Blast-rocked South African oil refinery shut down for investigations

MOSCOW (MRC) -- South Africa’s second-largest crude oil refinery, the Engen plant in Durban, has been shut down to allow investigators a chance to find out the cause of a “fire incident” earlier on Friday, reported Reuters with reference to Engen's statement.

Engen, which operates the 120,000 barrel per day plant and is majority owned by Malaysia’s Petronas, said a fire broke out at around 0510 GMT and was extinguished by 0645 GMT.

“Engen is currently assessing its overall bulk fuels supply and demand position and implementing immediate mitigations to manage inventory and product supply requirements,” Engen said in an update.

Local emergency services said seven people were injured, although Engen said no injuries were recorded and all refinery personnel were accounted for.

“I saw a massive fireball at the centre of the refinery with thick black smoke billowing from it,” Durban resident Shane Lloyd Pretorius told Reuters.

Engen said in a statement that the cause of the fire was under investigation.

A Reuters witness at the scene saw several fire engines spraying foam onto the affected part of the refinery, as well as ambulances, metropolitan police and national police standing by.

Africa’s most industrialised economy has six refineries, four using crude oil and two synthetic fuel as feedstock. It is a net importer of petroleum products.

The country’s third-biggest crude oil refinery, a 100,000 bpd facility operated by Astron Energy in Cape Town, also suffered an explosion earlier this year.

Top refinery SAPREF, which is also located in Durban and is a joint venture between BP and Shell, said the incident at Engen’s facility had no impact on its operations.

The Engen Refinery and SAPREF form part of a major petrochemical hub on the east coast close to Durban’s port.

As MRC informed previously, in June 2019, Malaysian state oil company Petroliam Nasional Bhd, or Petronas, and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.

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.
MRC

MOSCOW (MRC) -- Henkel says it has opened a fully automated laundry and home-care warehouse at its production facility at Montornes del Valles, Spain, said Chemweek.

The company says it has invested EUR22.0 million (USD26.1 million) in the 24,000-square-meter warehouse, which will serve as a major logistics hub for southern Europe. The center has the capacity to move more than 1 million pallets per year and more than 7 million product units per year, and comprises three different areas, Henkel says.

The Montornes del Valles site is one of the company's most important sites in Europe, Henkel says. It produces more than 200,000 metric tons/year of powder detergents, liquid detergents, and adhesives, exporting to 60 countries, the company 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.

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.

MRC

MOSCOW (MRC) -- Brenntag says it has signed a deal with Elementis under which Brenntag will distribute the company’s products in coatings, adhesives, sealants, inks and construction materials in Canada, according to Chemweek.

Exact terms of the deal were not disclosed. The product range includes rheology modifiers, defoamers, and various types of additives.

“(Elementis’) high performance and versatile product line, reputation in various markets, and commitment to customer service will further strengthen our position as the preferred solutions provider to our customers,” says Stephen Regular, director/coatings and construction, Canada at Brenntag.

As MRC informed earlier, in April 2020, Brenntag sai it had acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed.

We remind that October production of sodium hydroxide (caustic soda) in Russia were 109,000 tonnes (100% of the basic substance) versus 108,000 tonnes a month earlier. Russia's overall output of caustic soda totalled 1,054,600 tonnes in the first ten months of 2020, down by 1.6% year on year.
MRC

MOSCOW (MRC) -- 3M will be restructuring and streamlining its business in the wake of shifts in the global economy caused by the coronavirus pandemic, said the company.

3M said the move will streamline its business and invest more in health care, e-commerce and home improvement. The company's restructuring efforts will cost the company up to USD300 million before taxes.

3M added this move will position the company for greater growth as global markets emerge from the pandemic. "The company will further enhance its operations and marketing capabilities," 3M said. "In operations, 3M will eliminate redundancies and better use analytics to drive additional efficiencies. In marketing, 3M will build on its success in utilizing data insights, accelerating global marketing programs, and activating digital engagements with customers."

3M cut 1,500 jobs back in January amid a trade war between the United States and China. "The COVID-19 [coronavirus] pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster," said Mike Roman, 3M chairman and CEO.

"As a result, we are taking further actions to streamline our operations, positioning us to deliver greater growth and productivity as global markets emerge from the pandemic," he said. Please also visit the ICIS topic page on coronavirus impacts and the oil price crash.

As it was said earlier, 3M Co said it would restructure its business into four operating units from five, as it looks to sharpen its focus on customers and boost growth. The company’s shares fell 1 percent in early trading after it announced the four units - safety & industrial, transportation & electronics, healthcare and consumer.

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

MOSCOW (MRC) -- OPEC+ members' decision to slowly ramp up production from next month will be balanced by increased demand as a result of the expected roll-out of coronavirus vaccines, reported Reuters with reference to Goldman Sachs' statement in a note dated Thursday.

The Organization of Petroleum Exporting Countries and Russia agreed on Thursday to ease oil output cuts by 500,000 barrels per day (bpd) to 7.2 million, from 7.7 million now, starting January.

"OPEC+ clearing the hurdle of exiting its current cuts in a coordinated way and its focus on both growing production and drawing inventories reinforces our conviction in a steady and sustainable rally in oil prices through 2021," Goldman said.

Goldman in its note also maintained its 12-month Brent price forecast of USD65 per barrel.

As MRC invofmed 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% 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 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