Over 78% of oil and gas production remain shut in US Gulf of Mexico after Hurricane Ida

MOSCOW (MRC) -- Energy companies on Tuesday had 79% of US Gulf of Mexico crude oil production still shut, or 1.44 million barrels per day, following Hurricane Ida, reported Reuters with reference to regulator Bureau of Safety and Environmental Enforcement (BSEE).

A total of 79 oil and gas production platforms in the U.S. Gulf remain evacuated due to Ida. About 78% of natural gas production, or 1.74 billion cubic feet per day, was also offline.

As informed earlier, Shell said it observed damage from Hurricane Ida to its transfer station West Delta-143 offshore facilities in the Gulf of Mexico. West Delta-143 serves as the transfer station for all production from its assets in the Mars corridor in the Mississippi Canyon area of the Gulf of Mexico to onshore crude terminals. Shell said it is not yet safe to send personnel offshore to learn the full extent of the damage and estimate the effect on production.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- Neste has agreed to acquire 100% of Agri Trading, one of the largest independent renewable waste and residue fat and oil traders in the United States, and its affiliate entities, said Hydrocarbonprocessing.

The transaction is subject to the completion of customary closing conditions and regulatory approval. "This agreement supports our renewables growth strategy and further strengthens our global renewable raw material sourcing as well as our footprint in the United States. Agri Trading complements our previous acquisition of Mahoney Environmental in the United States with its wide trading network of renewable raw materials compounded with efficient logistics. I am happy to welcome Agri Trading to be part of Neste’s journey in creating a healthier planet for our children,” says Neste’s President and CEO Peter Vanacker.

“Combating climate change is an urgent priority for the United States, and renewable products are a much needed part of the solution because they enable climate action now,” says Jeremy Baines, President, Neste US, Inc. “With this transaction, I am proud to say that Neste is collecting and turning even more locally sourced feedstock into renewable products to power America’s transport system, keeping new greenhouse emissions out of the atmosphere and cutting pollution."

Neste refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. This is possible thanks to its proprietary NEXBTL technology – a unique platform that allows the company to turn a wide variety of renewable waste and residues and oils into premium fuels and other products.

Agri Trading is based in Minnesota and was established in 1977. It has become an industry leader in trading animal fat waste, used cooking oil, technical corn oil, and other vegetable oils throughout the lower 48 States, Canada, Mexico, and Europe. The company manages all aspects of transportation, logistics, transloading, and export services, providing on-time pick-up and delivery.

The transaction supports Neste in its efforts to build a solid, resilient and flexible global waste and residue raw material platform that can keep pace with the customer’s growing demand for renewable products. Together with previously announced acquisitions of IH Demeter, Bunge Loders Croklaan and Count Terminal in the Netherlands, and Mahoney Environmental in the United States, Agri Trading will also enhance Neste’s competitiveness in the global waste and residue raw material market.

As per MRC, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- A new milestone in Maire Tecnimont Group’s green acceleration roadmap: MyRechemical, NextChem’s subsidiary dedicated to waste-to-chemical technologies, and Johnson Matthey (JM), a global leader in sustainable technologies, will jointly cooperate to commercially develop "waste-to-methanol" technology worldwide, said Hydrocarbonprocessing.

This waste-to-methanol technology has its roots in the chemical conversion of non-recyclable municipal waste, which would otherwise be disposed in landfill or incinerated, into valuable syngas used to produce methanol. Through the chemical conversion of non-recyclable municipal and industrial waste, mainly plastic and dry waste, the resulting hydrogen and carbon oxides can be used to produce more sustainable chemical products.

The methanol derived from this process can be used as an intermediate for low-carbon additives in the blending of gasoline and diesel, replacing the fossil-based component with one derived from recycling, as well as a raw material for the chemical, construction and plastic industries. Ultimately this ensures a lower carbon footprint, demonstrating the sustainability of this technology. Methanol is an important intermediate product used in many goods that play a role in everyday life such as resins, plastics, insulation and fibres. It can be used as a fuel in transportation and, critically, is a potential enabler for decarbonization.

This agreement involves JM’s proven syngas-to-methanol technology, which transforms synthesis gas using a robust and reliable chemical catalytic process to implement new waste-to-methanol plants. Additionally, MyRechemical will integrate JM’s syngas-to-methanol technology into the waste-to-chemical process in order to commercialize this waste-to-methanol technology worldwide.

Pierroberto Folgiero, Chief Executive Officer of Maire Tecnimont Group and NextChem, commented: "The alliance with JM adds a new important piece to our business strategy. Circular methanol obtained from the technology on which we are partnering with JM can be used in better performing, low-carbon fuels for sustainable mobility, for example for the shipping sector, and as a more sustainable product for the chemical industry. There is a wide and promising market for such a product, aimed at driving the industry towards the use of more sustainable feedstocks, avoiding the consumption of natural resources. This technology, which is immediately applicable, provides a concrete answer to these needs".

John Gordon, Managing Director, Johnson Matthey, commented: “Joining forces with MyRechemical to develop innovative sustainable technologies demonstrates we are committed to helping the energy and chemical industries manage the transitions needed to decarbonize. Alternative feedstocks such as municipal waste will play a key role in meeting net zero carbon emissions targets. JM process solutions and flexible catalysts, which can be used in a variety of feedstocks, are well placed to help operators reduce carbon dioxide emissions and meet ambitious sustainability targets”.

Earlier it was reported that the subsidiaries of the Italian engineering company Maire Tecnimont S.p.A. received a contract for the construction of a new Kazanorgsintez plant (KOS, part of TAIF) for the production of high-pressure polyethylene (LDPE) / ethylene vinyl acetate (EVA) at the existing KOS complex in Kazan (Tatarstan, Russia). The capacity of the new enterprise will be 100,000 tonnes of LDPE / EVA per year.

According to MRC's ScanPlast, in June the estimated consumption of LDPE in Russia fell to 45,190 tonnes against 47,780 tonnes a month earlier. Russian manufacturers have increased export sales of polyethylene (PE). In the first six months of the year, the estimated consumption of LDPE in Russia amounted to 280,850 tonnes, which is 2% less than a year earlier. PE output decreased, while export volumes increased.
MRC

MOSCOW (MRC) -- AFL-CIO President Elizabeth Shuler called on ExxonMobil Corp to end a four-month lockout of workers at its Beaumont, Texas, refinery because of "potential safety risks," according to a copy of a letter seen by Reuters.

Exxon locked out the plant's hourly employees on May 1, saying it feared a strike following the expiration of a labor contract.

Shuler said Exxon's use of temporary workers to run the refinery created the risk of an industrial accident. Temporary workers lack the experience and training of permanent employees, she wrote.

"We believe that the risk of an industrial accident at the Beaumont complex can best be mitigated by negotiating a mutually agreeable end to the lockout."

Exxon spokeswoman Julie King rejected the concerns. "We continue to operate Beaumont safely and reliably with a highly competent staff of supervisors and engineers," she said in an email.

Shuler's letter to director Susan Avery, chair of the board's public issues and contributions committee, was dated Aug. 30, the day Exxon rejected the last of three proposals made by United Steelworkers union (USW) local 12-243 last month to end the lockout.

"The USW has filed unfair labor practice charges with the National Labor Relations Board, alleging that Exxon Mobil illegally made unilateral changes to the continuing terms and conditions of employment and supported a union decertification campaign," Shuler said.

The USW has said the company's proposal would require its members give up long-standing seniority and would create a separate contract for workers in the lube oil plant from that of workers in the refinery.

Exxon has said the proposal would give it flexibility to be profitable in low-margin environments.

As MRC informed before, ExxonMobil rejected three proposals in August made by the union representing 650 locked-out workers at the company’s Beaumont, Texas, refinery.

We remind that in mid-summer, 2021, ExxonMobil's Beaumont, Texas refinery was operating at about 60% of its 369,024-bpd capacity because of the lockout of union workers.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

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

MOSCOW (MRC) -- The global pandemic has affected the packaging solution industry by leading to a significant price increase and shortage of raw materials and components used in packaging equipment, said the company.

To compensate for the rising costs and continue to provide the highest quality solutions, Sidel is implementing a commodity-induced price adjustment on its equipment by an average of 5% effective September 6, 2021. Deficiency of raw materials and components may impact equipment delivery time as well.

Since the outbreak of COVID-19, Sidel has been striving to keep the same price level for its equipment despite the fact that the price of raw materials has increased significantly since 2020. Moreover, this increase is not expected to recover in the foreseeable future.

Additionally, the pandemic, combined with other external factors, has resulted in a significant shortage of microchips globally. This shortage is an outcome of supply-related disruptions, including forced closure of factories, together with an unanticipated increase in demand for personal electronics such as cell phones and laptops as people were required to work or study remotely. Both supply shortage of microchips and increase in consumption of personal electronics lead to supplier delays which might impact the overall Sidel delivery channels for the near future.

"We are doing everything that is in our control to ensure the high quality solutions Sidel is known and celebrated for and to acquire the needed commodities whenever and wherever they are available. For this reason, we have increased communication with our suppliers and customers as well as adapted our project execution processes internally, so that the component delays have the minimum impact possible,” says Ko Hoepman, EVP Portfolio, Innovation & Marketing at Sidel, assuring that Sidel is working to mitigate any risks that shortages could cause.

As MRC informed earlier, in a bid to expand its packaging solutions portfolio, blow molding machinery maker Sidel Group has acquired blow molder and packaging designer PET Engineering Srl. The terms of the deal have not been disclosed. Founded in 1999 and based in San Vendemiano, Italy, PET Engineering has 40 employees and a global customer base.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 411,200 tonnes in the first six month of 2021, up by 12% year on year. Russian companies processed 62,910 tonnes in June, compared to 85,890 tonnes a month earlier.

Sidel is a leading global provider of packaging solutions for beverage, food, home and personal care products in PET, can, glass and other materials.
MRC