Evonik to expand plasticizer portfolio

MOSCOW (MRC) -- Evonik plans to launch new plasticizer products based on the raw material INA (Isononanol) next year, said the company.

This will strengthen the Group's global business in plasticizers, which are used in particular for flexible PVC products such as cables, flooring and roofing membranes. The new products are to be manufactured at the Group's largest site in Marl, Germany.

"We are confident of the future viability of our oxo alcohol INA and our INA-based plasticizers VESTINOL® 9 and ELATUR CH. With the new products, we are addressing the specific needs of our customers and complementing our portfolio on a step-by-step basis," says Paul Harmsen, Vice President Strategic Marketing at Evonik Performance Intermediates. The portfolio expansion contributes to the consistent strategy of expanding our business with innovative plasticizers of the new generation.

To determine how existing production capacities at the Marl site can best be expanded, Evonik recently commissioned preliminary planning. As soon as this planning has been completed, the basic engineering phase will begin. This will involve the definition of the basic requirements for the facilities and further elaboration of details on production volumes. The necessary construction work can then begin.

The market for innovative plasticizers is growing rapidly. Evonik is driving this development with its expansion. "As an innovative player in the plasticizers industry, we are embracing trends in this industry. In addition to a balanced product portfolio, supply security is particularly relevant for our customers. Our response to this is to take measures to further secure the availability of plasticizers and the raw materials used to produce them," says Roland Pietz, Head of the Oxo Alcohols and Plasticizers market segment at Performance Intermediates. In addition to the universal plasticizer VESTINOL 9 (DINP), Evonik already offers the innovative products ELATUR® CH (DINCH) and ELATUR® DPT.

As MRC informed earlier, in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

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.

Evonik Industries is one of the world's leading chemical companies in the promising areas of specialty chemistry. The company's products are focused on the high growth rates of megatrends, especially healthcare, nutrition, resource efficiency and globalization.
MRC

MOSCOW (MRC) -- Indian explorer ONGC Videsh has sold a cargo of Russian Sokol crude for loading in January at the highest premium in 22 mos on robust demand in Asia, reported Reuters with reference to trade sources' statement on Monday.

The 700,000-bbl cargo was sold at a premium of about USD7.50 a bbl to Dubai quotes, the highest since trades registered in January 2020, according to the sources and data on Refinitiv Eikon.

Itochu bought the cargo loading on Jan. 8-14, they said.

ONGC last sold Sokol cargoes for December loading at USD5.30-USD5.90 a bbl.

As MRC informed earlier, India’s state run oil and gas explorer ONGC’s plan to merge its refining subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) with Hindustan Petroleum Corp Ltd (HPCL) has got delayed. The process is now expected to be complete by 2024. The merger was aimed at aligning ONGC’s upstream and downstream operations into two verticals. But ONGC has decided to consolidate its refining and petrochemicals business around MRPL first before going for the merger.

Mangalore Refinery and Petrochemicals Limited (MRPL), is an oil refinery at Mangalore and is a subsidiary of ONGC, set up in 1993. The refinery is located at Katipalla, north from centre of Mangalore city. The refinery was established after displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi.

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) -- Crude oil prices fell on Monday on expectations of increasing supply, while the recent surge in energy costs and rising COVID-19 cases are expected to weigh on demand, said Hydrocarbonprocessing.

Brent crude futures fell 87 cents , or 1.1%, to $81.30 a bbl, as of 11 a.m. EDT (1500 GMT). U.S. West Texas Intermediate (WTI) crude lost 80 cents, or 1.0%, to USD79.99 a bbl. Oil markets have ended each of the last three weeks lower than the previous one. However, Brent has only shed a total of 4% in that time, as the market see-sawed between concerns about insufficient supply and worries that high prices will cool demand just as drillers ramp up activity.

The strengthening dollar has also pressured oil prices, along with speculation that President Joe Biden's administration might release oil from the U.S. Strategic Petroleum Reserve. U.S. energy firms last week added oil and natural gas rigs for a third week in a row with crude prices hovering near a seven-year high, prompting some drillers to return to the wellpad.

The oil and gas rig count, an early indicator of future output, rose by six to 556 in the week to Nov. 12, highest since April 2020, energy services firm Baker Hughes Co said on Friday. U.S. shale production in December is expected to reach prepandemic levels of 8.68 MMbpd, according to Rystad Energy. At the same time, there are indications that demand may be slowing in due to heightened coronavirus cases and inflation.

The Organization of the Petroleum Exporting Countries (OPEC) last week cut its world oil demand forecast for the fourth quarter by 330,000 bpd from last month's forecast, as high energy prices hampered an economic recovery from the COVID-19 pandemic. "The market now seems to be less concerned about the current supply tightness, expecting it to be short-lived," said Rystad senior markets analyst Louise Dickson. "Traders are instead refocusing on the return of two bearish factors – the possibility of more oil supply sources and more Covid-19 cases."

UAE Energy Minister Suhail al-Mazrouei said all indications point to an oil supply surplus in the first quarter of 2022. "There's little chance of OPEC+ raising output faster, especially if - as UAE energy minister Suhail al-Mazrouei claimed today - the group expects the market to return to surplus in the first quarter of 2022," said Craig Erlam, senior markets analyst at OANDA.

Europe has again become the epicentre of the COVID-19 pandemic, prompting some governments to consider re-imposing lockdowns, while China is battling the spread of its biggest outbreak caused by the Delta variant.

As per MRC, crude oil futures extended declines in midmorning trade in Asia Nov. 15, as investors continued to fret over a stronger dollar amid signs of rising inflation and a recent uptick in COVID-19 cases in Europe and China. At 10:12 am Singapore time (0212 GMT), the ICE January Brent futures contract was down 49 cents/b (0.60%) from the previous close at USD81.68/b, while the NYMEX December light sweet crude contract fell 39 cents/b (0.48%) to USD80.40/b. Bearish pressures continued to dominate sentiment in an event-thinned week of Nov. 14, with investor confidence shaken in recent days by signs of rising inflation in the US. The Biden Administration has hinted at action to tackle surging energy prices in the form of Strategic Petroleum Reserve releases.

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) -- Shell said Nov. 15 it plans to scrap its long-standing dual share system and move its tax residence to the UK to simplify its structure, boost competitiveness and accelerate shareholder distributions, reported S&P Global.

Shell said it will propose to shareholders moving to single class of shares to bring it in line with its competitors and most other global companies.

Shell has been incorporated in the UK with Dutch tax residence and a dual share structure since 2005. Its origins as a dual structure company date back to 1907 when Koninklijke Olie merged with Shell Transport and Trading.

"The simplification will normalize our share structure under the tax and legal jurisdictions of a single country and make us more competitive. As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition," Shell chair Andrew Mackenzie said in a statement.

As a result of the changes, Shell said it expects to change the company's official name from Royal Dutch Shell to Shell.

Shell, like all its European energy major rivals, has set targets to shift away from oil and gas production as it ramps up spending on renewables such as solar and wind power. The company says its oil production has already peaked in 2019.

In addition to changing its tax residence to UK, Shell said its chief executive and a chief financial officer will be located in the UK along with its board and executive committee meetings. Following the simplification, Shell shareholders will continue to hold the same legal, ownership, voting and capital distribution rights in Shell. Shares will continue to be listed in Amsterdam, London and New York, with FTSE UK index inclusion.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- ORLEN Poludnie, an ORLEN Group company, has brought on stream Poland’s first and Europe’s largest green propylene glycol production unit at its biorefinery in Trzebinia, said the company.

The unit has a capacity of 30,000 tonnes a year, enough to cover as much as 75% of the domestic demand for the product. This PLN 400m capital project will add over PLN 50m to the Group’s annual EBITDA. An integral part of the complex is Poland’s first hydrogen hub. The projects implemented in southern Poland are another step towards achieving the Group’s strategic goals for low- and zero-carbon energy.

Green glycol is a high-margin bio-based product that is clean and environmentally safe. It is used for a wide range of applications, including in medicine, cosmetics, and the food industry. It can also be used in aviation as an anti-icing and de-icing agent for aircraft. ORLEN Poludnie will produce 30,000 tonnes of green glycol a year, an impressive 10,000 tonnes more than Europe’s only unit of this type located in Belgium.

"We think ahead. We have launched a state-of-the-art unit to make green glycol in Trzebinia as demand for this bio-based product is constantly growing in Europe and around the world. Poland will be the leader of glycol production in Europe. At the same time, we are bringing on stream Poland’s first hydrogen hub, which forms part of the glycol complex. The completed projects will stimulate fast growth of the ORLEN Group in strategic areas while significantly strengthening competitive advantage of the Polish economy. For ORLEN Poludnie, the projects are another milestone in the process of transforming the company into a state-of-the-art biorefinery and consolidating its position as a major business organisation and employer in the region - said Daniel Obajtek, President of the PKN ORLEN Management Board".

Glycerine obtained at the Trzebinia plant as a by-product of biodiesel production will be used to make the eco-friendly glycol, which will be sold to customers in Poland and abroad. The project will also benefit other Polish biodiesel producers, from whom the company will source glycerine. The new project will strengthen ORLEN Poludnie’s position both as a player on the Polish biocomponents market and an employer in the region. The glycol unit has created several dozen jobs. Today the company has a workforce of over 670, with more than half of them employed at the Trzebinia refinery.

Construction on the green glycol project was launched in the autumn of 2019 and it was completed on schedule by a consortium formed by two Polish companies: Technik Polska and Biproraf. An integral part of the glycol complex is Poland’s first hydrogen hub with an annual output of 16 Nm3, of which 75% will be used for glycol production and the remaining 25% will be further purified into hydrogen fuel. The hub will have an annual production capacity of 350 tonnes of pure automotive-grade hydrogen.

The fuel made in Trzebinia is to ultimately power public transport vehicles in Krakow and the Upper Silesian agglomeration. To that end, the Group has signed letters of intent with Miejskie Przedsiebiorstwo Komunikacyjne of Krakow, Krakowski Holding Komunalny, and the Metropolitan Association of Upper Silesia and Dabrowa Basin. In the future, ORLEN Poludnie will also operate a mobile hydrogen refuelling station.

The strategic capital projects implemented in Trzebinia are underpinned by ORLEN Poludnie’s firm and stable financial footing. In the first nine months of 2021 alone, the company posted revenue of ca. PLN 2.4bn, almost PLN 200m more than in the entire 2019 and over PLN 500m more than in the pandemic year of 2020. ORLEN Poludnie has also delivered record net profit for the first three quarters of the year, of PLN 108m.

As per MRC, in August 2020, PKN Orlen signed a non-binding agreement with the state treasury and Grupa Lotos to shape a deal to take direct or indirect capital control of fellow state company Lotos.

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.

PKN Orlen would be the first refining and petrochemicals company in Europe to use the Honeywell UOP MaxEne technology for molecule management of a naphtha stream to produce high-quality products including olefins, aromatics and gasoline.

MRC