Technip Energies completes modernization of Socar petchems complex

MOSCOW (MRC) -- Technip Energies (Paris, France) announced that its work on the Azerikimya modernization project in Azerbaijan has been completed on time, said Chemengonline.

The overhaul of the Socar petrochemical complex near the nation’s capital, Baku, is now complete and the plant has been handed over and is fully in operation. It has been producing ethylene and propylene on demand since October 2020.

Testing has shown that all the technological modifications introduced as part of the project execution are functioning properly. The contractual performance test was successfully completed in February and the plant met the ethylene and propylene production capacity and quality specification.

Stefano La Femina, Project Director, said: “This is another result that demonstrates the reliability of our design in this technology. Technip Energies’ high quality standards, followed in all phases of the project from engineering, procurement, construction and commissioning to start-up, allowed us to achieve the performance targets without any problem."

Technip Energies now confirms it also completed commissioning and startup activities for the project.

Neither Socar nor Technip Energies disclosed details regarding current capacity rates of APU’s modernized ethylene and PE plant.

Socar let a contract to the service provider in November 2016 for delivery of engineering, procurement, and construction (EPC) services for the revamp project, the scope of which included modernization of the EP-300 steam cracker, including construction of cracker furnaces licensed by Technip Energies, as well as installation of a refinery dry gas treatment unit, ethylene and propylene storage, and related utilities and off sites.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- The U.S. Environmental Protection Agency has asked industry groups for their input on the future of the nation's biofuel policy after it ends its current phase in 2022, four sources familiar with the matter said, said Hydrocarbonprocessing.

The consultations will provide a new opportunity for the oil, corn and biofuel lobbies to reshape the regulation, called the Renewable Fuel Standard, which has bitterly divided the two industries for more than a decade. Under the RFS, oil refiners must blend increasing billions of gallons of biofuels into the nation's fuel mix each year or buy trade able credits from those that do.

The oil industry dislikes the policy because it is costly and props up a huge and competing market for biofuels like corn-based ethanol, while the corn and biofuel sectors want to see the program expanded to help farmers hard hit by years of low commodity prices and trade disputes. Under the regulation, the EPA will have discretion over annual mandated volumes from 2023 on, taking over that responsibility from Congress.

Oil and biofuel groups have begun meetings with the EPA to discuss ways in which the agency could approach the RFS after that date. The EPA declined to comment. Some of the groups, such as the American Petroleum Institute are advocating for the EPA to use the RFS to encourage increased use of advanced and cellulosic biofuels, instead of conventional biofuels such as ethanol.

The RFS currently centers around four categories of renewable fuels: biomass-based diesel, cellulosic biofuel, advanced biofuel and conventional biofuels like ethanol. "Renewable diesel, renewable natural gas from landfills and many other technologies can help achieve our shared goal of reducing GHG (greenhouse gas) emissions," API senior policy advisor Patrick Kelly told Reuters.

However, Brooke Coleman, executive director of the Advanced Biofuels Business Council, said the EPA should not discourage production of conventional biofuels in favor of other biofuels. "Any plan that displaces biofuel with biofuel is an innovation killing non-starter that would cannibalize the industry revenue needed for investment in innovation," he said.

Another oil group, the American Fuel & Petrochemical Manufacturers, said it wants the EPA to establish a methodology to ensure blending volumes are in line with market conditions for that year – meaning they would be lower in periods of weak demand and higher when demand ticks up. The National Biodiesel Board, which represents the biodiesel industry, told Reuters that the EPA should ensure that the RFS keeps up with anticipated growing demand for biodiesel and renewable diesel.

One representative from a biofuel group, who asked not to be named, said the group is looking for continued growth or "at the bare minimum" stability in blending volumes for each category of renewable fuels.

As MRC informed earlier, US Environmental Protection Agency said it would propose to extend deadlines for refiners to prove compliance with biofuel laws, but signaled it would not decide on a slew of pending waiver requests submitted by the industry. The agency’s proposal represented mixed news for refiners hard hit by slumping energy demand during the coronavirus pandemic and eager to sidestep regulatory costs associated with US biofuel blending policy. It also marks one of the last actions from President Donald Trump’s EPA before he leaves office on Jan. 20.

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

According to MRC's ScanPlast report, Russia"s estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- The board of Brazil's Petrobras has officially elected a slate of new executives, reported Reuters with reference to the state-run oil company's statement in a securities filing on Friday.

Thus, Joaquim Silva e Luna was elected as the company's CEO, who is the nominee picked by the federal government.

The board also elected new heads of the company's upstream, logistics and production development divisions, as well as a new chief financial officer, the filing said.

All of the executives with the exception of Luna are long-time employees of Petroleo Brasileiro SA, as the company is formally known.

As MRC informed before, in December 2020, it became known that Brazil's state-run oil company Petrobras was seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem.

We remind that Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July, 2020. She said during the company"s recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras"s stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the company"s stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem"s back burner for several years.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

1. Crude futures fluctuate in a narrow range despite economic rebounds, COVID-19 concerns linger

MOSCOW (MRC) -- Crude oil futures were rangebound during mid-morning Asian trade April 16, as bullish sentiment, bolstered by signs of increasing US and Chinese economic activity, was tempered by the dire coronavirus situation in key economies around the world, reported S&P Global. At 11:59 am Singapore time (0359 GMT), the ICE Brent June contract was 4 cents/b (0.06%) higher than the April 15 settle at USD66.98/b, while the May NYMEX light sweet crude contract was 2 cents/b (0.03%) lower at USD63.44/b. Propping up market sentiment are reports that the US economic recovery is well underway, as evidenced by a 9.8% improvement in March retail sales, the largest increase since May 2020, according to data from the Department of Commerce. Additionally, data by the Department of Labor showed that new applications for US unemployment benefits fell to a seasonally adjusted 576,000, the lowest since the pandemic caused mass unemployment in March 2020.

MRC

MOSCOW (MRC) -- Crude oil futures were rangebound during mid-morning Asian trade April 16, as bullish sentiment, bolstered by signs of increasing US and Chinese economic activity, was tempered by the dire coronavirus situation in key economies around the world, reported S&P Global.

At 11:59 am Singapore time (0359 GMT), the ICE Brent June contract was 4 cents/b (0.06%) higher than the April 15 settle at USD66.98/b, while the May NYMEX light sweet crude contract was 2 cents/b (0.03%) lower at USD63.44/b.

Propping up market sentiment are reports that the US economic recovery is well underway, as evidenced by a 9.8% improvement in March retail sales, the largest increase since May 2020, according to data from the Department of Commerce. Additionally, data by the Department of Labor showed that new applications for US unemployment benefits fell to a seasonally adjusted 576,000, the lowest since the pandemic caused mass unemployment in March 2020.

Providing further tailwind to the markets are reports of a strong Chinese GDP growth, which the National Bureau of Statistics quantified at 18.3% in the first quarter of 2021, the fastest year-on-year rate for any quarter on record. On a quarterly basis, the Chinese economy grew at a slower 0.6% in Q1, the data showed.

"The latest economic data out of the US and China point to a global economic recovery that is truly gathering pace and taking meaningful strides into the post-pandemic era, bolstering hopes for oil bulls to reclaim the USD70 Brent handle," Han Tan, FXTM's analyst told S&P Global Platts April 16.

A rebound in economic activity in the US and China portends well for oil, as it is expected to be accompanied by an increase in oil and energy demand. Analysts have noted spillover effects of the economic advance on downstream products demand, specifically gasoline demand in the US.

Optimism due to the economic recovery narrative has also been dulled by a protracted battle with the coronavirus in key oil-consuming countries around the world. Italy, France and Germany, among other European states, remain under lockdown, while the situation in India has analysts particularly worried, as the country reported a record high 200,739 cases on April 14, according to John Hopkins University data.

The market, however, is hopeful of an improvement in the situation in Europe, as vaccination programs in the region are picking up pace.

As MRC informed earlier, COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC