ZPC studies direct processing of crude into olefins to cut carbon emissions

MOSCOW (MRC) -- Privately-controlled Zhejiang Petrochemical Corp (ZPC), China's single-largest refiner and petrochemical producer, is exploring new technologies such as direct processing of crude into olefins to cut carbon emissions, reported Reuters with reference to a company executive's statement.

Refining and petrochemical manufacturing contributes about 5% of China's total carbon emissions, or about 400-500 MM tons, told Liu Minghui, ZPC's vice president, at a live-streamed oil seminar hosted by Zhejiang provincial government in Zhoushan.

ZPC is working with China's Tsinghua University to develop crude-to-olefin know-how that is expected to reduce carbon footprint by nearly half compared to the traditional process of obtaining feedstock for petrochemicals during the crude refining process, Liu said.

There are no plants in China, as yet, with the technologies needed for production on a commercial scale.

Meantime, the Zhoushan-based company is also advancing plans to capture and utilize CO2, with annual usable volume of around 5.2 MM tons, for the production of synthetic gas and acetic acid, the latter used for making paints.

Citing a report from state refiner Sinopec Corp, Liu said downstream consumption of refined oil products including diesel, gasoline, kerosene and fuel oil emits 1 B tons of CO2 each year. China, the world's largest green-house gases emitter, last month laid out an action plan aiming to bring its carbon emissions to a peak before 2030, including putting a cap on oil refining capacity and promoting renewables.

Liu said ZPC, with a refining capacity of 800,000 bbl per day, has the lowest yield of refined fuel products such as diesel and gasoline among its domestic peers, as it has chosen to maximize production of high-end chemicals such as polycarbonate (PC) plastic used for packaging and ethylene vinyl acetate (EVA) used to make sports wear.

ZPC also operates over 20 MM tons per year hydrocracking facilities, also the largest in China, allowing the firm to make premium quality diesel and gasoline that meet the highest National 6 standards, Liu added.

As MRC informed earlier, in April 2021, ZPC started up its No. 2 cracker in Zhoushan, China, which is part of the company's phase 2 petrochemical project in the cournty. Thus, the cracker with an annual capacity of 1.4 million tons/year of ethylene and 700,000 tons/year of propylene began trial runs in the first week of April. The commercial production at this facility was received later that month.

We remind that ZPC started operations at its No. 1 cracker in the first half of November 2019, whereas the commercial procution at this cracker was received in late December 2019.

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

MOSCOW (MRC) -- Viridos Inc., previously Synthetic Genomics, a privately held biotechnology company harnessing the power of photosynthesis to create transformative solutions to help mitigate climate change, has signed a joint agreement with ExxonMobil Research and Engineering Company with the intent to bring Viridos’ low-carbon intensity biofuels toward commercial levels, said Hydrocarbonprocessing.

"We’re excited to announce that ExxonMobil is continuing this collaboration with us to bring sustainable algae biofuels technology closer to commercial deployment,” said Viridos’ CEO, Dr. Oliver Fetzer. “The recent productivity advances in Viridos’ technology are an opportunity to turn CO2 into renewable diesel and sustainable aviation fuels, providing an essential component for the decarbonization of the heavy-duty transportation industry. In this next phase of the program, we intend to broaden participation and invite others to build the ecosystem required for full-scale deployment."

Viridos’ continued partnership with ExxonMobil seeks to build out the technology and agronomy to enable the commercial launch of Viridos’ low-carbon intensity algae biofuels. In addition to their use in heavy transport, the algae biofuels could be used for aviation, commercial trucking, and maritime shipping. The terms of the renewed partnership with ExxonMobil should enable other interested parties to access and advance the technology to accelerate the deployment of Viridos’ patented technology in pursuit of lowering global GHG emissions.

We remind that ExxonMobil plans to build its first, large-scale plastic waste advanced recycling facility in Baytown, Texas, and is expected to start operations by year-end 2022. By recycling plastic waste back into raw materials that can be used to make plastic and other valuable products, the technology could help address the challenge of plastic waste in the environment. A smaller, temporary facility, is already operational and producing commercial volumes of certified circular polymers that will be marketed by the end of this year to meet growing demand.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

MOSCOW (MRC) -- South Korea's oil product demand in October rose 11.7% from a year earlier, driven by robust transportation fuel consumption amid rapidly easing COVID-19 restrictions, but major refiners raised concerns that new coronavirus variant could spur a new phase of lockdowns and curb consumer fuel demand recovery, reported S&P Global.

The country consumed 78.19 million barrels, or an average of 2.52 million b/d, of refined oil products last month, compared with 69.97 million barrels a year earlier, data released by Korea National Oil Corp. showed Nov. 29.
For the first 10 months of 2021, South Korea's oil product consumption rose 5.6% year on year to 770.89 million barrels, the KNOC data showed.

Transportation fuels, especially gasoline and jet fuel, led the country's October oil consumption increase as the government started to rapidly ease movement restrictions across the nation since mid October.

Gasoline demand in October rose 1.4% year on year to 6.72 million barrels. Over January-October, gasoline consumption increased 4.6% year on year to 69.87 million barrels, the KNOC data showed.

In addition, jet fuel demand climbed 13.1% year on year to 1.99 million barrels in October, rising for the third straight month, with an increased number of people taking domestic flights. Some international flight routes also started to open up from October, with fully vaccinated individuals permitted to travel between South Korea and Singapore without quarantine since last month.

Seoul's decision to shift to a phase of living with COVID-19 from Nov. 9, could further support South Korea's demand for the middle distillate fuels, refinery and industry sources told S&P Global .

In addition, the government has lowered taxes on auto fuels by as much as 20% for six months from November in an effort to lower retail automotive fuel prices and tame accelerating consumer inflation. Taxes account for about 50% of the retail gasoline price, 40% of the diesel price, and 30% of the butane price, which have prompted consumers to ask for a tax reduction.

Despite the recent improvement in domestic consumer demand, as well as rising middle distillate exports, South Korea's major refiners including SK Innovation, S-Oil Corp. and Hyundai Oilbank indicated that the industry is wary of a rapidly spreading new coronavirus variant that the health minister of South Africa announced Nov. 25.

In addition, middle distillate marketers and distribution managers at the refiners warned that there is a growing possibility the South Korea government may consider scrapping the 'living with COVID-19' phase and implement new rounds of restrictions, or lockdowns, should the number of infection cases continue to move higher.

"The major refiners have been ramping up crude throughput but the rising refinery runs could come to a halt if new rounds of restrictions or lockdowns are announced," a middle distillate marketer at S-Oil Corp. said.

The country's nationwide run rates averaged around 81% in the first 10 months, according to latest data from Korea Petroleum Association and industry information collected from major the refiners by Platts.

As MRC informed earlier, Hyundai Chemical, a JV between South Korea’s Lotte Chemical and Hyundai Oilbank, has started to market cargoes from the new polypropylene (PP) plant in Daesan in mid-November. Chinese customers informed CommoPlast of having received offers for on-spec cargoes of homopolymer of propylene (homopolymer PP) from its newly launched plant.

According to MRC's ScanPlast report, 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

MOSCOW (MRC) -- Vietnam plans to further cut environment tax on jet fuel to help the airline industry, which is struggling from the impacts of the coronavirus pandemic, said Reuters citing finance ministry.

The ministry is seeking government approval to lower the jet fuel tax by 50% for the whole of 2022, compared with the current 30% cut, which is due to expire at the end of this year. "It's necessary to continue cutting environment tax in 2022 to help local airlines weather the impact of the coronavirus pandemic," it said in a statement. "Jet fuel tax will be at 1,500 dong (USD0.0662) per liter after the cut."

Vietnam imposed tight border controls at the start of the pandemic and suspended almost all inbound flights to keep out COVID-19, which dealt a blow to its airline industry. Official data showed the industry suffered a loss of 16 T dong (USD705.78 MM) in 2020, when Vietnam was only mildly affected by the virus.

This year's loss is expected to be greater as domestic flights were halted for nearly six months while movement curbs were imposed to contain the country's worst outbreak so far. According to the ministry, environment tax reduction would help the aviation industry to overcome difficulties, especially when the country was seeking to resume international flights next year.

As per MRC, Nghi Son Refinery and Petrochemical (NSRP) resumed operations at its new polypropylene (PP) plant in Vietnam on 17 October, 2021, after an unscheduled maintenance. The 400,000 mt year of PP plant was unexpectedly shut on 7 October, 2021, due to a technical glitch.

According to MRC's ScanPlast report, 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

MOSCOW (MRC) -- International oil major ExxonMobil is working on a final development plan for the Ca Voi Xanh gas project in central Vietnam, amid moves by the government to refocus on domestic upstream development while dialing back on imported LNG projects, reported S&P Global.

The move will also provide Vietnam with a solution to its energy security concerns, as coal-fired power projects are getting difficult to fund and its large offshore discoveries have remained untapped for decades.

"ExxonMobil continues to progress preparatory work (for) Ca Voi Xanh. We completed front-end engineering and design for the project in May 2020, and are working on the final development plan," an ExxonMobil's spokesperson told S&P Global recently in response to inquiries about speculation that the oil major had plans to exit the gas project.

Ca Voi Xanh, one of the largest gas fields discovered in Vietnam, also involves building a pipeline connecting the field to a gas processing plant and associated power and plants.

ExxonMobil said in 2011 that it found hydrocarbons while drilling in the field, and encountered additional hydrocarbons in the area in July 2012. The gas field, located in South China Sea, is located about 80 km (50 miles) off the coast between Vietnam's Quang Nam and Quang Ngai central provinces.

The US energy giant has since partnered with state-owned PetroVietnam to conduct preparatory work for exploiting gas from the field, which is estimated to hold reserves of 150 billion cubic meters.

However, the company has not made any final investment decision for the project yet as it will have to take into consideration several factors such as regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness, the spokesperson said.

Vietnam has expressed its intention to reduce planned power capacity produced by imported LNG and coal as part of its commitment to implement its 2050- net zero target announced at COP26.

Beside additional power from offshore wind which will need time to develop, the country will have to rely on its domestic gas fields to ensure energy security. However, work at both Ca Voi Xanh and another major gas project, the Block B, has been delayed for several years.

As MRC informed before, ExxonMobil said earlier this month it is on track to meet its 2025 emissions reduction targets by the end of this year - four years earlier than planned - and has vowed to ramp up investments to further cut emissions.

We remind that ExxonMobil plans to build its first, large-scale plastic waste advanced recycling facility in Baytown, Texas, and is expected to start operations by year-end 2022. By recycling plastic waste back into raw materials that can be used to make plastic and other valuable products, the technology could help address the challenge of plastic waste in the environment. A smaller, temporary facility, is already operational and producing commercial volumes of certified circular polymers that will be marketed by the end of this year to meet growing demand.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC