First Novolen PP unit to be build in Nigeria

MOSCOW (MRC) -- Lummus Technology's Novolen business has been awarded a polypropylene (PP) contract by BUA Refinery, a subsidiary of Nigeria's BUA Group, at their grassroots refinery in Nigeria, according to Hydrocarbonprocessing.

Lummus' scope includes the technology license for a 285 KTA PP unit as well as basic design engineering, training and services, and catalyst supply.

"We are pleased to sign this polypropylene contract for our BUA Refinery and Petrochemicals Project with Lummus Technology, a world leader in delivering polypropylene solutions, which will solve the increasing demand for high-performance grade polypropylene in Nigeria, the Gulf of Guinea as well as the Sub-Saharan Africa Region," said Abdul Samad Rabiu, Chairman of BUA Group. "We are confident in the capacity and technical expertise of Lummus Technology to deliver a best-in-class, 285 KTA PP unit for our refinery project scheduled to come on stream in 2024."

Lummus Novolen Technology GmbH licenses PP technology and provides related engineering and technical support/advisory services. Novolen also supplies NHP catalysts for the production of high-performance polypropylene grades in the Novolen process and NOVOCENE metallocene catalyst for the production of special PP grades.

As MRC reported before, Lummus Technology has been just awarded a master licensor contract by PJSC Nizhnekamskneftekhim for its ethylbenzene, styrene monomer (SM), ethylene dimerization and olefins conversion technologies. These four plants will be part of the expansion of an olefins production facility in Nizhnekamsk, Russia. The dimerization and olefins conversion units will be the first in Russia.

According to MRC's ScanPlast report, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
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MOSCOW (MRC) - TAIF together with SIBUR will spend over 1 trillion rubles. for the implementation of joint projects, Kommersant reports with reference to the words of the general director of the company Rafinat Yarullin during a meeting of Tatneftekhiminvest-holding.

It is noted that the companies plan to implement over 30 projects in total. "TAIF, in synergy with SIBUR, plans to implement more than 30 projects, the cost will be determined, it is also somewhere over a trillion," R. Yarullin noted.

The companies previously signed a legally binding asset pooling agreement. The deal involves the exchange of a minimum controlling stake in TAIF for a 15% stake in SIBUR. To complete the transaction, SIBUR will conduct an additional share issue. The merged enterprise will have an option to buy out the remaining stake in TAIF, and TAIF shareholders will also have the right to activate this option.

After the completion of all investment projects underway - the Amur Mining and Chemical Combine and the construction of a new pyrolysis facility at Nizhnekamskneftekhim, the combined company will enter the TOP-5 global leaders in the production of polyolefins and rubbers, whose combined capacity will amount to 8 million tons of polyolefins and 1.2 million tons of rubbers.

Earlier it was reported that SIBUR increased sales of polypropylene and polyethylene last year amid growing utilization of the ZapSibNeftekhim complex. This led to an increase in the company's revenue in the olefins and polyolefins segment by 77.1% to RUB 187.3 billion. This growth was mainly due to an increase in sales of polypropylene and polyethylene as a result of increased utilization of the ZapSibNeftekhim complex and was partially offset by a decrease in prices for these types of products.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.

PSC "TAIF" was established in 1995, is the parent company of the group of the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its directions is the "Chemistry, Petrochemistry and Oil and Gas Processing" division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
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1. Crude oil futures up on signs of stronger downstream demand in the US

MOSCOW (MRC) -- Crude oil futures ticked higher during mid-morning trade in Asia April 29, as sentiment in the market remained positive amid signs of strong downstream demand in the US, but the progress of the pandemic in India remained on the market's radar, reporte S&P Global. At 11:17 am Singapore time (0317 GMT), the ICE Brent June contract was up 36 cents/b (0.54%) from the April 27 settle at USD67.64/b, while the June NYMEX light sweet crude contract rose 29 cents/b (0.45%) at USD64.15/b. There was some bullishness in the market after the US' Energy Information Administration released its weekly data late April 28, which backed the narrative of a recovery in US oil demand.

