Petrochemical manufacturers are addressing plastic waste — one molecule at a time

MOSCOW (MRC) -- Navigating our current health crisis offers frequent reminders of the critical role petrochemicals, particularly plastics, play in daily life — whether in the masks and gloves that protect our frontline health care providers, the containers that hold our takeout food, or the wrapping that keeps our groceries fresh and clean, said Hydrocarbonprocessing.

Much of the value of these and other similar products is derived from the fact that they significantly lessen contamination concerns, since they can be discarded after use. However, petrochemical manufacturers are working on novel “molecular” recycling solutions to give new life to plastic products — including many single-use plastics — so they can safely provide value over and over again.

Plastic products are made from big, long-chained molecules called polymers. Polymers are made up of many individual units of repeating smaller molecules called monomers. These monomers are made from a small number of building block molecules called base petrochemicals. Six of the most important base petrochemicals are ethylene, propylene, butylenes, benzene, toluene and xylenes. In other words, petrochemicals make monomers that make polymers that make plastic products.

Traditional “mechanical” recycling systems sort, shred and melt certain plastics down to their polymer level — a process that can be repeated only a limited number of times before polymer chain degrades and the recycled plastic loses strength. But in recent years, petrochemical manufacturers have been advancing molecular recycling, also known as chemical recycling, which can break a wider variety of plastics all the way down into their smaller monomers — and plastics can go through this process over and over again. Breaking used plastics all the way down to their fundamental monomer units offers a wider range of possibilities for re-use — whether the monomers go into fuel products, chemicals or new plastic products.

The U.S. petrochemical industry, with the full force of its engineering expertise and creative problem-solving, is driving molecular recycling advancements for a more sustainable future. Here are just a few examples of how:

Eastman has developed carbon renewal technology, or CRT, which breaks down waste plastic feedstocks into carbon molecules, like a 3-D printer in reverse. Then, just like carbon in a 3-D printer, that former waste material can become an infinite number of new products. Through this process there is no degradation of quality so it can be repeated over and over again. In addition, Eastman is pushing its polyester renewal technology, or PRT, which involves taking waste polyesters from landfills and other waste streams and transforming them back into a raw material that is indistinguishable from traditional polyester.

In February, SABIC supplied Avery Dennison, the label design and manufacturing company, with a material for label-making that was made, for the first time, from recycled polypropylene. “We have come a very long way with adding recycled- and sustainably sourced products to our portfolio and polypropylene is a very important addition,” said an Avery Dennison representative.

In January, Dow signed a deal to buy recycled polyethylene pellets from Avangard Innovative, a Houston-based waste-optimization specialist. The move enables Dow to provide recycled content plastic to its North American customers. “This collaboration combines AI's waste collection and sortation technology with Dow's materials science expertise, application expertise, and operational scale,” said a Dow representative. "We’re giving our customers the tools they need to supply consumers with products made from recycled plastic, like the liners they place into their waste bins and the shrink wrap they use to bundle and ship packaged goods."

Some petrochemical makers operating in the U.S. are also progressing molecular recycling technology elsewhere across the globe. INEOS and Plastic Energy are building a new chemical recycling plant to come on stream at the end of 2023. “It is very important to us to constantly increase amount of plastic which is recycled in line with the INEOS pledge: By 2025, we will incorporate at least 325,000 tons/year of recycled material into products,” said an INEOS representative.

As MRC informed previously, global oil consumption cut by up to a third. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We remind that, 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 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

Exxon Baytown, Texas, refinery restarting hydrocracker

MOSCOW (MRC) -- Exxon Mobil Corp is restarting the hydrocracker at its 560,500 barrel-per-day (bpd) Baytown, Texas, refinery, said sources familiar with plant operations, said Reuters.

Exxon spokesman Jeremy Eikenberry declined to comment. The 25,000-bpd hydrocracker was shut by a malfunction on Monday caused by a heavy thunderstorm, the sources said.

Hydrocrackers convert gas oil into diesel and other motor fuels through use of a catalyst under high heat and pressure in the presence of hydrogen.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

OPEC+ panel receives plans for extra oil cuts from quota busters Iraq, Kazakhstan

MOSCOW (MRC) -- Iraq and Kazakhstan have submitted their plans to the OPEC+ alliance on how they will implement deeper oil production cuts in the coming months, following through on pledges to make good on violating their quotas in May, reported S&P Global.

However, Nigeria, Angola and other members who also overproduced have yet to declare their plans and have been given until June 22 to submit them, according to a monitoring committee tasked with tracking compliance with the OPEC+ production cut accord and assessing market conditions.

"The committee stressed that the attainment of 100% conformity from all participating countries is not only fair and equitable, but vital for the ongoing and timely rebalancing efforts and helping deliver a sustainable oil market stability," the OPEC+ Joint Ministerial Monitoring Committee said in a draft statement seen by S&P Global Platts after meeting online June 18.

The statement did not detail the exact schedule of cuts for Iraq and Kazakhstan. The deal calls for the compensatory cuts to be made over July-September. Ministers for both countries did not immediately respond to requests for comment.

Kazakh energy minister Nurlan Nogayev had said June 9 that his country pumped 3.13 million barrels over its quota over May 1-12.

Iraq produced nearly 600,000 b/d over its quota in May, according to Platts latest survey of OPEC output, and oil minister Ihsan Ismaael said June 15 that crude exports in June had already been slashed in an effort to comply with the deal.

The OPEC+ alliance's overall compliance with the cuts was 87% for May, the committee said.

OPEC and 10 allies are in the midst of a 9.7 million b/d production cut agreement aimed at speeding the oil market's recovery from the coronavirus pandemic. The cuts are set to run through July, with the JMMC meeting monthly to adjust the quotas as needed.

No decisions were made on August cut levels, delegates said, with the market outlook still uncertain.

"We are committed to a common goal -- balancing the global oil market," Russian energy minister Alexander Novak said in his opening remarks at the JMMC meeting ."Everyone understands that we are not yet close to reaching a sustainable recovery."

Saudi Arabia, the UAE, Kuwait and Oman have agreed to implement an additional voluntary 1.2 million b/d cut for June but have said they do not plan to continue those in July.

The nine-country JMMC is co-chaired by Saudi Arabia and Russia, the OPEC+ coalition's largest producers.

We remind that, as MRC informed before, in late May, 2020, Borealis said it will not proceed with the development of a multi-billion-dollar integrated steam cracker and polyethylene (PE) project in Kazakhstan. “The decision to discontinue this project is based on a thorough assessment of all aspects of the prospective venture and impacted by the effects of the COVID-19 (coronavirus disease 2019) pandemic as well as the increased uncertainty of future market assumptions,” Borealis states.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim.
MRC

Sasol alcohol unit at Lake Charles achieves beneficial operations

MOSCOW (MRC) -- Sasol has announced that the Guerbet alcohol unit at the USD12.8-billion Lake Charles Chemicals Project (LCCP) in Louisiana achieved beneficial operations on 19 June 2020, as per the company's press release.

The 30,000-metric tons/year unit, the world’s largest such facility, is Sasol’s second Guerbet alcohol production unit, adding to its Brunsbuettel, Germany, plant.

This follows three days after achieving beneficial operations on the Ziegler alcohol unit, bringing the online capacity of LCCP’s specialty chemicals units to 100% and LCCP’s total online nameplate capacity to 86%. Sasol says the Ziegler and Guerbet alcohols expand its position of having the broadest integrated alcohols and surfactants portfolio in the world.

The LCCP Ziegler unit is an extension of the existing Ziegler plant at Lake Charles and is the largest of its kind in the world, adding nameplate capacity of 173,000 metric tons/year of alcohol and 32,000 metric tons/year of alumina. This addition strengthens Sasol’s significant economies of scale, the company says.

The only unit yet to be brought online at the Lake Charles complex, based on a 1.54-million metric tons/year ethane cracker, is a 420,000-metric tons/year low-density polyethylene plant, which was in the final stages of commissioning when it exploded on 13 January. It is expected to be back online by the end of September.

“The beneficial operations of the LCCP facilities progresses Sasol’s seven-unit US Gulf Coast mega project to the cusp of completion,” says Sasol president and CEO Fleetwood Grobler. “The additional capacity strengthens Sasol’s leadership position in the specialty alcohol and alumina markets, which is core to the company’s chemicals growth strategy.”

Brad Griffith, Sasol executive vice president/chemicals, says, “Our investment in Lake Charles - including the additional ethoxylation capacity that began operation in January 2020 - combined with the start-up of our new ethoxylation unit in Nanjing, China, in 2019, strengthens our existing asset base. With this expansive global footprint, we continue aligning our business with powerful global megatrends…These megatrends underpin our strategy of providing solutions to a growing and urbanizing middle class focused on health, hygiene, and sustainability.”

The Ziegler unit supplements Sasol's global production of alcohols and aluminas, adding to existing Ziegler capacity at both Lake Charles and Brunsbuettel. The additional alumina capacity from the Ziegler unit will enable Sasol to supply the increasing market demand for tailor-made, high-purity alumina products used in market applications such as catalysts, films, ceramics, and abrasives. The expansion will support growth of customers requiring Sasol’s alkoxide-based alumina products.

Sasol previously said that it plans to attract joint venture partners to the Lake Charles operations and has received offers from leading producers. Reports say the offers came from Ineos, CP Chem, and LyondellBasell.

As MRC reported earlier, Sasol's world-scale US ethane cracker with the capacity of 1.5 mln tonnes per year reached beneficial operation on 27 August 2019. Sasol’s new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities to come online and will provide feedstock to our six new derivative units at the company's Lake Charles multi-asset site.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.
MRC

Future of Shell Oman GTL project in question

MOSCOW (MRC) -- Plans to build a new gas-to-liquids (GTL) project in Oman between the government and Shell have been thrown into doubt by the global economic downturn, the sultanate's oil minister Mohammed AL-Rumhy has told S&P Global.

"We've decided to revisit the GTL with our partners Shell," said Rumhy in a June 11 interview. "We will see what is best for the project, and this work could take up to three months. So, by the third or fourth quarter we will make a final investment decision of some kind on the project. We'll see how it goes."

Shell didn't respond to request for comment. The oil major has been looking at building a GTL plant in Oman that would have a capacity of 40,000 b/d to ­45,000 b/d, and take its feedstock from the Mabrouk North East field that was discovered in March 2018. The field is thought to hold recoverable reserves of more than 4 TcF (112 Bcm) and 112 million barrels of condensate, according to semi-state owned Petroleum Development Oman (PDO), which discovered the field in its giant Block 6 concession.

Under a memorandum of understanding signed early 2019, Shell and Total committed to developing the upstream block, taking working interests of 75% and 25%, respectively. The objective was to achieve an initial gas production of around 500 million cubic feet per day (MMcfd) and a potential to reach 1 billion cubic feet per day (bcf/d) at a later stage. As part of the agreement Shell was to build the GTL plant and Total a liquefied natural gas (LNG) bunkering service for vessels calling at Sohar port.

"We are looking at upstream and downstream as a package and see how best to move forward," said Rumhy. "People will look into the FEED [front-end engineering and design] and cost element of it."

Developing GTL projects can prove challenging. For instance, Shell has previously built the 260,000 b/d Pearl GTL project in Qatar. Initially the project was estimated to cost USD5 billion, however this figure ballooned by the time it was completed in 2012, according to Shell.

Oman and Shell are not considering bringing on another partner for develop the GTL project, Rumhy said.

"Either the project is good, in terms of rate of return for the investors, and we go ahead, or not," said Rumhy. "It's not a question of raising capital, where bringing in a partner would solve that difficulty. It's very simple: is this a viable project or not under the new conditions? The pandemic has brought up new questions in everything we do."

As MRC wrote before, in May 2020, CNOOC Oil & Petrochemicals Co. Ltd (CNOOC), Shell Nanhai B.V (Shell) and the Huizhou Government have announced a strategic cooperation agreement to further expand the CNOOC and Shell Petrochemical Company (CSPC) 50:50 joint venture in Huizhou, Guangdong Province, China.

The expansion is planned to serve the growing number of intermediate and performance chemicals customers in the key market of China, supplying products including SMPO, polyols, ethylene glycol, polyethylene (PE) and polypropylene (PP). These chemicals are used in a wide range of end products, in healthcare, construction, fabrics, packaging, transport and electronics. For the first time in Asia, Shell would apply its advanced technology for linear alpha olefins. The project is intended to include construction of a new 1.5 million-tonnes-per-year ethylene cracker, with the mega-site bringing economies of scale and enhanced competitiveness.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply 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.
MRC