Oil refining capacity down for first time in 30 years in 2021

Oil refining capacity down for first time in 30 years in 2021

MOSCOW (MRC) -- Global oil refining capacity fell for the first time in 30 years last year, as new capacity was outweighed by closures, reported Reuters with reference to the International Energy Agency's (IEA) statement in its monthly oil market report on Wednesday.

Refining capacity was down by 730,000 bpd in 2021, the IEA said, but net additions were expected to amount to 1.2 MMbpd in 2022.

Global runs are forecast to rise by 3.7 MMbpd in 2022, the IEA added. Refinery throughput averaged 79.8 MMbpd in the fourth quarter of 2021, it added.

Over the last two years, about 900,000 bpd of refining capacity in Asia (excluding China) has been either shut or scheduled to permanently close before the end of 2022, the IEA said.

As MRC wrote previously, China's refinery output hit a fresh high in 2021, up 4.3% from a year earlier on robust fuel demand especially in the first half of the year, and as refiners ramped up processing to fill a supply gap after a hefty new tax closed loopholes in blending fuel imports. Total refinery throughput last year reached 703.55 MM tons, or 14.07 MMbpd, data from the National Bureau of Statistics showed on Monday, roughly 620,000 bpd above the 2020 level.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

Tecam awarded new environmental technology project in Chile

Tecam awarded new environmental technology project in Chile

MOSCOW (MRC) -- Tecam has been awarded a new project for volatile organic compounds (VOC) vapour recovery at a petrochemical tank storage plant in Chile, said Hydrocarbonengineering.

Under the terms of the agreement, Tecam and its partner Cool Sorption will supply a Chilean tank storage plant with a vapour recovery unit (VRU) that will be connected to an existing Tecam regenerative thermal oxidiser (RTO). The VRU is expected to recover VOC vapours from storage, handling and distribution of gasoline at their tank farm.

Thanks to the installation of this VRU system, this petrochemical company will be able to recover approximately 500 litres/hr of gasoline during operations at this plant, making the return on investment (ROI) of this project attractive for the customer.

After recovering valuable vapours, the vented gas from the VRU system will be treated in the RTO supplied by Tecam to this customer one year ago. The RTO system was the most optimal solution after analysing the technical requirements of the customer, taking into account the air flow to be treated and the nature and characteristics of the gases emitted.

As per MRC, Tecam, a leading supplier of environmental technology, announces the installation of a new equipment for Volatile Organic Compounds emissions treatment at the production plant that the construction company Onduline has in northern Spain. Thanks to the installation of this turnkey project of environmental technology for emissions treatment, the Onduline production center will be able to eliminate 99.9% of its polluting emissions through an exhaust gas cleaning system that fully respects the environment.

We remind, KBR announced it has been awarded an engineering services contract by Woodside Energy (USA) Inc. for its proposed H2OK liquid hydrogen production facility project in Ardmore, Oklahoma. Under the terms of the contract, KBR will provide a front-end engineering design for Woodside's H2OK liquid hydrogen facility. Cryogenic liquid hydrogen is used in the transportation industry as a fuel for fleets where the combustion of liquid hydrogen produces zero-emissions, with water as the only by-product.
MRC

Radix helps Solvay improve equipment efficiency at its chemical production unit in Brazil

Radix helps Solvay improve equipment efficiency at its chemical production unit in Brazil

MOSCOW (MRC) -- Solvay, a global leader in materials, chemicals, and solutions, hired Radix to develop a system to monitor online the performance of its equipment at the Paulinia unit, Sao Paulo, Brazil chemical production unit, according to Hydrocarbonprocessing.

The new system will help reduce corrective and preventive maintenance orders, increase productivity, and improve plant reliability.

Radix built the system using the AVEVA OSIsoft PI System and hybrid AI models to calculate performance indicators in real-time, and identify possible failures in 145 pieces of equipment. The project evaluated all equipment, revealing the best efficiency points, and how to avoid failures related to operational deviation or possible anomalies.

User-friendly dashboards were built to allow a visual understanding of the problem, what action should be taken, and the execute virtual maintenance rounds.

