Shell, Vattenfall, Mitsubishi mull green hydrogen project in Germany

MOSCOW (MRC) -- Shell is teaming up with three partners on a green hydrogen project in Hamburg, Germany, which includes a scalable electrolyser with an initial output of 100 megawatts (MW), said the company.

Production of green hydrogen at what would be one of the largest electrolyser plants in Europe could begin in 2025, the companies – Shell, Mitsubishi Heavy Industries, Vattenfall, and Warme Hamburg.

With the project, the companies aim to develop the site at Hamburg-Moorburg into a “Green Energy Hub”, encompassing the entire hydrogen value chain - from electricity generation via offshore wind power through to the sale of green hydrogen to transport or industrial sectors, Shell's CEO for Germany, Fabian Ziegler, said.

The site is home to a Vattenfall coal-fired power plant that recently terminated commercial operations as part of Germany’s nationwide coal phase-out. The City of Hamburg and Vattenfall plan to clear part of the site for the green hydrogen project.

The partners intend to apply for funding under the EU’s programme for “Important Projects of Common European Interest” (IPCEI). Detailed investment sums were not disclosed.

As MRC informed previously, Royal Dutch Shell plc. said in November that its petrochemical complex of several billion dollars in Western Pennsylvania is about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. 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) -- Russia's production of high density polyethylene (HDPE) totalled about 1,824,800 tonnes in 2020, up 90% year on year.
ZapSibNeftekhim accounted for the main increase in the output, according to MRC's ScanPlast report.

December PE production in Russia was 160,400 tonnes, whereas this figure was 158,600 tonnes a month earlier, output of high density polyethylene (HDPE) at the facilities of Zapsibneftekhim and Kazanorgsintez decreased. Thus, overall HDPE production reached 1,824,800 tonnes in 2020, compared to 960,600 tonnes a year earlier. All producers raised their output, but ZapSibNeftekhim accounted for the greatest increase.

The structure of PE output by grades looked the following way over the stated period.

Russia's December HDPE production at Kazanorgsintez increased to 40,300 tonnes from 37,700 tonnes a month earlier. Russian plants' overall HDPE output reached 484,800 tonnes in January-December 2020, up by 2% year on year.
Last month, HDPE production at Stavrolen facilities increased to about 25,300 tonnes against 25,900 tonnes in November. Thus, for the period under review, the total volume of polyethylene production by the Budenny producer amounted to 318,000 tonnes, up 21% than a year earlier.

Stavrolen's December output of HDPE at Gazprom neftekhim Salavat decreased to 7,200 tonnes from 8,200 tonnes a month earlier. Overall HDPE production grew to 120,000 tonnes in 2020 from 106,000 tonnes a year earlier.


ZapSibNeftekhim increased its production of HDPE to 87,500 tonnes last month against 86,800 tonnes in November. During the period under review, the new producer produced more than 902,000 tonnes of HDPE.

MRC

1. U.S. oil refiners set for worst earnings quarter of the pandemic

MOSCOW (MRC) -- U.S. refiners are girding for a painful slate of fourth-quarter earnings, reflecting the pressure of rising crude prices, weak demand due to renewed COVID-19 travel restrictions, and higher costs of associated with blending of renewable fuels into their products, said Hydrocarbonprocessing. Seven U.S. independent refiners are projected to post an average earnings-per-share loss of USD1.51, down from a loss of USD1.06 in the third quarter of 2020, according to IBES data from Refinitiv. Both Credit Suisse and Tudor Pickering Holt cut lowered the price estimates of every U.S. independent refiner for the fourth quarter.


MOSCOW (MRC) -- OPEC's secretary general said on Tuesday he was cautiously optimistic the oil market would recover this year from the slump in demand brought about by the coronavirus pandemic, reported Reuters. Monthly meetings of the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia - a grouping known as OPEC+ - are there to stop an imbalance from re-emerging, OPEC's Mohammad Barkindo told a virtual forum. "We all agree that the recovery is fragile, there are still more uncertainties, but we are cautiously optimistic that the recovery will materialise this year," he said. Oil prices have rallied to an 11-month high this month, helped by a Jan. 5 decision by most members of OPEC+ to hold production steady in February and a pledge by Saudi Arabia to voluntarily cut output.


MRC

MOSCOW (MRC) -- Top oil exporter Saudi Arabia is expected to raise its official selling prices (OSPs) for Asian buyers for a second straight month in February, tracking stronger benchmark prices and product cracks, reported The Economic Times with reference to a Reuters survey.

Three sources at Asian refiners expect the February OSP for the flagship grade Arab Light to rise by 33 cents a barrel on average, with their forecasts ranging between an increase of 30 cents and 40 cents.

In December strong spot crude purchases pushed up the average differentials to Dubai swaps for the cash Dubai and DME Oman benchmarks by about 41 cents and 17 cents a barrel respectively from last month, data compiled by Reuters showed on Wednesday.

Asia's cracks for a range of oil products - naphtha, gasoil , jet fuel and fuel oil , strengthened this month on improved demand.

Asia's gasoline crack, however, has dipped recently on concerns that restored mobility restrictions to combat a new coronavirus variant would dent near-term demand.

Saudi crude OSPs are usually released around the fifth of each month and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.

State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials, as a matter of policy, do not comment on the kingdom's monthly OSPs.

As MRC informed earlier, top oil exporter Saudi Arabia has cut supplies of February-loading crude for some Asian buyer by up to a quarter while meeting requirements of at least four others.

We remind that in October 2019, McDermott International announced that it had been awarded a contract by Saudi Aramco and Total Raffinage Chimie (Total) for their joint venture (JV) Amiral steam cracker project at Jubail, Saudi Arabia. Amiral is a JV in which Aramco holds 62.5% and Total the rest. The plant, designed to produce 1.5 million metric tons/year (MMt/y) of ethylene, will be one of the world's largest mixed-feed crackers.

Aramco and Total launched their USD5-billion Amiral JV project in October 2018. The steam cracker will be fed with a mixture of 50% ethane and refinery off-gases. It will supply ethylene to a downstream 1 MMt/y polyethylene manufacturing complex and other petrochemical products. The project aims to fully exploit operational synergies with the adjacent refinery, owned by Satorp, another JV between Aramco and Total. Third-party investors, including Daelim and Ineos, will locate plants at the value park adjacent to Amiral with a combined investment of USD4 billion. A final investment decision is expected in 2021.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

MOSCOW (MRC) -- Fujian Baihong Petrochemical started up its new purified terephthalic acid (PTA) line at Jinjiang, China on Jan. 21, reported S&P Global with reference to market sources.

The new line with the capacity of2.5 million mt/year of PTA is running at half of its capacity currently, market sources said.

Supply of PTA remains relatively tight outside of China, so Northeast Asian PTA producers have no interest in selling to China.

In India, market participants will watch out for the trend in freight this week as the Taiwan-India rate was reportedly slightly lower in the week ended Jan. 22; spot trades likely to remain muted.

As MRC informed previously, Hengli Petrochemical (Dalian) Co. Ltd. is expected to lead the global planned and announced purified terephthalic acid (PTA) capacity additions during the period 2019 to 2023, contributing around 22% of the global growth by 2023. Hengli Petrochemical (Dalian) Co. Ltd. is expected to add a capacity of 5.00 million tonnes per annum (mtpa) from two planned projects by 2023.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's ScanPlast report, Russia's estimated PET consumption reached 61,110 tonnes in November 2020, up by 1% year on year. Overall PET consumption in Russia reached 648,110 tonnes in the eleven months of 2020, down by 18% year on year.
MRC