BP sets deeper 2050 carbon target in CEO reinvention

MOSCOW (MRC) -- BP pledged to sharply reduce its carbon emissions by 2050 as part of a reinvention of the 111-year old company by newly-appointed chief executive Bernard Looney, said Hydrocarbonprocessing.

BP on Wednesday set more ambitious targets than rivals such as Royal Dutch Shell and Total but fell short of commitments made by smaller Spanish peer Repsol. “We need to reinvent BP,” Looney said in a statement.

The world’s top oil and gas companies have come under heavy pressure from investors and climate activists to fall in line with the 2015 Paris climate accord which aims to limit global warming to below 2 degrees Celsius from pre-industrial levels.

“The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero. We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner,” he added.

U.S. groups such as Exxon, Chevron and ConocoPhillips are far less ambitious with their greenhouse gas related targets than their European rivals. BP said it plans to halve the intensity of the carbon emissions of the oil and gas products it sells, known as Scope 3 emissions, by 2050.

A pioneering “Beyond Petroleum” plan in the early 2000s to build a large renewables business ended with huge losses. Over the past two years, Europe’s top oil and gas companies have ceded some ground to growing investor pressure to tackle climate change by reducing carbon emissions.

Intensity-based targets measure the amount of greenhouse gas (GHG) emissions per unit of energy or barrel of oil and gas produced. That means that absolute emissions can rise with growing production, even if the headline intensity metric falls.

Scope 3 emissions vastly exceed greenhouse gases caused by the production of crude oil, natural gas and refined products, including electricity generation, typically by a factor of about six among oil majors, according to Reuters calculations.

In one of its biggest changes, BP will dismantle the traditional model of an oil and gas production, or upstream, unit and a refining, trading and marketing, or downstream, unit. Its new organisation includes four units: Production and Operations; Customers and Products; Gas and Low Carbon Energy; and Innovation & Engineering.

s MRC reported before, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- Ascend Performance Materials, an integrated polyamide (PA) 66 supplier, has signed an agreement to purchase Poliblend and Esseti Plast GD from D’Ottavio Group, according to Kemicalinfo.

The acquisition includes a manufacturing facility in Mozzate, Italy, the masterbatch portfolio of Esseti Plast GD and the engineering plastics portfolio of Poliblend, which consists of virgin and recycled grades of PA 66, PA 6, PBT and POM.

“This strategic acquisition marks an important transformation for our company as we grow our European manufacturing and distribution footprint,” said Phil McDivitt, Ascend’s president and CEO.

Giancarlo D’Ottavio, Poliblend’s president, will continue to run Poliblend’s operations and join Ascend’s European management team. “Combining the shared expertise of our companies creates opportunities to expand our reach while continuing to provide the high-quality products and service that our customers have come to trust,” said D’Ottavio.

Terms of the transaction were not disclosed. The acquisition is expected to close in the second quarter.

As MRC wrote previously, in May 2016, Ascend Performance Materials said it had put plans to build a propane dehydrogenation (PDH) plant on hold because of market conditions. The two-train project at Chocolate Bayou, TX, with a combined capacity of more than 1 million m.t./year of propylene, was expected to become the largest such facility in the United States and cost an estimated USD1.2 billion. It has already been delayed once from the original onstream date of 2016 to mid-2019. Ascend is expected to use the UOP Oleflex PDH technology.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Ascend Performance Materials is a global leader in the production of Nylon 6,6.

Poliblend was founded in 1999 and offers compounding and masterbatch services, including color and additive concentrates that enhance the appeal and end-use performance of plastics products, packaging, and fibers.
MRC

MOSCOW (MRC) – Specialty chemicals company LANXESS has added a plant-based raw material variant to its Aktiplast PP product range, said the company.

These processing promoters for polymer blends are used in the production of tires and all kinds of technical rubber articles. Aktiplast PP-veg, which is based on renewable raw materials, was developed specifically in response to a customer requirement from Asia. In this way, the LANXESS Rhein Chemie business unit aims to enable rubber processors to reduce their CO2 footprint. An international tire manufacturer from Europe has already expressed great interest.

