population and huge middle-class population that continues to grow, TOYO is committed to contributing to the economic development of the country.

As per MRC, Toyo Engineering Corporation has been awarded a contract to design a new petrochemical complex owned by PT Chandra Asri Petrochemical in Indonesia. The global facility, for which Toyo has been awarded an FEED contract, is the second Chandra Asri project to be built adjacent to the existing petrochemical complex at Chilegon, on the west side of Java, Indonesia.

As MRC informed earlier, Toyo Engineering Group (TOYO) has been awarded a contract of Acrylic Acid Production plant with capacity of 100,000 tons/year in Cilegon, Banten, on the western tip of Java, Indonesia from PT. NIPPON SHOKUBAI INDONESIA (NSI), Indonesian subsidiary of NIPPON SHOKUBAI CO., LTD. (NSCL).

Toyo Styrene was founded in April 1999 as a polystyrene company based on Denki Kagaku Kogyo Kabushiki Kaisha (now: Denka Co., Ltd.), Nippon Steel Chemical Co., Ltd. (currently: NIPPON STEEL Chemical & Material Co. Ltd.) And Daicel Chemical Co. (Daicel Corporation).
MRC

TotalEnergies to accelerate development of recycled plastic

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

Crude oil prices show biggest weekly gain since August on easing concerns over Omicron coronavirus variant impact

Crude oil prices show biggest weekly gain since August on easing concerns over Omicron coronavirus variant impact

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