Trinseo to build PS recycling plant in Belgium

MOSCOW (MRC) - Trinseo (formerly Styron), a large European polymer manufacturer, is planning to build a polystyrene (PS) processing plant in Tessenderloo, Belgium, which is expected to start operating in 2023, the company said in a statement.

It is noted that the company will use depolymerization technology, which breaks down polymers for chemical processing of the material. Recycled polystyrene will have identical properties to virgin polystyrene.

Trinseo is currently working in partnership with Germany's INEOS Styrolution and UK-based Recycling Technologies on the construction of a recycled polystyrene plant in the UK, to be launched in 2022.

INEOS Styrolution also plans to build its own polystyrene processing plant in Wingles, France. Recycling Technologies has been selected as the supplier of technology for the processing of polystyrene.

As per MRC, Trinseo raises May PS, ABS and SAN prices in Europe.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 192,000-203,000/tonne, CPT Moscow, including VAT, whereas HIPS prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

U.S. EPA to scrutinize the so-called small refinery exemption program

MOSCOW (MRC) -- The U.S. Environmental Protection Agency is handing over to the Government Accountability Office information on oil refiners that petitioned for exemptions to biofuel blending mandates, in an effort to help the government watchdog investigate the exemption program, said Hydrocarbonprocessing.

The move shows the Biden administration's willingness to help scrutinize the so-called small refinery exemption program, which had expanded dramatically during former President Donald Trump's term. The disclosed confidential information will include all documents, information and data related to small refinery exemption petitions received by the EPA from the program since its inception, according to a notice on Wednesday in the Federal Register.

Under U.S. law, oil refiners must blend billions of gallons of biofuels into the nation's fuel pool, or buy credits from those that do. Refiners can apply for exemptions if they can prove the requirements would do them financial harm.

The exemptions have sparked controversy between oil and corn groups. Corn and biofuel groups say that the exemptions hurt demand for their fuel, while oil refiners reject that claim and say the exemptions are necessary to keep small refiners in business.

GAO announced in January 2020 that it would review the EPA's approval of small refinery exemptions under the Renewable Fuel Standard, including viability scores given to the applications by the Energy Department, which helps advise EPA on the program.

GAO launched the investigation after a request to do so from Democratic and Republican representatives from corn-growing states such as Illinois, Iowa and other states. The Renewable Fuels Association, a biofuel trade group, cheered the news.

"We applaud the new leadership at EPA for providing the requested information to GAO, and we thank Administrator (Michael) Regan for taking another important step toward restoring the integrity of the RFS program," said RFA President Geoff Cooper.

As MRC informed earlier, Marathon Petroleum is at an impasse in negotiations with the local Teamsters union at its 104,000 barrel-per-day St. Paul Park, Minnesota, refinery. Marathon said in a letter dated April 29 the two parties are at an impasse with respect to "non-starter" proposals made by the union and other proposals made in the refiner's last, best and final offer the union in March.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Crude oil futures rangebound in Asia on dampened market sentiment due to threat of coronavirus spread from India

MOSCOW (MRC) -- Crude oil futures were rangebound during mid-morning trade in Asia May 7 as the threat of mutant coronavirus strains from India dampened market sentiment, but a weaker US dollar provided tailwind to prices, reported S&P Global.

At 11:12 am in Singapore (0312 GMT), the ICE Brent July contract was up 27 cents/b (0.4%) from the May 6 settle at USD68.36/b, while the June NYMEX light sweet crude contract was up 29 cents/b (0.45%) at USD65/b.

The debilitating second wave of the pandemic in India continued to limit the market's upside. The country reported a record 412,431 new COVID-19 infections on May 5, with the death toll at another record high 3,980, latest data from John Hopkins university showed.

Investors are concerned that the protracted pandemic situation in India could yield more mutant strains of the virus, which could reverse the progress other countries have made in controlling the pandemic.

Already, the B.1.617, a double mutant variant from India, has spread to at least 17 countries, according to the World Health Organization, with authorities in India saying that the strain may have contributed to the country's particularly severe second wave. Experts have yet to conclusively determine if this new strain is more lethal or transmissible than the existing strains.

Japan, the world's fourth largest crude importer, has also continued to reel from the pandemic, with media reports saying that a state of emergency, currently in effect in the Tokyo, Osaka, Hyogo and Kyoto prefectures, is set to be extended until the end of May.

However, despite this gloom, oil prices received a boost from a weakening US dollar, with the June contract for ICE US dollar index trading at 90.865 at 11 am, down 0.469% from the previous settle. A weaker US dollar makes dollar-denominated assets such as oil more attractive for buyers holding foreign currency, and hence boost their demand.

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 the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Hellenic Petroleum plans to invest in clean energy projects

MOSCOW (MRC) -- Hellenic Petroleum, Greece's biggest oil refiner, plans capital expenditure of between 3.5 billion 4 billion euros (USD9.03 billion) by 2025, about of half of which will be on clean energy projects, said Hydrocarbonprocessing.

Hellenic operates three oil refineries in Greece but has been boosting its renewable energy portfolio under Greece's plan to increase its share of green energy as part of a binding European Union target for a 55% cut in CO2 emissions by 2030.

"We have a plan at the order of 3.5 to 4 billion euros," Chief Executive Andreas Shiamishis said of the group's spending plans at an online briefing presenting the group's strategy for 2020-2025.

Shiamishis said half of that would go into traditional activities and the other half in projects that will help the group's transition to cleaner energy. Hellenic is also looking to change its corporate structure to improve governance and financing and reduce its carbon footprint.

"Our aim is to reach a 50% improvement (of our carbon footprint) by 2030," Shiamishis said. "To achieve that, we need to transform our business strategy."

As per MRC, Greece received five expressions of interest for a majority stake in its biggest oil refiner Hellenic Petroleum. Greece last month launched a tender to sell at least 50.1 percent of Hellenic in one of the biggest asset sales under Athens' three international bailouts since 2010.

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 the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Limetree Bay refinery agrees to resume air monitoring after EPA violation

MOSCOW (MRC) -- The owners of the troubled Limetree Bay refinery in St. Croix, U.S. Virgin Islands have agreed to resume sulfur dioxide monitoring, days after the U.S. EPA notified the company that it was in violation of the Clean Air Act, reported Reuters.

Reuters exclusively reported that the sulfur dioxide monitors near the refinery were not operating in March.

Recent incidents at the refinery released sulfur dioxide that prompted local school closures after students and staff reported feeling sick and forced some residents to shelter in their homes. Even short-term exposures to elevated levels of sulfur dioxide can harm the human respiratory system and make breathing difficult, according to the EPA.

The 200,000-barrel-per-day Caribbean refinery restarted operations this year after idling for about a decade. The restart was delayed several times due to problems with refinery equipment. Since the facility reopened, nearby St. Croix residents have complained of breathing problems and headaches.

Limetree Bay said last Wednesday it was reinstating the five sulfur dioxide air monitors near the facility voluntarily, adding that it is not required to operate them under existing permits.

Last Monday, the company rebuffed the EPA's notice of violation, arguing that the sulfur dioxide requirement only pertained to the refinery's previous owner, Hovensa, because the plant no longer burns sulfur-containing residual fuel oil.

The EPA disagreed with the company, noting that operating without sulfur dioxide monitors was in violation of the refinery's permits and other regulations. The EPA said on Monday that it is encouraged by Limetree Bay’s decision to re-establish the sulfur dioxide monitors and that it is exploring how it can support or augment monitoring in the interim.

Agency staffers arrived on the island in early May to conduct a joint investigation into the refinery incidents with the US Virgin Islands Department of Planning and Natural Resources.

As MRC wrote earlier, in late March 2021, EPA said it had revoked an expansion permit for the Limetree Bay oil refinery in the US Virgin Islands, citing concerns that the area around the facility is overburdened with pollution. The decision allowed the plant to keep operating but blocked ongoing expansion work pending an EPA review to assess measures the facility needs to take to protect nearby residents.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC