Neste completes divestment of base oils business to Chevron

Neste completes divestment of base oils business to Chevron

MRC) -- Neste Corporation announced that it had signed an agreement to sell its existing base oils business to Chevron Global Energy, a wholly owned subsidiary of Chevron Corporation, said Hydrocarbonprocessing.

The transaction includes the NEXBASE brand, associated qualifications and approvals, and related sales and marketing business. As part of the divestment, the parties also agreed on a long-term offtake for Neste’s base oils supply from Porvoo, Finland. With the same date, Neste signed an agreement to exit its base oils JV with Bahrain Petroleum Company and Nogaholding.

The transaction has been approved by regulatory authorities, and has been completed on April 1, 2022.

As per MRC, Neste has replaced most of its Russian crude oil purchases with other crudes such as North Sea oil due to the crisis in Ukraine. Previously the Finnish refiner purchased from Russia some two-thirds of the crude oil it uses.

As MRC wrote before, 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.

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.
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S.Korean naphtha importers to stop buying from Russia

S.Korean naphtha importers to stop buying from Russia

South Korean naphtha cracker operators are expected to stop importing Russian petrochemical products after deliveries from existing contracts are completed, two industry sources told Reuters.

The country's naphtha cracker operators will not sign any new contracts for Russian products and are working to diversify to other sources such as U.S. and India, the sources said, declining to be identified as they are not authorized to speak to media.

"Companies are unwilling to take the risk of trying to bring in Russian products after sanctions by the U.S. and others, when import and export processes could fall apart on any one of many points such as financial, insurance and shipping," said one of the sources.

South Korean naphtha cracker operators had already flagged the possibility of seeking alternative supplies beside Russian petrochemical products, after Western countries imposed aggressive sanctions on Moscow following the invasion of Ukraine.

As per MRC, Clariant announced that it will suspend business with Russia in response to the Russian state’s intolerable acts of violence in Ukraine with immediate effect. Clariant’s operations in Russia include a sales office and a laboratory in Moscow and contribute approximately 2% to the company’s annual sales.

Honeywell has substantially suspended sales, distribution and service activities in Russia and Belarus. The company prioritizes the safety and security of the employees and partners in the region and responding to their immediate needs.

Solvay has decided to suspend its operations and new investments in Russia. Further, Solvay will suspend dividend payments from Rusvinyl, an independent 50:50 joint venture in Russia.
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MOL and HELM join forces on marketing of propylene glycols in Western Europe and overseas markets

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

SPEC Energy DMCC to use range of Honeywell UOP technologies at its refinery in Pakistan

SPEC Energy DMCC to use range of Honeywell UOP technologies at its refinery in Pakistan

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 completes restructuring of Korea engineering plastics JV with Mitsubishi Gas Chemical

Celanese completes restructuring of Korea engineering plastics JV with Mitsubishi Gas Chemical

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