Henkel collaborates with Australian firm to develop 3D printed parts for the additive industry

MOSCOW (MRC) -- Henkel says that Asiga (Sydney, Australia), a leading manufacturer of 3D printing equipment, has joined Henkel’s open materials platform to provide the additive manufacturing industry with production-grade 3D printed parts, said Chemweek.

Working together, the two companies are leveraging their experience in chemistry and 3D printing technologies to drive the next level in additive production, Henkel says.

The two companies “share a common vision of unlocking the promise of additive manufacturing at scale. The industrial sector is ripe for development, and with our combined solution, we are poised to help customers benefit from many of 3D printing’s biggest advantages, including design innovation, customization, speed, and scalability, among others,” says Sam Bail, head of OEM partnership/3D printing at Henkel.

Henkel says it offers a portfolio of materials for the 3D printing industry. Asiga was an early innovator in desktop stereolithography, launching the world's first LED-based DLP 3D printer in 2011, Henkel says.

As MRC informed earlier, Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that Henkel Adhesives Technologies has officially inaugurated its new production facility in Kurkumbh, India.

Henkel are also partnering with Borealis and plastics solutions company Borouge to develop flexible packaging solutions for detergents containing both virgin polyethylene (PE) and high amounts of post-consumer recyclate (PCR) in efforts to increase sustainability.

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.

Henkel operates in three business units, including laundry and home care, beauty care and adhesive technologies.
MRC

Fire at South African refinery kills two

MOSCOW (MRC) -- Two people were killed in an explosion at Astron Energy’s 100,000 barrel per day refinery in Cape Town early on Thursday, reported Reuters with reference to emergency officials' confirmation.

The Western Cape’s emergency medical services said one male and one female died on site and seven people sustained minor injuries and were taken to hospital.

The fire at South Africa’s third-biggest crude oil refinery started at around 4 a.m. (0200 GMT), said Astron Energy, which is majority owned by commodities trader Glencore.

“The resultant fire has been contained and all work on the plant has been suspended,” said a spokeswoman.

She said Astron would release an updated statement later.

The Milnerton plant, which had been in the process of restarting after undergoing extended maintenance, was shut down after this morning’s fire.

“At first I thought it was thunder, but it was just like one big rumble and you could feel the vibrations,” said Felix Holm, who lives some 500 metres away from the refinery.

“It woke me up, the explosion,” he told Reuters.

The refinery, which Glencore acquired as part of an almost USD1 billion deal with Chevron, earlier this year completed a 400 million rand (USD23.69 million) upgrade to produce very low sulphur fuel for ships docking in Cape Town port.

The shutdown comes at a crucial time for South Africa as it reopens after its COVID-19-related lockdown. Industry body SAPIA said in May that the country was facing a diesel shortage due to a spike in demand as restrictions on movement eased.

Africa’s most industrialised economy is a net importer of crude and petroleum products.

As MRC informed earlier, following Sasol’s (Johannesburg) announcement on 17 March of steps it is taking to overcome its financial problems, the company has informed the Johannesburg stock exchange that it is taking further actions in response to the fast-developing coronavirus disease 2019 (COVID-19) pandemic.

We remind that in mid December 2019, Sasol announced that the LCCP Ethane Cracker was increasing production rates following the successful replacement of the acetylene reactor catalyst. Sasol’s Ethane Cracker with a nameplate capacity of 1.54 million tons per year achieved beneficial operation in August 2019 but has run approximately 50-60% of nameplate capacity due to underperformance of the plant’s acetylene removal system. The company stated that the issue had been resolved then.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

Sweeter, lighter, cheaper: refiners seek oil to meet rising gasoline demand

MOSCOW (MRC) -- With more cars taking to the roads as coronavirus lockdowns ease, demand for lighter, sweeter oil more suitable for refining into gasoline is ticking up, said the Hydrocarbonprocessing.

European refiners especially are moving away from sour varieties like Russian Urals, which have risen in price since a supply cut pact by producer countries made the grades scarcer, towards alternatives such as U.S. West Texas Intermediate (WTI), West African grades, CPC Blend and Azeri oil.

"Many discounted barrels from the U.S. are arriving in Northwest Europe," one European importer of both Nigerian and U.S. oil said. "Demand is increasing from a bottom in April, and in July and August demand should be higher," they added.

Although gasoline stocks in northwest Europe remain not far from all-time highs and refining margins are still in the doldrums, they fell by almost 9% in the week to Thursday in the third consecutive weekly drop. The bargain price of lighter, sweeter crude is hard to refuse.

"Refiners are switching to sweet. And the arbitrage is open, so WTI is being offered in the Mediterranean and Asia with (strong) demand," another trader said. Nigeria in particular hopes that slow sales brought on by volatility and long transit times to key markets will soon end.

Mele Kyari, head of the Nigerian National Petroleum Corporation, said in June that the country’s oil would be the “grade of choice” with the rise in consumption being driven by gasoline-rich crude. Still, flows from West Africa’s top oil exporter to Europe have been the lowest in two years, according to Refinitiv Eikon data, while volumes of cheaper U.S. light oil hover near all-time highs.

But with WTI prices firming in Europe to around USD1 above dated Brent, Nigerian grades at around the same price are coming into play, traders said. Meanwhile, CPC Blend is expected to sell at a premium to dated Brent with traders expecting a reduction in export volumes.

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

Pandemic hastens threat of closure for struggling oil refineries

MOSCOW (MRC) -- The collapse in oil demand from the COVID-19 pandemic is hastening the reckoning for those refiners already struggling as new capacity overtakes demand, posing an existential threat to many, particularly Europe’s ageing plants, reported Reuters.

Even before the pandemic struck, which at its height destroyed over 20% of global oil demand, analysts expected global refining capacity would have to rationalize, particularly in Europe.

According to consultants WoodMac, 1.4 million barrels per day, or around 9%, of refining capacity is under threat of rationalization in Europe in 2022-2023.

WoodMac declined to name specific refineries, but in a list sent to its clients and seen by Reuters, BP’s 377,000 bpd Rotterdam refinery, Total’s 102,000 bpd Grandpuits refinery in France and Petroineos’ 200,000 bpd Grangemouth refinery in Scotland were among 11 plants mentioned.

The three companies did not immediately reply to a Reuters request for comment.

Last week, energy trader Gunvor said it was considering mothballing its loss-making Belgian refinery.

Goldman Sachs expects global refinery utilization rates in 2021-2024 to be 3% lower relative to 2019, heightening competition and eventually leading to permanent plant closures in developed markets.

It adds a “risk weight” to capacities beyond 2021, forecasting a 6 million bpd net capacity increase over the next five years, around 2 million bpd below the International Energy Agency’s forecast.

“ capacity now looms very large over the industry, posing an immediate threat to the outlook for older and more exposed operations,” the IEA said in April.

European refining has seen several waves of rationalizations, most recently in the wake of the 2008-2009 financial crisis.

“In 2023 it could well be that two-thirds of the refineries in Europe don’t make any money, or lose money on a cash basis,” Alan Gelder VP Refining, Chemicals and Oil Markets at WoodMac said.

Strong labor unions are making refinery closures in many European countries difficult. Two of Europe’s biggest refiners, Total and Eni, have managed to shutdown some capacity in the past decade, and to turn some sites into biofuel operations.

Total, having already converted its La Mede refinery into making biofuels, is considering a second biofuel facility in France.

Capacity on the US Coast, Japan and some older, less sophisticated sites in Asia is also under threat, WoodMac says.

“On the US east coast, refiners that process lighter sweeter grades, like Trainer and Bayway, might be in trouble,” Kevin Waguespack, refinery consultant at Baker O’Brien said.

He added that the lack of access to cheap crude in the northeast was the US region’s “Achilles heel”.

“Less competitive European refineries have been in trouble and the pandemic will put another nail in the coffin for them,” said John Auers, a refining analyst at consultancy Turner, Mason & Co.

“Even before the pandemic, the IMO was going to disadvantage some refiners that made a lot of fuel oil that couldn’t afford to make upgrades,” Auers said.

The International Maritime Organization (IMO) changed the rules on shipping fuel at the start of the year so that all ships can only burn fuel with a maximum 0.5% sulfur, unless they have sulfur-cleaning kits.

Against the backdrop of potentially shut capacity in Europe over the next few years, other regions have been expanding with mega refining projects that are closer to upstream production, as in the Middle East, or closer to big demand centres, like in Asia Pacific.

Data and analytics company GlobalData sees Asia Pacific adding 2.7 million bpd of crude distillation capacity by 2024, 42% of the global total. The Middle East and Africa region is expected to account for 23% and 18% of crude distillation additions by 2024.

As MRC reported earlier, French energy group Total is conducting an audit of a pipeline that supplies its Grandpuits refinery near Paris following leaks in recent years. The audit will look at the cost of replacing the 260-km (161 miles) pipeline.

We remind that Total has recently disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

CVR Refining, HollyFrontier cut jobs at US refineries

MOSCOW (MRC) -- CVR Refining and HollyFrontier Corp have cut their workforce in recent weeks, reported Reuters with reference to three sources, as demand falls due to the ongoing coronavirus pandemic.

In recent weeks CVR Refining has laid off approximately 50 salaried employees and HollyFrontier has cut at least 12 jobs, the sources said. HollyFrontier previously said it would lay off about 130 workers at its Cheyenne, Wyoming, refinery as it converts to a renewable diesel facility.

CVR and HollyFrontier both declined to comment.

Refining margins have dropped due to the coronavirus pandemic, reducing profit. Independent US refiners are operating at just 75% of capacity and in the first quarter, refiners announced millions of dollars in cuts to capital and operating expenses.

HollyFrontier will allow Cheyenne refinery employees to apply for some 40 positions across its other refining operations, according to two of the sources.

“The company needed to tighten up their belt ... 20 years of record margins disappeared to the coronavirus and an oil glut so they are cutting costs where they can,” said one of the sources, a refinery worker.

US refineries have been running at reduced rates due to falling demand for products such as gasoline and jet fuel. At this time last year, US refinery utilization was roughly 95%, as refiners met demand for busy summer driving months.

Gasoline demand has recovered somewhat from its weakest levels in April and May, but coronavirus cases are surging in populous states like California and Texas, the country’s biggest consumers of road fuel, according to the US Energy Department. Governors there and in other states have closed bars and restaurants and halted other plans to relax restrictions meant to stop the spread of the virus.

As MRC wrote previously, Valero Energy Corp’s Memphis, Tennessee, crude oil refinery is operating at two-thirds of its 180,000 barrel-per-day (bpd) capacity because of low demand in the COVID-19 pandemic. The Memphis refinery cut production by as much as 50% in early April and has been raising production gradually since then.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC