Brenntag extends contract with CEO Christian Kohlpaintner ahead of schedule

MOSCOW (MRC) -- Christian Kohlpaintner will remain the Chief Executive Officer of Brenntag SE, the global market leader in chemicals and ingredients distribution, until the end of 2025, as per the company's press release.

The Supervisory Board has decided to extend the contract by three years, ahead of schedule, thus setting the course for continuity in the ongoing corporate transformation that has been initiated under the leadership of Christian Kohlpaintner.

Doreen Nowotne, Chairwoman of the Supervisory Board of Brenntag SE: “The Supervisory Board is very pleased to continue the successful cooperation with Christian Kohlpaintner. Over the past two years, he has profoundly changed and repositioned Brenntag SE. He has prudently guided the company through this challenging period and at the same time laid the foundation for further, sustainable growth with Project Brenntag. The transformation he initiated and further developed together with the Board of Management team and the entire organization will leverage the company's great potential and further expand Brenntag's global market leadership in all dimensions.”

As MRC reported earlier, last summer, Brenntag acquired all operating assets and business of Matrix Chemical, LLC. The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021.

Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 7,800 tonnes in January 2022, down by 4% year on year (8,100 tonnes a year earlier).

BCD Chemie, a Brenntag Group company, is headquartered in Hamburg, Germany. It focuses on the pan-European marketing of industrial and performance chemicals. As a link between manufacturers of high-quality chemical raw materials and users from many industries, BCD Chemie provides B2B sales solutions for a wide range of industries and applications. Profound market knowledge, competent product and application consulting as well as comprehensive expertise in chemical-technical and market-analytical contexts form the basis of its philosophy of modern chemical distribution.
MRC

MOSCOW (MRC) -- Cyclyx International and its members is introducing its mission brand, 10 to 90, and associated 10 to 90 Challenge. The 10 to 90 Challenge is a series of new takeback and engagement programs designed to divert more low-quality waste plastics away from landfill and into the Cyclyx system, where those waste plastics can be recycled with the ultimate goal to increase recycling rates of plastics from 10% to 90%, according to Hydrocarbonprocessing.

Cyclyx, in collaboration with its members, plans to bring to market a series of innovations that enable more recycling options for low quality waste plastics that currently do not get recycled. Internationally, only 10% of all plastics produced annually are recycled with the rest ending up in landfills, the environment or incinerators. Cyclyx is working to find ways to get this waste plastic out of the trash bins and into the Cyclyx system for Cyclyx and its members to recycle those low quality plastics in an effort to raise the recycling rates of plastic from 10% to 90%.

The 10 to 90 brand will introduce a set of takeback programs, education, rewards and engagement tools, sponsored by the Cyclyx consortium companies, designed to incent small changes of behavior at home to increase the amount of waste plastics diverted from landfills and into the Cyclyx supply chain. Those waste plastics can then be recycled to a range of products by consortium members.

This new approach has the potential to help greatly expand the range of plastic waste that society recycles, including materials not commonly accepted by traditional recyclers due to poor quality, contamination levels or the chemical complexity of the waste.

The brand’s associated 10 to 90 Challenge is a call to action for individuals within select geographic areas to help increase their local plastic recycling rate to upwards of 90% from the average of 10%. The Challenge will be rolled out in collaboration with municipalities, retail establishments, corporations and universities in an effort to help drive scalable, community-focused solutions that accelerate plastic recycling, locally in the short term with a goal to impact global recycling rates in the long term.

As MRC wrote before, Cyclyx International is in plans to start up first-of-its-kind plastic recovery facility on the Gulf Coast in late 2022.

We remind that in August 2021, Cyclyx International announced that LyondellBasell had joined Cyclyx as a founding member. LyondellBasell, one of the world’s largest producers of plastics and chemicals, is a leader in the effort to help advance the circular economy and has pledged to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030.

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, whereas shipments of PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) -- The second largest Russian oil refiner, Lukoil, is considering shutting down the plants. The company has a shortage of fuel oil storage capacities against the backdrop of already imposed sanctions, said Kommersant.

The company pointed out that as a result of the sanctions, "there was a sharp decrease in the volume of shipment of fuel oil in processing and, as a result, the formation of an excess of this fuel in storage facilities."

According to the head and co-owner of Lukoil, Vagit Alekperov, the storage facilities are full of fuel oil, which may lead to a shutdown of the refinery and a decrease in fuel production. To solve this problem, the company proposed sending fuel oil to thermal power plants and canceling high fines for harm to the environment.

A similar situation has developed with oil gas. It accumulates because there is no impossibility to sell liquefied hydrocarbon gases abroad.

In total, Lukoil has four refineries in Russia. In 2021, the company processed about 43 million tons of oil. At the same time, tanks at refineries and oil depots are limited - not all containers are suitable for storing fuel oil, because heaters and additional thermal insulation must be used.

As per MRC, Lukoil entered into an agreement to acquire a 50% operator interest in the Area 4 offshore project in Mexico through the acquisition of the operator's holding company.

It was also reported that Lukoil plans to invest about USD3 billion in petrochemical projects in the next 6 years, V. Alekperova also told reporters in June. At the same time, the company does not plan to adopt a separate petrochemical strategy, he said then.

Lukoil is one of the leading vertically integrated oil companies in Russia. The main activities of the company include operations for the exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest privately-owned oil company in the world in terms of proven hydrocarbon reserves. The structure of Lukoil includes one of the largest petrochemical enterprises in Russia - Stavrolen.

mrchub.com

MOSCOW (MRC) -- Energy consultant Adriano Pires has backed out of the Brazilian government's nomination for him to take the helm at Petrobras, the country's Mines and Energy Ministry said on Monday, in the latest blow to succession plans at the state-run oil company, reported Reuters.

"It was clear to me that I could not reconcile my consulting work with the exercise of Petrobras' command," Pires wrote in a letter published by the ministry on its website.

Pires' decision to turn down the chief executive job came a day after soccer magnate Rodolfo Landim declined a nomination to chair the board of Petroleo Brasileiro SA, as the company is formally known.

Pires had been tapped by Brazilian President Jair Bolsonaro to take over as the top executive of Petrobras on March 28, following disagreements between the far-right leader and current CEO Joaquim Silva e Luna over the company's fuel pricing policy.

The government will now need to find suitable replacements for the two top spots at Petrobras just days before the company's April 13 annual shareholders' meeting.

As MRC informed before, in early February, 2022, Brazil’s state-owned oil company Petrobras and Novonor (formerly Odebrecht) cancelled in “mutual agreement” its plans to sell its stake in Braskem. The announcement came after both companies declared that potential buyers did not meet expectations, without providing any further details on the matter.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

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, whereas shipments of PP random copolymers decreased significantly.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) --Baker Hughes and Saudi Arabia's state-owned Dussur have agreed to form a JV focused on providing oilfield services and industrial chemicals in the country, said Hydrocarbonprocessing.

Texas-based oilfield services provider Baker Hughes will hold 51% of the JV under the agreement that is expected to close in the 3Q. Dussur, or Saudi Arabian Industrial Investments Company, is owned by the nation's sovereign wealth fund (PIF), oil company Saudi Aramco and SABIC, the world's fourth-biggest petrochemicals firm.

The JV will continue to operate under the Baker Hughes brand and its manufacturing facility in Jubail city will supply chemicals focused on the needs of Saudi Arabia.

In 2020, Baker Hughes formed a JV called Novel with Saudi Aramco to develop non-metallic products for multiple applications in the energy sector.

As MRC informed previously, in January 2022, ExxonMobil and SABIC announced the successful startup of Gulf Coast Growth Ventures world-scale manufacturing facility in San Patricio County, Texas. The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants. The operation includes a 1.8 MM metric tpy ethane steam cracker, two polyethylene (PE) units capable of producing up to 1.3 MM metric tpy, and a monoethylene glycol (MEG) unit with a capacity of 1.1 MM metric tpy.

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.

mrchub.com