Dow to build net-zero ethylene and derivatives complex in Canada

Dow to build net-zero ethylene and derivatives complex in Canada

MOSCOW (MRC) -- Dow announced today its plan to build the world's first net-zero carbon emissions integrated ethylene cracker and derivatives site with respect to scope 1 and 2 carbon dioxide emissions, said Hydrocarbonprocessing.

The project would more than triple Dow's ethylene and polyethylene capacity from its Fort Saskatchewan, Alberta site, while retrofitting the site's existing assets to net-zero carbon emissions. The organic, brownfield investment would significantly increase Dow's capacity of advantaged ethylene, polyethylene and derivatives manufactured across Alberta – all while maintaining Dow's enterprise-level commitment to keep capital expenditures at or below depreciation and amortization (D&A) levels. The Company expects to allocate approximately USD1 billion of capex annually – or approximately 1/3 of its D&A levels – to decarbonize its global asset base in a phased, site-by-site approach.

Dow expects the new brownfield ethylene cracker to add approximately 1.8 million metric tons of capacity in a phased manner through 2030, and along with derivatives capacity and site retrofit investments, will enable the Company to produce and supply approximately 3.2 million metric tons of certified low- to zero-carbon emissions polyethylene and ethylene derivatives for customers and joint venture partners around the globe.

The investment, which is subject to approval by Dow's Board of Directors and various regulatory agencies, would decarbonize approximately 20 percent of Dow's global ethylene capacity while growing polyethylene supply by about 15 percent and supporting approximately USD1 billion of EBITDA growth across the value chain by 2030. Further, Dow estimates that the project can be completed with an approximately 15 percent lower capital intensity than Dow's industry-leading Texas-9 cracker and derivative units.

The project would build on Dow's previous success in reducing the carbon emissions intensity of its manufacturing fleet. Texas-9 in Freeport, Texas, Dow's most recently commissioned cracker, has delivered a greater than 15 percent return on invested capital since startup and currently operates at 65 percent lower conversion cost and up to 60 percent lower carbon dioxide emissions intensity than the average cracker in Dow's fleet as well as 20 percent lower capital cost versus the industry. The asset leverages best-in-class technology, including a highly efficient furnace design with optimized integration with other facilities on site, that significantly reduces energy consumption and carbon dioxide emissions.

The production process at Fort Saskatchewan will convert cracker off-gas into hydrogen as a clean fuel to be used in the production process, and carbon dioxide that would be captured onsite to be transported and stored by adjacent third-party CO2 infrastructure.

The products produced at the site will be used across the globe to help deliver low- to zero-carbon emissions solutions to meet customers' sustainability needs. Dow is focused on serving high growth markets that support human well-being, drive industrial efficiency, and enable the world's energy transition.

Dow selected the Fort Saskatchewan site for this investment as the region offers a highly competitive energy and feedstocks position. The region also features access to available third-party CO2 infrastructure.

This investment aligns with Dow's broader targets to achieve carbon neutrality by 2050, eliminate plastic waste in the environment and increase its positive impacts on customers, business and society. It also supports Dow's commitment to reduce its net annual carbon emissions by an additional 15 percent, reducing net annual carbon emissions by approximately 30 percent by 2030 (since 2005). Today, Dow is among the top 20 global corporations for clean energy purchases, with more than 850 MW.

As MRC wrote earlier, Dow Chemical began the process of restarting operations at its cracker No.7 in Freeport (Freeport, TX, USA) on 19 July, 2021, after a technological disruption on 4 July, 2021.

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.

Dow Chemical is an American diversified chemical company headquartered in Midland, Michigan. It is a major manufacturer of polymer products, including polystyrene, polyurethane, polyethylene, polypropylene and synthetic rubbers. The company produces more than five thousand products at 188 production facilities in 37 countries.
MRC

COVID-19 - News digest as of 06.10.2021

1. October PVC prices in Russia remained at the September level with a few exceptions

MOSCOW (MRC) - The most of Russian producers have kept a record high level of prices for polyvinyl chloride (PVC) with a few exceptions in October. High global prices and volatile imports remain the main reasons for the high prices, according to the ICIS-MRC Price Report. The imports decrease significantly in September, as the Chinese suppliers limited international railway transportation due to the outbreak of COVID-19 in the north of the country. But at the same time, prices began to grow actively in Turkey and Asia, some Russian producers increased export sales of PVC in the fourth quarter.

MRC

October PVC prices in Russia remained at the September level with a few exceptions

October PVC prices in Russia remained at the September level with a few exceptions

MOSCOW (MRC) - The most of Russian producers have kept a record high level of prices for polyvinyl chloride (PVC) with a few exceptions in October. High global prices and volatile imports remain the main reasons for the high prices, according to the ICIS-MRC Price Report.

Tight supply, which have remained for more than a year on the Russian PVC market, which systematically led to an increase in prices. Despite the seasonal factor, the situation remains unchanged in October.

Strong demand, although slightly below September level, and insignificant volumes of imports in line with high prices in foreign markets help Russian producers to keep record high levels of prices in the domestic market. This month, producers actually rolled over September prices with a few exceptions.

August PVC imports increased and exceeded 14,000 tonnes, which is a record figure since 2016, and domestic producers also worked steadily. Nevertheless, there was no surplus of PVC on the market in the last month, but at the same time some Russian producers were shipping their delivery arrears under contracts of previous periods.

The imports decrease significantly in September, as the Chinese suppliers limited international railway transportation due to the outbreak of COVID-19 in the north of the country. But at the same time, prices began to grow actively in Turkey and Asia, some Russian producers increased export sales of PVC in the fourth quarter.

Kaustik (Volgograd) shut down its PVC production from 20 September, which is the last shutdown for maintenance of Russian producers this year. The plant's annual production capacity is 90,000 tonnes.

Negotiations on the supply of Russian PVC took place quite promptly in the summer months, the deals were agreed in fact in one day. The discussion of deals was delayed for several days for September and October shipment. Converters were reluctant to agree to deals at record prices, but there was essentially no alternative to Russian PVC.

Since the summer, the range of prices for Russian PVC has been quite large, deals for October supplies of PVC with K64/67 were in the range: Rb155,000-201,000/tonne CPT Moscow, including VAT, for volumes less than 500 tonnes,which actually corresponds to the September level. A producer increased prices of PVC with К58/70 in September, whereas another producer, on the contrary, cut prices.


MRC

Uz-Kor Gas Chemical resumed PE and PP production after scheduled maintenance works

Uz-Kor Gas Chemical resumed PE and PP production after scheduled maintenance works
MOSCOW (MRC) -- The joint venture Uz-Kor Gas Chemical, established by the National Holding Company Uzbekneftegaz and the investment consortium of Korean companies - Kogaz, Lotte Group and STX Energy, resumed its production of polymers after the turnaround, according to ICIS-MRC Price report with reference to the plant's customers.

According to the company's clients, Uz-Kor Gas Chemical resumed production of high density polyethylene (HDPE) and polypropylene (PP) after the scheduled maintenance works on 4 October. The outage was not long and began on 4 September.

It is also worth noting that Kazanorgsintez intends to start a consistent resumption of LDPE production from 8 October after the scheduled shutdown, which started in mid-September. The plant's production capacity is 540,000 tonnes per year.

Uz-Kor Gas Chemical was built on the basis of the Ustyurt Gas Chemical Complex (Surgil field). The total cost of the project is over USD4 bn. The complex provides processing of 4.5 bn cubic meters of natural gas and includes HDPE and PP production facilities with the annual capacity of 386,000 and 80,000 tonnes, respectively.
MRC

Gazprom neftekhim Salavat restarted LDPE production after turnaround

Gazprom neftekhim Salavat restarted LDPE production after turnaround
MOSCOW (MRC) -- Gazprom neftekhim Salavat (Salavat, Bashkortostan) resumed its low density polyethylene (LDPE) production after the long scheduled turnaround, according to ICIS-MRC Price report.

According to the company's customers, GNS resumed the production of LDPE after the scheduled maintenance works from 1 October. The outage was quite long and started from 20 July. The plant's annual production capacity is 45,000 tonnes.

It is also worth noting that Kazanorgsintez intends to start a consistent resumption of LDPE production from 7 October after the scheduled shutdown, which started in mid-September. The LDPE production capacity of the plant is 225,000 tonnes/year.

OAO "Gazprom neftekhim Salavat" (formerly OAO "Salavatnefteorgsintez") is one of the leading petrochemical companies in Russia, carrying out a full cycle of processing hydrocarbon material. The list of products manufactured by the plant includes more than 140 items, including 76 grades of the main products: gasoline, diesel fuel, kerosene, fuel oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrenes, silica gels and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols and amines, a wide range of household products made of plastics, surfactants and much more.
MRC