Sinopec suspends discussions with Sibur on investment in new gas chemical plant in Russia

Sinopec, formally China Petroleum and Chemical Corp, has suspended the discussions to invest up to USD500 million in the new gas chemical plant in Russia, reported Reuters with reference to a source.

The plan has been to team up with Sibur, Russia's largest petrochemical producer, for a project similar to the USD10 billion Amur Gas Chemical Complex in East Siberia, 40% owned by Sinopec and 60% by Sibur, set to come online in 2024.

"The companies wanted to replicate the Amur venture by building another one and were in the middle of site selection," said the source.

Sinopec hit pause after realising that Sibur minority shareholder and board member Gennady Timchenko had been sanctioned by the West, the source said. The European Union and Britain last month imposed sanctions on Timchenko, a long-time ally of Russian President Vladimir Putin, and other billionaires with ties to Putin.

The Amur project itself faces funding snags, said two of the sources, as sanctions threaten to choke financing from key lenders, including Russia's state-controlled Sberbank and European credit agencies.

"It's an existing investment. Sinopec is trying to overcome the difficulties in financing," said a Beijing-based industry executive with direct knowledge of the matter.

Sibur did not comment on the suspension of the talks for the new chemical plant but said it continues to cooperate with Sinopec. It said the two companies continue to work jointly on implementing the Amur plant.

"Sinopec is actively participating in the issues of the project's construction management, including equipment supplies, work with suppliers and contractors. We are also jointly working on the issues of project financing," Sibur told Reuters by email.

As MRC informed before, Dmitry Konov steps down as the Chairman of PSJC SIBUR Holding’s Management Board, from PJSC SIBUR Holding’s Board of Directors, and from the Management Boards at PJSC SIBUR Holding and SIBUR LLC. Upon completion of all necessary corporate procedures, powers of PSJC SIBUR Holding’s Management Board will be transferred to PSJC SIBUR Holding’s Board of Directors and to the Management Board of SIBUR LLC, PSJC SIBUR Holding’s management company. These organisational changes are made following Dmitry Konov’s nclusion in the EU and UK sanctions lists and are set to improve resilience of SIBUR’s business as one of the fastest-growing global petrochemical players.

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.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.
MRC

Negotiators for Chevron Corp and the United Steelworkers union (USW) are scheduled to meet next week in an effort to end a strike at a San Francisco-area refinery, reported Reuters.

The negotiators are scheduled to meet on Monday, said B.K. White, first vice president of USW Local 12-5, which represents about 500 workers at Chevron's Richmond, California, refinery, who went on strike on Monday.

"We look forward to joining USW Local 5 in discussions next week and at work again soon," Chevron spokesperson Tyler Kruzich said.

Workers were removed from the refinery on Sunday by Chevron after Local 12-5 issued a strike notice to the company following the collapse of talks after union members twice rejected company contract proposals.

The strike began shortly after 12 a.m. PDT on Monday. The previous contract expired on Feb. 1, but was being extended on a rolling 24-hour basis.

The local sought an additional 5% pay increase on top of a 12% raise over four years negotiated by USW International officials and oil refinery owners in February.

As MRC wrote earlier, in August 2021, Chevron and other partners said they are investing in a startup to build modular waste-to-green hydrogen and renewable synthetic fuel facilities in northern California with tentative plans to eventually grow worldwide. The USD20 million investment in Wyoming-based Raven SR is focused on technology to develop combustion-free, green hydrogen for transportation that is cleaner than so-called blue hydrogen derived from natural gas.

We remind that Chevron Phillips Chemical, a joint venture of Phillips 66 and Chevron, will make a final investment decision on a new cracker in far southeast Texas in 2022, followed by an FID in 2023 on an USD8 billion joint venture petrochemical complex along the US Gulf Coast in 2023.

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.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

Neste Corporation’s Board of Directors has appointed Matti Lehmus (born 1974) as President and CEO as of 1 May 2022, as per the company's press release.

He succeeds Peter Vanacker, who will hold the position until 30 April 2022.

Matti Lehmus holds a M. Sc. in chemical engineering and an eMBA. He joined Neste in 1998, and has held several key leadership positions during his career in both the oil products business and renewables. He has been a member of the Neste Executive Committee since 2009, and currently serves as Executive Vice President, Renewables Platform.

“The Board of Directors commenced an international recruitment process immediately after Peter Vanacker’s resignation in December last year. The Board has carefully evaluated several candidates for their suitability to lead Neste’s next steps in delivering profitable growth. I am pleased to note that we found an excellent internal successor who is very well equipped to take over the role,” says Matti Kahkonen, the Chair of Neste’s Board of Directors.

“Matti Lehmus has the right experience and expertise to continue executing Neste’s proven growth strategy of becoming a global leader in renewable and circular solutions. His proven track record of major investment projects and M&A, along with his solid leadership and interpersonal skills, will be an excellent combination to ensure Neste’s further success,” continues Kahkonen.

As MRC informed before, earlier this month, Neste Corporation signed definitive agreements for the establishment of a 50/50 JV with US-based Marathon Petroleum. The JV will produce renewable diesel following a conversion project of Marathon's refinery in Martinez, California (the Martinez Renewable Fuels project). The closing of the JV is subject to customary closing conditions and regulatory approvals, including obtaining the necessary permits, which depend upon certification of a final Environmental Impact Report.

We remind that Neste has successfully concluded its first series of trial runs processing liquefied waste plastic at its Porvoo refinery in Finland. After kicking the series off with its first-ever industrial scale trial run with liquefied waste plastic in 2020, Neste has conducted additional runs in 2021. In the course of the trial runs, Neste has been able to upgrade liquefied waste plastic to drop-in solutions for plastic production and develop industrial scale capabilities to upgrade recycled feedstocks. Trials pave the way for continuous and commercial activities. Neste has set itself the goal of processing more than 1 MM tons of plastic waste per year from 2030 onwards.

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.

Neste (Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company is the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. In 2020, Neste's revenue stood at EUR11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products.
MRC

MRC) -- Westlake Corporation announced that Westlake Epoxy’s Pernis, Netherlands site has received International Sustainability & Carbon Plus (ISCC+) certification, said th company.

The site received mass balance certification for its tracing and handling of sustainable materials in the production of epoxy products. This is a significant step in Westlake Epoxy’s strategy to integrate renewable carbon materials into its raw material supply chain while reducing energy use and greenhouse gas emissions.

ISCC+ provides an international, practical, transparent system for the certification of bio-based, bio-circular and circular raw materials at each level of the supply chain. The ISCC+ certification recognizes Westlake Epoxy’s (formerly known as Hexion BV) commitment to environmentally, socially and economically sustainable production by tracking its existing mix of feedstocks and replacing fossil materials with renewable resources.

Aromatic monomers for the liquid epoxy resins produced at the Pernis location have been certified by mass balance to be replaceable by bio-based alternatives. These include the phenol and acetone used to manufacture Bisphenol A (BPA), a critical building block in the manufacture of epoxy resins.

This recent certification reflects Westlake’s ongoing commitment to operating in a more environmentally responsible manner. Recently, Westlake Epoxy’s European operations also received a Platinum rating from EcoVadis, the world’s largest and most trusted provider of business sustainability ratings. Westlake Epoxy serves a variety of industries including adhesives, aerospace, automotive, civil engineering and construction, composite and wind energy, electronics, electric laminates and marine and protective coatings.

As per MRC, Westlake Chemical Corporation, the world's petrochemical major, has officially changed its name to Westlake Corporation. Westlake is now organized under one unified brand name with two financial reporting segments: Housing & Infrastructure Products and Performance & Essential Materials.

According to MRC's ScanPlast report, Russia's estimated consumption of unmixed PVC was about 999,300 tonnes in 2021, up by 7% year on year. The emulsion and suspension PVC market showed stronger demand, despite over a twofold price increase. December estimated SPVC consumption was 81,200 tonnes (excluding deliveries to the Republic of Belarus and the Republic of Kazakhstan) versus 74,690 tonnes a month earlier.

Westlake Corporation is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe, and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer.
mrchub.com

Covestro is again expanding its range of more circular raw materials and now offers customers in various regions renewable toluene diisocyanate (TDI) which provides a significant reduction of the CO2 footprint from cradle to factory gate2 – with the same high quality as fossil-based products, said the company.

TDI is an important raw material for flexible polyurethane foam, and provides a high level of comfort in mattresses and upholstered furniture, but also in car seats and shoes. Covestro manufactures the renewable TDI both in Dormagen, Germany, and in Caojing, China, using the mass balance method. Both sites are certified according to the ISCC PLUS standard.

For Covestro, offering renewable TDI via mass balance is only a logical next step of making this important chemical raw material even more sustainable, as Dr. Klaus Schafer, Chief Technology Officer of Covestro, explains: "Already years ago, our unique gas phase technology was a milestone towards more energy efficiency in the production of TDI. After that we committed ourselves to ensure a further reduction in emissions from our production by switching to green electricity. This additional improvement now makes it clear how consistently we are pursuing our path to climate-neutral production3 and the circular economy: By using mass-balanced renewable raw materials, we are now also striving to significantly reduce our indirect emissions in the supply chain and to offer products with a reduced carbon footprint."

Flexible PU foams made with TDI and long-chain polyols are important materials in the manufacture of seat cushions and mattresses. Renewable TDI meets demands for more sustainable production while ensuring the good quality, optimal comfort and high breathability known from fossil-based TDI. It also meets the expectations of the automotive industry, which is looking for alternative raw materials for car seat cushions with a lower carbon footprint.

As MRC informed before, in April 2021, DSM completed the sale of the resins & functional materials businesses to Covestro for EUR1.6 billion (USD1.9 billion), including EUR1.4 billion in cash.

We remind that Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) totalled about 82,300 tonnes in 2021, down by 8% year on year (89,200 tonnes a year earlier).

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2020 sales of EUR 10.7 billion, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).
mrchub.com