BASF and BillerudKorsnas develop compostable paper laminate

MOSCOW (MRC) -- BASF and the Swedish packaging manufacturer BillerudKorsnas have cooperated to develop a home-compostable paper laminate for flexible packaging, said the company.

The move comes amid the market shift from plastic to paper-based packaging and towards more recycling. Conventional multi-layer flexible films are difficult to recycle.

The multi-layer film consists of three basic components: BillerudKorsnas‘ paper, a sealing layer made of BASF’s certified home compostable and partly bio-based biopolymer and BASF’s water-based adhesive which joins the film to the paper. It can be used to produce wraps with individually adjusted barrier properties, e.g. for cookies, cereal bars and dairy items. All components are certified home-compostable according to official European certification schemes for home-composting.

It can be used to produce wraps with individually adjusted barrier properties, for example for biscuits, ice cream, cereal bars and dairy items as well as wrappers for fish, meat and cheese.

“Our joint development represents a shift to paper-based and compostable material in order to replace traditional laminates for food packaging - meeting hygiene and barrier requirements, maintaining form and enabling many design possibilities just like conventional packaging but with the decisive added benefit that it is home-compostable,” said Markus Saari, business development manager at BillerudKorsnas.

As MRC reported previously, German chemicals maker BASF said in early November it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic. BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in India’s Gujarat state.

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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

Chevron makes USD14bn capital and exploratory budget for 2021

MOSCOW (MRC) -- Chevron Corporation has made a 2021 organic capital and exploratory spending program of USD14 billion and lowered its longer-term guidance to USD14 to USD16 billion annually through 2025, accoring to The Daily.

This capital outlook will continue to prioritize investments that are expected to grow long-term value and deliver higher returns and lower carbon, including over USD300 million in 2021 for investments to advance the energy transition.

“Chevron remains committed to capital discipline with a 2021 capital budget and longer-term capital outlook that are well below our prior guidance,” said Chevron Chairman and CEO Michael Wirth.

“With our major restructuring behind us and Noble Energy integration on track, we’re prepared to execute this program with discipline.”

Chevron’s capital guidance of USD14 to USD16 billion annually from 2022 to 2025 is significantly lower than its previous guidance of USD19 to USD22 billion, which excluded Noble Energy.

During this time period, as capital is expected to decrease for a major expansion in Kazakhstan, the company expects to increase investments in a number of Chevron’s advantaged assets, including its world class position in the Permian, other unconventional basins, and the Gulf of Mexico.

He added: “Chevron is in a different place than others in our industry. We’ve maintained consistent financial priorities starting with our firm commitment to the dividend. We took early and swift action at the beginning of the pandemic to prudently allocate capital, reduce costs and protect our industry-leading balance sheet. And we’ve completed a major acquisition and restructuring that positions our company to deliver higher returns and grow long-term value.”

As MRC reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations. The force majeure circumstances were declared on 1 September, 2020. CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur. The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

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

One sixth of overall European ethylene capacity was shut in November

One sixth of overall European ethylene capacity was shut in November

MOSCOW (MRC) -- Through November, broadly one sixth of Europe's overall ethylene capacity was offline, according to Chemweek with reference to OPIS records.

The reduction in cracker capacity was sufficiently large to tighten the supply of ethylene and propylene, as the remaining petrochemical producers looked to maintain strong run rates in the region.

The major units that have seen reduced capacity through maintenance or operational issues included the 1.31-million metric tons/year Geleen and 940,000-metric tons/year Moerdijk crackers in the Netherlands; the 865,000-metric tons/year Wilton plant in the UK, which is partly ethane fed; the 625,000-metric tons/year Stenungsund facility in Sweden, also partly ethane fed; the 400,000-metric tons/year plant at Porvoo in Finland; and the 310,000-metric tons/year Wesseling cracker in Germany. The Porvoo plant is expecting a restart in early December.

OPIS is an IHS Markit company.

As MRC reported earlier, Borealis announces that its new naphtha cavern in Porvoo, Finland has now been safely commissioned as of October 2020. Having invested around EUR25 million in the construction of this 80,000 m3 facility, Borealis can now source and store naphtha for its Porvoo operations from the global market in a more flexible, cost-efficient, and secure way. The cavern can also accommodate renewable naphtha, making it possible for Borealis customers in future to draw on certified renewable polypropylene (PP) and polyethylene (PE), as well as renewable base chemicals, ethylene, propylene and phenol.

We remind that the light-feed 625,000-metric tons/year Borealis steam cracker at Stenungsund, Sweden, is expected to restart operations in the fourth quarter this year after a fire broke out at the plant in May, 2020. The cracker has been under force majeure ever since after the blaze at the plant on 10 May, which was subsequently brought under control the following day.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

Asia needs flexible LNG deals not linked to oil prices says India oil minister

MOSCOW (MRC) - Asia needs flexible liquefied natural gas (LNG) contracts with no links to oil prices to reflect changes to the market as demand recovers from the impact of the coronavirus pandemic, said Reuters.

Pradhan said gas buyers and sellers need to adjust to changing market dynamics after lower spot gas prices in last two years have encouraged buyers to favour short-term and spot deals instead of long-term oil-linked deals. "The LNG price determination for Asian consumers is still oil-linked, and this requires an urgent revision," Pradhan said at an International Energy Forum event.

India, the world's fourth largest liquefied natural gas importer, is aiming to raise the share of gas in its energy mix to 15% by 2030 from the current 6.3% and is investing $60 billion by 2024 to strengthen infrastructure. The country's top importer Petronet LNG is renegotiating pricing of gas bought under long-term deals with Qatar, after a spot price slump made oil-linked long-term deals unattractive.

"There is greater recognition to immediately address the rigidities in its marketing structures in LNG sector," the minister said referring to clauses like destination restriction. He said refined fuels and gas demand in India has recovered to pre-Covid levels and he hoped the country will remain a key global energy demand center.

India is doubling its natural gas grid to 34,500 kilometers and increasing annual gas import capacity to 61 million tonnes by 2022 from the current 42 million tonnes, he said.

As MRC informed earlier, ADNOC LNG has signed up to a six-year supply agreement with Vitol, the world’s largest independent energy trader, for the sale of 1.8 MMtpy of post-2022 LNG volumes and a two-year supply agreement with Total for 0.75 MMtpy of 2021 and 2022 LNG volumes.

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 density 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.
MRC

Japan may ban sale of new gasoline-powered vehicles in mid-2030s

MOSCOW (MRC) -- Japan may ban sales of new gasoline-engine cars by the mid-2030s in favour of hybrid or electric vehicles, public broadcaster NHK reported on Thursday, aligning it with other countries and regions that are imposing curbs on fossil fuel vehicles, said Hydrocarbonprocessing.

The move would follow Prime Minister Yoshihide Suga's pledge in October for Japan to slash carbon emissions to zero on a net basis by 2050 and make the country the second G7 nation to set a deadline for phasing out gasoline vehicles in a little over two weeks. Japan's industry ministry will map out a plan by the year-end, chief government spokesman Katsunobu Kato told a news conference on Thursday.

The likelihood of state interventions to lower carbon emissions is fuelling a technological race among carmakers to build electric cars and hybrid gasoline-electric vehicles that will lure drivers as they switch from gasoline models, particularly in the world's two biggest auto markets, China and the U.S.

Measures already in place in Japan mean Japanese automakers, particularly big ones such as Toyota Motor Corp with greater research and development resources, could use electric vehicle technology they have already developed at home.

Nissan Motor Co chief operating officer Ashwani Gupta last month told Reuters his company was ready to respond to Britain's decision to hasten a phase-out date for new petrol and diesel powered cars and vans by five years to 2030 because it was part of a global trend. Japan's industry ministry is considering requiring all new vehicles to be electric, including hybrid vehicles, NHK reported earlier, adding the ministry would finalise a formal target following expert-panel debates as early as the year-end.

Japanese automakers for now are keeping quiet on what impact those measures could have on their businesses. Toyota, Honda Motor Co, Nissan and its alliance partner Mitsubishi Motors Corp declined to comment. In Japan, the share of electricity vehicles is expected to increase to 55% in 2030, Boston Consulting Group said in a report on prospects for battery-powered cars.

Globally, "the speed of expansion of the share of electric vehicles will accelerate due to the fact that battery prices are falling more rapidly than previously expected," Boston Consulting said in the report. Japan, China and South Korea recently announced firm targets to end net emissions of carbon, which has given momentum for companies and banks to push for cutbacks to keep global warming in check.

Apart from Britain, parts of the United States and Canada, Norway and Germany, are or plan to imposed curbs on fossil fuel cars. The wider European Union is expected to decide on future restrictions as early as this month.

As per MRC, Agilyx Corp., Tigard, Oregon, and Toyo Styrene Co. Ltd., a Toyko-based affiliate of Denka Co. Ltd., have announced they are 30% complete with the final phase of developing the front-end loading design to deploy Agilyx's technology near Toyo Styrene’s facility in the Chiba prefecture of Japan. According to a news release from Agilyx, the facility will focus on recycling postuse polystyrene (PS) plastic back to a styrene monomer. In April, Agilyx had announced the licensing of its technology to Toyo Styrene.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 362,820 tonnes in the first nine months of 2020, down by 1% year on year.
MRC