MOL and HELM join forces on marketing of propylene glycols in Western Europe and overseas markets

Petrochemicals Private Company Ltd. (“MOL”) and HELM AG (“HELM”) have agreed on a long-term marketing co-operation for propylene glycols produced by MOL in its backwards-integrated, newly built polyol chemical complex in Tiszaujvaros, Hungary, according to HELM's press release.

The product range will include both technical and higher value added monopropylene glycol and dipropylene glycol grades.

The Tiszaujvaros complex will produce polyols and propylene glycols using efficient and environmentally friendly technologies such as the HPPO process (propylene oxide from hydrogen peroxide) developed by Thyssen Krupp and Evonik. The overall progress of the Project has exceeded 90%.

In the marketing agreement with HELM, MOL will contribute with its extensive knowledge in the production of petrochemicals, while HELM will provide its supply chain know-how and commercial expertise through its global market presence. Both partners also cooperate on developing the highest standards of certified propylene glycols, to distribute the materials in all fields of applications, including pharmaceutical raw materials as well as industrial applications for unsaturated polyester resin production and to serve the deicing sector.

HELM’s market knowledge and infrastructure ensure MOL’s successful and efficient propylene glycol market entry in the selected regions. However, CEE market sales, as MOL’s home market, will be co-ordinated by MOL.

As MRC reported earlier, MOL Group (Budapest, Hungary) has recently announced that Rossi Biofuel (a joint venture wherein MOL Group and Envien Group are the 25-75% owners) inaugurated a new plant in Komarom, Hungary, which will significantly increase the biofuel production volume in the country. With this investment, MOL Group and Envien Group launched a technology in Europe that can boost greenhouse gas savings by more than 85%. With a capacity of 50,000 tons per year, the plant is the first in Europe to use the RepCat technology offered by Austrian firm BDI-BioEnergy International GmbH, which is highly flexible in terms of raw materials - it allows the processing of greasy wastes of different types and origins, such as used cooking oils, trap grease, animal fats or residues from vegetable oil production. Biodiesel produced in this way is one of the most climate-friendly fuels.

We remind that in March 2021, MOL became a biofuel producer through the realization of an investment in the Danube Refinery. Bio feedstock will be co-processed together with fossil materials increasing the renewable share of fuels and reducing up to 200,000 tons /year CO2 emission without negatively affecting fuel quality.

HELM is a Hamburg, Germany, based family-owned company established in 1900 generating global revenues of EUR 6 billion per year. HELM is one of the world’s largest chemicals marketing companies. The company secures access to the world’s key markets through its specific regional knowledge and subsidiaries, sales offices and participations all around the globe. As a multifunctional marketing organization HELM is active in the chemicals industry, in the agricultural industry and in pharmaceuticals.

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of almost 2000 service stations across 10 countries in Central & South Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and more than 30 years in the injection of CO2. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.
MRC

Honeywell announced that SPEC Energy DMCC will use a range of Honeywell UOP process technologies at its refinery to convert low value vacuum gasoil and vacuum residue into high value products such as gasoline and alkylate, according to Hydrocarbonprocessing.

Phase one of the project includes the installation of a new UOP residue fluidized catalytic cracking (RFCC) unit that is tailored to improve gasoline yield, a UOP/wood solvent deasphalting process unit (SDA) which will improve the feed quality to the RFCC. A UOP Merox unit will also be installed that will reduce the level of mercaptans in the liquefied petroleum gas (LPG) streams, in addition to a UOP InAlk process unit which will process the mixed C4 olefinic rich stream from the Merox unit to produce alkylate, which is a high-octane blending feedstock for the gasoline pool. A UOP SelectFining Process unit will be used to process the RFCC naphtha stream to meet the desired sulfur content.

“We are pleased to have selected UOP’s RFCC complex for our Grass Roots Refinery,” said Zafar Sheikh, Group CEO, of SPEC Energy DMCC. “We chose UOP’s RFCC complex over other RFCC complexes due to key technology advantages. Another key factor in the decision was the excellent technical support from UOP in identifying and selecting the most profitable configuration. This project will enable SPEC to increase gasoline yield and maintain high margin, in line with our financial goals.”

UOP will provide technology licensing, design services, key equipment and state-of-the-art catalysts and adsorbents for this project at the refinery in Pakistan. When completed, the total conversion capacity of the complex is expected to be 45,000 bpd, being a combination of vacuum gasoil and vacuum residue.

As MRC wrote previously, earlier this month, Honeywell announced an integrated olefin suite (IOS) of technologies that can increase ethylene production and improve profitability when added to a naphtha steam cracker. IOS provides customers the ability to improve return on investment, increase operating profits, opportunity to reduce CO2 footprint and increase the level of control over by-products.

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

Celanese Corporation, a global chemical and specialty materials company, has announced the completion of the restructuring of Korea Engineering Plastics Co. (KEP), a joint venture owned 50% by Celanese and 50% by Mitsubishi Gas Chemical Company, Inc. (MGC), as previously announced in December 2020, as per the company's press release.

KEP will now focus solely on manufacturing and supplying high quality products to its shareholders, who will independently market them globally and without competitive restrictions. Celanese and MGC believe that focusing KEP’s efforts on manufacturing and supplying its shareholders with a leading portfolio of innovative products is a necessary response to the globalization of the engineering plastics industry, the fragmentation of the marketing supply chain, and other changes in industry conditions since KEP was first formed in 1987 to manufacture and market polyoxymethylene (POM) in Asia, with a particular focus on serving domestic demand in South Korea. This restructuring will also allow Celanese greater access to original equipment manufacturers in Asia, as well as more direct participation in key markets outside of China.

With the completion of the restructuring, Celanese and MGC will continue to look into additional ways to leverage KEP’s manufacturing strengths, including assessing potential future expansions of its polymer and compounding capabilities. Included in the final terms of the restructuring, Celanese agreed to sell land to KEP, currently leased by KEP, at its Ulsan, South Korea site, at a market value of approximately USD10 million, thereby monetizing a non-strategic asset for Celanese and further solidifying KEP’s presence in Ulsan.

POM is one of the world’s most widely used engineered materials, known for its high dimensional stability, hardness and creep resistance. These unique qualities allow POM to be used as a broad replacement for metal parts. Along with its copolymer resins, POM is widely used as an engineering plastic across almost every industry.

In 2021, KEP delivered approximately USD30 million in equity earnings to the Celanese Engineered Materials business. Celanese expects the restructuring of the KEP venture to be immediately accretive to adjusted EBIT and adjusted EPS. Incremental adjusted EBIT of USD25 - USD40 million will be driven by Celanese marketing and synergy realization to give a run-rate adjusted EPS accretion of USD0.15 to USD0.20 over the next three years.

As MRC reported earlier, in H2, 2021, Celanese Corporation announced a force majeure (FM) in China for vinyl acetate monomer (VAM) shipments from its plant Nanjing, China. Celanese temporarily shut down its acetic anhydride and VAM production in Nanjing to comply with requirements of government departments in order to achieve dual energy consumption targets in the Jiangsu Province in 2021. Thus, its VAM plan with the capacity of 300,000 mt/year was shut on 17 September, 2021, and its resumed operations on 9 October, 2021.

According to MRC's DataScope report, December EVA imports to Russia rose by 3,185% year on year to 3,530 tonnes from 3,420 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation grew in 2021 by 17,31% year on year to 44,720 tonnes (38,190 tonnes in 2020).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of USD8.5 billion.
MRC

MHI Compressor International Corp. (MCO-I) has secured a contract to deliver compressor train equipment for Chevron Phillips Chemical’s new propylene unit at its Cedar Bayou plant in Baytown, Texas, said Hydrocarbonprocessing.

The contract scope encompasses the supply of an API 612 steam turbine driving an API 617 heat pump compressor and all associated compressor train auxiliary equipment for Chevron Phillips Chemical’s 500,000 tpy C3 splitter unit. The asset will convert a refinery grade mixture of propylene and propane into a high purity propylene product.

MCO-I’s compressor train manufacturing, assembly, testing and packaging will be performed by its Hiroshima, Japan, and Pearland, Texas, facilities.

Michael McCurry, account executive, MCO-I, said, “The trust we earn from our customers is a result of delivering valuable solutions time and time again. MCO-I has a strong relationship with Chevron Phillips, having supplied many compressor trains to them over the past several years, followed up with superior service after equipment installation. This latest order further establishes MCO-I as a premier supplier for delivering state-of-the-art compression systems that help safeguard petrochemical plant reliability and availability."

We remind, Chevron Singapore Pte. Ltd., which markets the Caltex® retail brand in Singapore, has launched the Caltex Carbon Offset Programme, the first voluntary carbon offset programme for its Caltex service stations in Singapore. Integrated into CaltexGO, Caltex’s mobile payment app, customers enrolled in the Caltex loyalty programme can choose to opt-in and use their loyalty points earned from their fuel purchase to offset a portion of the greenhouse gas (GHG) emissions from the combustion of the fuel purchased when they make payment for their fuel purchases via the CaltexGO app.

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.

mrchub.com

Petronas Carigali Sdn Bhd (PCSB) announced the completion of the transaction for the transfer of its entire ownership in E&P O&M Services Sdn. Bhd. (EPOMS) to Janamurni Sdn. Bhd., said Oilandgastechnology.

EPOMS is wholly owned by E&P Venture Solutions Co. Sdn Bhd (EPVS), a subsidiary of PCSB. Incorporated in 2012, EPOMS provides integrated frontline operations and maintenance services for all floating facilities, including associated flowlines and pipelines, in Malaysia.

EPVS signed the Sale and Purchase Agreement (SPA) on 29 December 2021 with Janamurni Sdn Bhd, which includes the transfer of all EPOMS staff’s employment contracts to the new owner.

The exercise follows PETRONAS’ continuous review of its business portfolio to ensure a better fit in its growth strategy in the increasingly evolving energy landscape.

Petronas remains focused on maintaining a robust portfolio with a healthy and sustainable risk and return profile as it expands into non-traditional businesses, including new energy and renewables, to improve its low carbon profile and advance its sustainability agenda.

We remind, Petronas Hydrogen Sdn Bhd and ENEOS Corporation (ENEOS) have signed a Joint Feasibility Study Agreement (JFSA) to advance the studies for a commercial hydrogen production and conversion project in Kerteh, Terengganu. Petroliam Nasional Bhd (Petronas) said under the JFSA, both parties will pursue detailed technical and commercial feasibility studies for the production of low carbon hydrogen from Petronas’ existing facilities, production of green hydrogen from a new hydro-powered electrolyser facility, and hydrogen conversion into methylcyclohexane (MCH).

As per MRC, Petronas Chemicals Aromatics shut down its paraxylene production facility at Kerteh, Malaysia in February for scheduled maintenance. This production facility with a capacity of 550,000 tonnes of paraxylene per year will be under repair for about 50 days.

Petronas is a Malaysian government-owned oil and gas and petrochemicals company and a Global Fortune 500 company. It currently operates and operates in markets in more than 60 countries.

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