India announces phased introduction of biogas blending for domestic use

MRC -- India will start blending compressed biogas with natural gas to boost domestic demand and cut reliance on natural gas imports, the government said in a statement on Saturday, said Hydrocarbonprocessing.

The mandatory phased introduction will start at 1% for use in automobiles and households from April 2025, it said. The share of mandatory blending will then be increased to around 5% by 2028.

India, which is one of the world's largest importers of oil and gas, ships in about half of its overall gas consumption and wants to cut its imports cost.

The government also aims to have 1% sustainable aviation fuel (SAF) in aircraft turbine fuel by 2027, doubling to 2% in 2028. The SAF targets will initially apply to international flights, the statement said. The steps are aimed at helping India achieve net zero emissions targets by 2070.

We remind, Haldia Petrochemicals Limited (HPL) is building India's first on-purpose propylene facility based on Olefin Conversion Technology (OCT) in Haldia, West Bengal. Speciality chemicals have supported HPL in earning Rup 999 crore of revenue in FY 2023. HPL is also constructing India's biggest phenol facility with 300,000 tonnes/y of phenol capacity and 185,000 tonnes/y of acetone capacity. With the two plants commissioning, the total chemical business portfolio is poised to rise by Rup 5000 crore.

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Sri Lanka will likely approve on Monday a proposal from Chinese state refiner Sinopec to build a $4.5-B refinery, said Hydrocarbonprocessing.

"It's on the agenda for Monday. Once the cabinet gives approval, we will invite them to sign the agreement," Power and Energy Minister Kanchana Wijesekera told Reuters. Sri Lanka, trying to recover from its worst economic crisis in more than 70 yr, is hungry for new investment and local fuel supplies. Sinopec's investment of at least $4.5 B "will go up in value as and when they do additions, but they must first come and sign the agreement for us to give any more details," Wijesekera said.

For Sinopec, the world's top refinery by capacity and one of the largest petrochemical makers, the investment would mark a breakthrough in a long effort to expand beyond China's borders. It owns refinery assets in Saudi Arabia and petrochemicals production in Russia.

The Sri Lanka investment follows state-run China Merchant Port Holdings' 99-yr lease at Hambantota port and a $392-MM deal to build a logistics and storage hub in Colombo port, Chinese state media reported in April.

That fits into Beijing's ambitious Belt and Road Initiative, billed as recreating the ancient Silk Road to boost global trade infrastructure, experts say. Sinopec will start basic engineering design, including finalizing the size of the refinery and technical configuration, after getting official approval, a senior company official told Reuters this month.

The investment will add to Sinopec's recently started fuel retailing business, the third international company with a foothold in Sri Lanka, with a license to operates 150 petrol stations.In August Sinopec and commodities trader Vitol were shortlisted by the Sri Lankan government to bid for the refinery. Vitol subsequently dropped out, the Sinopec official said.

The refinery may target markets beyond Sri Lanka, where local fuel consumption is low, and use its partnership with China Merchants Port to expand bunker fuel supply at Hambantota, a deep-sea port near busy shipping lanes between Europe and Asia, analysts say.

Sinopec's fuel oil division, which runs the retail business there, began in 2019 supplying marine bunker fuel at Hambantota, another Sinopec official said. Sri Lanka's refinery at Sapugaskanda, commissioned in 1969, can process 38,000 bpd.

We remind, China is on the brink of asserting its dominance in the realm of acrylonitrile butadiene styrene (ABS) capacity expansions throughout Asia. Projections are confidently pointing towards China accounting for an overwhelming 96% of the capacity additions in Asia by 2027.

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Haldia Petrochemicals Limited (HPL) is building India's first on-purpose propylene facility based on Olefin Conversion Technology (OCT) in Haldia, West Bengal, said Business-standard.

Speciality chemicals have supported HPL in earning Rup 999 crore of revenue in FY 2023. HPL is also constructing India's biggest phenol facility with 300,000 tonnes/y of phenol capacity and 185,000 tonnes/y of acetone capacity. With the two plants commissioning, the total chemical business portfolio is poised to rise by Rup 5000 crore.

We remind, Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced Haldia Petrochemicals Ltd (HPL) will license its olefins conversion technology (OCT) and the Lummus/Versalis cumene and phenol technologies for a new plant in West Bengal, India.

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Leading peroxide manufacturer Evonik and major Chinese chemicals producer Fuhua Tongda Chemicals Company (Fuhua) have signed a licence agreement for Fuhua to build a new hydrogen peroxide plant in Leshan, Sichuan Province, using Evonik's know-how, said the company.

Furthermore, both partners will evaluate a cooperation to jointly produce and market speciality grades of hydrogen peroxide with the aim to meet the rising demand for those applications on the Chinese market.

The signing ceremony took place on 15 Nov 2023 in Hanau, Germany. According to the agreement, Fuhua will use Evonik licenced technology to build an industrial-grade hydrogen peroxide plant with an annual capacity of 200,000 tonnes.

The envisaged Evonik-Fuhua collaboration would then further purify the hydrogen peroxide into speciality grades for applications such as solar panel production or aseptic packaging for food and beverages.

We remind, Dow and Evonik are proud to announce the successful start-up and operation of a pioneering hydrogen peroxide to propylene glycol (HPPG) pilot plant at Evonik’s site in Hanau, Germany. Collaboratively developed by Dow, the world’s largest producer of propylene glycol, and globally leading hydrogen peroxide manufacturer Evonik, the plant uses the distinct HYPROSYN method to enable the direct synthesis of propylene glycol (PG) from hydrogen peroxide and propylene.

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China is on the brink of asserting its dominance in the realm of acrylonitrile butadiene styrene (ABS) capacity expansions throughout Asia, said Chemanalyst.

Projections are confidently pointing towards China accounting for an overwhelming 96% of the capacity additions in Asia by 2027.

The ABS industry holds a position of paramount importance due to its role as a versatile polymer widely sought after in a myriad of end-user industries, including automotive, construction, packaging, consumer goods, and electronics. The resilient and ever-growing demand for ABS within China, primarily fueled by the nation's flourishing economy, has securely positioned China as both the largest producer and consumer of ABS on a global scale.

China's ABS capacity additions are nothing short of remarkable. The nation is slated to introduce a staggering 4.43 million tonnes per annum (mtpa) of ABS capacity through ten meticulously planned and announced projects. The magnitude of these capacity additions unequivocally underscores China's commanding position in the ABS industry landscape.

A standout contributor to this colossal capacity expansion endeavor is the Zhejiang Petrochemical Daishan ABS Plant 2, a project that has been announced and is set to exhibit a remarkable capacity of 1.20 mtpa. This plant is poised to embark on ABS production in the year 2027, marking a momentous milestone in the annals of China's ABS industry.

Furthermore, among the contributing projects, two others are poised to play pivotal roles in amplifying China's ABS capacity. The INEOS Styrolution Ningbo ABS Plant and the Shandong Yulong Petrochemical Longkou ABS Plant, both projects that have been strategically planned, are individually scheduled to augment China's ABS capacity by 0.60 mtpa. The INEOS Styrolution project was commenced its operations in 2023, while the Longkou ABS Plant is expected to spring into action in 2024.

hina's ABS capacity expansion initiative also graciously welcomes the Guangxi Changke New Material Company Fangchenggan ABS Plant, an announced project. This particular facility is primed to make a substantial contribution to China's ABS capacity by adding 0.50 mtpa and is on track to commence ABS production by 2025.

The significance of these capacity additions reverberates through China's commitment to industrial growth and its ongoing contribution to the versatile and indispensable ABS polymer industry. This polymer is widely used across various vital sectors of the economy, including automotive, construction, packaging, consumer goods, and electronics, underscores China's dedication to both its economic prosperity and its role as a leading player in the global industrial landscape.

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