By implementing the solution, Solvay’s goal is to reduce emergency work from 16% (based on the 2018 report) to 5% by 2022. The project also reduced preventive maintenance and increased efficiency on some equipment by optimizing best process conditions.

"The initial result was very positive. In a short time, the system was able to present 35 true positive events. In other words, there were 35 alerts for the Solvay's maintenance team to take action and avoid mechanical loss in the equipment chosen for the analysis (pump, centrifugal compressor, liquid ring compressors, and a turbo generator),” explained Radix Project Manager Fabricio Rosado Urquhart.

He continued: “Asset performance and predictive maintenance are some of Radix's digital solutions for downstream & chemicals. These days, this industry is struggling to keep margins while needs to de-bottleneck plants to line up production with the market demand. As an end-to-end solution provider, Radix has the ability to combine process engineering domain expertise and technology to solve complex problems for plants assets and chemicals & petrochemicals supply chain."

In addition to these benefits, Solvay also noted a better integration between maintenance, operations, and engineering teams, resulting in joint analysis and decision-making, which was not usual in the past.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
MRC

COVID-19 - News digest as of 19.01.2022

1. Crude oil prices hit 7-year highs on tight supply

MOSCOW (MRC) -- Oil prices on Tuesday climbed to their highest since 2014 as investors worried about global political tensions involving major producers such as the United Arab Emirates and Russia that could exacerbate the already tight supply outlook, reported Reuters. The risk added a premium to prices during the session. Brent crude futures rose USD1.03, or 1.2%, to settle at USD87.51 a barrel. US West Texas Intermediate (WTI) crude futures ended USD1.61, or 1.9%, higher at USD85.43 a barrel. Both benchmarks touched their highest since October 2014, and some OPEC sources say USD100-per-barrel oil is not out of reach. Supply concerns mounted this week after Yemen's Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.


MRC

LG Chem and Mura Technology accelerates global drive towards circular plastics economy

LG Chem and Mura Technology accelerates global drive towards circular plastics economy

MOSCOW (MRC) -- Mura Technology (Mura), the UK-based plastics recycling technology pioneer, has completed an equity investment from LG Chem, a leading global chemical producer, according to Hydrocarbonprocessing.

The investment bolsters Mura’s plans to develop and deploy industrial-scale advanced recycling capacity across the world, with LG Chem joining the growing list of strategic partners adopting Mura’s technology.

In addition to becoming a shareholder in Mura, LG Chem has purchased a process license from KBR, Mura’s exclusive global licensing partner. This license will be a key driver in the continued international roll-out of Mura’s innovative recycling process, HydroPRT (Hydrothermal Plastic Recycling Technology), and LG Chem plans to construct a hydrothermal upgrading facility to initially recycle up to 25,000 tons of plastic waste annually.

Once the facility, which will be the first in South Korea to use supercritical water, is operational, LG Chem plans to review the potential for constructing additional sites. This will continue to drive Mura’s global impact following the recent announcement of its first US-based HydroPRT site near Seattle. Construction is already underway on Mura’s UK-based plant located in Teesside, which will be operational in 2022.

South Korea is one of the world’s leaders in plastic consumption per capita, and a crucial market for deploying HydroPRT. Post-use plastic from both the commercial and industrial sectors contributes significantly to increased levels of waste in South Korea, however capacity for recycling at scale remains low, particularly in high-traffic, urban areas, despite the country’s aim to reduce its plastic waste by 20% by 2025. Successful deployment of HydroPRT will dramatically increase the potential recycling capacity in South Korea and will also serve as a blueprint for other countries around the world with similarly ambitious waste reduction targets.

As MRC reported earlier, LG Chema, South Korean petrochemical major, reduced run rates at all of its three naphtha crackers in Deasan and Yeosu, South Korea to approximately 80% on 5 January, 2021, on the back of weak demand and highly volatile upstream naphtha costs. All three crackers with a combined capacity of 3.25 million tons of ethylene and 1.48 million tons of propylene would operate at reduced rates throughout the month of January. It is reported that the producer would ramp up the production in February, however, it is unclear on the exact schedule.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC