Malaysia and Shanxi Construction Investment Group sign deal on 2nd-generation biodiesel, biojet fuel

MOSCOW (MRC) -- Malaysia and China's state-owned Shanxi Construction Investment Group on Monday signed a MOU to collaborate on the production of second-generation biodiesel and biojet fuel, reported Reuters.

Shanxi Construction plans to invest in a hydrogenated vegetable oil (HVO) plant, also known as second-generation biofuel, in Malaysia's southern state of Johor, Malaysia's commodities ministry said.

"The HVO plant has the potential to produce sustainable aviation fuels which is also known commonly as biojet fuels," the ministry said, adding there was increasing demand for HVO including from Europe.

Each HVO plant is expected to bring foreign investment worth 3 B ringgit (USD712.25 MM) and create nearly 800 jobs, it said.

The MOU is between the Malaysian Palm Oil Board, Pengerang Maritime Industries, Shanxi Construction, and the Institute of Coal Chemistry, Chinese Academy of Sciences.

Wang Chongjun, general manager of Shanxi's overseas department, said the firm is exploring development of a green diesel refinery and related storage facilities in Johor's Pengerang Maritime Industrial Park using China's technology and Malaysia's palm oil products.

The biodiesel and bio-jet fuel products will be used to meet the needs of the Chinese market but will also be exported to Europe and the United States, he said.

As MRC wrote before, a new biojet fuel developed by energy group Eni was used for the first time in mid-October, 2021, to power Alitalia successor ITA as part of plans to cut carbon footprints. The sustainable aviation fuel (SAF), made from waste products and residues, will be produced at Eni refineries in Taranto and, early next year, in Livorno, Eni said in a statement.

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 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC

MOSCOW (MRC) -- Sika is opening a new technology centre and manufacturing plant for high-quality adhesives and sealants at Pune in Maharashtra, India, said the company.

"Developments at the new R&D laboratories and the production in the new plant are aimed at meeting the rapidly growing demand in the Indian market," the company said in a statement. On its three new production lines, Sika said that it will mainly manufacture products for the transportation, construction, and renewable energy sectors.

Capacity details for the production lines were not disclosed. "Both the building industry and the automotive sector in India are benefitting from dynamic economic growth and ongoing urbanisation as well as from favorable government investment policies," the company said.

India is now the world’s fifth biggest market for cars, according to Sika. The construction industry is expected to grow by an average of 6.5% per annum from now until 2030, it said. Annual growth in the automotive sector in the same period should exceed 10%, the company added.

As per MRC, Sika has acquired Shenzhen Landun Holding, a manufacturer of waterproofing systems in China, for an undisclosed sum. Shenzhen Landun has a range of waterproofing products and technologies that "perfectly" complement Sika’s portfolio.

As MRC informed earlier, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

MOSCOW (MRC) -- The Chief Executive Officer of Sonatrach, Toufik Hakkar, and the Chief Executive Officer of Eni, Claudio Descalzi, in the presence of the Minister of Energy and Mines Mohamed Arkab and the Ambassador of Italy to Algiers Giovanni Pugliese, have signed a new oil contract related to the onshore Berkine basin area, where Eni has been a leader since 1981. On the same occasion, Eni and Sonatrach also signed a MOU for cooperation on initiatives in the energy transition, according to Hydrocarbonprocessing.

Eni's CEO Claudio Descalzi commented: "Today’s agreements are testimony to the commitment of Sonatrach and Eni to continue the shared strategy of accelerated project development, and to pursue the decarbonization objectives within our common commitment to achieve carbon neutrality."

The contract, which is the first ever signed under the aegis of the new Algerian oil law, covers an area of 7,880 km2 in the southern part of the Berkine basin, in close proximity to the company's current production assets, Menzel Ledjemet Est (MLE) and Central. Area Field Complex (CAFC), already operated by the JV Eni-Sonatrach.

Descalzi and Hakkar shared the commitment to create an ambitious exploration and development program in the area. In the first phase, the project envisages the fast-tracked development of reserves estimated at 135 MM bbl of oil equivalent, with a start-up of production expected by the end of 2022. This project will enhance synergies with existing plants. The entry into force of the new contract is subject to approval by the competent Algerian authorities.

With a view to building on the cooperation already in place in the technological field and to continue the decarbonization process undertaken in support of the initiatives towards carbon neutrality, Eni and Sonatrach have also signed a MOU with a strategic value for cooperation in the energy transition sector.

The agreement provides for the assessment of joint opportunities in the fields of renewables, hydrogen, CCUS, bio-refining, and many other initiatives in line with the companies’ respective decarbonization objectives. This agreement is in line with Eni's commitment to achieving carbon neutrality by 2050, consolidating the partnership with Sonatrach for a sustainable development and to jointly tackle the energy transition challenges.

As MRC wrote earlier, Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality 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 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.

Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
MRC

MOSCOW (MRC) -- PKN Orlen's subsidiary Orlen Poludnie started production at it’s 30,000 tonne/year bio-monopropylene glycol (MPG) plant, the largest plant of its kind in Europe, according to a company statement dated 4 November, said the company.

To be located in Trzebinia, southern Poland, the unit will produce technical-grade bio-MPG based on plant-derived glycerine, according to the company, and will be included in the company’s glycols portfolio, according to Orlen.

MPG pricing has trended sharply upward through Q4, driven by tight stock and robust demand.

As per MRC, Orlen Unipetrol (part of PKN Orlen), a major Czech producer of petrochemical products, will expand the capacity of its steam cracker in Litvinov (Czech Republic) by installing a new furnace. The new cracking unit will be built by Technip Energies in Zaluzi, the largest chemical plant in the Czech Republic, and is due to be commissioned in 2022. Orlen is investing over 700 mln Polish zlotys (Zl) in the project.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC

1. Crude oil prices steady on demand concerns after renewed restrictions in Europe and Asia amid rise in coronavirus cases

MOSCOW (MRC) -- Oil prices edged higher on Tuesday but price gains were capped due to investor worries about oil demand after renewed restrictions were imposed in Europe and Asia amid a rise in coronavirus cases, reported CNBC. Brent crude oil futures edged higher by 1 cent to USD74.40 a barrel by 0113 GMT, while US West Texas Intermediate (WTI) crude futures gained 1 cent to USD71.30. “Energy traders don’t want to bet against OPEC+ but all the short-term risks from omicron to Fed tightening is proving to be very disruptive to the short-term outlook for oil prices,” said Edward Moya, senior analyst at OANDA. “The virus spread across Europe is delivering a bigger hit than expected and when you calculate family gatherings for the holidays, the short-term outlook could get slashed over the next month.”

MRC