Shell Q3 earnings to be hit by Hurricane Ida

Shell Q3 earnings to be hit by Hurricane Ida

MOSCOW (MRC) -- Royal Dutch Shell warned of a USD400 million hit to third-quarter earnings from the damage caused by August’s Hurricane Ida, said Hydrocarbonprocessing.

However, in an update ahead of quarterly results this month, the oil major also flagged a boost to cashflows from soaring natural gas and electricity prices. Gas and power prices have been surging as tight gas supplies have collided with strong demand in economies recovering from the COVID-19 pandemic.

Shell is the world’s top seller of liquefied natural gas (LNG), accounting for about 20% of global demand, though its sales have declined in recent months because of production problems.

The company said third-quarter cashflow at its LNG division “is expected to be significantly impacted by large variation margin inflows on the back of the prevailing gas and electricity price environment”.

Shell will be holding more cash from buyers as deposits in the face of the large fluctuations in gas prices. The cash will eventually flow back out as prices cool. Liquefaction in the quarter is expected to be between 7 and 7.5 million tonnes, the lowest since 2016, “reflecting feedgas constraints and additional maintenance”, Shell said. LNG earnings will, however, receive a boost from stronger trading results, it added.

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.


Plastics industry asked US Congress to drop tax on virgin plastic

Plastics industry asked US Congress to drop tax on virgin plastic

MOSCOW (MRC) -- The Plastics Industry Association on behalf of 67 companies urged US Congress to drop the inclusion of a 20 cent/lb tax on virgin plastic resin in the USD3.5tr budget reconciliation package, said the organization.

In the letter sent to both chambers of Congress, major plastic producers raised concerns about increased costs to the entire plastic industry chain and reduced US manufacturing competitiveness. Among the companies signing the letter were Chevron Phillips, Eastman, Epsilyte, ExxonMobil, Formosa, LyondellBasell, NOVA Chemicals, SABIC, Shell and Westlake Chemical.

The group of companies argued that while they are committed to increasing the amount of recycling resin, the proposed tax ignores the supply constraint that it would cause due to limited recycled resin supply, especially for food-grade packaging.

Legislators have not yet fully vetted the proposed tax with the regular legislative process, which includes expert analysis and public debate. The letter signed by major chemical companies follows another similar letter sent to Congress last week from 23 trade associations.

The revenue from the REDUCE Act’s proposed 10 cent/lb tax for 2022 would have gone into the creation of a Plastic Waste Reduction Fund to implement initiatives to reduce plastic waste and improve recycling rates. Now, the 20 cent/lb tax is one of several options highlighted by the US Senate Finance Committee to pay for the budget reconciliation bill.

The proposals could likely need to be developed further before being included in any legislation, as the details of the spending bill continue to be discussed.

As per MRC, Eastman is increasing capacity for its Naia-brand cellulosic filament yarn at its plant in Barcelona, Spain. Eastman is increasing its capacity to produce Naia cellulosic filament yarns at its plant Barcelona, by 30% by mid-2021, and by more than 50% by the end of 2022.

As per MRC's ScanPlast, Russia's consumption of PC granules (excluding imports and exports to Belarus) decreased by 14% and reached 62,000 tonnes in January-August 2021 against 72,100 tonnes in the same period of 2020. 13,500 tonnes of PC were consumed for the production of injection moulding products in Russia over the stated period, down by 29% year on year, whereas the last year's figure was 10,500 tonnes.

The Plastics Industry Association (PLASTICS) is the only organization that supports the entire plastics supply chain, representing nearly one million workers in the $395 billion U.S. industry. Since 1937, PLASTICS has been working to make its members and the industry more globally competitive while advancing recycling and sustainability.

SABIC starts up new PP compounds line in Genk

SABIC starts up new PP compounds line in Genk

MOSCOW (MRC) -- SABIC (Jubail, Saudi Arabia) has announced the start-up of its new polypropylene (PP) compounding line in Genk, Belgium with a virtual inauguration event, said the company.

The new line is an addition to the company’s existing production capacity for SABIC® polypropylene compounds at the Genk site and will use raw materials from SABIC’s PP plants at Gelsenkirchen, Germany, and Geleen, The Netherlands. It has been equipped with cutting-edge large-scale extrusion technology to meet the market’s growing demand for high-quality, high-performance PP compounds with reliable and consistent supply.

“This investment is part of our business strategy for growth through advanced PP compound solutions designed to help customers develop next-generation lightweight applications in industries such as automotive, home appliances and consumer goods,” says Lada Kurelec, General Manager for PP & E4P Business, SABIC. “The added capacity also enhances our on-site production flexibility for introducing innovative new PP polymer technology without compromising the security of supply of established compound products."

The unique virtual opening was presided over by Abdulrahman Al-Fageeh, Executive Vice President for Petrochemicals, and other SABIC executives, providing insight on how customers can benefit from the company’s extended capacity to drive innovation in their markets. “We all are seeing industries evolve rapidly, with an increasing demand for high-performance PP compounds that are lighter, yet strong and durable while meeting rigorous standards,” said Mr. Al-Fageeh. “At SABIC, we are playing our part by relentlessly pursuing cutting-edge technologies, both in production and new material development. This new production line will support our company’s strategy to develop new sustainable material solutions that help our customers achieve their goals, as we work with them in ever-closer collaboration."

Earlier it was reported that in March of this year, BASF SE (Germany), Sabic (Saudi Arabia) and Linde (Germany) signed an agreement to develop electrically heated cracking furnaces. Steam cracking units require significant amounts of energy to break down hydrocarbons into olefins and aromatics. BASF and SABIC have combined their chemical process developments with their experience and expertise in the operation of steam cracking units, while Linde contributed with its intellectual property, expertise in the design and construction of steam cracking furnace technologies.

According to MRC's ScanPlast report, Russia's 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.

SABIC is a diversified company manufacturing chemicals, industrial polymers, fertilizers and metals. It is the largest state-owned company in Saudi Arabia. SABIC is currently the world's second largest producer of ethylene glycol, the third largest polyethylene producer, and the fourth largest polypropylene producer.

Danaflex plans to switch to recyclable packaging by 2025

MOSCOW (MRC) - The Tatarstan company Danaflex plans to switch to recyclable packaging by 2025, RBK reports.

The Ministry of Ecology of the Republic of Tatarstan is confident that it is quite possible to do this by the announced date, but all the advantages will not appear immediately.

"We have a number of successful recyclable solutions in our portfolio and are promoting the concept of Non-existent package or“ Packaging that was not there. ”Recyclable packaging for the food and non-food industry is made of a mono-material polypropylene or polyethylene. easy to recycle packaging and create something new from it. The need for sustainable packaging solutions is clear. We are now working with our clients on projects to offer sustainable solutions to the end consumer. The strength, barrier properties, print quality and tactile properties of packaging are preserved " - said the head of the company Airat Bashirov.

The company intends to increase the share of collection and recyclability of the material. The idea is to mark the packaging with a wide, bright green stripe visible to the eye, which will distinguish recyclable from non-recyclable packaging.

Earlier it was reported that Danaflex (Tatarstan) plans to build a new plant on the territory of the special economic zone "Alabuga" in Tatarstan. It is planned to create a new packaging plant on the territory of the special economic zone. The volume of investments is over 4.5 billion rubles. The commissioning of the plant is scheduled for the first half of 2022.

In addition, Danaflex launched the production of IML labels for food and non-food products in February 2020. Danaflex has created a product that meets the most important requirement of the time - recycling, since the product and packaging consist of mono-raw materials. This is the reason for the general trend of transition of other types of marking (self-adhesive, dry label, direct print, etc.) to IML label.

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.

Danaflex Group of Companies was founded in 2001. The main activity is the production of flexible packaging materials for various industries. The group positions itself as the largest manufacturer of packaging materials. The structure of the GC includes four production facilities: CJSC Danaflex, LLC Danaflex-Nano, LLC Danaflex-Alabuga and DGPack s.r.o (in the Czech Republic).

Clariant and Linde Engineering to develop new catalysts

Clariant and Linde Engineering to develop new catalysts

MOSCOW (MRC) -- Clariant Catalyts has teamed up with Linde Engineering to develop new catalysts for the oxidative dehydrogenation of ethane (ODH-E), an innovative, low-emissions catalytic technology for the production of ethylene, said Hydrocarbonprocessing.

The novel catalyst is a step change in selectivity and productivity, now making ethylene production via ODH-E commercially feasible.

Clariant’s ODH catalysts are available exclusively for Linde Engineering’s innovative EDHOX™ catalytic on-purpose ethylene technology. In contrast to conventional steam cracking, which operates at process temperatures up to 900°C, EDHOX™ operates at moderate temperatures—below 400°C, enabling comparatively low CO? emissions. Also inherent to Linde Engineering’s process are the sequestration of CO2 and the potential for electrification. Together, these differences lead to a reduction of CO2 emissions by up to 100% compared with conventional steam cracking.

The new catalysts by Clariant are the first to offer high selectivity to ethylene and acetic acid (up to 93%) for the oxidative dehydrogenation of ethane, while also demonstrating outstanding productivity at such conditions, minimizing the formation of by-products. Furthermore, the development of the new catalysts and their impact on CO2 emissions support Clariant’s objectives to drive low-carbon solutions through sustainable innovation and to generate value with safe chemistry and the responsible use of resources.

"We are honored to partner with Linde Engineering on this groundbreaking innovation. Bringing together both catalyst know-how and process design expertise has resulted in a novel production technology, driving innovation and sustainability for years to come,” said Stefan Heuser, Senior Vice President and General Manager at Clariant Catalysts.

Reinhart Vogel, Vice President Petrochemical Plants at Linde Engineering, stated, “By working with Clariant Catalysts, a more sustainable, alternative path to ethylene is not only a vision, but also becoming a reality. EDHOX™ technology has now been successfully validated in a full-scale demonstration plant for commercial use. We look forward to our continued partnership together, and we continue focusing on low-cost solutions for our customers while transitioning to a greener economy."

As MRC informed before, in October 2020, Clariant (Muttenz, Switzerland) announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

Propylene is the main feedstocks for the production of polypropylene (PP).

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.