PVC production in Russia rose by 4% in January-September

MOSCOW (MRC) -- Russia's overall production of unmixed polyvinyl chloride (PVC) totalled 746,700 tonnes in the nine months of 2021, up by 4% year on year. All producers increased their output, according to MRC's ScanPlast report.

September production of unmixed PVC decreased to 82,600 tonnes against 83,600 tonnes a month earlier, the decrease in production was a result of a scheduled maintenance works at Kaustik (Volgograd). Overall output of polymer totalled 746,700 tonnes in January-September 2021, compared to 718,200 tonnes a year earlier. All producers increased their output volumes, the largest increase was shown by Kaustik (Volgograd).

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl produced a little more than 28,000 tonnes of PVC in September, with emulsion polyvinyl chloride (EPVC) accounting for 2,300 tonnes, compared to 24,200 tonnes a month earlier, technical problems were solved by the middle of the month, and capacity utilisation increased.
RusVinyl's overall output of PVC exceeded 259,100 tonnes in the first nine months of 2021, compared to 247,000 tonnes a year earlier.
Higher production was mainly caused by the absence of a shutdown for maintenances this year.

SayanskKhimPlast reduced its capacity utilisation last month slightly and produced just over 27,200 tonnes of suspension PVC (SPVC), compared to 28,000 tonnes in August. The Sayansk plant managed to produce about 226,300 tonnes of PVC in January-September, compared to 215,900 tonnes a year earlier.

Baskhir Soda Company produced about 22,700 tonnes of SPVC in September, against 24,000 tonnes a month earlier. The Baskhir plant's overall production of PVC reached 198,900 tonnes in January-September, down by 1% year on year.


Kaustik (Volgograd) produced about 4,600 tonnes of SPVC in September, compared with 7,400 tonnes in August. Kaustik (Volgograd) shut down its production capacities for a 20-day maintenance on 20 September. The plant's overall production of PVC reached 62,300 tonnes over the stated period versus 57,800 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Austrian oil and gas group OMV saw its indicative refining margins double and raised its refinery utilisation by 6% to 91% in the third quarter, as upstream production volumes weakened compared with the second quarter, reported S&P Global with reference to the company's statement on Oct. 8.

In a trading statement, the Central European company put its European refining margin indicator for the quarter at USD4.43/b compared with USD2.21/b in the second quarter and just 87 cents/b in the third quarter of 2020. Its sales of fuel and other oil products were up 16% on the quarter at 4.66 million mt.

The company's upstream production, of both liquids and gas, fell back slightly compared with the second quarter, to 198,000 b/d of oil equivalent and 272,000 boe/d respectively. Its gas production, a significant portion derived from Russia, was also down 3% on the year, however, its oil output was up 20% compared with a year earlier.

OMV's overall hydrocarbon production rose by 6% on the year, and over the first three quarters of 2021 has outstripped last year's full-year level of 463,000 boe/d. Its oil output has been boosted by significant acquisitions in the UAE in recent years, although volumes from there have been crimped by OPEC+ restrictions.

The jump in refining margins reflect a strong recovery in European mobility and stands out from more incremental improvements reported by European majors BP and Shell.

Shell on Oct. 7 put its third-quarter global refining margin indicator at USD5.7/b, up from USD4.17/b in the second quarter.

BP's global refining marker margin in the third quarter to Sept. 29 was a hefty USD15.2/b, up from USD13.7/b for the second quarter, however, a breakdown of the indicator shows US Midwest margins roughly double those in Europe.

Meanwhile Hungary's Mol, a significant Central European rival, has reported a USD1/b improvement in its group refinery margin between the second and third quarters, to USD5.4/b, on its website.

As MRC informed earlier, OMV reported utilization of 83% at its European refineries in H1, 2021, down by 3% on the year yet "relatively resilient in light of the COVID-19 impact." It expects the utilization rates at its European refineries to remain at the 2020 level this year. Last year its refineries reported 86% utilization. The company's refineries in Europe ran at 85% utilization in Q2, up from 81% in the year-ago quarter.

We remind that OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

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.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
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MOSCOW (MRC) -- Dow (Midland, Michigan), the world's petrochemical major, and Haldor Topsoe have partnered to promote the circular economy, according to Hydrocarbonprocessing.

About 300 million tons of plastic waste is produced every year on a global scale. The partnership between Dow and Topsoe marks a new initiative to efficiently convert waste plastics to circular plastics, keeping them out of the environment and responsibly reclaiming their value.

Plans include Dow to proceed with the design and engineering for a 10,000 ton per year market development unit using Haldor Topsoe’s PureStepTM technology to purify pyrolysis oil feedstock derived from waste plastics for use in circular products.

Dow’s development unit will advance the technology for industrial-scale purification of circular feedstocks, which will be used to meet strong market demand for circular polyethylene (PE).

Waste plastics in the environment is a climate issue. Advancing the circular economy for plastics maximizes the sustainability benefits that plastics bring across the value chain in a more carbon-efficient way. The construction of a market development purification unit will help solve a key challenge in closing the loop for waste plastics. Topsoe will support Dow in meeting its 2030 circularity targets, including Dow’s target to enable 1 million metric tons of plastic to be collected, reused or recycled through its direct actions and partnerships.

A first step agreement is in place between Dow and Topsoe to leverage lab-scale capabilities to support the design and engineering of the new 10,000 ton per year market development unit (MDU), which will be built at Dow’s site in Terneuzen, the Netherlands.

The objective for Dow’s new purification MDU is to validate the technology to produce circular products and to accelerate the scale needed to support strong market demand for circular PE.

As MRC wrote previously, earlier this month, Dow announced several advancements in its efforts to prevent plastic waste, reduce greenhouse gas emissions and provide customers with recycled plastic products. The company says these advancements will help it to provide initial supply of fully circular polymers to customers starting in 2022.

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.

Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately USD39 bn in 2020.
MRC

MOSCOW (MRC) -- SK Inc has signed an agreement with US-based green hydrogen company Monolith Materials to create a joint venture for the production of clean hydrogen and carbon black products in South Korea, said Koreaherald.

According to the strategic investment arm of the country’s third-largest conglomerate, the joint venture will produce hydrogen and carbon black products. The US hydrogen maker will provide necessary technology while SK Inc. will be in charge of production, sales and distribution.

Though hydrogen itself is colorless, it is given different color descriptors based on its source and production method. Just like blue hydrogen, turquoise hydrogen is produced by breaking natural gas into hydrogen and carbon. The major difference is, carbon is generated in a solid state during the production of turquoise hydrogen, not in a gaseous state during that of blue hydrogen.

Because turquoise hydrogen doesn’t emit carbon, some classify it as green hydrogen. Also, turquoise hydrogen is relatively cheaper than blue hydrogen, because it doesn’t require carbon capture and storage facilities.

"Solid carbon can be processed into carbon black, the main component of tires and mechanical rubber goods," an SK Inc. official said.

The official added that SK Inc. aims to further utilize the solid carbon as raw materials for electric vehicle batteries. The company plans to begin a research and development project to verify whether the solid carbon can be used for anodes inside EV batteries. Anodes, made of graphite, are one of the four key components of EV batteries, including cathodes, separators and electrolytes.

As per MRC, SK Inc has led an investment round to help US-based green hydrogen company Monolith Materials expand its operations. The investment will support expansion of Monolith’s green hydrogen production facility in Nebraska and further SK’s strategy to make carbon-neutral energy accessible to global markets as part of a commitment to Environmental, Social and Corporate Governance (ESG) management practices.

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.

SK Global Chemical is a division of SK Group, Korea's first refinery in operation for over 50 years. SK Group has more than 70 thousand employees working in 113 offices around the world. Its largest enterprises produce mainly petrochemical products.
MRC

MOSCOW (MRC) -- Repsol has raised its renewable energy target to 6 gigawatts by 2025 and 20GW by 2030 as part of a wider strategy update on its path to become a zero emissions energy company by mid-century, according to Upstream.

The Spanish oil and gas company previously had aimed for 5.2GW of renewables by 2025 and 12.7GW by 2030.

“The upgrade of our targets demonstrates the solid progress the company is making towards becoming carbon neutral by 2050," chief executive Josu Jon Imaz told analysts and investors.

"Ambition, technology, and project execution are enabling us to increase the speed at which we will achieve this target.”

Repsol currently has 1.1GW of wind and solar power in operation in Spain and Chile, and a 11.7GW pipeline of renewable projects, also in the US and other countries.

The company is “large enough” to become a leading player in the energy transition, but “small enough in the (oil and gas) universe to feasibly transform the portfolio with attractive opportunities,” Repsol said in a presentation as part of its ‘low carbon day’.

Repsol also has stepped up its ambition for the production of green hydrogen by 40% to 0.55GW in net electrolyser capacity by 2025, and by 60% to 1.9GW in net electrolyser capacity by 2030.

The new green energy goals are expected to help Repsol reach its planned emissions reduction faster.

The company has announced an absolute emission reduction target for the first time. It is committed to reducing 55% of emissions from operated assets (Scope 1 and 2) and 30% of net emissions (Scope 1, 2, and 3) by 2030.

Repsol’s faster build-up of renewables and green hydrogen capacity is also reflected in its investment plan. The company has earmarked EUR6.5 billion (USD7.5 billion) in spending into its low carbon businesses in the 2021 to 2025 period, EUR1 billion more than previously planned.

As MRC informed earlier, the “Cracker of the Future” consortium has announced two new member companies: Repsol and Versalis (Eni) have recently joined the consortium.

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.

Repsol is headquartered in Madrid, Spain. In the 2020 Forbes Global 2000, Repsol was ranked as the 645th-largest public company in the world. It has more than 24,000 employees worldwide.
MRC