Sinopec plans its biggest capital expenditure in history

Sinopec plans its biggest capital expenditure in history

China Petroleum & Chemical Corp, better known as Sinopec, is planning its highest capital investment in history for 2022 after recording its best profit in a decade, echoing Beijing’s call for energy companies to raise production, said the company.

Sinopec expects to spend 198 billion yuan (USD31.10 billion) in 2022, up 18% from a year ago, beating the previous record of 181.7 billion yuan set in 2013, according to a company statement filed to the Shanghai Stocks Exchange on Sunday.

It plans to invest 81.5 billion yuan in upstream exploitation, especially the crude oil bases in Shunbei and Tahe fields, and natural gas fields in Sichuan province and the Inner Mongolia region.

We remind, China Petroleum & Chemical Corporation (Sinopec), the country's largest oil refiner, said its net profit rose 114% in 2021 from the previous year. The net profit attributable to shareholders of the parent company stood at 71.21 billion yuan (11.18 billion U.S. dollars) in 2021, the company said on Sunday. Its operating revenue reached 2.74 trillion yuan last year, up 30.2%year on year.

As it was written earlier, Sinopec will divest a 50% stake in Shanghai SECCO Petrochemical for a price of Yuan 10.3 bn (USD1.6 bn). The 50% stake comprises of 15% that is owned directly by Sinopec and 35% owned by its offshoot Sinopec Gaoqiao Petrochemical. Previously, Shanghai SECCO was 50% owned by BP East China, with Sinopec and Sinopec Shanghai Petrochemical holding 30% and 20% stakes, respectively. The interest of BP was sold to Sinopec Gaoqiao Petrochemical in 2017.

mrchub.com

OMV refocus on chemicals improves credit outlook - Fitch

OMV refocus on chemicals improves credit outlook - Fitch

Fitch Ratings has revised its outlook on OMV's debt to stable, from negative, and affirmed its A- rating on expected strong financial performance partly based on the group's new strategy that assumes a gradual refocusing on chemicals and materials as well as sustainable fuels, said the company.

OMV is now the majority shareholder at petrochemicals and fertilizers major Borealis. Noting the Austrian group can also expect to benefit from higher oil and gas prices, Fitch also tightened the negative rating sensitivity to funds from operations (FFO) net leverage of 1.8x from 2.0x to reflect the chemical segment's higher future share in the group's cash flows.

“OMV plans to reach net-zero emissions by no later than 2050. The chemicals and materials segment will be key for further growth, with investments aimed at increasing its scale and diversification into circular economy,” said Fitch. “OMV also plans to transform its refining and marketing assets into sustainable fuels, feedstock and mobility solutions. The company will reduce oil and gas production by around 20% by 2030 and expects its E&P [exploration and production] to reach 450,000 bbl/day in 2025 and below 400,000 bbl/day in 2030."

OMV produced in 2021 490,000 bbl/day in 2021. Looking at economic impacts on OMV of the international response to the Ukraine war, Fitch said the group expects to recognise an impairment of €1.5-1.8bn related to its Russian assets, mainly including the write-down of financing for the Nord Stream 2 gas pipeline.

As per MRC, OMV reported utilization of 83% at its European refineries in H1, 2021, down by 3% on the year yet "relatively resilient in light of the COVID-19 impact". It expects the utilization rates at its European refineries to remain at the 2020 level this year. Last year its refineries reported 86% utilization. The company's refineries in Europe ran at 85% utilization in Q2, up from 81% in the year-ago quarter.

As MRC wrote before, OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
mrchub.com

Clariant to supply petrochemical catalysts for production of ethylene, styrene and propylene to Lihuayi upcoming units

Clariant to supply petrochemical catalysts for production of ethylene, styrene and propylene to Lihuayi upcoming units

Clariant’s Catalysts business has been awarded three new contracts by China’s Lihuayi Group for its upcoming petrochemicals production units, according to Hydrocarbonprocessing.

The agreements include three of Clariant’s high-performance catalysts for the production of ethylene, styrene, and propylene.

From Clariant’s ethylene catalyst line, Lihuayi chose the OleMax 101 catalyst for its 1000 KTA olefins plant for high-value olefins recovery from cracked gas and off-gas streams. The OleMax 100 series is used to purify gas streams for acetylene, dienes, oxygen, nitrogen oxides, and heavy metals, in a single reactor, enabling highly cost-efficient olefins production.

Lihuayi’s new 720 KTA styrene plant will rely on Clariant’s StyroMax UL 3 rib-shaped styrene catalyst. The catalyst is able to produce styrene monomer extremely efficiently due to its high activity, excellent selectivity, and reliable performance at ultra-low steam-to-oil conditions. Combined, these factors provide a greater yield of high-quality styrene with higher efficiency, as well as reduced energy consumption and lower CO2 emissions.

The third Lihuayi plant for propane dehydrogenation will have a design capacity of 600 KTA and operate with Clariant’s tailor-made CATOFIN catalysts and heat generating material. CATOFIN is a proven, highly reliable dehydrogenation catalyst used for the production of olefins, such as propylene or isobutylene, from light paraffin feedstocks. Since 2017, CATOFIN technology and catalysts have been selected for 33 new projects, representing more than 23,000 KTA of new propylene capacity globally. Over half of them are or will be constructed in China.

As MRC wrote previously, Clariant has recently announced that its StyroMax UL3 catalyst is demonstrating successful results at Risun’s new styrene monomer (MS) plant located in Tangshan, China.

We remind that in October 2020, Clariant announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

Russia resumes LPG exports from Sea of Azov

Russia resumes LPG exports from Sea of Azov

Russia is set to resume supplies of liquefied petroleum gas (LPG) from a Sea of Azov port on Tuesday for the first time since Moscow started its military operation in Ukraine, reported Reuters with reference to data from the port and Refinitiv Eikon.

Supplies of LPG, which is used in the petrochemical industry and to fuel vehicles and stationary generators, had been halted from the Temryuk terminal since February 24 following a ban on shipments in the region imposed by the Russian sea and river transport regulator.

According to the port data, there are plans to load a gas tanker called Premier on Tuesday under the flag of the Comoro Islands. It is bound for the Bulgarian port of Burgas.

The cargo vessel is due to export an LPG cargo of around 2,400 tons, according to Refinitiv Eikon data and industry sources.

As MRC informed earlier, TotalEnergies reaffirms its firmest condemnation of Russia's military aggression against Ukraine, which has tragic consequences for the Ukrainian population and threatens peace in Europe. To act responsibly, as a European company and in accordance with its values, TotalEnergies has defined clear principles of conduct for managing its Russian related business: ensure strict compliance with current and future European sanctions, no matter what the consequences on the management of its assets in Russia, and gradually suspend its activities in Russia, while assuring its workforce's safety.

We remind that in late February, 2022, TotalEnergies condemned what it called Moscow's military aggression in Ukraine but stopped short of joining rivals Shell and BP in planning to exit positions in resource-rich Russia. The French oil major, which holds a 19.4% stake in Novatek, Russia's largest producer of liquefied natural gas, said it "will no longer provide capital for new projects in Russia".

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

Peter Vanacker to assume role as LyondellBasell CEO

Peter Vanacker to assume role as LyondellBasell CEO

MRC -- LyondellBasell has announced Peter Vanacker will assume his role as the company's chief executive officer on May 23, 2022, as per the company's press release.

The company's Board of Directors appointed Vanacker to the position in December 2021.

"Peter's proven leadership capabilities and strategic vision will position LyondellBasell well for the future, and I look forward to partnering with him to drive accretive growth for our company," said Jacques Aigrain, Board Chair.

Vanacker brings more than 30 years of industry experience to his new role, including serving as President and CEO of Neste since 2018.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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.

As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization. In 2022, LyondellBasell was named as one of FORTUNE Magazine's "World's Most Admired Companies" for the fifth consecutive year.
MRC