Axens signs agreements with Aemetis for its project in California

Axens signs agreements with Aemetis for its project in California

MOSCOW (MRC) -- Axens has signed a license agreement for its Vegan renewable hydroprocessing technology with Aemetis, Inc. for its “Carbon Zero 1” project in Riverbank, California, according to Hydrocarbonprocessing.

Axens is also providing the basic engineering, catalyst supply, as well as the proprietary equipment for the conversion of ultra-low carbon intensity, non-edible vegetable and other non-edible oils along with renewable hydrogen in partnership with Gulf Process Gases to produce a flexible mix of sustainable aviation fuel (SAF) and renewable diesel fuel.

“Today Axens is pleased to announce yet another key step in the deployment of Aemetis’ Carbon Zero 1 project. While we are excited to renew our support to Aemetis vision, today also marks another significant milestone for Axens’ Vegan technology position in the sustainable and renewable biofuels market,” stated Romain Lemoine, VP of Process Licensing, Axens Americas.

As MRC reported previously, earlier this month, Raizen Argentina, Shell licensee, selected Axens for the modular supply of a FCC gasoline hydrodesulphurization unit Prime-G+ in its Buenos Aires refinery.

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

Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days

Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days

MOSCOW (MRC) -- Russian oil pipeline monopoly Transneft will halt oil shipments to Poland via the Druzhba pipeline for four days to carry out maintenance work, the Interfax news agency reported.

The Soviet-built Druzhba pipeline, named after the Russian word for friendship, links Russian oilfields to European refineries and has the capacity to pump 1 million barrels per day (bpd). Polish pipeline operator PERN said that the halt of supplies has been agreed upon between the operators and their clients and that deliveries are expected to restart on June 12.

"Technological breaks in supplies from the east that last 1-3 days are routine and occur practically every month, of which PERN is informed in monthly delivery plans," PERN said in a statement. PERN's customers are Polish and German refineries. The Polish ones, owned by state-run PKN Orlen and Lotos, have been importing most of their crude from Russia via the pipeline.

PKN Orlen declined to comment. Lotos said that it had been informed about the planned break. "These events... do not affect the operation of the Gdansk refinery," Lotos press office said.

As per MRC, the European Commission agreed to the merger of the Polish concerns PKN Orlen and Lotos. For example, PKN Orlen received conditional EU antitrust consent to take over its rival Lotos and announced that it plans to buy Poland's largest oil and gas company PGNiG. The Polish state is the largest shareholder in PKN Orlen, Lotos and PGNiG. Orlen's acquisition of Lotos was announced in February 2018.

As MRC informed earlier, Polski Koncern Naftowy Orlen SA, (PKN Orlen) reduced the production of terephthalic acid (PTA) at the plant in Wloclawek (Wloclawek, Poland) due to a technical breakdown. Production problems at the enterprise supplying raw materials for PTA production led to a decrease in its output in January and most of February by 20%, and by the end of February - by about 50%.

PTA is one of the main raw materials for the production of polyethylene terephthalate (PET).

As per MRC ScanPlast, Russia's calculated consumption of polyethylene terephthalate (PET) grew to 263,660 tonnes in the first four months in 2021, up 13% compared to the same period in the previous year. 78.3% of the increase in consumption falls on the share of bottled PET chips due to the virtual absence of exports and an increase in the volume of imports.
MRC

ExxonMobil and USW negotiators to meet over US refinery lockout

ExxonMobil and USW negotiators to meet over US refinery lockout

MOSCOW (MRC) -- Negotiators for the United Steelworkers union (USW) and ExxonMobil will meet on Thursday for the first time since a May 1 lockout of Beaumont, Texas, refinery workers, reported Reuters.

A contract covering 650 union workers expired earlier this year and Exxon locked out workers, citing its fear of a sudden walkout. The 2,700-acre complex, Exxon's third-largest US refinery, continues to operate with managers and replacement workers producing gasoline and Mobil 1 motor oil.

“We will be trying to resolve the open issues,” USW Staff Representative Hoot Landry told Reuters on Wednesday. The union has proposed a six-year contract covering the refinery and lubricants plant and would continue existing seniority protections.

"We continue to engage in good-faith negotiations with the union until a contract is ratified," Exxon spokeswoman Julie King said.

The two sides have communicated on proposal terms but have not formally negotiated, according to people familiar with the matter. Landry and another staff representative met with Exxon officials on May 12 to clarify terms of each other's proposals.

The company has insisted USW Local 13-243 call a vote on its proposal that would create separate contracts for refinery and lubricant plant workers, and give the company control over which employees move up to senior posts. Exxon's proposal would give the 369,024 barrel-per-day refinery flexibility to be profitable in even low-margin environments, the company has said.

The USW’s last proposal, made on April 30, sought a six-year contract with no pay raise in the first year. It would match pay raises in the second through sixth years to those set by national labor negotiations that have yet to be held.

As MRC informed previously, Gov. John Bel Edwards and ExxonMobil Baton Rouge Refinery Manager David Oldreive have announced the company’s final investment decision for more than USD240 million in capital improvements at the ExxonMobil Baton Rouge Refinery.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Merger with TAIF will allow SIBUR to become one of the largest players in the world market - Mikhail Karisalov

Merger with TAIF will allow SIBUR to become one of the largest players in the world market - Mikhail Karisalov

MOSCOW (MRC) -- The merger with TAIF will allow SIUBR to become one of the largest players in the world market, said CEO of the company Mikhail Karisalov in an interview with TASS at the St. Petersburg International Economic Forum.

M. Karisalov noted that SIBUR's strategy is to transform from a partner of mining companies, helping to deal with by-products for them, into an actually independent, effective player in a large industry, which is attractive in itself. For this, the company was engaged in reconstruction, creation of new capacities, optimization of its business processes.

According to him, in fact, SIBUR's business is built on the needs of the wrong industries that consume liquefied gas, synthetic rubber or polypropylene, that is, directly from the end consumer. “We work from the needs of those who are through one or even two redistributions, in related industries: agriculture, construction, mechanical engineering, medicine, " he said.

Key expectations from this year are the continuation of the investment program. "The Amur Mining and Chemical Complex is already in a fairly advanced phase. Today, the pile driving is nearing completion, concrete work is underway. We have to accept the first navigation this year," said M. Karisalov.

Regarding the merger with TAIF, preparations are underway, but it is planned that by the beginning of the second half of the year there will be enough details so that our partners and I can proceed to formulating a specific plan for the integration of companies. "Of course, we, as an oil and gas chemical company, expect that the capacities of Kazanorgsintez, Nizhnekamskneftekhim, as well as generating capacities (TGK-16) will be included in the structure of the merged company," he said. Together with the completion of investment projects, which should be achieved over the next few years, the combined company's capacity will exceed 7 million tons. The combined company will be included in the top 5 world producers of petrochemical products.

"At the heart of the Amur Mining and Chemical Combine, in addition to the most serious inter-industry cooperation with Gazprom, there is also inter-country cooperation. I am talking about the deal with Sinopec approved by the government commission on foreign investments in December last year to enter the share capital of the MCC by 40%. Another very important part, besides of global things - these are indicators of efficiency. They are taken from the cost of raw materials, from the indicators of the cost that we can achieve. And also from the cost of construction. Investments below GYV10 billion is our most important goal. "

In addition, the project for the expansion of the Shurtan Gas Chemical Complex is being discussed with colleagues from Gazprom Neft. "This is a rather interesting project - there is production, the raw materials and technological possibilities for its expansion are clear, while there is a substantive discussion of different scenarios. The options for our participation are different - from co-investment in the development of an asset to a grocery outage."

“The project with Kazakhstan is no less interesting. Just recently, at the St. Petersburg International Economic Forum, we signed an agreement - we are studying the economic efficiency of joining the construction of a project for the production of polypropylene for 500 thousand tons, polyethylene for 1.25 million tons per year. make a decision by the end of 2021 ".

Earlier it was reported that on June 9, the first production line of the Amur Gas Processing Plant (GPP) of Gazprom was officially launched. The design capacity of the plant will be 42 billion cubic meters of gas per year. The GPP will include the world's largest helium production - up to 60 million cubic meters per year. The plant will consist of six technological lines with a capacity of 7 billion cubic meters. m per year each. Their introduction is planned to be carried out in stages. The Amur GPP is scheduled to reach its design capacity in January 2025.

Earlier, SIBUR and TAIF started to merge petrochemical businesses. The process implies the creation of a company on the basis of SIBUR Holding PJSC, 15% in which will be received by the current shareholders of TAIF. In return, a controlling stake in a Tatarstan group consisting of petrochemical and energy enterprises will be transferred. According to the press service of SIBUR, the remaining stake in TAIF may be subsequently redeemed by the merged company.

Earlier it was noted that the joint company of SIBUR and TAIF will include the parent company of the Tatarstan group, its two chemical plants and an energy company. On the part of TAIF, the following companies will join the merged company: TGK-16 JSC, Kazanorgsintez PJSC, Nizhnekamskneftekhim PJSC and TAIF JSC. The oil complex of TAIF-NK PSC is not included in the deal with SIBUR.

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, production of consumer goods, chemical, etc.

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 areas is the Chemistry, Petrochemistry and Oil and Gas Processing Division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC

Borouge partnered recycling firm Plaspulp Union

Borouge partnered recycling firm Plaspulp Union

MOSCOW (MRC) -- Borouge has partnered with Singapore-based recycling firm Plaspulp Union to further develop and commercialize new packaging applications using recycled materials, said the UAE-based company.

The Memorandum of Understanding (MoU) marks Borouge's first foray into the recycling market in Southeast Asia, the company said in a statement. "Borouge is expected to develop more partnerships with other processing companies in the coming months," it said.

Borouge has already successfully tested the use of Plaspulp Union recycled materials in flexible packaging such as laminate and shipping packaging.

The MOU with Plaspulp Union will add to the existing partnerships Borouge has established with two other recycling companies in China to increase the volume of recycled materials in its portfolio and jointly develop innovative new solutions for packaging applications.

As per MRC, Borouge, a joint venture between Borealis and Abu Dhabi National Oil company, plans to complete the construction of a fifth polypropylene (PP5) plant in Ruweis in 2021. The PP5 plant is under construction and will begin operations in mid-2021. This plant with a capacity of 450,000 tonnes of PP per year will be fully commissioned in 2022.

According to MRC's ScanPlast report, Russia's PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC