ABB to automate bioplastics plant

ABB to automate bioplastics plant

ABB has been awarded a major contract by NatureWorks to automate their new, greenfield plant in Thailand, converting sugar cane to the polylactic acid biopolymer, Ingeo, said Hydrocarbonprocessing.

The plant will ferment and distill plant-based sugars—in a process similar to making beer or wine—converting the sugars first to lactic acid, then lactide and then polymerize them into Ingeo. In the new site, these three separate production processes will be fully integrated, resulting in improvements in energy and production efficiency. In addition, the integration of the fermentation phase will secure the supply of lactic acid. The Thailand facility will use sugarcane as feedstock and is set to produce 75,000 tpy of sustainable plastic when fully operational. The anticipated projected startup for this greenfield facility is in the second half of 2024.

ABB’s scope of work is a two-part order including a FEED study followed by detailed automation project execution, with ABB acting as the main automation contractor. ABB will deliver the hardware, software, control room design solutions, engineering and site support to fully develop NatureWorks’ greenfield system. ABB’s distributed control system Ability System 800xA will maximize plant efficiency and reliability through automation. Leveraging this technology, ABB will integrate inputs from all key systems into one single user-friendly overview. As a result, operators will be able to utilize data insights from all areas of the plant, delivered in real time, to drive efficiency, reduce risk and ensure production optimization.

The project will apply state based controls, enabling operators to take fewer interactions to start up a unit and reduce risk by having access to the right information at the right time. In addition, ABB’s automated engineering batch application tool will be implemented for this project.

Part of NatureWorks’ global expansion plan, the plant will help meet the growing global demand for sustainable materials. Bioplastics represent less than 1% of all plastic produced globally but production is expected to grow over 260% between 2020 and 2026.

Ingeo is an eco-friendly, biobased material used in a wide-range of plastic and fiber products from compostable food packaging - coffee capsules, tea bags, food containers – to 3D printing filament, diapers and even refrigerator liners. Compared to traditional fossil-based polymers, manufacturing Ingeo produces approximately 80% less GHGs and uses 52% less non-renewable energy.

As per MRC, ABB has been awarded the contract to improve asset integrity across MOL’s downstream assets, through changing mindset, standardizing processes and software and ensuring integrity management is focused on the right equipment. The project spanning MOL DS Production plants in Hungary, Slovakia, and Croatia, will implement standardized asset integrity procedures in a move to drive production efficiency, improve safety and reduce risk.
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Braskem Q4 net profit falls amid lower margins

Braskem Q4 net profit falls amid lower margins

Braskem’s net profit fell 37.4% year on year in the fourth quarter amid higher feedstock costs, said the company.

The company reported strong Q4 and FY 2021 results with revenue growth and EPS improvement thanks to its strategic efforts. The growth was attributed to strong gains in both male and female merchandise categories. In addition, with changing consumer trends, the company's considerable growth in online sales from last year implies changes in purchase behaviour among consumers.

The company had a net income of USD83.9 million or USD1.71 per share in Q4 2021. In the third quarter, the company missed earnings estimates with actual EPS of USD1.7 versus estimated EPS of USD2.09. Additionally, for the full year ending January 29, 2022, the company reported a net income of USD254.8 million or USD5.20 per share. On a diluted share basis, the company reported FY2021 earnings of USD5.16.

Cost of goods sold (COGS) in Brazilian reais (R) terms surged by 56% year on year to R21.5bn in the fourth quarter due to higher prices for key petrochemical feedstocks naphtha, ethane and propane in the international market.

Q4 net revenue rose sharply on the back of higher prices for resins and main chemicals in the international market, as well as the higher sales volume of main chemicals.

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.

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).
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N. America chemical rail momentum slows the first-half plateau

N. America chemical rail momentum slows the first-half plateau

During the week ended 12 March, chemical railcar traffic in North America showed signs of nearing the first-half plateau, according to data of the Association of American Railroads (AAR).

The four-week moving average (4wma) totaled 47,504 loadings, a sequential increase of 0.21%, versus 1.20% for the period ended 5 March. Compared with previous years, the figure increased 17.8% from 2021 and 1.7% from 2020.

Weekly volume totaled 47,928 carloads, down 1.4% from the previous week, according to data released by the Association of American Railroads (AAR). For the year to date, chemical railcar traffic in North America is up 5.8%.

Chemical railcar traffic in the US contributed 35,933 carloads to the weekly total, up 19.9% year on year (YOY) and up 3.1% from the previous week. For the year to date, US chemical railcar traffic is up 10.1%.

Canadian chemical rail traffic totaled 11,140 carloads, down 9.5% YOY and down 12.3% from the previous week. For the year to date, Canadian chemical railcar traffic is down 5.4%. Chemical railcar traffic in Mexico totaled 855 carloads, a year-on-year increase of 25.0% and a sequential decrease of 17.5%. For the year to date, Mexican chemical railcar traffic is up 6.2%.

As per MRC, North American weekly chemical railcar traffic rose 11.6% year on year, led by the US where loadings rose 22.1% from depressed levels during last year’s US Gulf Coast winter storm. For the first eight weeks of 2022 ended 26 February, North American chemical railcar traffic was up 4.0% year on year to 372,286 railcar loadings.

We remind, U.S. President Joe Biden was expected to announce a ban on Russian oil and other energy imports on Tuesday in retaliation for the invasion of Ukraine. The White House said Biden was scheduled to announce actions at 10:45 a.m. (1545 GMT) on Tuesday against Russia over Ukraine, but did not specifically mention oil imports. Oil prices jumped on the news, with Benchmark Brent crude LCOc1 for May climbing by 5.4% to USD129.91 a bbl by 1345 GMT.
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Vietnam to build third oil refinery to meet domestic consumption demand

Vietnam to build third oil refinery to meet domestic consumption demand

Vietnam is seeking to build its third oil refinery to meet domestic consumption demand as the country is facing a supply shortage and soaring energy prices, reported Reuters with reference to deputy prime minister, Le Van Thanh's statemet at a parliament meeting.

The plant, which is set to be located in the southern province of Vung Tau, has a design capacity of 10 MMm3 (3.5 MMtpy), Thanh said.

Vietnam's state oil firm PetroVietnam is drafting investment procedures, which it aims to complete by this October, he said.

Two refinery plants in Vietnam were put into operation in 2009 and 2018, according to the government, but both only meet around 70% of domestic demand.

With this new plant, Thanh said Vietnam's total capacity would reach 23 MMm3, which was expected to be enough for domestic use.

As MRC wrote before, Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1% owned by Japan’s Idemitsu Kosan Co, 35.1% - by Kuwait Petroleum, 25.1% - by PetroVietnam and 4.7% - by Mitsui Chemicals Inc.

We remind that a fire broke out at a steam turbine generator (STG) belongings to Nghi Son Refinery and Petrochemical (NSRP) in Vietnam on 21 February 2022, that forced the producer to take its 370,000 tons/year polypropylene (PP) unit offline.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes in 2021, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC

Tengizchevroil reroutes LPG exports to bypass Ukraine

Tengizchevroil reroutes LPG exports to bypass Ukraine

Kazakhstan's Chevron-led Tengizchevroil (TCO) plans to increase exports of liquefied petroleum gas (LPG) through the Georgian port of Batumi and may resume shipments to Poland, said Hydrocarbonprocessing.

TCO has been shipping most of its LPG to Ukraine and to the ports of Temryuk and Taman in the south of Russia, but what Moscow calls a "special military operation" in Ukraine has limited possibilities for such shipments. TCO declined to comment on commercial matters.

TCO's production of propane and butane fell to an average of 1,580 tpd during the first 14 days of March from 4,200 tpd in the first half of February, traders familiar with the production data said. An embargo on rail shipments of all goods including LPG to Ukraine was introduced on Feb. 24 by the Russian Railways. LPG is supplied from Kazakhstan to Ukraine via Russia.

LPG supplies to the port of Taman were suspended due to overstocking. Supplies via Temryuk port in the Sea of Azov were also suspended by Russia until further notice. TCO rerouted some of its LPG supplies to the port of Batumi in March, the rail data showed. The company will supply 19,500 t of the product to the port this month compared to an average volume of 8,000 t in January-February, according to rail data in Refinitiv Eikon.

The traders said that TCO, after a three-year break, may resume the supply of its LPG to Poland. It was not clear if supplies may start this month. TCO exports in 2021 averaged 110,000 t of LPG per month, of which 40,000 t were supplied to Ukraine. The company also shipped about 20,000 t each through the ports of Taman and Temryuk per month, according to rail data in Refinitiv Eikon.

As per MRC, German speciality chemicals maker LANXESS on Friday said it was suspending its business activities in Russia due to the war in Ukraine. Thus, the company had “suspended business activities with Russian customers as far as contractually possible until further notice” and had suspended all investments in Russia. Its sales in Russia and Ukraine made up less than 1% of its global sales, it said.

TCO is owned by Chevron (50%), ExxonMobil (25%), KMG (20%) and LukArko (5%).
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