Construction of the Amur GCC is ahead of schedule

Construction of the Amur GCC is ahead of schedule

MOSCOW (MRC) - The construction of the Amur Gas Chemical Complex (AGHK, part of SIBUR Holding) is going ahead of schedule, its completion is scheduled for mid-2024, TASS reports, citing the words of the company's managing director Pavel Lyakhovich as part of the VI Eastern Economic Forum.

"The Amur Gas Chemical Complex, which we are building, at the end of the summer, it already has about 20% progress and is very serious, positive. Positive, slightly outstripping development growth. And we will complete it, now we see it, in mid-2024," he said he. Lyakhovich noted that the Amur Gas Chemical Complex is a mega-project for the company, which will be noticeable on the global oil and gas chemistry market.

“We live not only in large-scale chemistry. There are projects for medium-scale chemistry on the radar. there is even more product on the market. We are also thinking about the production of special plasticizers at the Perm site, "noted P. Lyakhovich.

"Limitations, of course, are possible anyway, because the coronavirus has not disappeared anywhere, it is constantly mutating. Unfortunately, it moves between borders rather quickly, so here, of course, the influence of it and new strains is possible on all segments. And, of course, forecasts. As usual, this is not a very rewarding business. But if some collapses do not happen, then we see that 2021-2022 will show growth for us in the segment itself, which cannot but rejoice, "said the managing director of SIBUR.

For the Russian petrochemical industry, 2020 turned out to be even better than the previous ones due to the commissioning of new capacities. Thus, the growth in the volume of chemical production in the Russian Federation in 2020 amounted to 7%, and in the first half of 2021 - 8%, noted P. Lyakhovich.

"It is probably important that not only production, but also consumption, primarily in 2021, we note a very serious growth in the consumption of petrochemical products. Therefore, in Russia, compared to the world, there are more optimistic positive figures," added P. Lyakhovich ... At the same time, the automotive industry and construction in the world continue to recover in 2021–2022, which also inspires optimism, concluded a member of the SIBUR board.

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.

SIBUR Holding is the leader in the Russian petrochemical industry and one of the largest global companies in the sector with more than 23 thousand employees. SIBUR processes by-products of oil and gas production and thereby contributes to the reduction of CO2 emissions from their combustion. Over the past 10 years, SIBUR has implemented a number of large-scale investment projects worth about 1 trillion rubles.
MRC

Brenntag to become part of Germany leading stock index

Brenntag to become part of Germany leading stock index

MOSCOW (MRC) -- Brenntag, the global market leader in chemicals and ingredients distribution, will be included in the DAX on September 20, 2021. Brenntag will thus become part of Germany's leading stock index, the composition of which has been expanded from 30 to 40 companies as part of a reform, as per the company's press release.

Christian Kohlpaintner, Chief Executive Officer Brenntag SE, said: “We are delighted about our inclusion in the expanded DAX. It is an acknowledgment for our achievements and the successful development of our company in recent years. We are proud of this. This success would not have been possible without our more than 17,000 employees. We would therefore like to take this unique moment to thank them for their outstanding commitment and performance. Our thanks also include our investors. Their trust is another important motivator for us.”

The DAX expansion is accompanied by a comprehensive reform: from now on, a company's free float market capitalization as a main indicator determines its inclusion in the index. A criterion that Brenntag safely meets. The Brenntag share has been listed in the MDAX on the Frankfurt Stock Exchange since 2010. During this time, the company's market capitalization has quadrupled and amounts today to more than EUR13 billion.

Brenntag's objective and strategic focus is to consistently expand its position as the global market leader in chemicals and ingredients distribution.

As MRC reported earlier, this summer, Brenntag acquired all operating assets and business of Matrix Chemical, LLC. 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.

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 overall estimated consumption of PC granules in the Russian market were almost 56,000 tonnes in January-July 2021, down by 3% year on year (58,000 tonnes).
MRC

SIBUR expects market growth in the petrochemicals segment in 2021-2022

SIBUR expects market growth in the petrochemicals segment in 2021-2022

MOSCOW (MRC) - SIBUR expects market growth in the oil and gas chemistry segment in 2021-2022, despite the threat of new strains of coronavirus, which will have a positive impact on the company, TASS reports, citing the words of the managing director of the company Pavel Lyakhovich as part of the VI Eastern Economic forum.

"Limitations, of course, are possible anyway, because the coronavirus has not disappeared anywhere, it is constantly mutating. Unfortunately, it moves between borders rather quickly, so here, of course, the influence of it and new strains is possible on all segments. And, of course, forecasts. As usual, this is not a very rewarding business. But if some collapses do not happen, then we see that 2021-2022 will show growth for us in the segment itself, which cannot but rejoice, "said the managing director of SIBUR.

"For the Russian petrochemical industry, 2020 turned out to be even better than the previous ones due to the commissioning of new capacities. Thus, the growth in the volume of chemical production in the Russian Federation in 2020 amounted to 7%, and in the first half of 2021 - 8%," said P. Lyakhovich.

"It is probably important that not only production, but also consumption, especially in 2021, we note a very serious growth in the consumption of petrochemical products. Therefore, in Russia, compared to the world, there are more optimistic positive figures," added P. Lyakhovich.

At the same time, the automotive industry and construction in the world continue to recover in 2021-2022, which also inspires optimism, concluded a member of the SIBUR board.

Earlier it was noted that the company's net profit used to calculate dividends for the first half of the year increased 3 times - up to 107.7 billion rubles. Usually SIBUR pays dividends based on the results of the first half of the year and directs 50% of its net profit under IFRS.

As MRC reported, on 23 April of this year, SIBUR announced a merger with TAIF by exchanging 15% of its shares for 50% + 1 share in TAIF. The scope of the transaction includes only TAIF's petrochemical and generating companies. This merger will increase the scale of SIBUR's operations and strengthen its market leadership. SIBUR and TAIF expect to reach final terms and close the deal in the second half of 2021. TAIF together with SIBUR will spend more than 1 trillion rubles. for the implementation of joint projects. In total, the companies plan to implement over 30 projects.

As a result of the merger, the total capacity share of the new SIBUR-TAIF group will be 100% for the production of linear low-density polyethylene (LLDPE), 87.4% for polypropylene (PP), 80.8% for low-density polyethylene (HDPE), and for high-pressure polyethylene (LDPE) - 59.3%.

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.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.)
MRC

ExxonMobil to seek certification of some natural gas output with potential for expanding effort to other production fields

ExxonMobil to seek certification of some natural gas output with potential for expanding effort to other production fields

MOSCOW (MRC) -- ExxonMobil will assess the methane emissions from 200 MMcf/d of natural gas output from a section of its Permian Basin holdings, with the potential for expanding the effort to other production fields, reported S&P Global with reference to the company's statement Sept. 7.

The idea of certifying gas to quantify emissions, meet environmental goals and create new business has spurred similar initiatives across the US upstream and midstream sectors over the last year.

From detailing their carbon footprints to trying to capture carbon before it is released to identifying supplies that are responsibly sourced, companies are mindful of an energy future that will increasingly favor cleaner burning fuels.

ExxonMobil, which more than doubled its Permian position in 2017 through a series of purchases from the Bass family, hired independent validator MiQ to begin the certification process for the selected gas production. Poker Lake, in New Mexico, was chosen in part because of its proximity to nearby markets and the production growth the area holds, ExxonMobil said in a statement.

An MiQ accredited independent auditor performs the assessment, and MiQ issues tradable certificates based on the grade achieved.

ExxonMobil said it is considering expanding certification to include other Permian Basin fields and shale production areas, including the Appalachian Basin in the US Northeast and the Haynesville Shale in Louisiana.

Poker Lake in Eddy County has been a focus of ExxonMobil in the Permian. It started operations last year at its Delaware sub-territory central processing facility to collect oil and gas supply for delivery to US Gulf Coast export markets. The certified gas at Poker Lake could be available to customers by the fourth quarter of this year, ExxonMobil said.

ExxonMobil has previously announced plans to further reduce greenhouse gas emissions in its operations by 2025, compared with 2016 levels. The plans include a 15%-20% reduction in GHG intensity of upstream operations.

As MRC wrote before, earlier this year, ExxonMobil slashed its 2025 global oil and gas production estimate to 3.7 million boe/d, even as it focuses on growing output at the Permian Basin and in Guyana. Production will remain flat from 2020 levels through 2025 at 3.7 million boe/d, the company said during its Investor Day 2021 webcast. That is down from the 5 million boe/d production estimate for 2025 ExxonMobil released last year in its 2020 Investor Day, just as the coronavirus was beginning to take its toll on global oil demand and prices.

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

Biaxplen modernised equipment for the production of BOPP films

Biaxplen modernised equipment for the production of BOPP films

MOSCOW (MRC) - The Biaxplen Group of Companies (part of SIBUR Holding) announced the modernization of extrusion lines produced by the German Bruckner for the production of biaxially oriented films (BOPP films) at its facilities, the company said.

“The long-term partnership with Bruckner Servtec resulted in a system upgrade in 2021. Despite the challenging epidemiological environment, the upgrade went very quickly. Bruckner's Moscow office, partner network, support from Bruckner's Siegsdorf office and collaboration with Biaxplen staff ensured the project was carried out professionally. ", - the message says.

“The line we are currently modernizing is a prime example of the fact that, with optimal support, our lines can operate at the highest level for many - many years and therefore is also a prime example of sustainability,” summed up Christian Aigner, Director Sales and Service Bruckner Servtec.

Earlier it was reported that in July, Biaxplen introduced a metallized film of the HBV.M brand, which has high barrier properties. The new brand will be produced at the Kursk plant. The production capacity will be 500,000 tonnes per year. The production launch of the film is scheduled for the second half of 2021.

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.

All five Biaxplen factories are certified according to the quality management system ISO 9001. The group's total BOPP film production capacity is over 160 thousand tons per year. The company is actively developing export supplies of films to the EU market.

Biaxplen is a subsidiary of the petrochemical holding SIBUR, the leader of BOPP in Russia. Production capacity - 180 thousand tons per year, 8 high-speed lines. Brand assortment - over 40 types. Production sites are located in five regions. The products are exported to 27 countries.
MRC