Tatneft and KazMunayGas establish JV for production of butadiene rubbers

Tatneft and KazMunayGas establish JV for production of butadiene rubbers

MOSCOW (MRC) -- Russia’s Tatneft and Kazakh company KazMunayGas have signed an agreement for a new production site in the Atyrau region of Kazakhstan, said the company.

The new facility will produce butadiene rubbers for use in tire manufacturing. The joint venture was signed by Nail Maganov, general director of Tatneft, and Alik Aidarbayev, management board chairman of KazMunayGas. Production will commence in 2026 at the SEZ National Industrial Petrochemical Technopark (Free Economic Zone). Approximately 2,000 jobs will be created at the site during the construction period, and more than 700 job positions at the point the facility goes into operation.

The planned capacity of the facility will be up to 180,000 tonnes of butadiene and butadiene rubbers per year. The share divide between KazMunayGas and Tatneft will be 25% and 75% respectively. The preliminary cost of the project is estimated at around USВ1bn, and the parties are considering options for financing, including through borrowing.

It is assumed that raw materials will be supplied from the Tengiz and Korolev fields in Kazakhstan. The plans provide for finished products to be sent to a tire manufacturing factory in the Karaganda region, as well as for export to European countries, Russia, China, Turkey and other destinations.

In November 2021, a financial lease agreement has been concluded between "KamaTyresKZ", subsidiary of PJSC Tatneft named after V.D. Shashin in Kazakhstan, and JSC "Industrial Development Fund".

Butadiene is one of the main raw materials for the production of acrylonitrile butadiene styrene (ABS).

According to the ICIS-MRC Price Report, in the Russian market in the current month, Plastik (Uzlovaya) kept the ABS prices at the level of the previous month and offers unpainted material with a volume of 20 tonnes at a price of Rb293,000-300,000 per tonne, FCA Nodal, including. At the same time, for regular customers of the plant, prices can drop by Rb3,000-4,000 per tonne, the manufacturer said.

OAO TATNEFT is part of OAO Tatneftekhiminvest-holding, an industrial and financial company that unites the largest enterprises of the oil and gas chemical complex of Tatarstan. TATNEFT accounts for over 80% of oil produced in Tatarstan. In 2013, the company increased oil production by 0.4% to 26.107 million tons. The main shareholder of Tatneft is the state holding OJSC Svyazinvestneftekhim, which owns 30.44% of shares in the authorized capital of the company. Tatarstan owns the "golden share" of Tatneft.

INEOS rolls out AI optimisation technology at Kinneil Terminal in Grangemouth to further cut carbon emissions

INEOS rolls out AI optimisation technology at Kinneil Terminal in Grangemouth to further cut carbon emissions

MOSCOW (MRC) -- INEOS FPS has announced plans to deploy innovative Artificial Intelligence (AI)-driven optimisation technology at its Kinneil Terminal in Grangemouth that will deliver further carbon emissions reductions from its operations, as per the company's press release.

The decision follows the announcement of INEOS’ commitment to reduce greenhouse gas emissions from its operations in Grangemouth by more than 60% by 2030 as it targets Net Zero by 2045. As part of its road map, the business is already making significant investments in emissions reduction projects at Grangemouth and deploying AI technology at Kinneil is another tool that will enable it to achieve the next phase of the transition to Net Zero.

Working with data analytics experts, OPEX Group, INEOS FPS will deploy the firm’s emissions.AI software, which optimises complex industrial facilities to deliver lower carbon emissions. A real benefit emissions.AI will bring to our systems is the way the tool calculates lowest achievable emissions; learning from the information received from hundreds of data points across our processes and always looking for what can be done better. We believe that once the new software is fully integrated there is the potential to identify up to a 10% reduction in existing emissions – with further opportunities thereafter.

Andrew Gardner, Chief Executive at INEOS FPS commented; “The installation of the emissions.AI software takes energy management to a new level, that will lead to significant CO2 savings. We are committed to delivering our roadmap to net zero and see technology as a key enabler to achieving our decarbonisation goals. Across our organisation we are embedding a culture of carbon awareness, including as part of daily operations. AI will assist our teams in unlocking immediate operational emissions savings by making emissions data instantly available to them.”

As MRC reported earlier, UK-based chemicals company INEOS plans to invest EUR2 billion (USD2.3 billion) in renewable hydrogen production across Europe in the next 10 years, including a 100-MW plant in Germany. INEOS plans to build production facilities in Norway, Germany and Belgium, with additional investment in the UK and France.

We remind that in March 2021, Ineos and French power company Engie announced a pilot project to partially replace natural gas feed with hydrogen at Ineos’s phenol plant in Doel near Antwerp, Belgium. No investment figure has been given. Hydrogen will be used in a commercial-scale cogeneration plant designed to generate electricity and heat from natural gas. About 10% of the cogeneration plant's gas feed will initially be replaced by hydrogen, with this to then be increased to 20% in a gradual process. This is the first time that such tests have been carried out on an industrial scale in Belgium, says Ineos then. The cogeneration plant at the phenol site “has the ideal profile to realize this test," it says.

Phenol is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's overall estimated consumption of PC granules (excluding imports and exports to/from Belarus) dropped in the first three quarters of 2021 by 15% year on year to 63,700 tonnes (75,300 tonnes a year earlier).

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.

Arkema appoints new Chief Technology Officer

Arkema appoints new Chief Technology Officer

MOSCOW (MRC) -- Effective from 1 January 2022, Armand Ajdari will be joining Arkema as the Group’s Chief Technology Officer, as per the company's press release.

He will report to Thierry Le Henaff, Chairman and CEO, and will be a member of the Group management committee.

The arrival of Armand Ajdari is fully aligned with the strategic direction of Arkema, which places innovation and the development of sustainable solutions at the heart of its strategy.

With more than 30 years dedicated to research and development in international environments, particularly within the Saint-Gobain group, Armand Ajdari will bring his passion of innovation, his scientific culture, his experience of technological and commercial relationships with key partners and his understanding of the planet’s megatrends.

As MRC reported before, with the planned acquisition of Agiplast, a leader in the regeneration of high performance polymers, in particular specialty polyamides and fluoropolymers, Arkema will be able to offer a full service to customers in terms of materials circularity, addressing growing market expectations in this field. This project, which contributes to the sustainable development of the polymer industry, is perfectly in line with Arkema’s sustainable growth strategy.

We remind that Arkema is further increasing its fluoropolymer production capacities in Changshu, China, by 35% in 2022. The increase in capacity is scheduled to come on stream before the end of 2022. Financial and overall capacity details of the expansion project were not disclosed.

Arkema is one of the world's leading chemical manufacturers headquartered in Colombes (near Paris, France). Founded in 2004 as a result of the restructuring of the French oil company Total, Arkema, with a turnover of EUR6.5 billion, has operations in 40 countries, 10 research centers around the world, and 85 plants in Europe, North America and Asia.

SIBUR updates Sustainable Development Strategy

SIBUR updates Sustainable Development Strategy

MOSCOW (MRC) -- SIBUR’s Board of Directors has approved amendments to the 2025 Sustainable Development Strategy, said the company.

The Company maintains focus on mitigating the climate impact and developing circular economy, while also taking on more ambitious green commitments and expanding the range of diversity and inclusiveness goals.

"In 2019, SIBUR was one of the first Russian companies to adopt a sustainable development strategy. In two years, we have undergone a comprehensive ESG transformation, realising that the strategy needs to be updated in order to meet new challenges of the rapidly changing environment. Some of the targets were achieved ahead of schedule, while others need to be redefined to become more audacious. There are also some additional areas which compel closer attention and require urgent action on our side. The updated document reflects our ambitious aspirations in the realm of carbon neutrality and circular economy," said Dmitry Konov, Chairman of SIBUR’s Management Board.

One of the new goals is to make at least one SIBUR facility carbon neutral by 2025. To this end, we will improve the energy efficiency of processes and increase the share of renewables in the energy mix, introduce CO2 capture, removal, and storage technologies, and run sequestration projects. As the Company makes progress towards this goal, we will be able to test and assess the efficiency of existing and planned projects.

The updated strategy translates the goal to reuse plastic waste in the production cycle into specific figures. By 2025, SIBUR plans to facilitate recycling of at least 100 kt of polymer waste annually as part of its own investment projects and joint projects with partners. The key driver in delivering this goal will be the production of green PET granules – Vivilen rPET – containing recycled materials to be launched at POLIEF site in Blagoveshchensk in 2022. By 2030, SIBUR plans to make at least 250 kt of low-carbon products and those containing recycled or bio feedstock annually.

The green energy goal is now even more ambitious. As was previously announced, SIBUR plans to increase the share of green energy in its energy mix fivefold by 2025; however, the base year has been changed from 2019 to 2020. The calculation now factors in the launch of the Company's own solar power plant in SIBUR-Yug corporate resort in Anapa. SIBUR’s HR management and social activities are to be merged into a comprehensive diversity and inclusiveness programme by integrating the principles of diversity and inclusiveness into the Company's key by-laws and corporate practices. The goals related to the development of a methodology for assessing the product portfolio against sustainable development criteria, the approval of a human rights policy and the launch of long-term charitable projects to conserve biodiversity were delivered ahead of schedule.

In October, SIBUR closed the deal to acquire 100% of TAIF JSC, which includes Nizhnekamskneftekhim, Kazanorgsintez and TGK-16.

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.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.)ю

OMV Acquired by MalStra LLC

OMV Acquired by MalStra LLC

MOSCOW (MRC) -- OMV Machinery S.R.L. (Verona, Italy), a division of Swiss-based Wifag/Polytype Holding AG, has been purchased by Florida-based MalStra LLC (Royal Palm Beach, Fl.). Terms of the transaction were not disclosed, said Ptonline.

Plastics packaging industry veterans Mark Strachan and Brooke Maltun are the owners of MalStra and will lead the new business to be named OMV Technologies LLC. It will be headquartered in Florida with manufacturing operations to continue out of Italy and all current personnel to be retained.

Strachan, who will serve as the CEO of OMV Technologies, has almost 40 years of experience in sheet extrusion, roll-fed thermoforming and extrusion inline thermoforming, as well as two terms as chairman of the board for the Society of Plastics Engineers Thermoforming Division. Maltun, who is currently the VP of Sales for Los Angeles-based custom thermoformed packaging maker Star Plastic Design, will serve as president of OMV Technologies.

In a release, Strachan and Maltun stressed OMV’s strengths, including the ability to offer turnkey inline extrusion thermoforming systems and technology leadership in ‘cut in place’ technology and inline rim rolling of round and square containers.

The company said it plans to continue building machines and tooling in Italy, while “beefing up” operations in Italy and the U.S. Along those lines, OMV will be opening extrusion thermoforming and product development labs, as well as a training facility, in Florida. In addition, all U.S. based parts and service will be relocated from Polytype America’s current location in New Jersey to Florida.

Maltun said the company will be hiring personnel for its headquarters is in Florida, as well as an office in Los Angeles, in addition to more sales and service personnel.

As MRC wrote before, OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

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.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.