Ineos tenders for hydrogen plant at Grangemouth

MOSCOW (MRC) -- Ineos has invited engineering design contractors to tender for the design of a hydrogen production plant equipped with carbon capturing capabilities at its Grangemouth site, said the company.

The chemicals giant said the “world-scale” plant marked the next significant step on its net zero roadmap, which would see emissions fall by more than 60% across the site by 2030.

It follows the group’s commitment made last year to invest more than GDP1 bn to reduce the environmental impact of its Grangemouth refinery, and reach net zero by 2045.

The tender will cover design of a “state-of-the-art” carbon capture-enabled hydrogen production plant, as well as major associated infrastructure, Ineos said.

In September 2021 when Ineos first announced low-carbon hydrogen production at the site, Andrew Gardner, CEO and chairman of INEOS at Grangemouth, said that low-carbon hydrogen production at could reach around 150,000 tonnes of hydrogen per year. This would put the capacity of the plant at around 700MW at higher heating value.

According to data from National Grid, industrial gas offtake at Grangemouth has averaged around 1.02 million cubic metres (mcm)/day between 1 October 2021 and 25 January 2022. To produce the equivalent amount of energy as hydrogen, roughly 1.20mcm/day of natural gas would be required.

As per MRC, Ineos Styrolution, the global leader in styrenics, announced today that its Novodur 550 has been selected by THACO Plastics Component (TPC), one of the leading OEMs producing key automotive parts for global brands in Vietnam, to be used for rear spoiler application.

As MRC reported earlier, in March 2021, Ineos and French power company Engie announced a pilot project to partially replace natural gas feed with hydrogen at Ineos’s phenol plant in Doel near Antwerp, Belgium. No investment figure has been given. Hydrogen will be used in a commercial-scale cogeneration plant designed to generate electricity and heat from natural gas.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

1. Valero posts profit well above estimates on stronger fuel demand

MOSCOW (MRC) -- San Antonio-based Valero Energy Corp, the second-largest US oil refiner, posted quarterly earnings well above expectations, as margins nearly tripled on the back of soaring demand for fuel thanks to a vaccine-induced economic recovery, reported Reuters. Gasoline and distillate consumption in the United States improved drastically in the last quarter of 2021, compared with the year-ago period, as more people commuted to offices and took to holiday travel on easing coronavirus curbs. A jet fuel recovery and low product inventories from years of refinery shutdowns combined to nearly triple Valero's fourth-quarter refining margins to USD3 billion from a year earlier, Valero Chief Executive Office Joe Gorder said on a post-earnings call.

MRC

MOSCOW (MRC) -- Vietnam's Binh Son refinery on Wednesday said it was operating above capacity to address supply concerns, as top petroleum firms announced plans to boost imports amid fears of a shutdown of the country's biggest refinery, reported Reuters.

Binh Son, one of two refineries in the Southeast Asian nation, said it was operating at 103% of capacity and would also import two shipments of crude oil of between 85,000 and 90,000 tons each, during the first days of February.

"The demand for petroleum products is increasing, especially during the Lunar New Year holiday, while other sources are facing difficulty," the refinery told Reuters.

The announcement comes after Vietnam's other refinery, Nghi Son, which provides 35% of its petroleum needs, cut its production to 80% of capacity, over what media reports and a source familiar with the issue said was a disagreement between shareholders about financing for crude oil.

On Wednesday, state oil firm PetroVietnam blamed Nghi Son Refinery and Petrochemical (NSRP) for the recent production cut.

State media had reported PetroVietnam had failed to make an early payment under a "Fuel Products Offtake Agreement" (FPOA) with the refinery, causing financial difficulties for Nghi Son. But PetroVietnam, which owns 25.1% of the 200,000 barrel-per-day refinery in Thanh Hoa province, insisted it was not to blame.

"The management board of NSRP is responsible for its decision to cancel two shipments of crude oil that put the refinery at risk of shutdown," PetroVietnam said in a statement, adding it was in talks with other shareholders about restructuring NSRP.

