LyondellBasell licences technology for mega HDPE unit

MOSCOW (MRC) -- The Hengyi Industries petrochemicals joint venture (JV) in Brunei has selected LyondellBasell’s Hostalen technology for a 450,000 tonne/year high density polyethylene (HDPE) facility to be built in Pulau Muara Besar, Brunei Darussalam, said the company.

The plant - part of an integrated petrochemicals complex - will also use LyondellBasell’s catalysts to produce multi-modal HDPE products. Project costs or timelines for construction and completion were not disclosed.

Chen Liancai, CEO of Hengyi stated: “We selected the Hostalen ACP process technology for its extraordinary ability to produce strong and long-lasting products such as PE pipes, film and many other HDPE based applications."

With these new capacity additions, Lyondell Basell has licensed over 9000 KTA of benchmark multi-modal HDPE resins.

The Hostalen ACP low-pressure slurry process technology manufactures high performance, multi-modal HDPE resins with an increased stiffness/toughness balance, impact resistance and high stress cracking resistance used in pressure pipe, film and blow moulding applications.

The Hengyi HDPE plant will commence operations using Avant Z501 and Avant Z509 catalysts to produce a full range of multi-modal HDPE products.

As MRC informed earlier, LyondellBasell, the world’s largest licensor of polyolefin technologies, today announced that Hengyi Industries SDN BHD (Hengyi) will use the LyondellBasell Hostalen “Advanced Cascade Process” technology for a new facility.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Hengyi Industries is a JV between China’s Hengyi and a Brunei government capital fund.
MRC

Gron Fuels announces potential USD9.2 B renewable fuel complex In Louisiana

MOSCOW (MRC) -- Gov. John Bel Edwards and Fidelis Infrastructure co-founders Daniel J. Shapiro and Bengt Jarlsjo announced their portfolio company Gron Fuels LLC is studying the feasibility of a renewable fuel complex at the Port of Greater Baton Rouge, according to Hyrocarbonprocessing.

With expansions and associated projects, the complex could involve up to USD9.2 billion of total investment over several phases. A final investment decision is expected in 2021, which will determine the final cost of the project’s first phase.

Through all phases and associated projects, the complex would create an estimated 1,025 new direct jobs, with an average annual salary of $98,595, plus benefits. Louisiana Economic Development estimates the project and subsequent phases would result in up to 4,560 new indirect jobs, for a total of 5,585 new jobs for the Capital Region.

“This renewable fuel production facility will help to secure Louisiana’s place as a leader in environmentally friendly energy production,” Gov. Edwards said. “Growing global demand for renewable transportation fuels creates a significant growth opportunity for our state. Once again, Louisiana’s port, rail and pipeline infrastructure and other logistical advantages are making possible an important industrial complex that will deliver many quality jobs for our skilled workforce. We look forward to the final investment decision for Gron Fuels to launch this innovative project at the Port of Greater Baton Rouge.”

The project would be built in stages over nine years at a site leased from the port on the west bank of the Mississippi River, near Port Allen. The first phase of construction would involve a capital investment of over USD1.25 billion and create 340 new direct jobs by 2024. The base project is expected to produce up to 60,000 barrels per day of low-carbon renewable diesel, with an option to produce renewable jet fuel utilizing non-fossil feedstocks, including soybean oil, corn oil and animal fats. Upon completion of all phases - potentially by 2030 - the site would be one of the largest renewable fuel complexes in the world.

“Louisiana’s core strengths in the field of building and operating plants that produce fuels and products for the world, coupled with its logistically advantaged deepwater location at the nexus of energy and agriculture, serve as the launching point for a new ‘high tech’ transition of the region into the next generation of energy,” Fidelis Managing Partner Dan Shapiro said. “I’m proud to be involved in this exciting project as we work to advance it through feasibility and its next steps.”

Houston-based Fidelis Infrastructure is an asset management firm specializing in specific industry sectors, including renewable energy, low-carbon transportation fuels, sustainable and circular economy infrastructure, and digital infrastructure. The Fidelis team has been involved in complex infrastructure projects ranging from $40 million up to $2 billion, including fiber-optic networks; solar power generation; downstream petrochemical; long-haul, high-voltage electric transmission; and gas pipeline projects. Company partners Shapiro and Jarlsjo both attended Louisiana State University and previously worked for The Shaw Group in Baton Rouge.

“It definitely feels good to work to advance this project and give back to Louisiana and the Baton Rouge region,” Jarlsjo said.

LED began formal project discussions with Fidelis Infrastructure about Gron Fuels in March 2020. To secure the project, the State of Louisiana offered a competitive incentive package – subject to a final investment decision – that includes the comprehensive solutions of LED FastStart®, the nation’s No. 1 state workforce development program for the past 11 years. The package also includes a performance-based grant of up to $15 million, payable at up to $2.5 million per year for six years, for project development and infrastructure. The company also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.

“The port is excited to have finalized the ground lease and assist Fidelis Infrastructure in advancing the investment in the Gron Fuels new renewable diesel project for Louisiana and the Greater Baton Rouge region,” said Executive Director Jay Hardman of the Port of Greater Baton Rouge. “The project is great for the people of Louisiana, the port and the community and economic development mission it serves, the agricultural industry, and those who benefit from the clean fuels the plant will produce.”

Gron Fuels and its sponsor, Fidelis Infrastructure, intend to use qualified local businesses to assist in the delivery, operations and maintenance of the facility. CSRS Inc. is assisting Gron Fuels in compiling prequalification of firms interested in providing services for the project.

“This project would significantly contribute to the West Baton Rouge Parish economy, the people and businesses of our community, as well as our farmers and related industries,” West Baton Rouge Parish President Riley Berthelot Jr. said. “We look forward to working with those involved in the project to help progress it through feasibility and investment.”

“This is a transformative new company and investment for the Capital Region, and we have enjoyed working this project with company executives over the last year,” said President and CEO Adam Knapp of the Baton Rouge Area Chamber. “Fidelis brings hundreds of quality, high-paying jobs and huge capital investment during a critical time for both jobs and innovation for this sector. This is a big deal, and puts metro Baton Rouge on the map as home to the largest renewable fuel refinery in the world.”

As MRC reported earlier, ExxonMobil operates a cracker at Baton Rouge refinery in Louisiana with the annual production capacity of 1 mln tonnes of ethylene и 575,000 tonnes of propylene, which was shut for maintenance on 11 February 2019 to mid-Apirl 2019.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Net loss narrows for Rompetrol petchems business

MOSCOW (MRC) -- Rompetrol Rafinare (Navodari, Romania) has reported a net loss of USD5.5 million year on year (YOY) for its petrochemicals business in the third quarter, narrowing from a loss of USD16.2 million in the prior-year period despite a 15% decline YOY in sales to USD37.6 million, said Chemweek.

The result also improves sequentially on a net loss of USD9.6 million in the second quarter. The company processed 21,000 metric tons of ethylene in the quarter, up from 10,000 metric tons a year earlier, and 32,000 metric tons of polypropylene (PP), down 8,000 metric tons YOY. Polymers production totaled 42,000 metric tons, up from 33,000 metric tons in the equivalent period last year.

The increase in polymers output is due mainly to the improved operating schedule of Rompetrol’s low-density polyethylene (LDPE) plant this year, it says. Polymers production for the first nine months of 2020 was 102,000 metric tons, up from 92,000 metric tons the previous year.

As MRC informed earlier, the petrochemical activities of Romanian Rompetrol Group have been integrated in the refinery arm since November, 2013, in a move designed to cut costs and increase the overall efficiency of the group’s operations. "The integration of the two companies represents the continuation of Rompetrol Group’s strategy to concentrate the production activity in a single activity", said then Rompetrol in a statement.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Rompetrol, the only producer of PP and PE in Romania, is majority owned by Kazakhstan’s KMG International Group with a 54.63% shareholding, with the Romanian government owning the remaining 44.7%. KMG says it is also considering the divestment of its ownership in several non-core assets in the region, but not from within its core refining, petchems, and retail businesses.
MRC

Crude rises on expectation of tamer US lockdowns, Asian trade agreement

MOSCOW (MRC) -- Crude prices rose in mid-morning trade in Asia Nov. 16, as the market was comforted by the strong possibility that any new lockdowns in the US will be less severe than the nationwide lockdowns seen in spring, with the signing of the Regional Comprehensive Economic Partnership (RCEP) also providing a boost to sentiment, reported S&P Global.

At 10:37 am Singapore time (0237 GMT), ICE Brent January crude futures were up 41 cents/b (0.96%) from the Nov. 13 settle at USD43.19/b, while the NYMEX December light sweet crude contract was up 50 cents/b (1.25%) at USD40.63/b.

January ICE Brent and December NYMEX crude futures surged 8.44% and 8.05% higher in the week ended Nov. 13 to settle at USD42.78/b and USD40.13/b, respectively, on reports of progress in the development of a COVID-19 vaccine.

Market analysts attributed the upward trajectory in oil prices this morning to rising hopes that if any lockdown measures are implemented in the US, they will not be as strict as the ones seen during the first wave of the virus in spring.

"Oil is trading higher at the open after Dr. Vivek Murthy, a former US surgeon general [who is also one of Joe Biden's top advisers on the virus], told "Fox News Sunday" that any lockdown at this stage of the pandemic would look different than the sweeping closures which states enacted in the spring to suppress the virus," said Stephen Innes, chief global market strategist at axi, in a Nov. 16 note.

"Last week, traders speculated that the US could move into very rigid lockdowns over the holiday season, impacting road fuel demand over Thanksgiving and Christmas, so we are seeing some of those shorts give way at the open," Innes added.

Margaret Yang, strategist at DailyFX, echoed the above sentiment, and told S&P Global Platts that "Biden's advisory suggesting that [they are] reluctant to implement harsh nationwide lockdowns is good news for energy demand in North America. This is one of the major headlines driving prices higher this morning."

Yang added that the signing of the RCEP - the world's biggest trade agreement involving 15 nations and covering almost a third of the world economy - and the weakening US dollar also contributed to the bullishness seen in the market this morning.

"The sentiment in Asian markets is positive this morning, and this is also because of the signing of the RCEP trade agreement on Nov. 15, which is expected to provide a long-term boost in the region's economic activity," Yang said. "Last but not least, the falling US dollar this morning may have provided some additional support to oil prices."

However, despite the uptrend in prices this morning, and even without strict US lockdowns, both Innes and Yang surmised that the oil complex will likely remain pressured in the near-term by coronavirus-induced demand concerns, especially since COVID-19 cases in both Japan and the US have been rising unabated, and since most of Europe remains under some degree of lockdown.

ANZ analysts said in a Nov. 16 note: "European motorway traffic is down almost 50% in recent weeks in some countries (such as France) as lockdown measures are increased. (Even though US authorities have been reluctant to implement lockdowns,) people movement is slowing, with vehicle miles traveled on US highways falling 3% w/w in the week ending Nov. 8."

"Fundamentals are still bleak and are unlikely to support oil prices, which I believe will consolidate at around USD40-USD42/b in the near term," Yang concluded.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

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.

And 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).

ccording to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Karpatneftekhim resumes HDPE production

MOSCOW (MRC) -- The Ukrainian plant Karpatneftekhim (Kalush, Ivano-Frankivsk region) has resumed operations at its high density polyethylene (HDPE) production capacities after a scheduled maintenance, according to ICIS-MRC Price report.

The plant's customers said the Ukrainian producer had resumed its HDPE production by 17 November, after the scheduled turnaround. The outage began on 24 October.

At the same time, suspension polyvinyl chloride (SPVC) production is planned to be resumed by the end of the week.

According to MRC's ScanPlast report, Karpatneftekhim produced 53,900 tonnes of HDPE and 205,000 tonnes of PVC in the first nine months of 2020, down by 19% and up by 19%, respectively, year on year.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC