OMV takes Q1 hit of EUR2 bln from Russia business

Austrian oil, gas and petrochemicals major OMV saw key petrochemical margins shrink quarter on quarter in Q1, said Reuters.

Ethylene, propylene, polyethylene (PE) and polypropylene (PP) margins all fell, compared with Q4 2021. However, with the exception of PE, margins improved year on year. Meanwhile, OMV’s refining indicator margin improved to USD9.75/bbl - from USD6.25/bbl in Q4 and USD1.68/bbl in Q1 2021.

However, positive impacts from higher refining margins were more than offset by higher utilities costs and crude differentials, the company said.

OMV’s total production of oil, natural gas liquids (NGL) and natural gas averaged 457,000 barrel of oil equivalent (BOE)/day in Q1 – down from 491,000 in Q4 and from 495,000 in Q1 2021.

OMV also advised of write-downs totaling EUR2bn on investments in Russia’s Yuzhno Russkoye gas field and the stalled Nord Stream 2 natural gas pipeline project from Russia to Germany. OMV is due to publish its Q1 results on 29 April.

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.
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MRC) -- Cyclyx International has announced that NOVA Chemicals has joined as the newest member of the consortium, according to Hydrocarbonprocessing.

NOVA Chemicals develops and manufactures chemicals and plastic resins that make everyday life healthier and safer. With a focus on sustainability, NOVA Chemicals works toward polyethylene (PE) solutions that enable a more circular economy for plastics. Through its membership in Cyclyx, NOVA Chemicals will continue its work to utilize more post-use plastics in its feedstock supply chain.

“NOVA Chemicals has a bold ambition to create a plastics circular economy and work collaboratively toward a low carbon, zero plastic waste future. Joining the Cyclyx consortium provides us with greater supply reliability, accelerating our ability to meet the demands of consumers for high-quality products made with post-consumer resin,” said Greg DeKunder, VP Polyethylene Marketing and Circular Economy.

As MRC reported earlier, 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

Rohm (Darmstadt, Germany) is further driving the growth of the company by the additional expansion of capacities for impact-resistant PLEXIGLAS, the brand polymethyl methacrylate (PMMA) from Rohm, said Chemengonline.

A new section is currently being added to a plant producing impact-resistant PLEXIGLAS Resist special molding compounds in Worms. The plant is scheduled to commence production as early as June 2022. “As a reliable partner to clients around the globe, we will be able to guarantee the best possible delivery reliability and flexibility”, believes Chief Operations Officer (COO) Hans-Peter Hauck. Thanks to a modular concept, further potential expansion stages are also planned.

There is especially strong demand for PLEXIGLAS® Resist molding compounds from Rohm in the automotive, construction and lighting industries; they are also used in many household appliance applications. “By expanding our capacity, we are responding to the persistently high demand for impact-resistant materials,” says Siamak Djafarian, Senior Vice President Business Unit Molding Compounds. Impact-resistant PLEXIGLAS is particularly well-suited for applications requiring durability, UV and weather resistance as well as higher impact strength.

As per MRC, Rohm (Darmstadt, Germany) intends to further expand its technology leadership. In future, around 100 scientists of the chemical company will work on the development of new products and processes under one roof. “By pooling our research activity at the biggest production site we have anywhere in the world, Rohm is set to expand on its leading market position,” says Michael Pack, Chief Executive Officer of Rohm. The construction site is currently under preparation, with completion scheduled for early 2023.

As MRC informed previously, Rohm carried out a scheduled turnaround in September 2021 of its methacrylate monomers plant at Worms, Germany. No specific date or duration for the planned maintenance program was given. The company announced in early January a series of scheduled shutdowns for four of its methyl methacrylate (MMA) and methacrylate monomer facilities in the first half of 2021, including one planned for 10–22 March also at its Worms plant. The other plants planned for turnaround in the first six months of the year are in Wesseling, Germany; Shanghai, China; and Fortier, Louisiana.

The principal application, consuming approximately 75% of the MMA, is the manufacture of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used for the production of the co-polymer methyl methacrylate-butadiene-styrene (MBS), used as a modifier for polyvinyl chloride (PVC).

With 3,500 employees and 15 production sites worldwide, Rohm is one of the world’s leading manufacturers in the methacrylate business. The medium-sized company with branches in Germany, China, the USA, Russia, and South Africa has more than 80 years of experience in methacrylate chemistry and a strong technology platform. Our best-known brands include PLEXIGLAS®, ACRYLITE®, MERACRYL™, DEGALAN®, DEGAROUTE® and CYROLITE.

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SIBUR, Russia's largest petrochemical producer, plans to revise its strategy for developing the Amur Gas Chemical Complex (AGCC) with Sinopec, said Hydrocarbonprocessing.

The company reported that a decision on the matter would be made soon. Sources told Reuters in March that the state-run Sinopec Group had suspended talks on a major petrochemical investment and a gas marketing venture in Russia.

AGCC is set to be one of the world's largest polymer production facilities. Upon completion, the project will have a capacity of 2.3 MMtpy of polyethylene and 400 ktpy of polypropylene.

The facility is to be located near Svobodny town in the Amur Region, close to the Russian-Chinese border. Due to the location, the products were to be aimed toward Asian markets, mainly China, which is the global leader in the consumption of polymers.

The original completion of construction and commissioning of the project is scheduled for 2024.

We remind, ZapSibNeftekhim becomes first in Russia to produce maleic anhydride. The new MAN facility located at ZapSibNeftekhim in Tobolsk produced its first tonnes of commercial MAN. In late March, it was presented to Russian manufacturers of construction materials and fuel components for homologation.

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.
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MRC) -- Negotiators from Chevron Corp and the United Steelworkers union (USW) are scheduled to meet to discuss a possible end to a strike at the company’s oil refinery in Richmond, California, reported Reuters with reference to spokes people from both sides.

The talks will be the first face-to-face meeting in nearly two weeks between Chevron and USW Local 12-5. Some 500 workers at the 245,271 bpd refinery formally began the strike on March 21 after the two sides failed to reach agreement on a new labor contract.

As MRC reported earlier, Chevron plans to begin an overhaul of the crude distillation unit (CDU) at its 245,271-bpd Richmond, California, refinery in mid-April, 2022. Chevron spokesman Tyler Kruzich declined to comment on day-to-day operations. Chevron will shut the 240,000-bpd CDU for the overhaul. The CDU breaks down crude oil into hydrocarbon feedstocks for all other units at the refinery.

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