Tongsuh Petrochemical becomes first Asia ACN producer that received ISCC Plus certification for its bio-acrylonitrile

MOSCOW (MRC) -- Asahi Kasei announced that its wholly-owned subsidiary in South Korea, Tongsuh Petrochemical Corp, has recently received ISCC Plus certification for its bio-acrylonitrile (ACN), becoming the first ACN manufacturer in Asia to acquire the certification, according to Apic-online.

Tongsuh is scheduled to begin producing ACN from biomass-derived propylene in February 2022.

Asahi Kasei Group will continue efforts to further reduce carbon dioxide emissions by improving acrylonitrile catalysts and processes based on original technologies, as well as the procurement of biomass raw material, Asahi Kasei noted.

As MRC reported earlier, South Korean Tongsuh Petrochemical resumed production at its No. 3 ACN line in Ulsan (South Korea) on November 12, 2021, after completing a scheduled turnaround. The maintenance on this line with a capacity of 265,000 mt/year of AKN began on October 14, 2021.

ACN is the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to ICI-MRC Price report, ABS imports into Russia grew in 2021 by 15% year on year to 40,100 tonnes from 34,900 tonnes a year earlier. The share of South Korean shipments fell to 55% (22,100 tonnes) from 62% (21,600 tonnes) a year earlier.

Japanese Asahi Kasei owns 100% of Tongsuh Petrochemical. Asahi Kasei is the world's second largest manufacturer of acrylonitrile, which is the main component for the production of ABS, widely used in automobiles and consumer electronics.
MRC

MOSCOW (MRC) -- Vertellus, a manufacturer of specialty materials for various personal care, performance coatings, polymer additives, healthcare and food & beverage markets, today announced it has acquired Polyscope Polymers B.V., a global leader in specialty additives for coatings, electronics applications and engineering polymers, said the company.

Polyscope is a global leader in the development and production of styrene maleic anhydride (SMA®) copolymers necessary for product applications across the electronic, automotive and specialty coatings & ink markets. With its innovative technology and engineering capabilities, Polyscope is well-positioned to capitalize on growth in these expanding markets. Polyscope operates a state-of-the-art production facility strategically located in Geleen, The Netherlands, and serves as a key partner to more than 300 customers across over 35 countries.

The acquisition will complement Vertellus’ existing portfolio, providing specialty materials for applications in personal care, performance coatings, polymer additives, healthcare and food and beverage markets, the company said.

Finances of the deal were not disclosed.

In October 2021, Chemtrade Logistics Income Fund agreed to sell its potassium chloride (KCl) and vaccine adjuvants businesses to Vertellus for about USD155m.

In January 2020, Vertellus (Indianapolis, Ind) announced it acquired Bercen Chemicals, a leading U.S. supplier of alkyl succinic anhydrides and additives used in the fuel, lubricant, and paper industries.

Vertellus is a leading global manufacturer of specialty materials and key ingredients for fundamental consumer necessities. Vertellus technology can be found in personal care products, pharmaceuticals, medical devices, nutraceuticals, food & beverages, performance coatings, transportation additives and more. Headquartered in Indianapolis and founded in 1857, Vertellus has more than 1,300 employees across 15 international research and manufacturing facilities.

Polyscope is a global leader in the research, development, and production of styrene maleic anhydride (SMA®) copolymers, a vital material for product applications in high-growth electronics, automotive, coatings and inks end markets.
MRC

MOSCOW (MRC) -- Shell Energy Operations Pty Ltd, a wholly owned subsidiary of Shell has completed the acquisition of Powershop Australia (“Powershop”), an online energy retailer serving more than 185,000 customers, said the company.

Powershop will operate as a wholly owned subsidiary of Shell under the Powershop brand within the Shell Energy business in Australia, which is part of Shell’s global Renewables and Energy Solutions business.

The Powershop acquisition complements Shell’s existing Australian investments in zero and low-carbon assets and technologies. It will form the basis to offer innovative products and services to meet evolving customer needs for low-carbon and smarter energy solutions, such as e-mobility and battery storage.

The transaction has taken place through the 100% acquisition of Meridian Energy Australia Group (MEA), the parent company of Powershop, by a consortium of Shell and Infrastructure Capital Group (ICG), an Australian infrastructure investor and manager.

Under the terms of the deal, Shell has acquired Powershop and ICG has acquired MEA's portfolio of renewable generation assets and development projects. Shell Energy also acquired Powershop’s existing wind power purchase agreements (PPAs) as part of the transaction and has agreed offtake arrangements with ICG associated with MEA’s hydro and wind assets, totalling 300 MW of capacity.

As per MRC, Shell reported an outage at its olefins plant in Deer Park, Texas, on 5 January, 2021. The plant flared for 16 hours following unspecified process upset. Maximum steam cracker operating rate in Texas falls to 89%.

As MRC informed previously, Royal Dutch Shell plc. said in November that its petrochemical complex of several billion dollars in Western Pennsylvania is about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.
MRC

MOSCOW (MRC) -- ExxonMobil will relocate its corporate headquarters to the Houston area from suburban Dallas and combine its chemical and refining divisions in a major shake-up aimed at reducing costs, as per the company's press release.

The oil giant’s top executives, who have worked out of the famous “God Pod” office park in Irving for more than three decades, will make the move about 230 miles (370 kilometers) to the southeast by mid-2023, Exxon said in a statement Monday. The company will also reorganize along three main business lines: upstream, which produces oil and natural gas; product solutions, which makes fuels and chemicals; and its low-carbon division.

It’s a sweeping overhaul for the company that traces its roots to John D. Rockefeller’s Standard Oil Trust in the 19th century and will bring executives under the same roof as rank-and-file employees in its Houston-area campus. The moves will accelerate Exxon’s aggressive cost-cutting drive, which is on track for USD6 B of savings by 2023, enough to fund about 40% of annual dividend payouts.

“Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition,” Chief Executive Officer Darren Woods said in the statement.

Exxon’s top managers will move into the company’s biggest US office in suburban Spring, Texas, which opened under former CEO Rex Tillerson in 2014. The modern, glass-walled campus is split into several buildings with a central common area adorned with plants and water features.

It’s not the first time that the Houston campus has absorbed staff from other offices. At the end of last year, Exxon announced plans to close two Houston-area office towers, known as Hughes Landing, after a raft of employee departures.

Under the three main business units, Exxon will merge support services into a new division called ExxonMobil Technology and Engineering, to be led by Linda DuCharme, who previously led upstream integrated solutions and business development. Karen McKee, the former chemical boss, will run ExxonMobil Product Solutions.

While Exxon is one of the S&P 500’s top performers in 2022, it’s been a hard few years for the company. The pandemic forced Woods to pivot away from his $200 B, seven-year growth strategy toward a low-spending model after debt ballooned in 2020. The following year, activist investor Engine No. 1 won support from shareholders to replace a quarter of the company’s board after criticizing its financial performance and approach to climate change.

As MRC reported before, earlier this month, ExxonMobil and SABIC successful started up Gulf Coast Growth Ventures world-scale manufacturing facility in San Patricio County, Texas. The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants. The operation includes a 1.8 MM metric tpy ethane steam cracker, two polyethylene (PE) units capable of producing up to 1.3 MM metric tpy, and a monoethylene glycol (MEG) unit with a capacity of 1.1 MM metric tpy.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

1. LyondellBasell posts Q4 net income down by 15% mainly due to noncash impairment charge related to its Houston refinery

MOSCOW (MRC) -- LyondellBasell's (Houston, Texas) Q4, 2021 net income came to USD726 million, down 15% year over year from USD855 million largely because a USD624-million noncash impairment charge related to the Houston refinery reduced net income by USD481 million, as per the company's press release. Sales totaled USD12.830 billion, up 62% YOY from USD7.937 billion. Adjusted earnings per share came to USD3.63, up 66% YOY from USD2.19 but short of the consensus estimate of USD3.96 compiled by Zacks Investment Research. LBI reports strong polyolefin pricing and volume during the fourth quarter of 2021, but also high feedstock and energy costs as well as depressed demand into applications affected by semiconductor shortages.

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