Braskem teams up with chemistry technology company for EDC plant

MOSCOW (MRC) -- Brazilian petrochemical producer Braskem has teamed up with a US chemistry technology company to build a demonstration ethylene dichloride (EDC) plant in Brazil that the companies say will use less power and cost less than traditional production methods, according to S&P Global.

If successful, the project could provide Braskem with more Brazil-based EDC production, potentially reducing the company's needs for imports to maintain its normal downstream output of PVC, a construction staple used to make pipes, window frames, vinyl siding and other products.

California-based Chemetry will employ its eShuttle EDC process, which involves a metal chloride reaction with ethylene to make EDC, bypassing the need to make chlorine gas to react with ethylene.

EDC, a precursor to PVC, is traditionally produced by reacting chlorine gas with ethylene after salt and water are split using electricity in the chlor-alkali process. That process makes chlorine gas, hydrogen gas and caustic soda, a key feedstock in the alumina and pulp and paper industries, as a byproduct.

Chemetry's process involves a metal chloride reaction, which the company says uses less energy, without the generation of chlorine gas.

"The difference is that we don't use the salt, water and power to make chlorine gas to then react with the ethylene," said Bob Snyder, chief strategy officer at Chemetry. "We skip the chlorine separation part and just react the chloride ion with ethylene."

That eliminates the need to store, manage or transport chlorine gas or liquid, he said. It also saves power, "since it takes more power to make free chlorine than to just free up the chloride ion," he said.

In May 2019, Braskem shut its sole EDC plant in Brazil and an upstream chlor-alkali plant in Maceio, the capital city of the state of Alagoas, after a government report linked the company's salt mining operation in Maceio to geological damage in the area.

The closures made Braskem wholly dependent on EDC imports to maintain its PVC output, and increased its caustic soda import needs to supply customers.

Braskem announced plans in late 2019 to permanently cease salt mining in Maceio, and has since arranged to receive salt from Chile and later from the Brazilian state of Rio Grande do Norte - north of Alagoas - to feed the chlor-alkali plant.

Braskem on Aug. 6 said the company aims to restart the shut plants during the fourth quarter of 2020.

However, the company will still need occasional EDC imports to supplement output from the 520,000 mt/year EDC plant in Maceio. The company started importing EDC several times a year in 2018 after expanding its PVC output.

Isabel Figueriedo, Braskem's vice president and vinyls and specialties business unit leader, said in a statement that Chemetry's technology would support Braskem's efforts to grow and diversify globally.

According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia totalled 13,800 tonnes in the first half of 2020, up by 5% year on year, whereas exports grew by 7% year on year.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

MOSCOW (MRC) -- DuPont Clean Technologies (DuPont) has been awarded the contract to supply Hengyi Industries SDN BHD (Hengyi) with licensing and engineering for a STRATCO alkylation unit at the Brunei refinery in Pulau Murara Besar, Brunei, reported Chemweek.

The new refinery will not only supply the domestic market but also plans to produce refined fuel for export. In order to comply with the China VI standard of 10 ppm sulfur content for fuel, Hengyi commissioned DuPont for a STRATCO alkylation unit with 800 kmta (20,750 bpsd) alkylate capacity. The Pulau Muara Besar refinery and petrochemical plant has the capacity to refine 8 million tons of crude oil per year.

The STRATCO alkylation unit will enable Hengyi to generate low-sulfur, high-octane, low-Rvp alkylate with zero olefins that meets the criteria of the China VI standard. Startup is targeted for 2023.

“It is a privilege to be selected by Hengyi for this project award and DuPont is thrilled to be working with them on this grassroots unit to meet specifications for the China VI standard. “We anticipate a strong relationship between our two companies and are excited to cooperate with Hengyi on seeing this project through to completion. We are committed to supporting them for many years to come in helping them to achieve their objectives,” said Kevin Bockwinkel, global business manager, STRATCO alkylation technology.

“We are extremely pleased to be working with DuPont on this endeavor. We look forward to having DuPont design an alkylation unit meeting all of our gasoline pool specifications. DuPont comes with years of valuable experience and proven quality in alkylate production,” said the Hengyi No. 5 Refinery Technical Lead.

The STRATCO alkylation Technology is a sulfuric acid, catalyzed process that converts low-value, straight-chain olefins (propylene, butylene and amylene) into high-value, branched components called alkylate. Alkylate, with its superior blending properties, is a key component for clean gasoline and the STRATCO alkylation technology helps refiners safely produce cleaner-burning gasoline with high octane, low-Reid vapor pressure, low sulfur, zero aromatics and zero olefins.

The STRATCO alkylation technology is licensed and marketed by DuPont as part of its Clean Technologies portfolio in Overland Park, Kansas. DuPont is the world leader in alkylation technology with more than 100 licensed units worldwide and more than 915,000 bpsd (35,800 kmta) of installed capacity. DuPont is committed to alkylation research and has extensive experience in assisting refiners with alkylation research, design, start-ups, test runs, troubleshooting, optimization, revamps, expansions, analytical testing, operator training, turnarounds and HAZOP studies.

As MRC informed earlier, DuPont has launched “Operation Airbridge,” with the US Department of Health and Human Services (DHHS) and FedEx to speed production and delivery of medical garments made from DuPont’s Tyvek material. Operation Airbridge will enable expedited shipping of Tyvek garments critical to coronavirus disease 2019 (COVID-19) relief via air, instead of sea. FedEx Express will transport Tyvek roll goods from DuPont’s Richmond, Virginia, production plant to garment manufacturers in Vietnam. They will then return to the US with finished Tyvek garments to be added to the US Strategic National Stockpile.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

MOSCOW (MRC) -- Chevron has begun shutting in production and evacuating crews from four sizeable US Gulf of Mexico platforms in advance of Tropical Storm Laura and Tropical Depression 14, as the two emerging storms move north toward the Gulf Coast, reported S&P Global.

"In preparation for the tropical weather, we have begun evacuating all personnel at our ... operated Big Foot, Genesis, Jack / St. Malo and Tahiti platforms and are initiating our shut-in procedures at the four facilities," Chevron said in a statement late Aug. 21.

Non-essential personnel are being evacuated from the company's Blind Faith and Petronius platforms, although production at those assets remains at normal levels, Chevron added.

Earlier Aug. 21, BP said it had has begun shutting in production from its four operated US Gulf platforms - Thunder Horse, Mad Dog, Atlantis and Na Kika - and also started to evacuate crew from platforms and drilling rigs, as well as securing offshore facilities.

Shell has also started to evacuate non-essential personnel at some of its offshore assets "as work activities and conditions allow," the company said late Aug. 21, but added so far there are no production impacts.

Norwegian integrated Equinor also plans to begin crew evacuations starting over the weekend, a company spokesman said.

Tropical Storm Laura is projected to head for offshore eastern Louisiana/Mississippi and areas further east, while Tropical Depression 14 currently appears on a path to strike southeast Texas or western Louisiana. Both storms should be in the Gulf of Mexico early next week, the US' National Hurricane Center said.

The US Gulf of Mexico produced 1.69 million b/d of oil in the second quarter, according to the latest US Energy Information Administration's Short-Term Energy Outlook monthly report. Those volumes are projected to rise to 1.82 million b/d in Q3 and 1.97 million b/d in Q4.

The Gulf also produced about 2.3 Bcf/d of natural gas in Q2, EIA said.

As MRC informed earlier, on 18 August, 2020, Chevron Corp reported a fire at its 112,229-barrel-per-day (bpd) Pasadena, Texas facility. "At this time, flames, smoke may be noticeable to the community. We are coordinating with local officials, and working to resolve the issue as soon as possible," the company reported on August, 19.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

MOSCOW (MRC) -- More US producers have taken steps to either evacuate crews from Gulf of Mexico platforms as Tropical Storms Marco and Laura continued their northward push toward the Gulf Coast and expected landfalls at the end of last week, reported S&P Global.

Shell said Aug. 22 that it is now shutting in production at the "majority" of its Gulf of Mexico assets and evacuating crews from platforms.

"Drilling operations have been safely paused as well," Shell said.

Late on Aug. 21, Chevron said it was shutting in production from four large platforms: Big Foot, Genesis, Jack/St Malo and Tahiti.

Australia's BHP said it was "closely monitoring" the two storms and had "put in contingency plans to evacuate non-essential personnel at Neptune and Shenzi [fields] if necessary."

"As the forecasts become more clear we will make that determination," BHP spokeswoman Judy Dane said in an email on Aug. 21.

BP had said Aug. 21 it was shutting down its four large US Gulf platforms – Thunder Horse, Mad Dog, Atlantis and Na Kika and also evacuating crews from its platforms and drilling rigs.

And Norway's Equinor said it planned to begin evacuating non-essential crews Aug. 22.

Tropical Storm Marco, which was initially called Tropical Depression 14, became a named storm late Aug. 21. Both Marco and Laura are still in the Caribbean, but continue to head north toward the US Gulf Coast.

However, their tracks are both now more westward, National Hurricane Center maps show.

Laura was initially projected to strike the US Gulf Coast east of Louisiana, but maps now show the storm entering that state west of New Orleans later Aug. 26.

Marco, which at first appeared headed straight for Houston, now has a more flattened track and may hit late Aug. 25 or early Aug. 26 slightly to the southwest, NHC maps show.

Early on Aug. 22, Laura was sited near or over Puerto Rico. And Marco, while it may make landfall as a hurricane, should remain a tropical storm, according to NHC.

Laura's track takes that storm through the heart of US Gulf producing areas, and more notices of output shut-ins and crew evacuations are expected over the weekend.

In contrast, Marco - currently sited east of the Yucatan Peninsula - is targeted to move through areas a little more to the south and west in the Gulf but still cross some producing regions.

As MRC wrote before, Shell will announce a major restructure by the end of the year as the company prepares to accelerate its shift toward its net-zero emissions goal by 2050, said CEO Ben van Beurden to employees. The restructuring will include workforce reductions as part of broader cost-cutting measures, although no figures have been decided yet, the CEO reportedly said during an internal webcast.

We remind that Royal Dutch Shell Plc plans to idle a sulfur recovery unit (SRU) at the joint-venture Deer Park, Texas, refinery in 2021, said Shell spokesman Curtis Smith in July 2020. Currently, the refinery is operating at about 75% of its 318,000 barrel-per-day capacity because of reduced demand due to the COVID-19 pandemic.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

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

MOSCOW (MRC) -- Saudi Aramco has suspended plans to participate in a joint venture (JV) to build a USD10-billion refining and petrochemicals complex at Liaoning, China, as the company cuts spending in response to continued low oil prices, according to Bloomberg with reference to people familiar with the matter.

Aramco decided to stop investing in the JV project after negotiations with its Chinese partners, said the people, who asked not to be identified as the matter is private. The uncertain market outlook was behind the decision, they said. Aramco declined to comment, while neither of the two Chinese partners, China North Industries Corp. (Norinco) and Panjin Xincheng, responded to emails seeking comment, according to Bloomberg.

Aramco has implemented significant cuts in its capital expenditure for this year in the low crude oil price environment and uncertain macro-economic climate.

The JV agreement was signed when Saudi Crown Prince Mohammed bin Salman visited Beijing in February last year, with Aramco, Norinco, and Panjin Xincheng to form an entity called Huajin Aramco Petrochemical Co. Under the terms of the agreement, Saudi Arabia was to supply up to 70% of the crude for the fully integrated 15-million metric tons/year (MMt/y) oil refinery and petchems complex, which was planned to include a 1.5-MMt/y steam cracker producing ethylene and a 1.3 MMt/y paraxylene unit. Aramco was to have owned 35% of the JV, with Norinco and Panjin holding 36% and 29%, respectively.

The Chinese participants will press ahead with the project in Panjin city, Liaoning Province, according to the sources. The JV remains an option for the future, they said. The announcement last year put the expected start of operations for the complex in 2024.

The JV signing last year followed an agreement in 2017 between Aramco and Norinco to explore a potential greenfield refinery and chemical plant at Panjin, as well as the upgrading of a refinery and petchems facility at the same site.

Besides, as MRC reported before, Saudi Aramco exited plans to participate in a refinery and aromatics JV with Pertamina in Indonesia earlier this year.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC