Linde starts supply to Shanghai Huayi chem complex in China

MOSCOW (MRC) -- Linde announced it has started up its new on-site facility in Qinzhou, China, supplying oxygen and other industrial gases to Shanghai Huayi's new chemical complex, said the company.

The new facility is comprised of three air separation units which will supply up to 7,500 tons per day of oxygen and 5,000 tons per day of nitrogen. Linde's advanced technology and operational expertise will ensure the safe and reliable supply to Shanghai Huayi through Linde's pipeline at the new chemical complex. By supplying the various Shanghai Huayi companies from one central facility, Linde will operate more efficiently, lowering its energy consumption and carbon emissions. The total investment for this new facility was approximately USD200 million.

"The start-up of our Qinzhou facility is a significant milestone in our long-standing relationship with Shanghai Huayi and we are proud to support its continued growth," said Will Li, Head of Greater China, Linde. "With the new project on stream, we look forward to opening new avenues of cooperation between Linde and Shanghai Huayi as we continue to increase our network density in China."

The new facility has three air separation units (ASUs) which will supply up to 7,500 tonnes/day of oxygen and 5,000 tonnes/day of nitrogen to supply the new Shanghai Huayi chemical complex via pipeline. The pipeline supplying various Shangai Huayi companies from one central facility will enable Linde to operate more efficiently with lower energy costs, and fewer carbon emissions.

As per MRC, Nizhnekamskneftekhim and Linde signed a contract for the construction of EP-600 olefin complex. The planned completion date for the construction and installation works of the olefin complex is July 2023.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- A bipartisan group of US senators introduced legislation that would eliminate a national mandate requiring oil refiners to blend corn-based ethanol into their fuel mix - a proposal that would slam corn growers and is likely to face vehement opposition from the farm lobby, reported Reuters.

Republican Senator Pat Toomey from Pennsylvania and Democratic Senator Bob Menendez from New Jersey, part of the group introducing the bill, represent states with oil refineries that claim the mandates are expensive and threaten refinery jobs.

Lawmakers from both states have been pushing the Biden administration to relieve refineries of their obligations under the US/ Renewable Fuel Standard, which was enacted to expand the market for US renewable fuels and boost energy independence.

Democratic Senator Dianne Feinstein from California and Republican Senator Susan Collins from Maine joined Toomey and Menendez in introducing the bill. They say that other biofuels have lower greenhouse gas emissions, though ethanol proponents argue the product is a good option to help fight climate change now.

The senators claim the bill would help reduce carbon emissions from transportation fuels by removing volume requirements for corn ethanol, while leaving in place obligations for other biofuels and biodiesel.

Under the RFS, refiners must blend some 15 billion gallons of ethanol into their fuel each year - a huge boost to the corn industry - along with billions of gallons of other types of biofuels.

As MRC informed before, earlier this month, Royal Dutch Shell agreed to sell its stake in eastern German refinery PCK Schwedt, the latest in a string of refinery disposals as part of the Anglo-Dutch company's energy transition strategy. Shell said in a statement that it will sell its 37.5% share in the refinery for an undisclosed sum to Vienna-based Alcmene GmbH, part of the Liwathon Group, an integrated logistics and investment business headquartered in Estonia. The deal is expected to close in the second half of 2021, pending approval by cartel authorities and its partners, Russia's Rosneft and Italy's Eni.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- SK Innovation Co Ltd, the owner of South Korea's top refiner SK Energy, said refining margins were likely to gradually improve in the second quarter due to recovering demand as the impact of COVID-19 eases, according to Hydrocarbonprocessing.

The company posted an operating profit of 503 billion won (USD444.88 million) in the January-March quarter, compared with an operating loss of 1.8 trillion won in the same period a year earlier.

Revenue declined 16% to 9.2 trillion won from a year earlier. That compares with the 9.9 trillion won forecast of analysts in the Refinitiv SmartEstimate. "Despite the resurgence of COVID-19 in some regions and countries, as vaccinations in the United States and Europe continue, expectations about demand recovery are growing," Lee Dong-yeol, the head of SK Energy's corporate planning office, said in a earnings conference call.

Lee added that refining margins, especially for gasoline, are expected to improve backed by the start of the US driving season in May, while refining margins of jet fuel and diesel are expected to recover in the second half of the year when the United States is set to achieve a 50% vaccination rate.

SK Innovation, which has a total refining capacity of 1.115 million barrels per day (bpd) at plants in Ulsan and Incheon, said it operated at 63% of capacity on average in the first quarter, down from 89% during the same period a year earlier.

As MRC reported earlier, SK Advanced managed to produce on-specification polypropylene (PP) at its new plant in Ulsan, South Korea in the week ending 9 April, 2021. The construction works were nearly completed in late January 2021. The initial start-up date was 20 March, but the company delayed tha launch of the new plant by 3 days until 23 March, 2021. The PP unit is a joint venture between PolyMirae and SK Advanced, using the “Spheripol” process of LyondellBasell, and have an annual output of 400,000 tons/year. The unit is utilizing the propylene output from SK’s 600,000 tons/year propane dehydrogenation (PDH) unit at the same complex.

According to MRC's ScanPlast report, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Haldor Topsoe and Shaanxi Yanchang Petroleum Group Co., Ltd. (Yanchang) formed a joint venture with the aim of delivering locally produced MK-151+ methanol synthesis catalysts to the Chinese market, said the company.

The joint venture will secure fast delivery to local customers, who demand high-performance catalysts for energy-efficient methanol production. Together, the two companies will build a production facility in Shaanxi Fupin in China to produce methanol synthesis catalysts.

Topsoe and Yanchang have designed the plant and ordered long lead time equipment and therefore plan on starting up beginning of 2022. The joint venture will produce methanol synthesis catalysts for the Chinese market.

"Yanchang is well-positioned in the oil and gas value chain and a very experienced methanol producer. With this joint venture we combine Topsoe’s world-leading methanol catalyst technology and Yanchang’s outstanding production capabilities to produce our high-performance methanol synthesis catalysts that Topsoe will sell directly to our Chinese customers, enhancing our presence in the Chinese market,” says Amy Hebert, Chief Commercial Officer at Topsoe.

Forming of the joint venture and building of the catalysts facility will be the first step of a long-term strategic cooperation between Topsoe and Yanchang. Kaijia Yu from Topsoe has been appointed General Manager of the joint venture.

As per MRC, Haldor Topsoe will build a 15,000-tpy hydroprocessing catalyst plant at the company’s existing Bayport production site in Pasadena, Harris County, Texas. The plant will increase production capacity of Topsoe’s TK catalyst family to meet increasing demand, both in traditional refining and for use with Topsoe’s HydroFlex technology for production of renewable diesel and jet fuel. The plant is expected to be fully operational in the first half of 2023.

In 2019, Nizhnekamskneftekhim (NKNKH, part of the TAIF Group) and Haldor Topsoe signed a memorandum of intent to implement a methanol production project.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

MRC

MOSCOW (MRC) -- More petroleum and natural gas was produced in the United States than in any other country during 2020 (a trend that began in 2014), despite year-on-year declines from the record-high production in 2019, according to Hydrocarbonprocessing.

US petroleum and natural gas output in 2020 totaled 66.9 quadrillion British thermal units (quads), which was more than both Russia’s 45.5 quads and Saudi Arabia’s 26.5 quads of petroleum and natural gas production.

Petroleum and natural gas production fell in all three countries in 2020 following a rapid decline in demand during the COVID-19 pandemic and the consequent crude oil price declines, particularly in the first quarter of 2020. Saudi Arabia and Russia agreed to reduce their crude oil production as part of an OPEC+ agreement, but in the United States, reduced production was largely the result of a price-induced fall in tight oil investments and, to a lesser extent, unplanned outages.

Petroleum production includes several types of liquid fuels, including crude oil and lease condensate, natural gas plant liquids (NGPL), and bitumen. US petroleum production decreased from 31.8 quads in 2019 to 30.4 quads in 2020. Crude oil and condensate accounted for the largest share of the decrease, at 1.9 quads. In contrast, NGPL production in 2020 grew by 0.4 quads, boosted by an increase in domestic ethane consumption and in ethane exports.

COVID-19-driven decreases in demand affected natural gas production far less. In Russia, natural gas production fell in response to milder-than-normal temperatures during the 2020–2021 winter and to increases in renewable electricity generation in the EU. Natural gas production in Russia fell by 2.1 quads, nearly equal to its decline of 2.3 quads in oil production.

As MRC wrote previously, US crude oil production is expected to fall by 290,000 barrels per day (bpd) in 2021 to 11.02 million bpd, the US Energy Information Administration (EIA) said in May, 2021, a steeper decline than its previous forecast for a drop of 270,000 bpd. US oil producers have been gradually increasing drilling activity as oil prices have rebounded but output growth has been muted as investors pressure companies to rein in spending and focus on returns. In 2022, output is expected to rise by 820,000 bpd to 11.84 million bpd, unchanged from the EIA's estimate in April.

We remind that in May, 2021, Marathon Petroleum Corp, the largest US refiner, said its board had approved the conversion of the Martinez refinery in California to a renewable diesel plant. Besides, the company made a final investment decision regarding this project. Martinez, once complete, will be one of the largest renewables facilities in the country.

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 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC