SIBUR-Neftekhim to become one of the leaders in efficiency among similar enterprises by 2025

SIBUR-Neftekhim to become one of the leaders in efficiency among similar enterprises by 2025

MOSCOW (MRC) -- A strategy has been developed at Dzerzhinsk SIBUR-Neftekhim, part of SIBUR, the largest petrochemical holding in Russia and Eastern Europe, which will allow the plant to become one of the leaders in terms of efficiency by 2025, said Business News, citing the statement of the new head of the plant, Dmitry Vladimirov, who headed the enterprise in March 2021.

“The pool of tasks facing the plant really looks like a challenge to us. On the one hand, productivity growth, on the other, - a decrease in environmental metrics for emissions. How can these goals be achieved? First of all, through the use of the best available technologies ", - said the general director of the plant at a meeting with journalists, summing up the first results of the work and talking about plans for further development.

So, according to him, an important environmental initiative was launched at the plant in June. Carbon dioxide from the production of ethylene oxide and glycols will be recycled by a nearby partner. As a result, the company will reduce greenhouse gas emissions, and the other party will receive a reliable supplier of CO2 for the production of food carbon dioxide.

At the same time, the refurbishment of ethylene oxide production began at the plant. "Green" technologies are also being introduced, which will allow, on the one hand, to significantly increase production, and on the other hand, to reduce the impact on the environment.

"We plan to complete the realization of this large investment project in 2022. Thanks to the reconstruction of the ethylene oxide production, natural gas consumption will be reduced by 20%, wastewater generation - by 10%, and air emissions - by 4%. But we don't stop there. The company has adopted a sustainable development strategy - we plan to strengthen the localization of these areas at the plant with additional projects by 2025, "said D.Vladimirov.

At the same time, the company is taking all the necessary measures to combat the coronavirus pandemic. Employees safety is an absolute priority. All sanitary requirements are met. Thus, more than 70% of employees have already been vaccinated against coronavirus.

As reported earlier, SIBUR-Neftekhim completed the technical re-equipment of ethylene oxide and glycols production in January 2021. The capacity for the production of monoethylene glycol (MEG) grew by 25 tonnes per day or by 3.1% - up to 830 tonnes per day. To increase production capacity, one of the process columns was improved at SIBUR-Neftekhim and a part of the dynamic and heat exchange equipment was replaced.

MEG, along with terephthalic acid (TPA), is one of the main components for the production of polyethylene terephthalate (PET).

According to MRC's ScanPlast report, May estimated PET consumption in Russia rose by 15% year on year to 85,850 tonnes. Russia's overall PET estimated consumption totalled 349,940 tonnes in January-May 2021, up by 22% year on year.

OJSC "SIBUR-Neftekhim" is a subsidiary of SIBUR, operating in the Nizhny Novgorod region. It was formed on December 20, 1999, on the basis of the assets of the Kstovo Neftekhim CJSC. It produces ethylene oxide, monoethylene glycol, diethylene glycol, acrylic acid, acrylic esters.

Brenntag acquires the largest distributor of acetone in North America - Matrix Chemical

Brenntag acquires the largest distributor of acetone in North America - Matrix Chemical

MOSCOW (MRC) -- Brenntag, the global market leader in chemicals and ingredients distribution, acquires all operating assets and business of Matrix Chemical, LLC, according to Indian CHEMICAL News.

The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021.

Steven Terwindt, Member of the Management Board of Brenntag SE and COO Brenntag Essentials, comments: “With the acquisition of Matrix we create a highly reliable and competitive logistics network for acetone and solvents in North America that allows us to take advantage of market opportunities and to deliver a variety of core products to our customers more efficiently, economically and in a more sustainable manner. Overall, we expect significant operating synergies by leveraging Matrix’s supplier relationships, logistics network and bulk storage capacity in combination with Brenntag’s existing North American infrastructure and outbound logistics.”

The company distributes acetone and other solvents to customers throughout the United States and Canada. These products are used in various industries such as personal care, adhesives, and the paint and coatings industry.

Matrix operates storage tanks at bulk terminals in Houston (Texas), Chicago (Illinois), Vanport (Pennsylvania), and Wilmington (North Carolina).

Closing and signing of the acquisition occurred simultaneously.

As MRC informed earlier, in April 2020, Brenntag sai it had acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed.

Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in January-May 2021 by 8% year on year to 42,200 tonnes (38,900 tonnes a year earlier).

Italian Eni increases near-term crude oil price outlook as market recovery powers strong Q2 earnings

Italian Eni increases near-term crude oil price outlook as market recovery powers strong Q2 earnings

MOSCOW (MRC) -- Italy's Eni raised its near-term oil price outlook July 30 as the market rebound fueled strong second quarter earnings despite lower production volumes and negative refining margins, reported S&P Global.

Eni said it is now assuming a near-term Brent price of USD65/b, up from USD60/b previously, to reflect a firming oil market scenario which helped its adjusted earnings more than treble from the previous quarter.

Hydrocarbon production in the second quarter slipped 5% on the year to average 1.6 million boe/d due to higher maintenance activity in Norway, Italy and the UK, lower activity in Nigeria and mature fields declines. In the first half, start-ups and ramp-ups added 50,000 boe/d mainly due to the Merakes gas field in Indonesia, Berkine in Algeria, Agogo in Angola, and the Mahani gas project in the UAE's Sharjah Emirate.

It reiterated plans to keep output stable at 1.7 million boe/d for this year as a whole, with production in the current quarter expected to average 1.68 million b/d.

"Eni delivered exceptional results in the second quarter of the year, continuing the upward trend of the last three quarters and beating market expectations across all of its business segments with an improved macro backdrop and energy market fundamentals," CEO Claudio Descalzi said.

Eni's adjusted earnings rose to Eur929 million (USD1.1 billion) for the quarter, up from Eur270 million in the first quarter and compared with a loss of Eur714 million a year ago. Following similar moves by Shell, Eni also raised its dividend payments and announced the restart of share buybacks which were suspended last year in the wake of COVID-19 pandemic.

Eni's result highlights the sharp improvement in macro conditions over the year, with Platts Dated Brent crude averaging USD68.83/b in the second quarter, up from USD60.90/b in Q1, and just USD29.56/b in the year-ago quarter when lockdowns saw the benchmark hit its lowest since the late 1990s.

The company said it now expects full-year 2021 cash flow from operations to be above Eur10 billion. Eni has previously forecast free cash flow generation in 2021 of more than Eur3 billion under a Brent scenario of USD60/b.

Despite the earnings jump, Eni maintained its 2021 organic capex target of about Eur6 billion, of which approximately Eur4.5 billion is earnings for the upstream division.

In the downstream segment, however, Eni's refining margins continued to be extremely weak in the European/Mediterranean region with the Eni benchmark margin hitting historic lows of minus 40 cents/b on average in the second quarter, compared with USD2.3/b in the year ago period.

"This was due to continuing pandemic effects, which on one side with the gradual easing of OPEC+ supported the cost of the oil feedstock, while on the other side negatively affected demand for products, particularly middle distillates," Eni said.

Crude throughputs at Eni's refineries in Italy were 4 million mt in the quarter, 27% higher than a year ago while bio throughputs were down by 23% compared to 2020 due to a prolonged standstill of the Venice plant.

As MRC wrote previously, Italian energy group Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

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.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.

Chandra Asri secures USD1.7 bln investment for 2nd petrochemical complex in Indonesia in a move to expand its production capacity

Chandra Asri secures USD1.7 bln investment for 2nd petrochemical complex in Indonesia in a move to expand its production capacity

MOSCOW (MRC) -- PT Chandra Asri Petrochemical Tbk (CAP), Indonesia’s largest integrated petrochemical company, has selected Thai Oil Public Company Limited (Thaioil), the flagship refiner of PTT Public Company Limited (PTT), as its chosen Strategic Investor after a robust selection process, according to Indian CHEMICAL News.

CAP and Thaioil have signed definitive agreements to proceed with a capital increase in CAP via a Pre-Emptive Rights Issue, to be filed with the Financial Services Authority of Indonesia (OJK). The investment in CAP will be made via Thaioil’s designated subsidiary that will act as the standby buyer to underwrite a successful transaction.

CAP’s major shareholders, Barito Pacific and SCG Chemicals Co., Ltd. (SCG Chemicals), fully support this corporate action to inject equity into CAP. The net proceeds raised will be used for the development and construction of CAP’s second world-scale integrated petrochemical complex by its subsidiary, PT Chandra Asri Perkasa (CAP 2) which will comprise, among others, of a cracker unit, polymerized olefins and related facilities and utilities. This is in line with the CAP’s strategy to expand its production capacity and business scale to serve the needs of the Indonesian market.

The total estimated investment from Thaioil obtaining a 15% shareholding stake in CAP after the rights issue, and SCG Chemicals retaining approximately 30.57% of its shareholding stake in CAP, is up to USD1.3 billion. The transaction is still subject to requisite regulatory approvals, including from the OJK and is expected to complete no later than 30 September 2021. It will be one of the largest rights issue ever done on the Indonesia Stock Exchange (IDX).

