Plastic Energy, Freepoint Eco-Systems and TotalEnergies to build advanced recycling plant

Plastic Energy, Freepoint Eco-Systems and TotalEnergies to build advanced recycling plant

MOSCOW (MRC) -- Plastic Energy Ltd has announced plans to partner with Freepoint Eco-Systems LLC and TotalEnergies to build a pyrolysis-based chemical recycling facility in Texas, said the company.

According to a joint news release on the partnership, the project will process and convert 33,000 tons of postconsumer end-of-life plastic scrap annually. The plant is expected to become operational by 2024. TACOIL will be used to manufacture polymers in TotalEnergies’ Texas-based production unit to help create items such as flexible and rigid food packaging containers.

“We are delighted to announce Plastic Energy’s first project in the U.S., which is a region that has enormous potential for the plastic-to-plastic advanced recycling market,” says Carlos Monreal, founder and CEO of Plastic Energy. “Using our patented and innovative technology, this new advanced recycling plant in the U.S. will be able to treat postconsumer waste that would otherwise be incinerated, landfilled or end up polluting the environment."

Plastic Energy, Freepoint Eco-Systems and TotalEnergies say they are committed to developing plastics recycling to build a more circular and sustainable economy. In 2020, TotalEnergies and Plastic Energy announced a joint venture to build a plastic waste conversion facility with a capacity of 15,000 tons annually at the TotalEnergies Grandpuits zero-crude platform in France. That project is expected to be operational in early 2023.

“Freepoint Eco-Systems is thrilled to partner with these two like-minded firms to reduce plastic disposed of in landfills and to increase the recycling of plastic that heretofore has been challenging to recycle,” says Jeff McMahon, managing director of Freepoint. “The Texas project will reduce the need for fossil feedstocks, which results in carbon left in the ground, a more sustainable economy and a healthier planet."

As MRC informed before, TotalEnergies has recently inaugurated the extension of Synova in Normandy, the French leader in recycled polypropylene production. 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.

According to MRC's ScanPlast report, 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

PKN Orlen records 52% increase in revenues in Q3

PKN Orlen records 52% increase in revenues in Q3

MOSCOW (MRC) -- Petrochemical operating profit at Polish oil, gas and petrochemicals group PKN Orlen almost tripled to zloty (Zl) 802m (USD201m) in the third quarter, with higher margins countering lower sales volumes, said the company.

Polish energy company PKN Orlen saw revenues climb by 52% year on year in the third quarter of 2021. Orlen said the result was due to higher prices of refinery products due to a year-on-year rise in crude oil prices of USD 31 a barrel.

The company's quarterly results, published on Thursday, showed that a 2% rise in sales volume also had an effect on incomes. The company's EBITDA LIFO (earnings before interest, tax, depreciation and amortisation, last-in-first-out inventory method) indicator rose by PLN 2.3 bn (EUR 500 mln) year on year.

Orlen said this was due to the positive influence of the macro environment, higher sales volumes, a higher margin on wholesale trade and higher margins in non-fuel retail as well as a revaluation of inventories to obtainable prices.

These positive effects were partly mitigated by the negative effects of lower margins on fuel retail, higher CO2 emission reserve costs and higher labour costs, Orlen said.

As per MRC, Orlen Unipetrol (part of PKN Orlen), a major Czech producer of petrochemical products, will expand the capacity of its steam cracker in Litvinov (Czech Republic) by installing a new furnace. The new cracking unit will be built by Technip Energies in Zaluzi, the largest chemical plant in the Czech Republic, and is due to be commissioned in 2022. Orlen is investing over 700 mln Polish zlotys (Zl) in the project.

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.

Czech Orlen Unipetrol is a joint stock company that deals with oil refining and production of petrochemical products in the Czech Republic and Central Europe. It is one of the ten largest Czech companies in terms of revenue. The company was founded in 1994 and since 2004 has been part of PKN Orlen, which owns 94.05% of the shares in the company.
MRC

Fire occured at SCG olefins complex in Thailand

Fire occured at SCG olefins complex in Thailand

MOSCOW (MRC) -- A fire hit Thai petrochemical producer Siam Cement's (SCG) Map Ta Phut olefins complex at night on 26 October, according to GardaWorld.

The fire broke out at a naphtha tank, which was empty at the time of the incident, because it had been shut for cleaning and maintenance. The cause of the fire is unknown.

Authorities have not confirmed any casualties, but an investigation is ongoing.

The complex completed a debottlenecking exercise earlier this year. The naphtha-fed cracker has a nameplate production capacity of 1.3mn t/yr of ethylene and 850,000 t/yr of propylene.

As MRC reported earlier, Map Ta Phut Olefins Co Ltd (MOC), a subsidiary of Thailand’s SCG Chemical, has completed the maintenance work at its cracker in Map Ta Phut. Thus, the cracker with the capacity of 900,000 mt/year of ethylene and 450,000 mt/year of propylene was shut for a scheduled turnaround on 2 November, 2020, and fully resumed operations in the fourth week of December, 2020.

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 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MRC

COVID-19 - News digest as of 28.10.2021

1. SCGP announced its Q3 earnings

MOSCOW (MRC) -- Thai producer SCG Packaging’s (SCGP) third-quarter earnings slumped from the previous quarter due to various forms of lockdowns re-imposed in major southeast Asian countries following spikes in COVID-19 cases, said the company. On a year-on-year basis, however, earnings in July to September posted strong gains on the back of mergers & partnerships (M&P) and organic expansion, which are expected to continue into next year. "Looking forward into the rest of 2021 and through to early 2022, major ASEAN economies are heading toward the recovery from the easing of strict lockdown measures,” SCGP said in the notes accompanying its financial results.


MRC

Crude oil futures fall in Asia under pressure after Iran agrees to restart talks

Crude oil futures fall in Asia under pressure after Iran agrees to restart talks

MOSCOW (MRC) -- Crude oil futures extended the heavy losses seen overnight in mid-morning trade in Asia Oct. 28, pressured by news that Iran and Western powers were set for broader talks on the Asian country's nuclear program before end-November, setting the stage for the return of Iranian oil, reported S&P Global.

Reports of large inventory builds in the US also added pressure on prices.

At 10:09 am Singapore time (0209 GMT), the ICE December Brent futures contract was down USD2.08/b (2.46%) from the previous close at USD82.50/b, while the NYMEX December light sweet crude contract fell USD1.80/b (2.18%) to USD80.86/b.

Iran's top nuclear negotiator Ali Bagheri Kani wrote on Twitter late Oct. 27 that he had agreed to negotiations with six world powers on the country's nuclear program by end-November. This followed talks with his EU counterpart Enrique Mora on the same day.

Bagheri Kani added that an exact date would be announced next week.

The negotiations could set the stage for a lifting of sanctions, allowing up to 1.3 million b/d of Iranian oil to return to global export markets, according to some analyst estimates.

Oil prices settled lower by more than 2% overnight after the news.

Nonetheless, analysts cautioned that negotiations will likely be a lengthy process and won't result in a quick return of Iranian oil to the market.

"This is just a restart of talks and the process to get a deal done will be lengthy and unlikely to lead to immediate sanction relief, which means the global energy crunch will unlikely see any immediate benefits," OANDA senior market analyst Edward Moya said.

Investors also mentioned data from the US Energy Information Administration late Oct. 27 showing total commercial crude oil stocks climbed by 4.27 million barrels to 430.81 million barrels in the week ended Oct. 22. The build pushed stockpiles to their highest since the week ended Aug. 20, but they still remained relatively tight at around 5.6% behind the five-year average.

Gasoline stockpiles, meanwhile, declined 1.99 million barrels to 215.75 million barrels, while distillate stocks declined 430,000 barrels to 124.96 million barrels.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC