Kemira starts up new facility for production of emulsion polymers in Alabama

MOSCOW (MRC) -- Kemira has completed the installation of new state-of-the art production units for emulsion polymers and bio acrylamide monomer at its manufacturing site in Mobile, Alabama. Production has started and the facility is expected to be fully operational during summer 2021, as per the company's press release.

The value of the investment is around EUR70 million and it will support Kemira’s strategic focus to grow faster than the market.

“The capacity expansion in Mobile will strengthen Kemira’s position in the energy market in the Americas and supports our growth in the region going forward. The market demand is recovering after the 2020 slowdown and we’re in a good position and excited to meet the growing demand of our customers for high quality emulsion polymers.” says Pedro Materan, SVP, Global Oil & Gas.

The emulsion polymer products are primarily used in water intensive applications, including friction reducers for the oil and gas industry, where Kemira is a leading supplier.

The investment in new capacity allows Kemira to address the steadily growing need for polyacrylamide polymers. Backward integration into bio acrylamide production also improves the sustainability position, product quality and competitiveness for Kemira’s customers.

As MRC reported earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

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.

Kemira is a global leader in sustainable chemical solutions for water intensive industries. The company's focus is on pulp & paper, water treatment and oil & gas. In 2020, Kemira had annual revenue of around EUR2.4 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
MRC

MOSCOW (MRC) -- Neste is committed to reaching carbon neutrality in its production by 2035. As part of this effort, Neste aims for 100% renewable electricity use globally by 2023. In order to proceed with this target, Neste will increase the use of renewable electricity at its Porvoo refinery and has signed a new wind power agreement with a wind power company Ilmata according to Hydrocarbonprocessing.

Renewable electricity produced by wind power is one of the key ways to reduce greenhouse gas emissions* related to the electricity purchases of production facilities.

In addition to the new wind power agreement, Neste entered into an agreement with Ilmatar in 2020 and committed to increasing the use of renewable energy in production with its wind power agreement with Fortum in late 2019. As a result of these agreements, approximately 40% of the electricity used at the Porvoo refinery will be renewable wind power in 2025. The first wind power deliveries from the Fortum Kalax wind farm to Neste Porvoo site began in January 2021.

In addition to the wind power agreements, Neste will increase the share of renewable electricity with so-called Guarantees of Origin, based on existing renewable electricity generation capacity. Guarantees of Origin will help increase the share of renewable electricity to 100% of Neste's electricity needs by 2023.

The newly-signed long-term wind power agreement with Ilmatar corresponds to approximately 200 GWh/a, representing some 17% of the electricity consumption at Neste's refinery in Porvoo. Ilmatar's wind power deliveries are expected to begin in early 2025.

The new wind power agreement helps Neste to reduce the indirect greenhouse gas emissions of electricity purchases at Porvoo refinery in Finland annually by approximately 50,000 tons CO2 equivalent. With all the wind power agreements combined, Neste will reduce indirect greenhouse gas emissions* of its electricity purchases at its Finnish production sites by approximately 120,000 tons CO2 equivalent**, which equals the annual carbon footprint of more than 19,000 average EU citizens.

As MRC reported earlier, in May 2021, Neste, Mitsui Chemicals, Inc. and Toyota Tsusho Corp. announced they are joining forces to enable Japan’s first industrial-scale production of renewable plastics and chemicals from 100% bio-based hydrocarbons. In this collaboration, Mitsui Chemicals will use Neste RE, 100% bio-based hydrocarbons produced by Neste, to replace a part of the fossil feedstock in the production of a variety of plastics and chemicals at its crackers within Osaka Works during 2021.

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.
MRC

MOSCOW (MRC) -- Motiva Enterprises has executed a long-term supply agreement with Aramco base oil affiliate S-Oil Corporation that will more than double Motiva’s current offer for Group III base oil in North America, according to Hydrocarbonprocessing.

Per the agreement, Motiva will assume all North American marketing, sales, and distribution of Group III base oils produced by S-Oil (based in Onsan, South Korea). Phillips 66 Company was previously the exclusive distributor for S-Oil ULTRA-S Group III base oils in North America.

Motiva Base Oils Director Colleen Murphy-Smith said the new supply agreement represents a huge milestone for Motiva, which already operates the largest base oils refinery in the Western Hemisphere.

S-Oil is one of the largest Group III base oil producers in the world. Motiva will market the S-Oil products under the aramcoULTRA brand name.

Aramco affiliates Motiva, S-Oil, and Luberef have been part of the Aramco Base Oils Global Alliance since 2019. Products are marketed under one brand to strengthen global reach and maximize opportunities to serve both existing and gain new customers. Combined, the Alliance boasts a 14% market share, selling one in every seven barrels of base oils around the globe.

As MRC reported previously, Motiva Chemicals has resumed operations at its mixed-feed cracker in Port Arthur, USA. The process of restart of this cracker with the capacity of 635,000 mt/year of ethylene and 340,000 mt/year of propylene began on 27 February, 2021, and finishe in the first week of March 2021. The cracker wa shut along with the refinery at the same site on 14 February, 2021, because of the deep freeze.

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.
MRC

MOSCOW (MRC) -- India's private refiner Reliance Industry said a secondary unit at its export-focused refinery in the western state of Gujarat has been shut since June 6, which may delay the shipment of some product cargoes, said Reuters.

The refinery, which has the capacity to process 704,000-bpd, is part of the world's biggest refining complex in the city of Jamnagar in Gujarat state.

Reliance did not give a reason for the "emergency shutdown" of the refinery's fluidized catalytic cracking unit (FCCU). "The FCCU unit is being repaired on top priority and is expected to be restarted expeditiously," the company said in a stock exchange filing. "Consequently, some product shipments may get delayed and we are working to minimize the impact on our customers," it said.

A source familiar with the matter said that the unit will be fixed in a week's time. The refining complex in Jamnagar has two refineries. The plant is adjacent to the 330,000 bpd refinery that mostly sells products in the local market.

As per MRC, Reliance Industries Ltd (RIL), the Indian energy and petrochemical giant and the largest polyvinyl chloride (PVC) producer in the country, decreased its PVC offerings in the Indian market late last week amid declining demand for the material.

According to the ICIS-MRC Price Report, PVC prices in Russia broke another historic record in May, but this factor did not affect demand. The key issue was whether the seller had enough resin. Some companies began to work out options for providing themselves with raw materials for July, a period of stoppages for repairs of two manufacturers.

Reliance Industries Limited is an Indian petrochemical company, the largest holding in the country. The company is engaged in a wide range of activities, from oil and gas production to the production of polyester and polymer products, including the production of polyethylene, polypropylene and polyvinyl chloride.
MRC

MOSCOW (MRC) -- Overall polypropylene (PP) imports into Belarus only grew in the first four months of 2021 by 7% year on year to 38,700 tonnes. Demand for all grades of propylene polymers increased, according to MRC's DataScope report.

April PP imports into the Republic of Belarus rose to 11,800 tonnes from 10,200 tonnes a month earlier. Local companies raised their purchasing of homopolymer of propylene (homopolymer PP) in Azerbaijan and Russia. Overall imports of propylene polymers reached 38,700 tonnes in January-April 2021, compared to 36,200 tonnes a year earlier, demand for all grades of propylene polymers increased, with homopolymer PP accounting for the greatest growth in demand.

The supply structure by PP grades looked the following way over the stated period.

April imports of homopolymer PP rose to 8,400 tonnes from 6,900 tonnes a month earlier, purchases of injection moulding homopolymer PP in Russia and Azerbaijan increased. Overall imports of homopolymer PP reached 27,900 tonnes in January-April 2021, up by 9.1% year on year.

April imports of propylene copolymers into Belarus were 2,800 tonnes versus 2,600 tonnes a month earlier, local companies significantly increased their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian producers. Thus, overall imports of propylene copolymers reached 8,800 tonnes over the stated period, up by 1% year on year.

MRC