TotalEnergies increases its recycled plastic production capacity

TotalEnergies increases its recycled plastic production capacity

MOSCOW (MRC) -- TotalEnergies has inaugurated the extension of Synova in Normandy, the French leader in recycled polypropylene production, said the company.

TotalEnergies is therefore doubling its mechanical recycling production capacity for recycled polymers, to meet growing demand for sustainable polymers from customers, such as Automotive Manufacturer (Auto OEM) and the construction industry.

Plastics are essential to everyday life because of their many properties, including lightness, which allows the automotive industry, for example, to reduce the weight of vehicles and hence also fuel consumption and CO2 emissions. But plastics’ end-of-life is a crucial topic, which is why TotalEnergies is actively involved in plastics recycling as part of its circular economy approach.

In order to increase its mechanical recycling capacity, TotalEnergies acquired in 2019 Synova, the French leader in the production of recycled polypropylene derived from industrial waste plastics, household waste and car parts such as bumpers.

As per MRC, TotalEnergies said that it expected a big rise in renewable-based electricity, solar and wind forms of energy, partly due to a general increase in electrification in the industrial and business world. TotalEnergies added it expected that oil in general would plateau before 2030, while natural gas would continue to play a role as a transition fuel.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

TotalEnergies is a broad energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables, and electricity. The company rebranded itself from Total to TotalEnergies during Q2 2021. The French firm has announced allocating part of surplus revenues to share buybacks. Its 105,000 employees are committed to energy that is ever more affordable, clean, reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
MRC

High carbon tax could decrease up to 60% of refining earnings in Asia

High carbon tax could decrease up to 60% of refining earnings in Asia

MOSCOW (MRC) -- A high carbon tax could erode up to 60% of Asia’s total refining earnings by 2027, says Wood Mackenzie, a Verisk business (Nasdaq:VRSK), at the Global Energy Summit Focus Week, as per Hydrocarbonprocessing.

According to Wood Mackenzie’s Emissions Benchmarking Tool, the refining industry accounts for only about 3% of global energy sector emissions. This refers to Scope 1 and 2 emissions from process operations required to convert crude oil into refined products within the refinery.

Wood Mackenzie research director Sushant Gupta said: “Asia is the largest contributor to refinery emissions globally. The energy transition will manifest itself in three main challenges for refiners.

"Firstly, reduced market size for refined products which leads to poor refinery margins and refinery closures. Secondly, the transport fuel demand is hit the hardest, which accounts for more than 50% of refinery production. Refiners will have to re-configure and shift to petrochemicals. And lastly, a possibility of a high carbon tax on refining industry as part of broader decarbonisation efforts. While a carbon tax might sound like a good idea, the reality is that a global uniform carbon tax or policy is unlikely, which will make it difficult for refiners to pass on the costs of carbon to its customers. The inability to pass through carbon costs could have material impact on refinery margins.

"At US$30 per tonne (t) carbon price, we estimate the average impact on refining margins would be US$0.55 per barrel of oil equivalent (bbl). This rises to USD2.10/bbl at USD100/t of carbon price. For 2027, we estimate that 60% of Asia’s total refinery earnings could be wiped off in a USD100/t carbon price scenario."

Vice president Alan Gelder said: “Only highly competitive sites that generate significant cash will survive the energy transition, as their cash generation capabilities will provide funds for investment in decarbonisation as well as rewarding investors. "Environmental sustainability has to be a key priority for refiners. They will need to find their own unique decarbonisation solution and yet still remain economically viable."

Some early responses in the short term to decarbonising the refining sector include process optimisation such as improving furnace efficiency, low temperature waste heat recovery and fluid catalytic cracking (FCC) unit optimisation. The industry could also consider switching combustion fuel from fuel oil or coke to cleaner fuels such as natural gas or green hydrogen. A switch from burning fuel oil to natural gas can reduce emissions by up to 30%. In addition, a switch to cleaner feedstocks could also be an option.

For deeper decarbonisation, refiners will have to consider low carbon technologies such as electric heating, carbon capture and storage on FCCs, hydrogen and gasifier units and biomass gasification. They will also have to consider the use of renewable power and green hydrogen.

As per MRC, Singapore's manufacturing sector continues to suffer from a sharp rise in COVID-19 cases, with the country's manufacturing business activity index (PMI) declining for the second straight month in September. Data from the Singapore Institute of Purchasing and Management on Monday showed a slight decline in the September manufacturing PMI to 50.8 from August. At the same time, the overall PMI remains above 50.0, which still speaks of the growth of the manufacturing economy. Singapore is doing better than other countries in Southeast Asia, which are also dealing with increased cases of COVID-19. September business activity indexes in Thailand, Malaysia and Vietnam were at the border of the 50.0 mark.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

MRC

New tax policy in China affects petroleum product trade in Asia

New tax policy in China affects petroleum product trade in Asia

MOSCOW (MRC) -- In June of this year, China implemented a new consumption tax policy that affects imports of two fuels: mixed aromatics, which were blended into gasoline, and light cycle oil, which was blended into diesel, said Hydrocarbonprocessing.

These components were previously exempt from China’s consumption tax. This new policy has reduced China’s imports of these products and its exports of petroleum products.

China increased its imports of light cycle oil and mixed aromatics in 2020 and the first half of 2021, before these products were subject to the consumption tax. Once the tax took effect, China’s imports of light cycle oil decreased from an average of 390,000 barrels per day (b/d) in the first six months of 2021 to 20,000 b/d in July and 30,000 b/d in August, the first two full months after the change in policy. Similarly, China’s imports of mixed aromatics fell from an average of 170,000 b/d in the first six months of 2021 to 70,000 b/d in July and 30,000 b/d in August.

Light cycle oil and mixed aromatics may not be economical for gasoline and diesel blending under the new tax policy, but China’s policy provides a tax rebate on these fuels when they are used for petrochemical production, which likely explains why these fuels are still imported, albeit at lower levels.

These tax policy changes are also affecting China’s petroleum product exports. China exported relatively large quantities of distillate and gasoline in the first half of 2021 because of higher refining output and a high export quota at the beginning of the year. However, under the new tax policy, domestic refiners have reduced exports, likely to make up for the decrease in the supply of light cycle oil and mixed aromatics.

As per MRC, chemical producers in eastern Germany are on the verge of shutting down plants as they can no longer cope with the spike in prices for energy, in particular natural gas. The price explosion on energy markets is taking dramatic proportions. The level of natural gas prices, in particular, has threatened to become an “existential question” for many producers.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

TotalEnergies says Feyzin refinery hit by fire

TotalEnergies says Feyzin refinery hit by fire

MOSCOW (MRC) -- French oil major TotalEnergies' Feyzin refinery was hit by a fire overnight, but the fire has been rapidly brought under control and nobody has been hurt, said Reuters.

It added that certain units at the site near Lyon will have to adapt their activity but that the company will continue to ensure supply to its network of gas stations and to its customers.

A CGT union official had said earlier that refining activities at the site would be halted in the next 24 to 48 hours at following a major fire overnight.

Total has had a string of issues at its French refineries in recent years. The 240,000 b/d Gonfreville refinery near Le Havre only resumed crude runs in June following a fire at the end of 2019. Cracks in a pipeline that supplied crude to the 93,000 b/d Grandpuits refinery were discovered last year, forcing the plant to shut ahead of schedule. Grandpuits was already earmarked for conversion into a biorefinery. A previous pipeline leak shut the refinery in June 2014.

Leaks in the pipeline supplying Feyzin forced a three-week shutdown in the summer of 2019. And a crack was also found earlier this year in a pipeline that supplies crude to TotalEnergies' 222,000 b/d Donges refinery. Donges was shut on economic grounds at the time and is due to remain closed until next year.

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 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

Arkema names North America chief

Arkema names North America chief

MOSCOW (MRC) -- Arkema has promoted Anthony O’Donovan, regional group president for its Americas fluorochemicals operations, to CEO of Arkema Inc, where he will cover the France-based producer’s operations in the US, Mexico and Canada, said the company.

O’Donovan joined Arkema in 2013 as global supply chain director for fluorochemicals. He most recently served as Americas fluorochemicals president.

O'Donovan will replace Richard Rowe who is due to retire. He will take up the reins on 1 November after a transition period.

Arkema’s North America subsidiaries employ around 4,000 people across 40 sites, and generated 33% of group revenue in 2020, the company added.

As per MRC, Arkema announces the proposed divestment of its epoxides business to Cargill, a leader in agricultural products and services. With this project, Arkema is pursuing the repositioning of its portfolio on its core businesses. Arkema produces bio-based and specialty epoxides in Blooming Prairie (MN, USA), used as additives or intermediates in the manufacture of lubricants, plastic additives and a wide variety of other applications. Part of Arkema’s Hydrogen Peroxide activity, this business has limited integration with the rest of the Group’s portfolio, generates sales of around US USD40 million and employs approximately 45 people.

As per MRC, Arkema is further increasing its fluoropolymer production capacities in Changshu, China, by 35% in 2022. The increase in capacity is scheduled to come on stream before the end of 2022, the company said in a statement. Financial and overall capacity details of the expansion project were not disclosed.

Arkema is one of the world's leading chemical manufacturers headquartered in Colombes (near Paris, France). Founded in 2004 as a result of the restructuring of the French oil company Total, Arkema, with a turnover of EUR6.5 billion, has operations in 40 countries, 10 research centers around the world, and 85 plants in Europe, North America and Asia.
MRC