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Shell to resume production at Rheinland, Germany, complex

December 11/2020

MOSCOW (MRC) -- Shell is resuming production at several plants within its Rheinland refining and chemicals complex in Germany following a maintenance program that ran throughout November, reported Chemweek.

The 325,000-b/d complex near Cologne consists of both the Godorf (north) and the Wesseling (south) sites. The commissioning of those plants, that were affected by the planned maintenance at the Godorf site, started on Friday 4 December and is still in progress, Shell says, without specifying an expected completion date. We cannot comment on which plants or products were affected by the maintenance at our Godorf site.

The supply of toluene and xylenes from Shell has been low during November and December, according to Eleanor Dann, principal analyst at IHS Markit. We believe thats a result of low feedstock from reformers whilst the upstream units at Shell (the crude distillation unit, hydrocracker, etc) have been taken offline for maintenance and elsewhere due to poor fuel demand, Dann says.

Reformers in Europe have been running at low rates because of low or negative margins for gasoline production, according to market sources and IHS Markit analysts. Currently reformer margins are positive for benzene, toluene, and xylene (BTX) production, but only because benzene and toluene spreads against naphtha have improved, she says.

Shell has a 600,000-metric tons/year benzene extraction plant in Godorf and a 180,000-metric tons/year benzene extraction plant in Wesseling.

As MRC informed before, 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.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

According to MRC"s ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in  January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
Author:Margaret Volkova
Tags:PP, PE, benzene, LLDPE, crude and gaz condensate, PP random copolymer, propylene, HDPE, ethylene, petrochemistry, Shell, Germany, Russia, USA.
Category:General News
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