INEOS partner with Plastic Energy for recycling project at Grangemouth facility

MOSCOW (MRC) -- INEOS Olefins & Polymers Europe and Plastic Energy have announced that they are working together on a trial to convert ‘hard to recycle plastic material’, such as flexible packaging, back into ‘food-grade’ quality plastic for use in food packaging, and other high hygiene standard applications, according to Hydrocarbonprocessing.

The companies have come together to launch a preliminary trial in Q1-2022 at the INEOS Grangemouth facility in Scotland. This preliminary trial and the evolution of the policy environment in the UK will inform the development of a large-scale advanced recycling plant, which aims to be the first of its kind in the UK.

Advanced Recycling creates a closed-loop system for plastics management, helps reduce landfill, prevents plastic from ending up in the environment, and reduces the use of fossil derived raw materials. The circular re-use of ‘end of life’ plastic is a further step to reduce total emissions.

INEOS Olefins & Polymers Europe and Plastic Energy have a shared goal to create a world class circular economy value chain in advanced recycling, driving circularity to create the next generation of food-grade recycled content packaging.

Plastic Energy uses its advanced recycling process to convert post-consumer plastic, otherwise destined for landfill or incineration, through a pyrolysis process, into a liquid raw material (called TACOIL) for re-use in the next generation of plastic production. TACOIL is used as a replacement for fossil derived materials, to make food-grade and/or medical grade plastics.

The trial will take place in partnership with Petroineos at Grangemouth. It will use the existing refinery operations to process the TACOIL supplied by Plastic Energy, which already operate two recycling plants in Spain.

Plastic Energy’s technology allows for the improvement in circularity of highly demanding labeling, and packaging applications, such as chocolate bars, snacks and biscuits, pet and dry food. The new project is complementary to the existing use of mechanically recycled plastic in INEOS Recycl-IN range of products. Petroineos will supply the recycled raw material to INEOS Olefins & Polymers Europe to be transformed into Certified Circular plastic with the identical properties expected of conventional plastics made from oil and gas.

The partners recognize the need for collaboration to make such innovations sustainable at scale - in the spirit of “SDG#17 Partnerships for the Goals”, each partner contributes complementary skills and expertise that together create the circular value chain.

As MRC informed previously, earlier this month, INEOS FPS 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.

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.

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.
MRC

MOSCOW (MRC) -- The Gazprom Management Committee has approved a comprehensive program for the reconstruction and technical re-equipment of gas and liquid hydrocarbons processing facilities for 2022–2026, the holding said in a statement.

The document was adopted in the development of the current program for 2021-2025. The purpose of the document is to ensure continued growth in the efficiency of Gazprom's refining complex. Details of the program were not disclosed.

The Management Board also took note of the information on the operation of the technological lines of the Amur Gas Processing Plant (GPP) and the progress of the GPP construction.

It was noted that the overall status of the project is 82.2%. In particular, start-up and commissioning works are continuing on the third technological line, the installation of large-sized equipment has been completed on the fourth.

On the fifth line, large-sized equipment for gas separation has been installed, assembly of metal structures and welding of pipelines continues. On the sixth stage, the assembly of metal structures is underway, the foundation work is being completed.

Gazprom's main processing facilities are the Astrakhan Gas Processing Plant (GPP), the Orenburg Gas Processing and Helium Plant, the Sosnogorsk Gas Processing Plant, the Surgut Condensate Stabilization Plant and the Urengoi Plant for the preparation of condensate for transportation. The facilities under construction include the Amur Gas Processing Plant and the Ethane-Containing Gas Processing Complex in the Ust-Luga settlement.

We remind, that in December 2020, SIBUR Holding, Russia’s leading petrochemicals company and one of the most rapidly growing petrochemicals businesses globally, and China Petroleum & Chemical Corporation (Sinopec), China’s leading energy and chemical company, have closed the deal to set up a joint venture (JV) at the Amur Gas Chemical Complex after obtaining all the necessary approvals from the regulators of both countries. SIBUR and Sinopec will hold interest in the JV in the amount of 60% and 40%, respectively.

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) -- Raizen Argentina’s refinery in Buenos Aires, working with Shell Catalysts & Technologies (SC&T) and more than 25 Argentine companies, has built and erected a new crude distiller column in November 2021, according to Hydrocarbonprocessing.

It is part of a project that strategically positions the refinery for the future in relation to the processing of unconventional crude, such as that from the Vaca Muerta basin. It also improves the flexibility of the refinery and allows it to adapt more easily to current market conditions.

The new crude distiller column measures almost 50 meters high and six meters in diameter, weighing more than 245 tons. It took seven days to transfer the column from the fabrication site to the refinery, travelling more than 60 kilometers in a special, 77 meters long truck.

The new crude distiller column and the revamped side stripper and drier columns should allow uninterrupted operation throughout its target cycle length. SC&T developed the new crude distiller column design specifications and performed adequacy checks for the side stripper and drier columns. SC&T also provided the internals design consisting of Shell Calming Section Trays, Structured packing and Conventional Downcomer trays.

At project completion, the new crude distiller column will be integrated with other existing equipment in the Crude Distiller 5 unit. Although this is unconventional, the team was able to overcome some design challenges and use a significant portion of the existing assets. This enables Raizen Argentina to maintain their operational efficiency and productivity along with a wider operating range.

This project enables the refinery’s Crude Distiller 5 unit to process shale oil from the Vaca Muerta basin. This allows Raizen Argentina to optimize its crude diet from a strategy and economic standpoint. The unit aims to process maximum throughput of light API shale oil while maintaining the capability of processing also mid API range crude oil.

As MRC informed previously, Royal Dutch Shell plc. said in November that its petrochemical complex of several billion dollars in Western Pennsylvania was about 70% complete and in the process to enter service in the early 2020s. The plant's costs are estimated to be USD6-USD10 billion, where ethane will be transformed into plastic feedstock. The facility is equipped to produce 1.5 million metric tons per year (mmty) of ethylene and 1.6 mmty of polyethylene (PE), two important constituents of plastics.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

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.

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) - After more than a year of constant growth in prices, low density polyethylene (LDPE) prices began to go down in Russia. Weak demand and oversupply led to a significant decrease in spot prices in the first half of December, according to the ICIS-MRC Price Report.

At the beginning of the year, the growth in prices for polyethylene in the Russian market was due to a similar situation in the foreign markets. The increase in polyethylene prices was a result of the scheduled shutdowns of several domestic producers In the summer and autumn months.

The production turnarounds finished in mid-October, and already from mid-November, the market began to be oversupplied. Spot LDPE prices began to decrease in December, and this week the dynamics of price decline intensified.

Supply of PE increased noticeably in the market in November. The scheduled shutdowns of Russian manufacturers have ended, and imports from neighboring countries have also increased.

Whereas the demand in the spot market decreased due to the record high level of prices. The situation did not change in December. Many large and medium-sized converters have covered their needs for LDPE within the annual contracts, and do not actually make purchases in the spot market.

Smaller converters had problems with working capital. Demand for finished products also has weakened. Demand for polyethylene was also affected by the factor of the end of the quarter.

As a result, a significant increase in the supply of LDPE in the spot market and low demand led to a drop in prices.
Prices of 108 grade PE had dropped to Rb154,000-156,000/tonne CPT Moscow, including VAT, by mid-December.
The prices of 158 LDPE from some suppliers approached the same level.

MRC

1. Crude oil prices down on surging cases of Omicron and fears that restrictions may affect fuel demand

MOSCOW (MRC) -- Oil prices fell on Friday and were also down on the week as surging cases of the Omicron coronavirus variant raised fears that new restrictions may hit fuel demand, reported Reuters. "There are concerns about COVID that won't go away, and the perception that could weigh on demand is putting pressure on the market," said Bob Yawger, director of energy futures at Mizuho in New York. Brent crude futures settled down USD1.50, or 2%, at USD73.52 a barrel, while US West Texas Intermediate (WTI) crude dropped USD1.52, or 2.1%, tosettle at USD70.86 a barrel. Brent was down 2.6% on the week and WTI fell 1.3%.

MRC