NSRP did not immediately respond to a request from Reuters for comment.

Japan's Idemitsu Kosan Co has a 35.1% stake in the Nghi Son refinery, the same as Kuwait Petroleum, while Mitsui Chemicals Inc owns 4.7% of the firm.

As MRC informed earlier, NSRP resumed operations at its new polypropylene (PP) plant in Vietnam on 17 October, 2021, after an unscheduled maintenance. The 400,000 mt year of PP plant was unexpectedly shut on 7 October, 2021, due to a technical glitch.

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) -- San Antonio-based Valero Energy Corp, the second-largest US oil refiner, posted quarterly earnings well above expectations, as margins nearly tripled on the back of soaring demand for fuel thanks to a vaccine-induced economic recovery, reported Reuters.

Gasoline and distillate consumption in the United States improved drastically in the last quarter of 2021, compared with the year-ago period, as more people commuted to offices and took to holiday travel on easing coronavirus curbs.

A jet fuel recovery and low product inventories from years of refinery shutdowns combined to nearly triple Valero's fourth-quarter refining margins to USD3 billion from a year earlier, Valero Chief Executive Office Joe Gorder said on a post-earnings call.

The refining segment's adjusted operating income was USD1.1 billion, compared with a loss of USD476 million in the year-ago period, portending bright scenarios for peers Marathon Petroleum and Phillips 66 that are yet to report results.

Gasoline demand has returned to 2019 levels, Valero executives said, adding that the company is "very bullish" on the fuel.

Jet fuel demand, however, "will be the unknown", senior executive Gary Simmons said. The company expects domestic air travel to pick back up "fairly rapidly" but international travel may take longer.

San Antonio, Texas-based Valero's total refinery throughput volumes averaged 3 million barrels per day in the quarter, 483,000 bpd higher than a year earlier. It forecast current-quarter throughput slightly below that level.

Valero reported an adjusted profit of USD2.47 per share for the three months ended Dec. 31, higher than analysts' average estimate of USD1.84, according to Refinitiv IBES data.

As MRC informed earlier, Valero Energy ran its 14 refineries at between 88% and 92% of their combined capacity of 3.2 million barrels per day (bpd) in the fourth quarter of 2021.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) -- Polypropylene (PP) imports into Russia increased by 15% year on year to about 257,400 tonnes in 2021.
Propylene copolymers accounted for the main increase in imports, according to MRC's DataScope report.

Russian companies increased their PP purchases last month, imports were 29,800 tonnes versus 17,500 tonnes in November, imports of all grades of propylene polymers decreased. Thus, overall PP imports into Russia reached 257,400 tonnes in January-December 2021, compared to 223,400 tonnes a year earlier. Imports of all types of propylene polymers increased, with the smallest increase in supply accounted for homopolymer PP.

Overall, the structure of PP imports by grades looked the following way over the stated period.

December imports of homopolymer PP were slightly less than 11,800 tonnes versus 6,000 tonnes a month earlier, shipments from Azerbaijan and Turkmenistan increased significantly. Thus, overall imports of homopolymer PP totalled 95,300 tonnes in 2021, compared to 92,400 tonnes a year earlier.

December imports of PP block copolymers in Russia were about 9,800 tonnes against 6,400 tonnes in November, demand for Asian and Azerbaijani polypropylenes decreased from Russian companies. Imports of PP block copolymers into Russia reached 79,600 tonnes over the stated period, compared to 60,200 tonnes a year earlier.

December imports of stat-copolymers of propylene (PP random copolymers) increased to 5,500 tonnes from 1,800 tonnes a month earlier, with injection moulding and film products producers accounting for the main increase in shipments. Overall imports of this propylene copolymers grade totalled 42,700 tonnes in 2021, compared to 36,600 tonnes a year earlier.

Russia's imports of other polymers of propylene for the period were about 39,800 tonnes in 2021, compared with 34,200 tonnes year on year.

MRC