MRC) -- Viva Energy said its board has given the go-ahead for a AD300 MM (USD224 mln) upgrade of its Australian refinery, with more than a third of the cost to be provided by the Australian government, said Hydrocarbonprocessing.
The upgrade is needed so Viva can produce ultra-low sulfur gasoline at its refinery near Melbourne, as agreed with the government last year under a USD1.8 B aid package to keep the country's two remaining refineries open at least until 2028. The government confirmed it would provide AD125 MM each to Viva and Ampol Ltd to revamp their refineries to start producing the cleaner gasoline by 2024.
Prime Minister Scott Morrison highlighted that saving the refineries protected 1,250 jobs and supported the creation of 500 construction jobs for refinery upgrades. He also said keeping the refineries open was essential to protect the country from supply chain disruptions such as from COVID-19, Russia's invasion of Ukraine, and China's curbing of urea exports.
Separately, Viva said it would buy chemicals maker LyondellBasell's Australian arm for up to AD40 MM paid over six years.
LyondellBasell Australia is the country's only producer of polypropylene, which is used to produce a range of plastic products from food packaging to bank notes.
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.
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