LUKOIL wins the global corporate sustainability awards

LUKOIL Group 2022 Sustainability Report debuted in the international Global Corporate Sustainability Awards and received a bronze class award in the Sustainability Reporting category, said the company.

The category recognizes organizations for disclosure of information in transparent and credible manner.

In 2023, 80 companies representing 8 countries submitted 90 applications to the contest. LUKOIL became its only Russian participant and winner. Among other Sustainability Reporting Awards winners are such companies as Delta Electronics, Inc., Hewlett Packard Enterprise, China Airlines Ltd., Logitech International S.A. etc.

We remind, Romania's Petrotel Lukoil refinery, owned by Russia's Lukoil, will shut for one month from Wednesday for planned maintenance works, online news website Profit.ro reported. Lukoil's Romanian unit has a relatively small market share compared to bigger refineries in the country. The refinery uses alternative fuel supplies and is not affected by a ban on Russian imports.

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Mitsubishi Heavy Industries Compressor International Corporation will supply critical turbomachinery packages to Dow for their Fort Saskatchewan Path2Zero Project – the world’s first net-zero scope 1 and 2 CO2 emissions ethylene cracker, said Hydrocarbonprocessing.

The Path2Zero Project, which supports the drive for industrial decarbonization, is projected to decarbonize approximately 20 percent of Dow’s global ethylene capacity. MCO-I’s turbomachinery equipment will be purchased under two contracts in support of Dow’s $6.5 billion brownfield investment at their existing manufacturing complex in Fort Saskatchewan, Alberta, Canada.

The scope includes the supply of three compressor packages: a steam turbine driven cracked gas compressor (CGC) train, a propylene refrigerant compressor package, and an ethylene refrigerant compressor package; as well as two condensing steam turbine generator packages. In total, the scope includes three API 612 steam turbines and four API 617 centrifugal compressors. The CGC turbine alone will exceed 100 MW in rated power, making it one of the largest API 612 turbines to be built.

Satoshi Hoshi, president and CEO, MHI Compressor Corporation (MCO), said, “MCO and MCO-I are proud to partner with Dow for the Path2Zero project. Dow’s commitment to decarbonize their global footprint mirrors our own commitment to contributing to a carbon neutral society. We are grateful to have this opportunity to support their goals and objectives through the supply of world-class turbomachinery.”

Ron Huijsmans, global MEGA project director, Dow, said, “Dow is very excited to expand the partnership with MHI Compressor Corporation. Their technology and high-quality execution is an excellent fit to our ambitious project.”

The compressors and steam turbines will be manufactured and tested by MCO at its factory in Hiroshima, Japan. MCO-I will provide project management and engineering support, as well as installation and commissioning services. MCO & MCO-I will work together with Dow’s engineering, procurement and construction management (EPCM) contractor through detailed engineering, manufacturing and testing to ensure all local Canadian regulations and industry standards are met, with final deliveries occurring in 2025.

Hoshi added, “The project will increase Dow’s production significantly with capacities exceeding 1,800 KTA by 2029. This further establishes MCO and MCO-I’s position as a market-leading turbomachinery provider for large scale ethylene production.”

We remind, The tanker Luggati is being loaded at Novatek's NVTK.MM terminal at the Baltic Sea port of Ust-Luga, where the company's fuel-producing complex was damaged by fire in January, according to industry sources and LSEG data. The tanker is designed for loading dirty oil products and, presumably, can take on fuel oil from the complex’s storage tanks, the sources added. Novatek did not respond immediately to a request for comment.

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The tanker Luggati is being loaded at Novatek's NVTK.MM terminal at the Baltic Sea port of Ust-Luga, where the company's fuel-producing complex was damaged by fire in January, according to industry sources and LSEG data, said Hydrocarbonprocessing.

The tanker is designed for loading dirty oil products and, presumably, can take on fuel oil from the complex’s storage tanks, the sources added.

Novatek did not respond immediately to a request for comment. Fuel tanker Breeze was also loaded at the terminal this week. According to market sources and LSEG data, the cargo was naphtha from the complex’s storage tanks and is heading to Singapore.

The fire at the Novatek's refinery complex started on Jan. 20, forcing the company to suspend "technological processes". Novatek resumed fuel loadings at its Ust-Luga terminal on Jan. 24, according to industry sources and LSEG data. Operations at the processing complex have yet to resume.

The complex, launched in 2013, processes gas condensate into light and heavy naphtha, jet fuel, fuel oil and gasoil. It enables the company to ship oil products as well as gas condensate to international markets.

In 2022 the Ust-Luga complex processed 6.943 million metric tons of gas condensate into 6.825 million tons of end products, including 4.208 million tons of light and heavy naphtha, 1.052 million tons of jet fuel and 1.487 million tons of fuel oil and gasoil as well as 78,000 tons of liquefied petroleum gas (LPG).

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Phillips 66’ Q4 pre-tax chemicals profits firmed year on year despite an overall drop in adjusted earnings due to weaker refining operations, the US-based firm said.

Pre-tax income stood at $106m, steady from the $104m in the preceding three months, and substantially up from $52m in the same period a year earlier.

The midstream producer’s chemicals earnings are derived from its stake in joint venture CP Chem, which it owns alongside fellow producer Chevron. Global olefins and polyolefins operating capacity for the business stood at 94% for the quarter, Phillips 66 added.

Weaker refining profitability on a quarterly and annual basis was the result of slimmer profits during the period, with average realised margins of $14.41/bbl compared to $18.96 in Q3 2023.

We remind, Phillips 66 is committed to playing a meaningful role in the energy transition by offering lower-carbon solutions to supplement its production of traditional fuels. That was the message delivered by Suresh Vaidyanathan, the company’s vice president of renewable fuels, at the Argus America Crude Summit in Houston on Jan. 24. He was joined by executives from other refiners operating in the U.S. on a panel discussion exploring refining in a low-carbon world.

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Indorama Ventures has successfully resumed the production of ethylene oxide and ethylene glycol at its Clear Lake facility in Texas, said Chemanalyst.

This resumption follows a planned outage that occurred amid extremely cold weather conditions in the Gulf Coast region earlier in the month, and the company officially confirmed the restart of production over the weekend.

The Texas plant boasts an annual capacity of 355,000 tons of ethylene glycol, constituting nearly 6% of the total capacity in the United States, and 450,000 tons of ethylene oxide, representing almost 7% of the country's overall capacity. Indorama Ventures' strategic location and significant production capacity make it a key player in the ethylene oxide and ethylene glycol market, contributing significantly to the industry landscape.

This development comes on the heels of Dow's plans to recommence operations at its ethylene oxide plant in Plaquemine, Louisiana, USA, during the second quarter of the year. The announcement was made during a conference call on earnings reports. The Plaquemine plant had experienced a fire in July 2023, leading to its closure. The reopening of Dow's facility is crucial for the supply chain, particularly for processed ethanolamines, as the plant transports them through a pipeline to the processor. Other major ethylene glycol manufacturers in the US include Dow, Eastman Chemical, Formosa, Lotte Chemical, LyondellBasell, MEGlobal, Sasol, and Shell Chemical.

Within the ethylene oxide production landscape in the US, notable players alongside Indorama Ventures and Dow include BASF, Eastman Chemical, Formosa, Lotte Chemical, LyondellBasell, Sasol, and Shell Chemical. The collective contribution of these industry leaders shapes the dynamics of the ethylene oxide market in the country.

ndorama Ventures' decision to resume production at its Texas facility aligns with the company's commitment to maintaining operational efficiency and meeting market demands. The resumption is particularly significant given the substantial role of ethylene glycol and ethylene oxide in various industrial applications, including the production of polyester fibers, antifreeze, and other essential chemicals.

As one of the key players in the petrochemical industry, Indorama Ventures plays a pivotal role in the supply chain, contributing to the availability and stability of ethylene glycol and ethylene oxide in the US market. The strategic location of the Clear Lake facility enhances the company's ability to cater to regional and national demands, reinforcing its position as a reliable supplier.

Indorama Ventures' successful resumption of ethylene oxide and ethylene glycol production in Texas underscores the resilience and adaptability of the petrochemical industry. The strategic significance of ethylene glycol and ethylene oxide in various industrial applications, coupled with the broader dynamics of the US market, positions Indorama Ventures as a key player influencing supply chain stability. As the industry continues to navigate challenges, the operational efficiency demonstrated by Indorama Ventures reflects a commitment to meeting market needs and contributing to the overall resilience of the petrochemical sector.

We remind, Ineos revealed the acquisition of LyondellBasell's Ethylene Oxide & Derivatives business, including the production facility in Bayport, Texas, for a sum of $700 million. The deal encompasses a 420kt Ethylene Oxide plant, a 375kt Ethylene Glycols plant, and a 165kt Glycol Ethers plant, along with associated third-party operations at the site. The target completion for this transaction is set for the second quarter of 2024, subject to regulatory and third-party approvals.

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