Unlike the conventional product, Aktiplast PP-veg is manufactured only from vegetable oils. The proportion of renewable raw materials in Aktiplast PP-veg is around 90 percent, so that its CO2 footprint is significantly reduced. The starting point are raw materials made from the fruits of oil palms. They are ecologically more sustainable than coconut palms, rapeseed or sunflowers, as they provide by far the highest oil yield per hectare of farmland area.

The processing promoter is particularly suitable for polymer blends based on natural rubber. It reduces the viscosity of rubber compounds and significantly improves injection and extrusion behavior, also in combination with functionalized polymers. Depending on the compound composition, the product improves scorch behavior, promotes vulcanization and ensures easy demolding without contamination of the mold.

This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.

As MRC informed earlier, Vinmar Polymers America will distribute Lanxess Corp.'s high-performance plastics to customers in North America.

Earlier, Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) fell in January-November 2019 by 14% year on year to 70,700 tonnes (62,000 tonnes a year earlier).

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 58 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.
MRC

MOSCOW (MRC) -- US crude stocks rose more than expected while gasoline and distillate inventories fell last week, reported Reuters with reference to the Energy Information Administration's statement.

Crude inventories rose by 7.5 million barrels in the week to Feb. 7 to 435 million barrels, compared with analysts’ expectations in a Reuters poll for a 3 million-barrel rise.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.7 million barrels in the last week, EIA said.

Refinery crude runs rose by 48,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 0.6 percentage points.

US gasoline stocks fell by 95,000 barrels in the week to 261.1 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 546,000-barrel rise.

Distillate stockpiles, which include diesel and heating oil, fell by 2 million barrels in the week to 143.2 million barrels, versus expectations for a 557,000-barrel drop, the EIA data showed.

Net US crude imports rose last week by 806,000 barrels per day in the last week, EIA said.
MRC

MOSCOW (MRC) --Indorama Ventures Public Company Limited (IVL), a global chemical company, announces its 2020-2023 Strategy at its Capital Markets Day, as per the company's press release.

Summary: IVL’s time-tested approach has generated strong returns for stakeholders through both the peaks and valleys of the chemical cycle.

We have a well articulated 2023 strategy focusing on 5 pillars: Cost Transformation via Olympus, Asset Full Potential, Adjacency Growth, Recycling Leadership, and our People.

In combined PET, we aim to strengthen our cost advantage while also driving the circular economy for PET by building a leading recycling business.

In Fibers, we are focused on operation efficiency, asset integration, and innovation to meet customer’s evolving needs, resulting in a business that delivers double-digit ROCE.

Our aggregated business continue to generate heathy operating cash flow, we continue to focus on working capital while simultaneously deleveraging the balance sheet.

We continue to invest in our people, put in place organization and governance structures and HR processes to ensure we have a healthy IVL for the future.

Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "Going forward, IVL will continue to pursue our strategic themes, with the ambition of achieving double-digit ROCE, strong cash flows across the cycle and above average returns to shareholders. Historically, we have always remained strong through the peaks and troughs of the chemical cycle and expect to continue to outperform thanks to our highly experienced and professional management team."

This strategy was presented and agreed at IVL’s Global Management Conference (GMC), which includes over 200 members of IVL’s global leadership team, and was held January 30 – 31 in Bangkok, Thailand.

As MRC reported earlier, IVL commenced the commercial operations of its olefins gas cracker at Indorama Ventures Olefins (IVOL) plant in Westlake, Louisiana, the USA on 31 January 2020. The site has an ethylene production capacity of 440 kilotons per annum (KTA) and is highly integrated with the US Gulf Coast ethylene pipeline infrastructure for efficient distribution. This cracker is strategically positioned in the US gulf coast and allows to leverage shale gas availability. The facility is strategically positioned for long-term captive ethylene supplies to Indorama Ventures Oxide and Glycols (IVOG) plant in Clear Lake, Texas and the recently acquired integrated EO and PO assets in Port Neches, Texas.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of USD10.7 billion in 2018. The company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
MRC