Shell signs biofuel technology agreement with SBI BioEnergy Inc.

MOSCOW (MRC) — Royal Dutch Shell plc, through its subsidiary Shell International Exploration and Production B.V., and SBI BioEnergy Inc. have reached an agreement granting Shell exclusive development and licensing rights for SBI's biofuel technology, said Marketwatch.

Edmonton-based SBI has a patented process that can convert a wide range of waste oils, greases and sustainable vegetable oils into lower carbon drop-ins for diesel, jet fuel and gasoline. Under the agreement, Shell and SBI will work together to demonstrate the potential of the technology and, if successful, scale up for commercial application.

"We are confident that Shell is the right industry partner to commercialize our low carbon intensity renewable fuel process," said Inder Singh, SBI's Founding President & CEO. "Working with Shell means that we have a partner with proven capabilities to investigate the potential this technology has for global application and that is something that is very exciting for us."

SBI uses a continuous catalytic process that converts fat, oil or grease into renewable gasoline, diesel and jet fuel that can be dropped directly in to petroleum fuels. SBI's drop-in products do not require blending or any modifications to engines or infrastructure. Biofuels emit less CO2 than petroleum products so their addition to fuels has the potential to reduce transport emissions and help fuel suppliers to meet lower carbon or renewable fuel standards.
MRC

MOSCOW (MRC) -- Sadara Chemical Company has announced the production of commercial quantities of on-specification liquid PMDI (polymeric methylene diphenyl diisocyanate), the largest single train facility of its kind in the world, as per GV.

PMDI is one of several specialised chemical and plastics products that Sadara is producing in Saudi Arabia for the first time. The start-up of the PMDI plant comes just five months after the completion of its mechanical phase.

Commenting on the announcement, Sadara’s CEO Ziad Al-Labban said: "Starting up the PDMI plant puts Saudi Arabia firmly on the world map of major polyurethane producers. This is indeed a significant milestone for us at Sadara, especially when considering the unique nature and size of this plant and how quickly we were able to complete it."

PMDI has a wide range of applications that include the production of insulation foams, domestic and industrial appliances, automobiles, airplanes, textiles, furniture, and more.

The Sadara chemical complex in Jubail is considered the world’s first fully integrated PMDI manufacturer, combining manufacturing units that produce nitric acid, mono nitro benzene (MNB), formalin, benzene, aniline and chlorine, as well as hydrogen and carbon monoxide from an integrated on-site third-party producer. Sadara is said to be the largest chemical complex ever built in a single phase.

As MRC informed before, in late December 2016, Saudi Arabia's Sadara Basic Services, fully owned by Sadara Chemical Co , said it started the planned maintenance of a mixed-feed cracker at its parent company's petrochemical complex in Jubail. The shutdown of the facility was expected to last six weeks, with the company's three polyethylene trains also shut during the period as Sadara completes improvements to their reliability and scheduled maintenance.

Sadara Chemical is a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical .
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has increased its prices of vinyl acetate-based emulsions sold in Asia (outside of China), said the producer on its site.

Effective June 21, 2017, or as contracts otherwise allow, prices rose by USD80/tonne.

As MRC wrote before, earlier this month, Celanese Corporation announced that it would increase the price for emulsions sold in Europe. Effective July 1, 2017, or as contracts otherwise allow, the following price increases will apply:

- EVA - EUR75/tonne;
- VAM Homopolymers (PVAC) - EUR75/tonne;
- VAM Copolymers - EUR75/tonne;
- Pure Acrylics - EUR180/tonne.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,300 employees worldwide and had 2016 net sales of USD5.4 billion.
MRC

MOSCOW (MRC) — The Lithuanian unit of state-run Polish refiner PKN, Orlen Lietuva, and Lithuanian railways firm Lietuvos Gelezinkeliai will on Wednesday sign an agreement in Vilnius ending a long dispute over PKN's costs for fuel transportation in Lithuania, Puls Biznesu daily said quoting unnamed sources, said Hydrocarbonprocessing.

The paper said PKN had negotiated new transport tariffs that could bring significant savings related to fuel transportation from its refinery in Mazeikiai.

Transportation costs have weighed on Mazeikiai's results and in the past PKN has decided to write down the value of its Lithuanian refinery.

Puls Biznesu said the agreement was possible after the parliamentary election in Lithuania last October, which triggered management reshuffles in state-run firms, including the railways.

PKN's Chief Executive Wojciech Jasinski and Lithuania's new Prime Minister Saulius Skvernelis will be present at the agreement signing ceremony on Wednesday.
MRC

MOSCOW (MRC) -- US total crude oil and petroleum product exports more than doubled from 2.4 MMbpd in 2010 to 5.2 MMbpd in 2016. While exports of distillate, gasoline, propane and crude oil have all contributed to the increase, growth rates and market drivers for each product have varied during this period, said Hydrocarbonprocessing.

Restrictions on exporting domestically-produced crude oil were lifted in December 2015, and in 2016, the United States exported 520,000 bpd. US crude oil exports reached 1.1 MMbpd, the highest monthly level recorded to date, in February 2017. While Canada remains the largest destination for US crude oil exports, its share of total US crude oil exports has declined, dropping from 92% in 2015 (427,000 bpd) to 58% in 2016 (301,000 bpd). Other leading destinations for US crude oil exports in 2016 included the Netherlands, Curacao, China, Italy, and the United Kingdom. In addition to export restrictions, the level of US crude exports are sensitive to price differentials, shipping costs, and the level of domestic production. US production fell through the first nine months of 2016, but rose at the end of 2016 and the first five months of 2017. In 2016, US crude oil exports increased 55,000 bpd over 2015, but year-over-year growth in both 2014 (217,000 bpd) and 2015 (114,000 bpd) were considerably higher.

US exports of distillate also experienced slower year-over-year growth rates compared with recent years. In 2016, the United States exported 1.2 MMbpd of distillate, the country’s largest petroleum product export. Between 2010 and 2016, US exports of distillate grew by 81% (534,000 bpd), but most of this growth occurred between 2011 and 2013. The largest destination for US distillate exports is Mexico, averaging 182,000 bpd in 2016, followed by Brazil (125,000 bpd), and the Netherlands (108,000 bpd).

US exports of total motor gasoline have increased by 126% (425,000 bpd) since 2010. The growth in gasoline exports took place while domestic consumption, as measured by product supplied, was also increasing. Mexico is the top destination for US total motor gasoline exports and the volume of gasoline trade is significant to US refineries. Over the past five years, US exports to Mexico accounted for between 44% (2014) and 53% (2016) of total US gasoline exports.

Unlike the recently slowing increases in US exports of crude oil, distillate fuel, and motor gasoline, propane export growth has recently accelerated. Propane exports differ from other US petroleum exports with respect to where they are shipped. Whereas most other US petroleum exports stay in the Western Hemisphere, Japan and China are the top destinations for US propane exports. Propane has many non-transportation sector end uses, including space heating, cooking, and as a petrochemical feedstock.
MRC