Shell selling its Mobile, Alabama refinery to Vertex Energy

MOSCOW (MRC) -- Royal Dutch Shell is selling its 90,000 barrel-per-day (bpd) Mobile, Alabama refinery to specialty refiner Vertex Energy for USD75 million plus the cost of hydrocarbon inventory, reported Reuters with reference to the company's statement.

Vertex plans to produce petroleum fuel and renewable diesel at the refinery following the close of the transaction in the fourth quarter of 2021, pending approvals.

Vertex will also buy co-related logistics infrastructure and hydrocarbon inventory, including more than 3 million barrels of crude oil and product storage. The inventory is currently valued between USD65 and USD85 million, Shell said.

Shell and Vertex will have crude supply and product offtake agreements, according to the companies.

Vertex plans to produce approximately 10,000 bpd of renewable diesel and renewable byproducts at the plant by the end of 2022, increasing to 14,000 bpd by 2023. The company said it will spend USD85 million to convert Mobile's hydrocracking unit.

As MRC informed previously, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

Last week, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.

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.

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

Maire Tecnimont Group and Leonardo signed an agreement for next-generation industrial plants in Italy and worldwide

MOSCOW (MRC) -- Maire Tecnimont Group and Leonardo signed an agreement aimed at supporting industrial evolution through the design of next-generation greenfield and brownfield plants in the transformation of natural resources and in green chemistry sectors, providing integrated solutions for cyber security and for the digitalization of operational processes, said Hydrocarbonprocessing.

The agreement was signed today by Maire Tecnimont President Fabrizio Di Amato and Leonardo CEO Alessandro Profumo. The signing ceremony was held at Leonardo headquarters, attended by Pierroberto Folgiero, Maire Tecnimont Group CEO, and Tommaso Profeta, Managing Director of Leonardo's Cyber Security Division. It aims to create a unique Italian design and engineering platform capable of becoming an international reference point for delivering turnkey industrial sites containing a high level of digital, cyber security, and technology to guarantee more sustainable products and processes.

The agreement - which includes an initial study phase of 24 months – will identify pilot projects in Italy and abroad to develop next-generation industrial sites, thanks to the synergy between Maire Tecnimont's distinctive and technological skills in the engineering, construction and maintenance of large industrial plants, in green chemistry as well as in the digitalization of operational processes, and Leonardo's strategic technologies in integrated security, infrastructure management and control platforms, telecommunications, and Industry 4.0.

In particular, Leonardo and Maire Tecnimont will collaborate in three areas. In cyber security, by supporting the end users of plants in the evaluation and mitigation of potential cyber risks during the design, construction and operation phases. In digitalization projects, integrating Leonardo's Industry 4.0 solutions into Maire Tecnimont's engineering and construction activities, physical security and telecommunications (including the application of 5G connectivity through proprietary solutions), to safely optimize the operational processes of the industrial sector and Maire Tecnimont Group itself. And contributing to the industrialization of the green economy, by leveraging Leonardo's extensive production infrastructure in Italy and abroad, with Maire Tecnimont’s subsidiary NextChem providing its portfolio of cutting-edge "green chemicals" technologies and services in support of the energy transition. Specifically, the companies will collaborate on projects aimed at reducing the carbon and energy impact of production processes by adopting circular economy initiatives, as well as on the application of technologies for the production of SAF, Sustainable Aviation Fuels.

Fabrizio Di Amato, President of Maire Tecnimont, commented: "Our economic recovery depends on the innovative drive of Italian industrial and entrepreneurial excellence in support of digital transformation and the energy transition. Today we are combining the technological DNA of two complementary global leaders to set a common goal: driving the Italian industrial chain towards a sustainable future. It's time to work together to reinvigorate and transform the production infrastructure, putting the distinctive skills, ingenuity and technological assets needed to industrialize digitalization and green chemistry at the service of Italy and worldwide."

"The agreement we are signing today represents an important step for the dual digital and ecological transformations of the industrial system, and reflects a 360° view of sustainability, in which security plays a fundamental role," commented Alessandro Profumo, CEO of Leonardo. "Digitalization, green evolution and physical and cyber security are at the heart of our Be Tomorrow - Leonardo 2030 Strategic Plan to make Leonardo a driver of sustainable technological innovation and the go-to partner for national security, by virtue of its consolidated expertise in the defense sector and, increasingly, thanks to investments in the technologies of the future."

As per MRC, Consortium of subsidiaries of the Italian engineering company Maire Tecnimont S.p.A. received a contract to build a new Indian Oil Corp (IOC) paraxylene plant in Paradip (Paradip, Odisha, India). The total amount of the contract for the design, procurement, construction and commissioning (EPCC) of this plant with a capacity of 800,000 tonnes of paraxylene per year is estimated at approximately USD450 mln.

Paraxylene is a raw material for the synthesis of terephthalic acid (TPA), an intermediate product for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast, in March of this year, the total estimated consumption of PET in Russia amounted to 64,750 toones, which corresponds to the previous year (64,520 tonnes in 2020). Estimated PET consumption in the country increased in January - March 2021 compared to the same period last year by 5% and amounted to 182,300 tonnes.

Maire Tecnimont S.p.A. Listed on the Milan Stock Exchange, he is the head of an industrial group that leads the global market for the processing of natural resources (design of oil and gas installations, possession of technology, experience and knowledge). Its subsidiary NextChem works in green chemistry and technology to support the energy supply strategy. The Maire Tecnimont Group operates in approximately 45 countries, through approximately 50 operating companies, employing approximately 9,100 people.
MRC

SABIC, BASF & Linde team up to develop solutions for electrically heated steam cracker furnaces

MOSCOW (MRC) -- Saudi chemical manufacturing company SABIC has signed a joint agreement with BASF and Linde to develop and demonstrate solutions for electrically heated steam cracker furnaces, according to Arab News.

The partners have already jointly worked on concepts to use renewable electricity instead of the fossil fuel gas typically used for the heating process. With this innovative approach focusing on one of the petrochemical industries’ core processes, the parties strive to offer a promising solution to significantly contribute to the reduction of CO2 emissions within the chemical industry.

Steam crackers play a central role in the production of basic chemicals and require a significant amount of energy to break down hydrocarbons into olefins and aromatics. Typically, the reaction is conducted at temperatures of about 850 degrees Celsius in their furnaces. Today, these temperatures are reached by burning fossil fuels. By using electricity from renewable sources, the fundamentally new technology has the potential to reduce CO2 emissions by as much as 90 percent.

BASF and SABIC have bundled their extensive know-how and intellectual property in developing chemical processes together with their longstanding experiences and knowledge in operating steam crackers, while Linde contributed with its intellectual property, expertise in developing and building steam cracking furnace technologies and driving future industry commercialization.

The partners applied for financial grants at the EU Innovation Fund and the funding program Decarbonization in Industry (new program of the German Federal Ministry for the Environment).

The parties are evaluating construction of a multi-megawatt demonstration plant at BASF’s Ludwigshafen site, targeted for start-up as early as 2023, subject to a positive funding decision.

As MRC informed earlier, BASF, the world's petrochemical major, aims is to electrify its production processes for basic chemicals, which are currently based on fossil fuels. The project envisions an additional offshore wind farm with a capacity of 2 gigawatts (GW) to provide the Ludwigshafen chemical site with green electricity and enable CO2-free production of hydrogen.

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.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

Moodys cuts Deer Park rating after Pemex acquires Houston refinery from Shell

MOSCOW (MRC) -- Moody's Investors Service has downgraded Deer Park Refining Limited Partnership to "Baa3" from "Baa2", the rating agency said, while placing the stock on review for a further downgrade, reported Reuters.

The decision comes after Shell Oil Co, a subsidiary of Royal Dutch Shell Plc, agreed to sell its controlling interest in Deer Park Refining to partner Mexican state oil company Petroleos Mexicanos, or Pemex.

This makes Deer Park Refining, a Texas-based facility, the first foreign refinery that Pemex will own solely in its history. The Mexican company said it plans to control and run the refinery after the deal is settled by late this year.

"The review for downgrade of the Baa3 ratings further reflects Moody's expectation that following the sale, Deer Park ratings will be driven predominantly by its standalone credit dynamics and the much-weaker credit profile of Pemex," the agency said in a statement.

"The Baa3 rating still benefits from a multi-notch rating uplift, which is primarily linked to Shell and also factors in several credit-enhancing arrangements, including shareholder loans and liquidity support arrangements, committed by both Shell and Pemex."

As MRC informed before, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

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.

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

Chevron Phillips Chemical breaks ground on world-scale 1-hexene unit in Old Ocean, Texas

MOSCOW (MRC) -- Chevron Phillips Chemical broke ground on a new world-scale unit for on-purpose 1-hexene in Old Ocean, Texas, near its Sweeny facility, said the company.

With a capacity of 266 KTA, the new asset grows the company’s total U.S. 1-hexene capacity to 650 KTA at a time of rising customer demand. 1-hexene is central to manufacturing high-performance plastic products.

The project will harness Chevron Phillips Chemical’s proprietary, on-purpose 1-hexene technology, which produces exceptional purity comonomer grade 1-hexene from ethylene. Construction is expected to commence during the third quarter of 2021, with project startup in 2023, and is expected to involve 600 construction jobs at its peak. Once operational, the project will support more than 50 full-time positions.

"The new unit will provide additional flexibility and production to meet anticipated demand from our growing customer base, while establishing a strong foundation for future growth,” said Mitch Eichelberger, executive vice president of polymers and specialities. “This new asset will also serve as a catalyst to advance the local economy as a source of job creation. We are very proud to be part of this community and look forward to bringing this project to life."

The new 1-hexene unit in Old Ocean will enjoy significant advantages in infrastructure, feedstock availability and operational expertise. It will also benefit from the latest technology advances to achieve energy and emissions efficiency improvements. Once operational, it will further the company’s position as a leading 1-hexene supplier. Chevron Phillips Chemical already operates the world’s largest on-purpose 1-hexene unit and two full-range alpha-olefin units at its Cedar Bayou plant in Baytown, Texas.

Earlier it was reported that the American Chevron Phillips Chemical (CP Chem), one of the world's largest petrochemical companies, on April 26 stopped production at cracking unit No. 1592 in Cedar Bayou (Texas, USA) in order to carry out scheduled maintenance work. It is expected that repair activities at this enterprise with a capacity of 850 thousand tons of ethylene per year will continue until May 3 of this year. Chemical emissions to the atmosphere are expected within about seven days.

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