U.S. EPA rejected small refinery petition for an exemption from national biofuel blending laws

MOSCOW (MRC) -- The U.S. Environmental Protection Agency has rejected so far one petition from an oil refiner to be exempted from the nation's biofuel blending laws for the 2019 compliance yr, said Hydrocarbonprocessing.

The move comes at a time when the oil and biofuel industries await an indication from the Biden administration on how it will approach blending requirements under the U.S. Renewable Fuel Standard (RFS). Though the EPA, which administers the RFS, rejected the one petition from 2019, it still has to decide on 32 pending petitions for that yr.

Under the RFS, oil refiners must blend billions of gallons of biofuels into the nation's fuel mix, or buy tradable credits from those that do. Refiners can request a waiver from the EPA that would exempt them from those requirements if they can prove the obligations would do them financial harm.

During the coronavirus pandemic, the EPA delayed a decision on blending requirements for 2021, and a finalized rule has been late by nearly a yr. The deadline for 2022 requirements is the end of this mos.

The oil industry and the biofuels industry have been at odds over the regulations for yr. The biofuels industry says the exemptions hurt demand for their products, while independent refiners reject that claim and say that exemptions are needed for smaller refineries to stay afloat.

Aside from the 2019 compliance yr, EPA's website shows that there are 28 pending petitions for 2020 and three pending petitions for 2021. The EPA was to decide on a petition from United Refining Co by Friday, after the company filed a lawsuit against EPA administration for the delay in deciding on the company's 2019 exemption petition. United Refining did not immediately respond to a request for comment.

As per MRC, US Environmental Protection Agency would propose to extend deadlines for refiners to prove compliance with biofuel laws, but signaled it would not decide on a slew of pending waiver requests submitted by the industry. The agency’s proposal represented mixed news for refiners hard hit by slumping energy demand during the coronavirus pandemic and eager to sidestep regulatory costs associated with US biofuel blending policy. It also marks one of the last actions from President Donald Trump’s EPA before he leaves office on Jan. 20.

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

RadiciGroup consolidates its presence in Australia

RadiciGroup consolidates its presence in Australia

MOSCOW (MRC) -- Radici will build a new plant in China to increase production capacity, and will sell products in Australia, said the company.

RadiciGroup High Performance Polymers, through its company in China, Radici Plastics Suzhou Co, has signed an agreement with Duromer for the distribution of its products in Australia.

“We have collaborated with Duromer for some years now,” Alberto Sessolo, general manager of Radici Plastics Suzhou, pointed out. “We have worked well together and have built a relationship of great trust, which we have agreed to expand and make more synergistic. That's why we are entrusting Duromer with the distribution of our materials in the Australian territory. We are confident of their leadership in that market and aware that, together, we will work well as a team to serve strategic sectors such as automotive, E&E, consumer goods and industrial goods".

RadiciGroup High Performance Polymers, which is building a new plant in China to increase its production capacity, now has an expert partner to promote and sell its products in Australia.

"We are very pleased to continue our relationship with RadiciGroup,” said Andrew Stewart, general manager of Duromer. “And we are happy to share our long-standing knowledge of the Australian polymers market, as we are very familiar with the quality of RadiciGroup products and the professionalism of the people we deal with."

As MRC informed earlier, RadiciGroup is investing more than EUR35m to strengthen its global engineering polymer business with new plants in Mexico and China, as well as a capacity expansion in Europe. In China, work has begun on a new 25,000-square metre plant that will boost production capacity by 30,000 tonnes/year.

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.

RadiciGroup High Performance Polymers is a multinational organization with the capacity to manufacture and supply engineering polymers (based on polyamide, polyester and other materials) around the globe, with the backing of a production and sales network across all continents, as well as research and development increasingly focused on high-performance polymers.
MRC

PKN Orlen set up a propylene glycol production plant

PKN Orlen set up a propylene glycol production plant

MOSCOW (MRC) -- Orlen Poludnie, belonging to the PKN Orlen group, has set up a propylene glycol production plant at the biorefinery in Trzebinia (Malopolska), built at a cost of around PLN 400 million, said the company.

According to the company’s management, it is the first installation of this type in Poland and the largest in Europe.

Its production capacity is 30 thousand. tonnes per year, which means that the company will cover as much as 75 percent. domestic demand for this product. The investment worth approximately PLN 400 million will contribute to the increase in the company's operating EBITDA by over PLN 50 million annually. The first Polish hydrogen hub is an integral part of the complex. The projects implemented in the south of Poland are another step towards achieving the strategic goals of the concern in the area of ??low- and zero-emission energy.

The new investment will strengthen ORLEN Poludnie's position on the domestic biocomponent market, but also as an employer in the region. Several dozen jobs were created in the glycol installation. The company currently employs over 670 people, more than half of which work at the Trzebinia refinery. The construction of the green glycol production plant began in the fall of 2019 and was completed according to the schedule.

As per MRC, KBR has been awarded technology licensing contracts by PKN Orlen for KBR's leading Solvent Deasphalting (SDA) and Residue Fluid Catalytic Cracking (RFCC) technologies as part of PKN's Bottom-of-the-Barrel project for its Plock Refinery in Poland. Under the terms of the contracts, KBR will provide technology licensing and basic engineering design for the SDA and RFCC units.

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.

PKN Orlen is a leading player on the fuels and energy markets, and the largest company in Central and Eastern Europe, listed in prestigious global rankings such as Fortune Global 500, Platts TOP250 and Thompson Reuters TOP100. The ORLEN Group operates in 6 home markets – Poland, the Czech Republic, Germany, Lithuania, Slovakia and Canada.
MRC

Marathon seeks to sell its Alaska refinery

Marathon seeks to sell its Alaska refinery

MOSCOW (MRC) -- Marathon Petroleum on Nov. 2 said it was "pursuing strategic alternatives" for its Kenai, Alaska, refinery and its related operations "which could include a sale" as it looks to optimize its portfolio, reported S&P Global with reference to the company' statement.

The refinery is located on Cook Inlet, about 60 miles southwest of Anchorage.

It was acquired by Marathon with its acquisition of fellow refiner Andeavor in 2018.

The plant processes mainly Alaska domestic crude such as Alaska North Slope as well as some international crudes, primarily Russian Sokol.

As MRC informed earlier, in May, 2021, US refiner Marathon Petroleum Corp said its board had approved the conversion of the Martinez refinery in California to a renewable diesel plant. Besides, the company made a final investment decision regarding this project. Martinez, once complete, will be one of the largest renewables facilities in the country.

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 the first nine months of 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 PP random copolymers decreased significantly.

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets.
MRC

Global oil refiners increase output as margins recover to pre-pandemic levels

Global oil refiners increase output as margins recover to pre-pandemic levels

MOSCOW (MRC) -- Oil refiners are ramping up output to meet a synchronized uptick in demand across Asia, Europe and the United States, but plant maintenance and high natural gas prices will constrain supply in the fourth quarter, reported Reuters with reference to company officials and analysts' statements.

This comes as profits for producing ground transportation fuels such as diesel and gasoline have rebounded globally for the first time since the start of the pandemic, as countries gradually emerge from COVID-19 movement restrictions.

A coal shortage across Europe and Asia, which has forced some power generators to burn kerosene, diesel or fuel oil and stock up ahead of the peak winter heating demand, is also supporting global oil prices.

Global crude and key refined product prices have risen more than 60% in 2021 to multi-year highs.

"Refining margins have finally found some ground," said Sri Paravaikkarasu, director of Asia oil at energy consultancy FGE, as she forecast a "big increase" in crude runs this winter.

The increase will be "led by India, followed by South Korea, while Taiwan and Japan will increase runs as well, as refiners try to take advantage of the current high margins", she added.

Asia's crude runs are expected to reach 29.5 MM barrels per day (bpd) in the fourth quarter, versus 29.1 MMbpd a yr ago and 30.3 MMbpd over October-December in 2019, Paravaikkarasu said.

Taiwan's Formosa Petrochemical Corp, one of Asia's top fuel exporters, said it plans to process 400,000 bpd in November, up from 370,000-380,000 bpd in October. That is expected to rise to 460,000 bpd, or 79% of Formosa's capacity, in December and January 2022, spokesman KY Lin said.

"The increase in output won't happen so quickly as we have maintenance at a unit in October," he noted.

In South Korea, a major refiner plans to boost output in the fourth quarter by about 5% versus the third quarter, a source familiar with the matter said, declining to name the company.

An executive at India's Hindustan Petroleum Corp Ltd said the company's group refineries were operating at full capacity.

Singapore complex refining margins, a proxy for refiner profitability in top oil consuming region Asia, hit their highest since September 2019 above USD8 a barrel this month. The margins had turned negative last yearr, plumbing a record low in May, as the pandemic eroded demand.

In Northwest Europe, refining margins topped USD9 in mid-October, the highest since April 2020, while US Gulf Coast refining margins are currently around USD14, up nearly three-fold from the same period a yr ago, Refinitiv Eikon data shows.

The spike in margins comes against the backdrop of a steady drop in inventories across key markets.

We remind that, as MRC informed before, Formosa Plastics Company (FPC), part of Formosa Petrochemical, took off-stream its No. 1 cracker in Mailiao, Taiwan for a scheduled turnaround on 8 June, 2021. This cracker with an annual capacity of 700,000 tons of ethylene and 350,000 tons of propylene was expected to remain shut unitl mid-July, 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 1,868,160 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 the first nine months of 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 PP random copolymers decreased significantly.
MRC