Subject to a successful Final Investment Decision (FID) on CAP 2 targeted for 2022, Thaioil and SCG Chemicals may further collectively invest up to USD0.4 billion. The methods of the subsequent investment will be determined by the parties at a later stage and remain subject to the approval of CAP shareholders and relevant governmental authorities in the Republic of Indonesia.

Erwin Ciputra, President Director and Chief Executive Officer of Chandra Asri, says: “This is an exceptional moment for Chandra Asri. The proceeds from the rights issue will significantly boost our plans to develop our second petrochemical complex, as we gather pace and accelerate towards taking FID in 2022. It is part of our core strategy of delivering transformational growth to serve Indonesia’s needs, supporting the expansion of our customers, and developing the domestic petrochemical industry: all fully in line with President Jokowi and the government’s imperative call to promote self-reliance and import substitution. We are pleased to have Thaioil, Thailand’s largest refinery on board as our growth partner, which enhances the security of our feedstock supply and cements our position as Indonesia’s leading and preferred petrochemical company.”

Tanawong Areeratchakul, President of SCG Chemicals, says: “SCG Chemicals welcomes Thaioil as a new strategic investor and feedstock partner. We fully support CAP and are pleased to co-invest in the development and construction of CAP2. SCG Chemical’s decade-long partnership and successful collaboration with CAP demonstrate our commitment to Indonesia’s growth. Our investment in CAP2 reaffirms our commitment to Indonesia’s long-term prosperity. We look forward to working collaboratively with CAP, Barito and Thaioil towards a successful completion of CAP2.”

The transaction provides opportunities for additional commercial partnership and growth. CAP has entered into a feedstock sales and purchase agreement with Thaioil for the supply of naphtha and liquefied petroleum gas to CAP and CAP 2, and a product distribution agreement, all on arm’s length commercial terms.

Investment in CAP 2 is projected to be around USD 5 billion. Construction is expected to take 4 to 5 years, creating 25,000 jobs over the period. It will double the company’s production capacity from the current 4.2 million tons a year to more than 8 million tons a year. This will help fulfill Indonesia’s growing domestic demand, reduce import dependency, develop the country’s local downstream petrochemical industry, support the government’s vision for Industry 4.0, and create high-value long-term careers.

As MRC reported earlier, in H1 July, 2020, CAP, one of the largest petrochemical producers in Indonesia, received commercial products at its linear low denisty polyethylene (LLDPE)/high density polyethylene (HDPE) plant in Cilegon (Indonesia) and started ramping up its capacity utilisation. On May 22, the company was forced to reduce the capacity utilisation at this plant with a capacity of 400,000 mt/year of LLDPE/HDPE due to various technical issues.

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.

Thailand's Siam Cement Group (30%) and Indonesian PT Barito Pacific and (64.87%) are the main owners of Chandra Asri.

McDermott to accelerate contributions to a low-carbon economy through its sustainability targets

McDermott to accelerate contributions to a low-carbon economy through its sustainability targets

MOSCOW (MRC) -- McDermott International, Ltd will accelerate its contributions to a low-carbon economy through its sustainability targets, which are outlined in the company's latest sustainability report, according to Hydrocarbonprocessing.

The company's targets include:

- 50% reduction in scope 1 and 2 greenhouse gas (GHG) emissions by 2030;
- 35% reduction in scope 3 GHG emissions for ten key supply chain categories by 2030;
- Zero office waste-to-landfill by 2025;
- 50% reduction in waste generation by 2030;
- Specific milestones for advancing social investment, local content and human rights;
- The targets leverage years of analysis and the company's long history of delivering - and continuously improving - responsible energy infrastructure across the energy value chain.

McDermott supports the global energy transition and has delivered award-winning work, studies and developments to expand possibilities in net-zero construction, carbon capture, hydrogen storage solutions, net-zero liquified natural gas and offshore wind.

The company has the same aspirations for its own operations as reflected in the sustainability program and proactive targets. The result is an integrated sustainability strategy with a governance framework applied globally across all aspects of the business.

"Our sustainability report identifies the progress we have already made," said Rachel Clingman, McDermott's Executive Vice President, Sustainability and Governance. "And it confirms our commitment to reducing GHG emissions, managing water use, reducing waste-to-landfill and improving socially responsible investments that support the communities where we operate."

As MRC wrote previously, last month, McDermott International, Ltd announced it had been awarded an engineering and procurement contract for a spent caustic treatment solution on the Gas Chemical Complex (GCC) project from Heat Transfer Technologies DMCC (HTT). The GCC project is owned by Baltic Chemical Plant LLC, a subsidiary of RusGazDobycha. It is the largest polyethylene (PE) integration project in the world and is located near Russia's shores in the Gulf of Finland.

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.

McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott's innovative expertise and capabilities advance the next generation of global energy infrastructure - empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.