Shell developed ethylene oxide catalysts for India Glycols Limited

Shell developed ethylene oxide catalysts for India Glycols Limited

MOSCOW (MRC) -- IGL, is a leading company in the production of sustainable intermediate chemicals like green Ethylene Oxide (EO), Mono-Ethylene Glycol (MEG) and a wide range of speciality chemical products, produced from bio-based ethanol, Hydrocarbonprocessing.

SC&T has supported IGL on its journey of profitable growth in sustainable chemicals, by providing new generation catalysts needed to produce EO. SC&T has formulated EO catalysts that provide exceptional performance of high selectivity and stability under IGL specific operating conditions, which can be challenging due to the bio ethylene feed derived from ethanol.

A high EO catalyst selectivity results in direct variable costs savings as less feedstock (i.e., ethylene) is consumed to manufacture products. Through being a serial early-adopter of new EO catalysts from SC&T, IGL’s production unit has been able to continuously improve its product yield and lower overall production variable costs.

The most recent charge of Shell High Selectivity EO Catalyst S-889 started up in July 2020 and achieved 92% selectivity combined with excellent stability that has enabled the unit to extend its production cycle. This is the fifth charge of S-889 catalyst, which shows the trust that IGL places in the exceptional performance of SC&T catalysts which have a strong track record of performance under all operating conditions. This superior catalyst performance has allowed the unit to maximize production during favorable market conditions whilst maintaining a high average selectivity and low impurities generation.

As Jagdish Rao, SC&T Technical Services Manager has observed: “IGL’s agile work culture with a clear focus on adopting new technologies for continuous improvement is a key differentiator and has helped IGL to be a pioneer in the production of sustainable chemicals. SC&T’s partnership with IGL demonstrates our customer centric approach in developing customized catalyst and technology solutions."

As MRC informed earlier, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

IGL, is a leading company in the production of sustainable intermediate chemicals like green Ethylene Oxide (EO), Mono-Ethylene Glycol (MEG) and a wide range of speciality chemical products, produced from bio-based ethanol.
MRC

Sri Lanka temporarily shuts its sole oil refinery

Sri Lanka temporarily shuts its sole oil refinery

MOSCOW (MRC) -- Sri Lanka has temporarily shut its only oil refinery as part of efforts to manage dwindling foreign exchange reserves, the energy minister said on Tuesday, triggering long queues at petrol stations, reported Reuters.

The 51-year-old Sapugaskanda Oil Refinery, which has a capacity of 50,000 bpd, was closed on Monday, the minister, Udaya Gammanpila, said at the weekly Cabinet briefing.

"The refinery will be closed for about 50 days. Sri Lanka has very limited foreign exchange reserves at the moment and we need it more for essentials like food and medicine," he said.

Gammanpila said fuel imports would resume once the government was able to raise sufficient dollars but did not give details of a timeline.

Faced with rising inflation and dwindling reserves, the government is discussing a bailout for its economy, cabinet spokesman and Media Minister Dullas Allahaperuma told reporters.

Sri Lanka is also attempting to negotiate a USD500 MM credit line with India to buy fuel and boost reserves, which dropped to USD2.27 B at the end of October. During the first nine mos of 2021, Sri Lanka spent USD692 MM on fuel imports, its highest import expenditure.

As MRC informed before, Indian refiners' crude oil throughput in September edged higher from the previous month, government data showed, as refineries boosted output to meet surging demand. Refiners processed 4.45 MM barrels per day (bpd) (18.21 MM tons) of crude oil last month, up from the 4.36 MMbpd in August, which was the lowest in 10 mos.

We remind that the Indian company Nayara Energy, 49.13% of which is owned by Russia's largest state oil company - Rosneft, has launched a USD750 million petrochemical development program. Nayara Energy has the second largest refinery in India with a capacity of 20 million tons per year. The Indian company has already launched a refinery development program: within the first stage, it is planned to build units for the production of polypropylene (PP) with a capacity of up to 450,000 tonnes per year.

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

Trans Mountain oil pipeline in Canada shut down because of rainstorms

Trans Mountain oil pipeline in Canada shut down because of rainstorms

MOSCOW (MRC) -- Canada's Trans Mountain oil pipeline has been shut down temporarily because of rainstorms pounding parts of the province of British Columbia, reported Reuters with reference to the operating company's statement on Monday.

The Canadian government-owned pipeline ships 300,000 barrels a day of crude and refined products from Alberta to the Pacific Coast. Work on a major expansion project on the pipeline has also been halted, Trans Mountain Corp said.

"As a precaution, Trans Mountain has shut down the Trans Mountain Pipeline due to widespread flooding and debris flows in the area around Hope, BC," a company spokeswoman said in an email. She did not give any information on when the pipeline is expected to restart.

Heavy rains and flooding are causing widespread disruption across Canada's westernmost province. Landslides have trapped people in vehicles on highways and the entire town of Merritt, with a population of 7,000 people, has been ordered to evacuate.

Trans Mountain is a key oil export route and nearly two-thirds of its volumes in the first half of 2021 were light oil deliveries heading to US refineries, said IHS Market Vice President Kevin Birn, citing Canada Energy Regulator data.

Cenovus Energy Inc (CVE.TO), one of the oil producers that uses the pipeline to transport crude, said it was monitoring the situation.

Refiners in Washington state, including Phillips 66 and BP, have other options to acquire oil, as they have access to the Pacific Ocean.

As MRC wrote previously, Phillips 66, a diversified energy manufacturing and logistics company, has announced it plans to convert its Alliance Refinery in Belle Chasse, La., to a terminal facility. The conversion is expected to take place in 2022.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC

Global oil supply to rise to 1.5 mln b/d in November-December

Global oil supply to rise to 1.5 mln b/d in  November-December

MOSCOW (MRC) -- The International Energy Agency (IEA) on Nov. 16 signaled a likely easing of oil market tightness, forecasting world supply to rise by 1.5 million b/d in November-December on the back of a US output resurgence, and highlighting a recovery from refinery maintenance, reported S&P Global.

In its latest monthly oil market report, the Paris-based IEA noted that high prices, driven partly by the policies of OPEC+ nations, were serving both to "temper" the recovery in oil demand and spur US shale output.

The IEA nudged up its 2022 demand growth estimate by 100,000 b/d to 3.4 million b/d, saying demand was being supported by "robust gasoline consumption and increasing international travel," but added, "new COVID waves in Europe, weaker industrial activity and higher oil prices will temper gains."

On the supply side it revised its fourth-quarter supply estimate higher by 330,000 b/d and said supply by the end of the year would reach 99.2 million b/d, up 6.4 million b/d year on year.

In the refining segment, the IEA signaled a return from major maintenance impacts, saying throughput globally would rise by 3 million b/d between October and December before "pausing" in the first half of 2022.

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

Citgo reported USD4 mln quarterly loss

Citgo reported USD4 mln quarterly loss

MOSCOW (MRC) -- Citgo Petroleum Corp, the eighth-largest US oil refiner, reported on Monday its seventh quarterly loss in the last two years and reshuffled its board of directors, naming three new members, said Hydrocarbonprocessing.

Earnings at the U.S. arm of Venezuela's state oil company, Petroleos de Venezuela (PDVSA), have been under pressure from the COVID-19 fallout and higher costs since US sanctions cut its access to Venezuelan oil. The refiner is battling possible seizure by creditors seeking to collect on unpaid debts incurred by PDVSA and Venezuela.

Citgo reported a third-quarter loss of USD4 MM on weaker marketing margins and outages, which reduced its crude throughput to 85% from 87% in the second quarter. The company suffered a loss of USD248 MM in the year-ago period due to slack demand for fuel amid coronavirus lockdowns.

Refined product exports rose to 136,000 bpd from 132,000 bpd in the second quarter and 114,000 bpd a year ago, the company said. "While our quarterly results were challenged despite an improved market environment, we are working to address operational issues," Chief Executive Officer Carlos Jorda said in a statement. "Increased mobility is creating more demand for our products ... I'm confident we are taking the necessary steps to finish 2021 strong," he added.

Jorda, Citgo legal executive Jack Lynch and Sam Wilhelm, president of a Citgo parent board, were named directors of its board. The three will help steer the company during negotiations between its parent boards and creditors. Full-year capital spending will be USD425 MM, down from a USD568 MM budget at the start of the year. Some savings came in after shifting a plant overhaul into next year, it said.

Since it severed ties with its parent, PDVSA, in the aftermath of U.S. sanctions on Venezuela, Citgo has been controlled by boards appointed by Venezuelan opposition politician Juan Guaido. Luis Giusti, a Venezuelan businessman and current board member, was elected chairman of the seven-person board. He replaced Jose Ramon Pocaterra, who remains a director.

As MRC wrote before, in September 2020, Citgo Petroleum Corp said it did not plan to idle its 418,000 barrel-per-day (bpd) Lake Charles, Louisiana, refinery damaged by Hurricane Laura. Rumors have circulated since Laura’s passage over the Lake Charles area on Aug. 27 that Citgo was considering shutting the refinery for an indefinite period because of the extent of the damage and continuing low demand for motor fuels in the COVID-19 pandemic.

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 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
MRC