U.S. oil output to rise to 12.9 million bpd in 2020

MOSCOW (MRC) - Crude oil output from the United States is expected to rise to a new record of more than 12 million barrels per day (bpd) this year and to climb to nearly 13 million bpd next year, the U.S. Energy Information Administration said in its first 2020 forecast, as per Hydrocarbonprocessing.

U.S. crude production is forecast to climb 1.14 million bpd to 12.07 million bpd in 2019 and an additional 790,000 bpd in 2020 to 12.86 million bpd, the statistics arm of the U.S. Energy Department said in a monthly report.

The United States has become the world's largest crude producer, boosted by output from shale formations, with production of nearly 11 million barrels in 2018, which broke the country's annual record set in 1970.

"Steady growth from non-OPEC countries, including the United States, headlines the forecast for global crude oil production through 2020," Linda Capuano, EIA administrator said in comments issued following the forecast. "We expect the United States to remain the world’s largest producer."

The forecast indicates that the U.S. will become a net crude exporter in late 2020. U.S. demand for diesel and other distillate fuels is expected to rise 20,000 bpd to 4.15 million bpd in 2019 and to rise to 4.19 million in 2020, the agency said.

U.S. gasoline demand in 2018 was seen at 9.29 million bpd, down from 9.31 million bpd previously. Gasoline demand is expected to rise to 9.35 million bpd in 2019 and to hold that level in 2020, the EIA said.
MRC

MOSCOW (MRC) -- The Munich-based chemical group Wacker is increasing its global production capacities for silicone rubber, as per the company's press release.

With expansion measures at several sites, Wacker plans to gradually raise its capacities by a total of 40,000 metric tons per year by 2021. Approximately EUR100 million has been earmarked for this capacity expansion. With these measures, WACKER is responding to the high demand for silicone rubber in key sectors such as the automotive, electronics and medical industries. These investments are part of the Wacker Silicones division’s strategy of further expanding its portfolio of specialties.

Silicone rubber is among the most sought-after elastomers in the industry. "Silicones are high-performance materials. They are essential for novel product solutions and belong to the innovation drivers in key industry sectors such as automotive, medical, and electronics," says Robert Gnann, head of the Wacker Silicones business division. "Above-average growth is being driven by the trends toward hybrid cars, electromobility and digitalization, as well as decentralized alternative electricity generation using wind and solar power. So, we are making a major contribution to increased sustainability while pursuing our strategy of clearly focusing on boosting specialties in our portfolio.

With capacity expansions in the midstream production steps and downstream production, Wacker will significantly improve the silicone-rubber availability and related service for its customers in the near future. All solid silicone rubber product groups will benefit from these expansion measures. In April of this year, Wacker already brought a new production site for silicone sealants and thermally conductive silicone compounds on stream in Jincheon, South Korea. The production of room-temperature-vulcanizing silicone elastomers and liquid silicone rubbers has also started in Amtala, India, where Wacker manufactures silicones in a joint venture with Metroark.

For 2019, the chemical group is planning further capacity enhance-ments for liquid silicone rubber, high- and room-temperature-vulcanizing silicones and thermally conductive silicone compounds at its production sites in Burghausen (Germany), Adrian (Michigan, USA) and Zhangjiagang (China). Wacker is currently also evaluating the option of building a plant for solid silicone rubber at its US-based site in Charleston, Tennessee. Wacker has been producing polysilicon there since 2016. A plant for manufacturing pyrogenic silica, an important filler for high consistency silicone rubber (HCR), will come on stream at this site next year.

As MRC informed before, Wacker Chemie AG is expanding its existing production plants for dispersions and dispersible polymer powders in South Korea. The company is building a new spray dryer for dispersible polymer powders at its Ulsan site, which will have a total capacity of 80,000 metric tons per year. The Munich-based chemicals company is also constructing an additional reactor for dispersions based on vinyl acetate-ethylene copolymer (EVA), which are needed as the raw material for the spray dryer to produce dispersible polymer powders. Ulsan’s plant complex, which covers the entire production chain from EVA dispersions to dispersible polymer powders, will be one of the largest of its kind in the world. Investments will total around EUR60 million and production is scheduled to start in the first quarter of 2019.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

MOSCOW (MRC) - Mexico’s freight transport association expects a contingency plan aimed at speeding up gasoline distribution that began over the weekend to help ease bottlenecks at terminals, where fuel inventories have been accumulating in recent weeks, said Hydrocarbonprocessing.

President Andres Manuel Lopez Obrador’s crackdown on rampant fuel theft has caused long lines of angry motorists waiting to fill up their tanks since a handful of Mexico’s most important fuel pipelines were closed to avoid further losses.

The switch to more road distribution has slowed down deliveries to gas stations as crowded fuel terminals owned by state-run Pemex’s create bottlenecks with tanker ships waiting to discharge imports at several ports.