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MOSCOW (MRC) -- Crude oil futures ticked higher during mid-morning trade in Asia April 29, as sentiment in the market remained positive amid signs of strong downstream demand in the US, but the progress of the pandemic in India remained on the market's radar, reporte S&P Global.

At 11:17 am Singapore time (0317 GMT), the ICE Brent June contract was up 36 cents/b (0.54%) from the April 27 settle at USD67.64/b, while the June NYMEX light sweet crude contract rose 29 cents/b (0.45%) at USD64.15/b.

There was some bullishness in the market after the US' Energy Information Administration released its weekly data late April 28, which backed the narrative of a recovery in US oil demand.

Total products supplied, the EIA's proxy for demand, increased 8.7% on the week, in the week ended April 23 to 20.34 million b/d. The increase in implied products demand was largely powered by a 12.35% increase in implied distillates demand to 4.33 million b/d in the same period, even as implied gasoline demand edged 2.49% lower to 8.88 million b/d.

The increase in implied distillate demand sent distillate inventories 3.34 million barrels lower last week to 139.05 million barrels. Gasoline inventories, meanwhile, climbed 90,000 barrels to 235.07 million barrels even as Apple mobility data showed US driving activity edging 0.4% higher last week.

The headline increase in US crude inventories was 90,000 barrels, according to the EIA data, which put stocks 0.3% behind the five-year average and erased a surplus that has persisted since the week ended March 27, 2020. Even though crude inventories registered a rise, the market took it as a positive development, as the rise was much smaller than the 4.32 million-barrel build reported by the American Petroleum Institute on April 27.

The increase in US oil demand, as per the EIA report, came amid the market's assessment of improved US economic conditions. The Federal Reserve, on April 28, echoed the market's view of bullish economic conditions in the country, saying that amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened.

Elsewhere, however, concerns over the pandemic and its pernicious impact on economic activity have escalated. COVID-19 infection and fatality numbers in India, the third largest importer of crude oil, have shown no signs of abating, with the country reporting record 360,927 new cases and 3,293 deaths on April 27, latest data from John Hopkins University showed.

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 polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
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MOSCOW (MRC) -- Cancer-causing benzene emissions from oil refineries exceeded the federal action level for five refineries in Louisiana last year, putting at risk the health of neighboring communities, said Hydrocarbonprocessing.

Nationally, 13 refineries had benzene monitoring readings at their fencelines in 2020 that averaged above EPA’s action level, a regulatory threshold that requires companies to investigate and take action to reduce the dangerous pollution.

That was more than the 11 refineries nationally over EPA’s action level in 2019, and two in Louisiana that year, according to a report by the Environmental Integrity Project (EIP), “Environmental Justice and Refinery Pollution."

The highest benzene levels in the nation last year were at the Delek corporation refinery in Krotz Springs, Louisiana, about 40 minutes west of Baton Rouge. Fenceline benzene readings there averaged more than triple EPA’s action level last year and worsened by 29 percent between 2019 and 2020, according to EPA data. A public library, many homes, and a daycare center serving low-income children are located within a quarter mile of the refinery.

"Benzene is not some harmless chemical - it is a known carcinogen,” said Anne Rolfes, Director of the Louisiana Bucket Brigade. “We want the new administration at EPA to acknowledge that the Louisiana Department of Environmental Quality is incapable of solving this problem. Year after year, the state has failed to act. We need federal intervention and we need it now. Without an active EPA, schoolchildren will continue to be exposed. It is so wrong."

Federal data also show benzene exceedances last year at the Shell Norco refinery outside New Orleans (which was 62 percent over the EPA action level), Chalmette Refining (24 percent over), and the Phillips 66 refineries in Westlake (17 percent over) and Belle Chasse (4 percent over), according to EIP’s report.

In 2015, EPA imposed regulations for oil refineries that, for the first time starting in 2018, required them to start monitoring for benzene at the fencelines of their plants and publicly report the data, which EIP used for its report. The benzene rules require companies to investigate and crack down on facilities with an annual net average over nine micrograms per cubic meter of the carcinogen (not counting emissions from background sources or non-refinery equipment.)

Nationally, more than 530,000 people live within three miles of the 13 refineries with benzene emissions over the EPA action level in 2020, with 57 percent being people of color and 43 percent living below the poverty line, according to EIP’s report.

“If the Biden Administration wants to make good on its promise to tackle environmental injustices, it should act immediately to crack down on these dangerous benzene emissions,” said Eric Schaeffer, Executive Director of the Environmental Integrity Project and former Director of Civil Enforcement at EPA.

“EPA needs to start responding more rapidly to short-term spikes in benzene that threaten public health,” said Schaeffer. “And the agency should tighten up its regulations to close a loophole that allows refineries to avoid counting emissions from benzene storage tanks and other non-refining equipment – even though neighbors are exposed to all of these toxic emissions."

EIP’s report explains that fenceline monitoring data show that actual benzene emissions from oil refineries across the U.S. are higher than they appear. This is because the EPA’s 2015 regulations, which the agency imposed in response to a lawsuit that EIP and Earthjustice filed on behalf of communities living downwind from refineries, include a loophole. This loophole allows refiners to subtract from the benzene concentrations measured by fenceline air pollution monitors any benzene thought to come from offsite or non-refining equipment (such as benzene storage tanks).

If the total benzene concentrations are taken into account (without these adjustments), 17 refineries across the U.S. – not just 13 – would have averaged more than EPA’s “action level” of 9 micrograms per cubic meter in 2020. Nearly 700,000 people live within three miles of these 17 plants, with people of color accounting for 62 percent of this total, and nearly 45 percent living below the poverty level.

EIP’s report also shows that because EPA’s benzene regulations are based on annual averages, they often fail to reveal –or protect local residents against -- dangerous short-term spikes in air pollution. These spikes, above health advisory levels set by the federal Agency for Toxic Substances and Disease Registry (ATSDR) at 29 micrograms per cubic meter of air[i] over a two-week period, happened at 23 oil refineries in 2020, including six in Louisiana.

Examples of dangerous benzene spikes in Louisiana, and potentially impacted populations, are listed below: The Delek Krotz Springs refinery west of Baton Rouge recorded a spike of 114 micrograms of benzene at its fencelines (almost quadruple the health advisory level) for the two-week period ending on May 4, 2020. Forty-three percent of people living within three miles of the plant are below the poverty line.

The Shell Norco Manufacturing Complex in Norco, just west of New Orleans, recorded 79 micrograms of benzene (almost triple the health advisory level) for the two-week period ending on March 12, 2020. Twenty-four percent of people living within three miles of the plant are below the poverty line, and 30 percent are people of color.
Chalmette Refining, in Chalmette, LA, just east of New Orleans, recorded 58 micrograms of benzene (almost double the health advisory level) for the two week period ending on February 11, 2020. Thirty-four percent of people living within three miles are below the poverty line, and 55 percent are people of color.

The Phillips 66 Alliance refinery in Belle Chasse, LA, just southeast of New Orleans, recorded 55 micrograms of benzene (almost double the health advisory level) for the two week period ending on August 19, 2020. Fifty percent of those living within three miles of the plant are people of color, and 25 percent are below the poverty line.
The Phillips 66 Lake Charles refinery in Westlake, in southwest Louisiana, recorded 49 micrograms of benzene (69 percent over the health advisory level) during the two week period ending on August 24, 2020. Thirty five percent of those living within three miles are below the poverty level.

For a copy of the report, “Environmental Justice and Refinery Pollution,” click here. The Environmental Integrity Project is a 19-year-old nonprofit organization, based in Washington DC and Austin, Texas, that is dedicated to enforcing environmental laws and strengthening policy to protect public health and the environment.

The Louisiana Bucket Brigade uses grassroots action to create an informed, healthy society that holds the petrochemical industry and government accountable for the true costs of pollution to hasten the transition from fossil fuels.

As per MRC, The Washington, D.C.-based Plastics Industry Association has a new safety standard focusing on the manufacture, care and use of granulators, strand pelletizers, dicers, and single-shaft rotary grinders. This standard does not apply to other types of shredders or to pulverizers. Safety Requirements for Granulators, Strand Pelletizers and Dicers Used for Size Reduction of Plastics is available for sale at a reduced price for member companies at the association’s web store.

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.
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