SIBUR, Samruk-Kazyna and KazMunayGas signed agreements on petrochemical projects in Kazakhstan

MOSCOW (MRC) -- During the XIV KAZENERGY Eurasian Forum, SIBUR, Samruk-Kazyna and KazMunayGas signed agreements setting out the core terms of cooperation on petrochemical projects in the special economic zone National Industrial Petrochemical Technopark in Atyrau, the Republic of Kazakhstan, said the company.

The agreements regulate the establishment of joint ventures as part of an integrated gas chemical complex, which include, among others, the potential project to build a polyethylene (PE) facility with an annual capacity of 1,250 kt, and the 500 ktpa polypropylene (PP) plant that is currently under construction. SIBUR’s share in both JVs stands at 40%.

The Company will enter into the joint ventures after all necessary regulatory approvals are obtained and the PP facility is put into operation.

Dmitry Konov, Chairman of the Management Board at SIBUR Holding: "SIBUR consistently develops its petrochemicals business and has a vast expertise in building, commissioning and operating world-scale petrochemical complexes. This, combined with our partners’ extensive experience in developing and running large oil and gas production, transportation and refining facilities, will give our joint ventures a competitive edge on the global market, adding new capacities to our asset portfolios. The launch of new facilities will also boost domestic polymer consumption in Kazakhstan and other member states of the Eurasian Economic Union and improve export potential of high value-added products thanks to SIBUR’s existing infrastructure and competencies."

Alik Aidarbayev, Chairman of the Management Board at KazMunayGas:"KazMunayGas has been commissioned by the Kazakh government to develop national petrochemicals industry. This year, in the run-up to the 30th anniversary of the country’s independence, we are completing the construction of a PP facility scheduled for launch in early 2022. With the next step being the PE project, we believe SIBUR to be a reliable partner possessing the necessary expertise and technology. Moreover, this cooperation will enable Kazakhstan to enter new sales markets."

As per MRC, SIBUR International and TAIF Group have finalised a deal to merge and create the largest petrochemical company in the country and one of the biggest in the world.

Earlier it was reported that the European Commission approved the deal on 1 October.

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

1.Oil prices increased as OPEC sticks to gradual output plan

MOSCOW (MRC) -- Oil prices jumped on Tuesday, with U.S. crude hitting its highest since 2014 and Brent futures climbing to a three-year high, after the OPEC+ group of producers stuck to its planned output increase rather than raising it further, said Hydrocarbonprocessing. Oil prices have already surged more than 50% this yr, adding to inflationary pressures that crude-consuming nations such as the United States and India are concerned will derail recovery from the COVID-19 pandemic. Late last month, the OPEC+ Joint Technical Committee (JTC) said it expected a 1.1-MMbpd supply deficit this yr, which could turn into a 1.4-MMbpd surplus next yr. Despite pressure to ramp up output, OPEC+ was concerned that a fourth global wave of COVID-19 infections could hit the demand recovery, a source told Reuters a little before Monday's talks.

MRC

MOSCOW (MRC) -- BEWI ASA has acquired 51% of Volker Gruppe, is a trader of compacted and recycled material. It operates two facilities in the UK and Scotland, where they compact material, and leases compactors to customers, said the company.

Volker Gruppe is one of the largest suppliers of EPS waste to BEWI Circular, with an annual collection of approximately 6,000 tonnes of EPS, in addition to several other types of waste streams, including LDPE, HDPE, WEEE, OCC and Paper. The company trades and processes around 25,000 tonnes of plastics and paper per year globally.

“This is a strategically important acquisition to us. Through Volker, we secure streams of collected material for recycling, bringing us closer to our target of becoming a circular company. It also provides us with a platform for further consolidation in the UK,” says Henrik Ekvall, Managing Director of BEWI Circular.

BEWI has a future option to acquire the remaining 49% of the shares in Volker Gruppe.

As per MRC, BEWI Synbra completed scheduled maintenance at its expanded polystyrene production facility in Porvoo (Porvoo, Finland). BEWI Synbra closed the plant consisting of two lines with a total capacity of 110,000 tonnes of EPS per year for scheduled repairs in early March. The renovation work was completed on 18 March.

According to the MRC's ScanPlast, the total estimated consumption of EPS in August increased by 15% compared to August last year and amounted to 11,650 tonnes. The total production volume of EPS for the reporting month amounted to 8,770 tonnes, a decrease in comparison with August last year amounted to 8%.

BEWI is an international provider of packaging, components, and insulation solutions. The company’s commitment to sustainability is integrated throughout the value chain, from production of raw materials and end goods, to recycling of used products. With a vision to protect people and goods for a better every day, BEWI is leading the change towards a circular economy. BEWI ASA is listed at the Oslo Bors under ticker BEWI.
MRC

MOSCOW (MRC) -- ExxonMobil has increased its participation in the proposed Acorn carbon capture project in Scotland by signing an Expression of Interest (EOI) to capture, transport and store CO2 from its Fife Ethylene Plant, said Hydrocarbonprocessing.

The EOI signed to study storing emissions from Fife Ethylene Plant adds to previously announced study focused on emissions from St Fergus gas terminals. The project would capture, transport and store CO2 in secure reservoirs beneath the North Sea.

The agreement to include the ethylene plant, located in Mossmorran, Scotland, is in addition to an earlier announced Memorandum of Understanding to capture and store emissions from gas terminals at the St Fergus complex at Peterhead, Scotland, which includes ExxonMobil’s joint venture gas terminal.

The initial phase of Acorn, which is bidding to be in the first wave of carbon capture clusters to be announced by the UK government, has the potential to deliver more than half of the country’s target of capturing and storing 10 MM metric tons per yr of CO2 by 2030. When expanded further, it will have the potential to store more than 20 MM metric tons per yr of CO2 by the mid-2030s.

“The application of carbon capture and storage technology at the Fife Ethylene Plant demonstrates our commitment to reducing CO2 emissions from the industrial sector,” said Joe Blommaert, president of ExxonMobil Low Carbon Solutions. “With the right government policies in place and industry collaboration, the carbon capture and storage opportunities we are evaluating, such as in Scotland, have the potential to move forward with current technologies for large-scale, game-changing emissions reductions."

The Acorn project recently announced plans to capture and store CO2 from the Grangemouth Refinery, and the addition of Mossmorran facilities will help Scotland reduce emissions in its industrial sector.

“The Acorn project has the potential to capture and store CO2 emissions from Scotland’s largest industrial center, which is an economic engine for the country,” said Martin Burrell, plant manager of the Fife Ethylene Plant. “This agreement allows us to explore the potential for significant emissions reduction through carbon capture and storage, and ensure Scotland continues to benefit from vital manufacturing facilities such as Fife."

The Fife Ethylene Plant recently completed a USD170 MM (GBP140 MM) investment program to upgrade key infrastructure and introduce new technologies that will significantly improve operational reliability and performance. A further project is underway to install an enclosed ground flare. On schedule to be operational by the end of 2022, the unit is designed to significantly reduce noise, light and vibration, and it is estimated the investment will reduce the use of the plant’s elevated flare by at least 98%.

These investments, together with ExxonMobil’s participation in the Acorn project, demonstrate a commitment to reducing emissions and to Fife’s future as a competitive asset.

We remind that, as MRC informed earlier, ExxonMobil and SABIC have announced that their joint venture, Gulf Coast Growth Ventures located near Corpus Christi, Texas, has reached mechanical completion of a monoethylene glycol (MEG) unit and two polyethylene (PE) units. Project startup is expected to begin ahead of schedule, likely in the fourth quarter of 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 1,396,960 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

MOSCOW (MRC) -- Shell plans to use pyrolysis oil derived from plastic waste in its crackers in Moerdijk, the Netherlands and Rheinland, Germany, said the company.

Pryme will supply Shell from its first plant located in Rotterdam, The Netherlands. Currently under construction, the plant is scheduled to become operational in 2022 and is forecast to convert 60,000 tonnes of plastic waste into pyrolysis oil annually.

Shell will use Pryme’s pyrolysis oil in its Moerdijk (The Netherlands) and Rheinland (Germany) crackers to make circular chemicals products.

The agreement also includes provision for future supply to be delivered from Pryme’s proposed second plant in the region. The proposed plant will have an estimated annual pyrolysis oil production capacity of 350,000 tonnes. Start-up for the second plant is planned for 2024.

Pryme also proposes to build a second plant in Rotterdam, which will have capacity of 350,000 tonnes and is planned to go online in 2024. Under the agreement, the second Pryme plant could also supply Shell with pyrolysis oil in the future.

“With increasing demand for circular chemicals from customers, our agreement with Pryme enables us to significantly grow volumes as early as next year,” said Thomas Casparie, SVP North West Europe, Shell Chemicals and Products.

Shell has committed to processing 1m tonnes/year of plastic waste for recycling by 2025.

As per MRC, Royal Dutch Shell has suspended scheduled repairs at a cracker on Pulau Bukom Island, Singapore due to measures to contain the spread of COVID-19. Shell has suspended repairs to its cracking unit due to staffing problems related to the tightening of measures to contain the spread of COVID-19 by the Singapore government. The original plan was to close the plant for about a week in the first half of October.

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.

Royal Dutch Shell is an Anglo-Dutch oil and gas company headquartered in The Hague (Netherlands). Shell conducts geological exploration and production of oil and gas in more than 80 countries around the world. The company fully or partially owns more than 30 oil refineries. In addition, Shell owns a significant number of chemical plants, as well as the production of solar panels and other alternative energy sources.
MRC