The National Chamber of Freight Transport expects faster truck loading, direct deliveries and better security can increase fuel distribution by road to 50 percent of the 1.27 million barrels per day (bpd) of gasoline, diesel and jet fuel Mexico consumes, compared with a current average of about 30 percent.

“This is a contingency plan for using existing assets to achieve a larger capacity of (fuel) distribution,” said chamber President Enrique Gonzalez.

Transporters have asked Pemex to speed up loading at terminals to a maximum of four hours from 8-18 hours currently. Before Lopez Obrador’s anti-theft push, each truck would spend up to 72 hours at Pemex’s distribution centers, Gonzalez said.

The chamber represents companies with a combined fleet of 3,500 double-tank fuel trucks capable of loading up to 62,000 liters each. The contingency plan also contemplates direct delivery from terminals to gas stations, without passing through Pemex distribution centers.

Large convoys of gasoline trucks are now a common sight along Mexican highways. The vehicles are given a military escort since Lopez Obrador moved thousands of soldiers and police to supervise and protect refining and distribution.
Mexico’s central region, including the capital, has been most affected by the shortages since a key pipeline from Pemex’s Salamanca refinery was shut in late December.
MRC

MOSCOW (MRC) -- An alliance of global companies from the plastics and consumer goods value chain today launched a new organization to advance solutions to eliminate plastic waste in the environment, especially in the ocean, said Nbc.

The cross value chain Alliance to End Plastic Waste (AEPW), currently made up of nearly thirty member companies, has committed over USD1.0 billion with the goal of investing USD1.5 billion over the next five years to help end plastic waste in the environment. The Alliance will develop and bring to scale solutions that will minimize and manage plastic waste and promote solutions for used plastics by helping to enable a circular economy. The Alliance membership represents global companies and located throughout North and South America, Europe, Asia, Southeast Asia, Africa, and the Middle East.

"Everyone agrees that plastic waste does not belong in our oceans or anywhere in the environment. This is a complex and serious global challenge that calls for swift action and strong leadership. This new alliance is the most comprehensive effort to date to end plastic waste in the environment," said David Taylor, Chairman of the Board, President and CEO of Procter & Gamble, and chairman of the AEPW. "I urge all companies, big and small and from all regions and sectors, to join us," he added.

"History has shown us that collective action and partnerships between industry, governments and NGOs can deliver innovative solutions to a global challenge like this," said Bob Patel, CEO of LyondellBasell, and a vice chairman of the AEPW. "The issue of plastic waste is seen and felt all over the world. It must be addressed and we believe the time for action is now."

The Alliance is a not-for-profit organization that includes companies that make, use, sell, process, collect, and recycle plastics. This includes chemical and plastic manufacturers, consumer goods companies, retailers, converters, and waste management companies, also known as the plastics value chain. The Alliance has been working with the World Business Council for Sustainable Development as a founding strategic partner. The Alliance today also announced an initial set of projects and collaborations that reflect a range of solutions to help end plastic waste.
MRC

MOSCOW (MRC) -- JGC Corporation has announced that it has been awarded the contract for the construction of chemical plants that will be the foundation of a high-performance synthetic resin manufacturing and sales undertaking in Thailand involving Kuraray Co., Ltd., PTT Global Chemical Public Company ( PTTGC) and Sumitomo Corporation, as per Hydrocarbonprocessing.

The project aims to create a globally competitive high-performance synthetic resin manufacturing and sales business that employs butadiene and isobutylene produced at a petro-chemical complex in the Hemaraj Eastern industrial estate by PTTGC, one of the partner companies undertaking the project. The derivatives of butadiene and isobutylene will be used in the production of a wide range of items including electrical and electronic components, automotive parts, daily necessities and medical equipment.

As well as having constructed a Hydrogenated Styrenic Block Copolymers hydrogenated styrene thermoplastic elastomer- HSBC production plant in the United States for Kuraray in the early 2000s, JGC is also carrying out the Front End Engineering Design (FEED) for this project. The reason for selection of JGC as the contractor for this project is seen as a result of the client’s overall positive evaluation of this proven performance, the company’s highly-developed engineering skills and project management ability together with its bid estimate and schedule.

In light of the growth in the world demand for chemical products, in recent years Japanese chemical manufacturers have undertaken plans to build up production capacity in areas where petroleum and chemical products are price competitive. JGC intends to leverage its wide experience in plant construction to obtain orders from Japanese chemical product makers as they undertake the construction of various types of plants overseas.

As MRC reported previously, in December 2017, JGC Corporation, in partnership with JGC Indonesia, a subsidiary of JGC Corporation, and PT Rekayasa Industri of Indonesia, received an order for engineering, procurement and construction (EPC) work for the construction of a gas processing plant in Bojonegoro, East Java Province, Indonesia.
MRC