Ukraine crisis will disrupt crude flows even without sanctions

Ukraine crisis will disrupt crude flows even without sanctions

MOSCOW (MRC) -- Russia's invasion of Ukraine will disrupt the global movement of energy commodities, even if Western powers don't impose sanctions on exports from Russia, reported Reuters on February 25.

So far none of the retaliatory measures against Moscow have been targeted at exports of crude oil, coal or natural gas, the latter either by pipeline or by ships as liquefied natural gas (LNG).

That's perhaps tacit acknowledgment of Russia's importance to the global supply of these commodities, and especially with regard to natural gas, with Russia meeting about 40% of Europe's annual demand.

But even if the US, Europe and other allied nations such as Japan and South Korea decide not to impose measures against Russia's energy exports, it's likely that private companies will effectively do it for them.

The risks of doing business with Russia will become too much for many companies to bear, even without sanctions.

A clear illustration of this was reports that a coal bulk vessel chartered by commodity trading house Cargill was struck by a shell in the Black Sea in Ukrainian waters on Thursday, just hours after Russia launched a widespread attack on its neighbor.

Very few trading, shipping and insurance companies will be prepared to take the risk of dealing with cargoes from Russia, fearing either physical attack, payment issues because of financial sanctions, the risk of non-delivery if further measures are enacted against Russia and even public and investor backlash for continuing to do business with a country now largely viewed as conducting an illegal war.

As MRC wrote before, earlier this month, Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies, announced that it had signed a contract for the design of a plant for the Baltic Chemical Complex in Russia. Baltic Chemical Complex LLC. (BCC), the original owner of the contract, previously signed an EPC contract with CC7 in 2019. The project is located at the Gulf of Finland near the seaport of Ust-Luga, Leningrad Oblast, 110 km southwest of St. Petersburg, Russia.

Samsung Engineering’s work of scope includes an Ethane Cracker Unit with a total design capacity of 2.8 million T/y (Ethylene 1.4 million t/y 2 Trains) and procurement for the project. The Ethane Cracker Unit is the core process element of the plant. The Baltic Ethane Cracker Project produces ethylene from separated C2 out of natural gas.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC

Fire extinguished at Marathon Louisiana refinery after blast

Fire extinguished at Marathon Louisiana refinery after blast

MOSCOW (MRC) -- A fire at Marathon Petroleum Corp's 578,000 barrel-per-day (bpd) crude oil refinery in Garyville, Louisiana, the third-largest US refinery by processing capacity, has been extinguished, reported Reuters with reference to a company spokesperson's statement.

Thus, the fire at this refinery was put out on Monday afternoon.

"All employees and contract workers have been accounted for," said Marathon spokesperson Jamal Kheiry. "Five contract workers sustained injuries, four of which were treated on-site, and one is currently being evaluated at a local healthcare facility as a precaution."

Two sources said an explosion occurred on Monday morning in the 110,000-bpd gas oil hydrocracker, which makes diesel. Marathon was overhauling multiple units at the refinery at the time of the fire. It was unclear if work was being done on the hydrocracker.

Local media reports said the fire began after an explosion felt for miles around the plant. A nearby highway was closed for about an hour afterwards, according to law enforcement officials.

The fire broke out at 9:30 a.m. CST (1530 GMT), Kheiry said. Emergency officials in St. John the Baptist Parish said the explosion was heard at about 9 a.m. CST.

The Garyville refinery, which completed a major expansion in 2009, can process a variety of crude oils into gasoline, diesel, jet fuel and distillates. The refinery also produces asphalt, petroleum coke and feedstocks to make plastics.

As MRC informed earlier, in May, 2021, US refiner Marathon Petroleum Corp said its board had approved the conversion of the Martinez refinery in California to a renewable diesel plant. Besides, the company made a final investment decision regarding this project. Martinez, once complete, will be one of the largest renewables facilities in the country.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets.
MRC

No war!


Dear readers!

MRC company works with clients from 80 countries of the world, including through offices in Russia and Ukraine.

We cannot be silent and stand aside when peaceful people are dying!

We are categorically against the hostilities unleashed by Russia.

No war!

Sincerely yours, MRC team.


mrcplast.com

BASF launches new 2-mercaptoethanol production plant at Ludwigshafen Verbund site

BASF launches new 2-mercaptoethanol production plant at Ludwigshafen Verbund site

MOSCOW (MRC) -- BASF-2-ME-facility-ludwigshafenA new BASF production plant for the intermediate 2-mercaptoethanol (2-ME) at the Ludwigshafen Verbund site started regular operations in the fourth quarter of 2021, according to SpecialChem.

After a trial run of several months, it replaces the previous plant at the Ludwigshafen site, which is being closed after more than 40 years of operation.

The new plant is fully integrated into BASF's production Verbund and, with more than 10,000 metric tons of 2-ME per year, has the same production capacity as the previous plant. 2-ME has proven its value in the production of plastics, coatings, crop protection products and oilfield chemicals (Basocorr ME).

"The new plant will enable us to supply our customers all over the world with 2-mercaptoethanol even more reliably. Our global logistics network, which our customers can further rely on, also contributes to this," says Frank Stein, head of the regional business unit Europe in BASF's Intermediates division.

As MRC wrote before, Air Liquide, BASF and Shell are joining Calpine, Chevron, Dow, ExxonMobil, INEOS, Linde, LyondellBasell, Marathon Petroleum, NRG Energy, Phillips 66 and Valero to collectively evaluate and advance emissions reduction efforts in and around the Houston industrial area. Three additional companies have announced their support for exploring the implementation of large-scale carbon capture and storage (CCS) technology in and around the Houston industrial area. The 14 companies are evaluating how to use safe, proven CCS technology at Houston-area facilities that provide energy and products for modern life, including advanced manufacturing for plastics, packaging, motor fuels and power generation.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

Ukrainian Karpatneftekhim shut production

Ukrainian Karpatneftekhim shut production

MOSCOW (MRC) -- The largest petrochemical plant in Ukraine - Karpatneftekhim (Kalush, Ivano-Frankivsk region) shut production on 24 February amid the introduction of martial law in Ukraine, the company said.

According to the Law of Ukraine “On Approval of the Decree of the President of Ukraine “On the imposition of martial law in Ukraine” No. 7111 dated 24 February, 2022, martial law is imposed from 5:30 a.m. 24 February, 2022 throughout Ukraine.

To prevent any potential adverse consequences and taking into account the fact that Karpatneftekhim Ltd. is a critical infrastructure entity, we report of the shutdown of production facilities for a duration of martial law.

At the same time, Karpatneftekhim Ltd. announces its readiness to implement the measures of the martial law regime in compliance with the current statutory requirements of Ukraine.

The production capacity is 250,000 tonnes of ethylene, 117,000 tonnes of propylene, 110,000 tonnes of LLDPE, 300,000 tonnes of PVC and 100,000 tonnes of benzene per year.

Earlier it was reported that on February 8, at 09:45, a pyrolysis furnace caught fire in one of the buildings on the territory of Karpatneftekhim LLC. Rescuers who arrived on call localized the fire on an area of 70 square meters. There was no threat of the fire tipping onto other equipment.

LLC "Karpatneftekhim", created on the basis of the facilities of the Kalush "Oriana", produces ethylene, polyethylene, vinyl chloride, caustic soda, chlorine and suspension PVC. According to the state register, the owner of the LLC is Karpaty Chemical B.V. (Netherlands), the beneficiaries of which, without specifying the shares, are the owner of the Techinservice production group, Igor Shutsky, and the former head of the Ukrainian business of LUKOIL, Ilham Mamedov.
MRC