Borealis appoints Thomas Reutter as product asset management and supply chain ViP

MOSCOW (MRC) -- Borealis announces the appointment of Thomas Reutter as Vice President Product Asset Management and Supply Chain, effective 1 August 2021, as per the company's press release.

Thomas Reutter joins Borealis from Dow and brings extensive product asset management and supply chain experience. Since joining Dow in 2008, he has held various positions with increasing responsibilities in product management, supply chain management and sales in the Netherlands, Mexico and Switzerland. Most recently he has served as Senior Product Director for Linear Low Density Polyethylene (LLDPE), based in Switzerland.

"We warmly welcome Thomas Reutter to the Borealis Polyolefin Business”, comments Borealis EVP Lucrece Foufopoulos. “Thomas is a business savvy, experienced product asset leader, with exposure to different cultures & ways of working throughout his career. We look forward to bringing his skills and strong performance orientation to the Polyolefins business and Borealis group.”

As MRC reported earlier, the Supervisory Board of Borealis appointed Wolfram Krenn as Executive Vice President Base Chemicals & Operations and member of the Borealis Executive Board, effective 1 July 2021.

We remind that in April 2021, Borealis commenced a new project to secure an increased supply of chemically recycled feedstock for the production of more circular base chemicals and polyolefin-based products. A feasibility study for a chemical recycling unit to be established at the Borealis production location in Stenungsund, Sweden, is now underway.

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.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala.
MRC

Sinopec Zhenhai Refinery & Chemicals and Axens complete test run of H-Oil unit

Sinopec Zhenhai Refinery & Chemicals and Axens complete test run of H-Oil unit

MOSCOW (MRC) -- Following the successful start-up of the unit in December 2020, Sinopec Zhenhai Refinery & Chemicals Company and Axens announced the completion of the Performance Guarantee Test Run of the 2.6 MMTA (45 000 BPSD) VR capacity Ebullated-Bed Hydrocraker (H-Oil unit), demonstrating VR conversion in excess of 80%, according to Hydrocarbonprocessing.

Axens H-Oil Ebullated Bed Hydrocracking Technology was implemented in the Sinopec Zhenhai existing refinery and coupled with existing assets such as Delayed Coker and Fluidized Catalytic Cracking (FCC) units to maximize refinery overall performances, bringing higher profits in the refinery economics.

Beyond the performance guarantees demonstration, Zhenhai Refining & Chemical Company H-Oil unit has not only passed successfully all guarantees but thanks to ZRCC operation and Axens team collaboration, the unit was also able to adjust its operation to follow market opportunities to produce Low Sulfur Bunker Fuel from unconverted residue product. The H-Oil unit also demonstrated its high flexibility towards a wide range of operating capacity and towards various feedstocks.

The Performance Guarantee Test Run (PGTR) was conducted with the support of on-site and substantially off-site support from Axens head offices in France.

As MRC wrote before, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have recently entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are the main feedstocks for the production of PE and 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.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

Marathon completes test run for North Dakota refinery producing 100% renewable diesel

Marathon completes test run for North Dakota refinery producing 100% renewable diesel

MOSCOW (MRC) -- Topsoe’s HydroFelx technology has been used at the Marathon Petroleum Corp. (MPC) renewable diesel facility in North Dakota, United States, exceeding all process guarantees, according to Hydrocarbonprocessing.

The new HydroFlex unit produces 100% renewable diesel from soy and corn oil with a combined capacity of 12,000 barrels per day. Topsoe’s HydroFlex technology enables clients to convert low-carbon renewable feedstocks into cleaner fuel alternatives.

“At Marathon Petroleum, we are meeting the needs of today while investing in a sustainable, energy-diverse future, and our renewable diesel production is a significant part of that commitment,” says Jeff Sexton, Marathon’s Refining Technology Director. “We’re excited about the success we’ve had with this technology at our Dickinson Renewable Diesel facility, which achieved its design capacity during the second quarter. We are looking forward to the conversion of our Martinez, California, refinery to renewable fuels production over the next year.”

With HydroFlex, customers can convert low value feedstocks to renewable fuels that qualify for the California Low Carbon Fuel Standard credit. The innovative HydroFlex process layout offers lower capital expenditure, and also lower energy consumption during operation, resulting in a lower carbon intensity. Topsoe’s HydroFlex can be deployed in both grassroots units and revamps for co-processing or stand-alone applications.

As MRC informed earlier, in May, 2021, US refiner Marathon Petroleum Corp 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 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.

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets.
MRC

Sinopec Qilu to shut PP plant in China for scheduled maintenance

Sinopec Qilu to shut PP plant in China for scheduled maintenance

MOSCOW (MRC) -- Sinopec Qilu Petrochemical, a subsidiary of one of the world's largest energy and chemical companies - Sinopec, intends to shut down its polypropylene (PP) plant in Tianjin, in northeast China for a scheduled maintenance on 10 August, 2021, according to CommoPlast.

It is expected that the turnaround at this plant, which can produce 70,000 mt/year of PP, will last for about 50 days. Thus, this facility may resume operations on 28 September, 2021.

As MRC reported earlier, the company took off-stream its PP plant for repairs from 5 May to 20 June, 2017.

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.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

OxyChem sees continued strong demand for PVC and caustic soda in H2 2021

OxyChem sees continued strong demand for PVC and caustic soda in H2 2021

MOSCOW (MRC) -- Occidental Petroleum sees continued strong demand for construction staple polyvinyl chloride (PVC) and caustic soda through the rest of 2021, driven largely by tight supply, homebuilding growth and continued global economic recovery from COVID-19 fallout, reported S&P Global with reference to CFO Robert Peterson's statement Aug. 4.

Peterson said the company sees domestic PVC demand up 16% from Q2 2020, and up 13% from pre-pandemic 2019, he said during the company's Q2 2021 earnings call.

"And so strong demand is also attributed to really low levels of inventory and supply chain, combined with the construction sector, which you're seeing, and obviously, in a lot of their construction materials," he said.

Occidental reported a USD97 million loss for the quarter, up from an USD8.35 billion loss in Q2 2020 at the height of COVID-19 shutdowns. OxyChem, the company's chemical segment, reported a USD312 million profit, nearly triple USD108 million a year ago.

"We expect that 2021 will be a record year for OxyChem," he said.

Peterson noted that US housing starts have been strong, fueled in part by low mortgage rates and in part by consumers seeking more space or expanding their existing homes during elongated stretches of working from home amid COVID-19. That construction boom has fed demand for PVC, which is used to make pipes, window frames, vinyl siding and other products.

At the same time, PVC supply has been constrained by two hurricanes in 2020, a deep freeze in mid-February that forced weeks-long petrochemical plant shutdowns, and operational issues. The US normally exports more than 30% of about 8.2 million mt/year in US PVC capacity, but outflows have declined sharply amid the domestic pull for less overall volume availability.

Caustic soda prices have begun recovering from sluggish demand in 2019 and 2020, Peterson said.

Chlor-alkali production has faced similar setbacks on extreme weather and operational issues, keeping rates lower than the typical 90% range during warmer months. That means less PVC and caustic soda availability when demand for both is seen robust, he said.

Caustic soda demand was seen continuing to grow alongside economic recovery and growth, he said. More participation in sports events, concerts and travel, and returns to offices, means more demand for paper products – bulk delivery boxes, printing paper, cups and napkins.

As MRC informed before, OxyChem had a seven-day PVC turnaround slated for April, 2020, at its plant in Pasadena, Texas, USA. This plant's production capacity is 1 million mt/year.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Occidental Petroleum Corporation (OxyChem) is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America. Oxychem is Oxy's Texas-based subsidiary which manufacture polyvinyl chloride (PVC) resins, chlorine and caustic soda used in plastics, pharmaceuticals and water treatment chemicals.
MRC