PE production in Russia up by 8% in Jan-Oct 2021

MOSCOW (MRC) -- Russia's overall polyethylene (PE) production totalled 2,646,000 tonnes in the first ten months of 2021, up by 8% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output, according to MRC's ScanPlast report.

October total PE production in Russia dropped to 226,600 tonnes, whereas this figure was at 237,900 tonnes a month earlier; Kazanorgsintez, Nizhnekamskneftekhim and Stavrolen's production capacities were shut for maintenance. Thus, overall PE output reached 2,646,000 tonnes in January-October 2021, compared to 2,449,100 tonnes a year earlier. Production of all PE grades increased, with LLDPE accounting for the greatest increase in the output.

The PE production structure by grades looked the following way over the stated period.

October high density polyethylene (HDPE) production reached 144,000 tonnes versus 146,400 tonnes a month earlier, Kazanorgsintez and Stavrolen were shut for repairs. Russian plants' overall HDPE output reached 1,618,400 tonnes in the first ten months of 2021, up by 7% year on year.

October total low density polyethylene (LDPE) production grew to 47,300 tonnes from 44,100 tonnes in September. Thus, overall output of this PE grade totalled 533,000 tonnes over the stated period, up by 3% year on year.

October LLDPE production decreased to 35,300 tonnes from 47,300 tonnes a month earlier, all producers reduced their LLDPE output partially because of short shutdowns for maintenance. Overall LLDPE output rose to 494,600 tonnes in January-October 2021 from 424,200 tonnes a year earlier.

MRC

MOSCOW (MRC) -- TotalEnergies SE began restarting the small crude distillation unit (CDU) at its 225,500-bpd Port Arthur, Texas, refinery on Wednesday, sources familiar with plant operations said, said Hydrocarbonprocessing.

A TotalEnergies spokesperson did not reply to a request for comment. The 40,000-bpd ACU-2 CDU was shut in mid-November for repairs after the large CDU restarted following a plant-wide shutdown on Sept. 9, the sources said.

As per MRC, Total Petrochemicals and Refining USA, the US petrochemical major, restarted all of its three polypropylene (PP) units in La Porte as of 17 June 2021. At the same time, the force majeure (FM) at this plant with an annual capacity of 1.15 million tons/year remains in place as the company attempts to stabilize operating rates and build inventories ahead of the hurricane season. Previously, Total Petrochemical declared FM on its PP output after an abrupt loss of electricity supply during a severe weather condition.

According to MRC's ScanPlast report, Russian producers' October PP production fell to 155,500 tonnes from 169,700 tonnes a month earlier, three producers shut its production for scheduled maintenance. Russia"s overall PP output reached 1.693 mln tonnes in January-October 2021, compared to 1.530 tonnes a year earlier. Four out of seven producers increased their capacity utilisation, with SIBUR Tobolsk/ZapSibNeftekhim traditionally accounting for the greatest growth in the output.

Total is a major energy player, which produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
MRC

MOSCOW (MRC) -- bp has acquired a 28.57% stake in Gasrec, the UK’s largest dual provider of bio-Liquified Natural Gas (LNG) and bio-Compressed Natural Gas (CNG) to road transport, as per the company's press release.

The company builds, owns and operates biomethane refueling stations, providing renewable solutions to the heavy goods vehicle (HGV) industry.

bp will supply Gasrec with renewable biomethane produced mainly from organic wastes, such as food and dairy manure. The investment will expand bp’s UK footprint in renewable gas production and distribution, adding to its market leading position in the US.

Carol Howle, EVP Trading and Shipping at bp, said: “Bio-LNG and bio-CNG play a crucial role in the energy transition and decarbonization of the heavy-freight industry and is another example of how we’re helping decarbonize hard-to-abate sectors. We’re excited to work with an industry leader like Gasrec to increase the supply of biomethane for HGV customers. This investment further expands bp’s global renewable gas portfolio, an area which we believe will have an increasingly important role on the path to net zero.”

Founded in 2003, Gasrec was the UK’s first supplier of biomethane to the road transport sector. Its customers include some of the UK’s biggest retailers, parcel delivery companies and hauliers -- Asda, Ocado, Gregory Distribution and Reed Boardall. By offering lower carbon solutions for HGVs, Gasrec lowers the carbon emissions associated with the road transport supply chain and the customers who transport goods.

Gasrec’s network of ten biomethane refueling stations across the UK is capable of refueling approximately 1,250 vehicles per day and includes one of Europe’s largest gas refueling stations, at Daventry International Rail Freight Terminal (DIRFT). With a strong market position, refueling around 40% of the UK’s gas-powered HGVs, Gasrec is seeking to expand its network of refueling stations at logistics parks.

As MRC reported earlier, in November, 2021, BP unveiled its largest green hydrogen initiative so far in the UK, with plans for renewable hydrogen production in north-east England it believes could grow to half a gigawatt of electrolyser capacity by the end of the decade. The UK supermajor aims to build an initial 60-megawatt green hydrogen plant by 2025 as the first step in its HyGreen Teesside project.

We remind that in October, 2021, BP announced plans for a USD269 million investment in three projects at its Cherry Point Refinery in Washington state, aimed at improving the refinery's efficiency, reducing its carbon dioxide (CO2) emissions and increasing its renewable diesel production capability. The investment is aligned with bp's aims to be net zero across its operations by 2050 or sooner and to reduce the carbon intensity of the products it sells by 50% by 2050 or sooner.

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.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP's business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world"s hydrocarbon basins and strong market positions in key economies.
MRC

MOSCOW (MRC) -- British Airways will become the first airline in the world to use sustainable aviation fuel (SAF)produced in the UK after signing a multi-year agreement with Phillips 66 Limited, according to BusinessWire.

The SAF will be produced at scale for the first time in the UK at the Phillips 66 Humber Refinery near Immingham and will be supplied to British Airways to power a number of its flights from early 2022.

The supply agreement between British Airways and Phillips 66 Limited, a wholly owned subsidiary of diversified energy manufacturing and logistics company Phillips 66, advances both companies’ commitments to a lower-carbon future. The airline, which is driving to achieve net zero carbon emissions by 2050, will purchase enough sustainable fuel to reduce lifecycle CO2 emissions by almost 100,000 tonnes, the equivalent of powering 700 net zero CO2 emissions flights between London and New York on its fuel-efficient Boeing 787 aircraft.

The SAF will be produced from sustainable waste feedstock at the Humber Refinery, which will deliver its SAF supply to British Airways via existing pipeline infrastructure that feeds directly into UK airports.

Last year Phillips 66 Limited invested significantly to expand its production of fuels from waste feedstocks. The investment is part of a broader energy transition plan to reduce the carbon intensity of its refinery operations and products that support 1,000 Humber Refinery jobs.

As MRC informed earlier, US Refiner Phillips 66 said on 30 September it would cut greenhouse gas emissions by 30% from its operations by 2030, amid mounting pressure on the industry to join the fight against climate change and cut carbon emissions by mid-century.

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.

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Headquartered in Houston, the company has 14,100 employees committed to safety and operating excellence. Phillips 66 had USD56 billion of assets as of Sept. 30, 2021.
MRC

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.
MRC