OMV has incident at Austria refinery

OMV has incident at Austria refinery

MOSCOW (MRC) -- OMV informs that a mechanical incident occurred today at the Schwechat refinery which has been undergoing its maintenance turnaround since 19 April 2022, said the company.

Two persons were slightly injured. The incident has damaged the main distillation unit for crude oil. For this reason, the start-up of the refinery will be partially delayed. A review of the extent of the damage and the duration of the shutdown is still underway. We will work closely with our customers and suppliers to mitigate any impact on product availability.

With Group sales revenues of EUR 36 bn and a workforce of around 22,400 employees in 2021, OMV is amongst Austria’s largest listed industrial companies.

In Chemicals & Materials, OMV through its subsidiary Borealis, is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers, and plastics recycling. Together with its two major joint ventures – Borouge (with ADNOC, in the UAE and Singapore) and Baystar™ (with TotalEnergies, in the USA) – Borealis supplies products and services to customers across the globe. OMV’s Refining & Marketing business produces and markets fuels as well as feedstock for the chemical industry, operates three refineries in Europe, and holds a 15% stake in a refining joint venture in the UAE. OMV operates around 2,100 filling stations in ten European countries. In addition, the activities include Gas & Power Eastern Europe where it also operates a gas-fired power plant in Romania. In Exploration & Production, OMV explores and produces oil and gas in the four core regions of Central and Eastern Europe, Middle East and Africa, North Sea, and Asia-Pacific. Average daily production in 2021 included production from a joint venture in Russia and amounted to 486,000 boe/d with a focus on natural gas (~60%). As of March 1, 2022, Russian entities are no longer consolidated. Its activities include Gas Marketing Western Europe, where it also operates gas storage facilities in Austria and Germany.

OMV intends to transition from an integrated oil, gas, and chemicals company to become a leading provider of innovative and sustainable fuels, chemicals, and materials, while taking a leading global role in the circular economy. By switching over to a low-carbon business, OMV is striving to achieve net zero in all three Scopes by 2050 at the latest.

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.

Green investors see positives in plastics votes at Amazon, ExxonMobil

Green investors see positives in plastics votes at Amazon, ExxonMobil

MOSCOW (MRC) -- Advocates for plastics pollution shareholder resolutions see the results of votes this year as a sign of growing investor concern over the issue, pointing to majority and near-majority support for their proposals at companies like Amazon and Phillips 66, said Sustainableplastics.

In late May, for example, 49 percent of Amazon shareholders voted for a resolution asking the online retail giant to detail efforts to cut back on single-use plastics. If you discount company-controlled shares in the vote, it was supported by nearly 60 percent of investors.

Likewise, investors representing 37 percent of ExxonMobil shares backed a call at its May 25 annual meeting to study its financial risks the resin maker faces, if the world moves significantly away from disposable plastics packaging.

That came after 50.4 percent of Phillips 66 shareholders backed a similar resolution in mid-May. Green shareholder groups said they put new focus on plastic resin firms this year, after the release of the Minderoo Foundation's Plastic Waste Makers Index identified the companies who are the biggest suppliers of plastic to single-use packaging markets.

As per MRC, ExxonMobil has made three new discoveries offshore Guyana and increased its estimate of the recoverable resource for the Stabroek Block to nearly 11 billion oil-equivalent barrels. The three discoveries are southeast of the Liza and Payara developments and bring to five the discoveries made by ExxonMobil in Guyana in 2022.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.

LUKOIL will develop the network of Shell filling stations in Russia under the Finnish brand Teboil

LUKOIL will develop the network of Shell filling stations in Russia under the Finnish brand Teboil

MOSCOW (MRC) -- LUKOIL will develop a network of Shell filling stations in Russia under the Finnish brand Teboil, the oil company said in a statement.

Following extensive discussions with the leaders and employees of Shell's filling station network in Russia, acquired by LUKOIL last month, the decision was made to preserve the business as a separate subsidiary of the Company. It will develop under Teboil brand – a fuel brand that had not previously been present in the Russian market. The brand belongs to LUKOIL since 2005. The Company has already embarked upon a step-by-step rebranding of the filling stations.

Teboil was founded in Finland in 1934. It is one of the largest Finnish fuel businesses. Russian customers know the brand as the supplier of lubricants. Their imports date back to the 1960s. Now Russian market features about 150 high-quality Teboil products.

Teboil filling stations will offer new branded types of innovative fuels, as well as its own loyalty programme, integrated with LUKOIL's one. Teboil Russia team will be led by the former head of Shell filling stations in Russia, Vitaly Maslov.

The lubricants plant located in Tver region, which Shell also sold to LUKOIL, will manufacture Teboil-branded products as well.

?"We are happy to have this opportunity to keep the trust of our clients and continue our work under the new Teboil brand, especially taking into account the high standards of service. LUKOIL has the most high-tech refineries in Russia, as well as innovative high-quality products. It opens up a lot of new development opportunities," said Vitaly Maslov, general director of Teboil Russia.

We remind, LUKOIL has completed the acquisition of Shell's Russian distribution and lubricants assets following its withdrawal from Russia. The gas distributor GasTerra has decided not to comply with Gazprom's unilateral payment demands. In response to GasTerra's decision, Gazprom declared to cease gas supply with effect from May 31, 2022.

Agilyx is rising to the mixed waste plastic challenge

Agilyx is rising to the mixed waste plastic challenge

MOSCOW (MRC) -- Agilyx is rising to the mixed waste plastic challenge, said Sustainableplastics.

Faced with the ever-mounting problem of plastic waste, consumers, organisations and governments around the world have called for industry solutions. While recycling can offer an answer, not all plastics can simply be recycled. And in fact, only around 10% of waste plastics are recycled today worldwide. Chemical recycling company Agilyx is working to change that. “We're trying to do something about a waste problem,” said the company’s chief commercial officer, Carsten Larsen. “To enable a circular model that allows plastic to be used and recycled, again and again."

Founded almost two decades ago, Agilyx can rightly be viewed as one of the pioneers of what today is known as chemical - or alternatively as advanced, feedstock or even molecular – recycling. Chemical recycling makes it possible to convert even hard-to-recycle mixed waste plastics into low-carbon feedstock that can be used to make new raw materials that can be turned into plastics.

While the premise is extremely promising, in practice there are still hurdles to be overcome. The technology developed by Agilyx involves a process called pyrolysis and is not entirely uncontroversial. Environmental groups have denounced it, calling it polluting, energy intensive and even just a fancy way of saying that these waste streams are simply being incinerated. Proponents, on the other hand, point to the advantages it offers, particularly the ability to increase the recycling of plastics unable to be recycled with traditional recycling processes.

As per MRC, Agilyx announced that the construction phase of the Toyo Styrene Co, LTD polystyrene (PS) chemical recycling facility has begun in Chiba, Japan. Agilyx and Toyo Styrene Co. have started construction on a chemical recycling plant in Japan. The facility ultimately will have the capacity to recycle 10 tonnes of post-use polystyrene per day.

PKN Orlen, Lotos managements approve merger plan

PKN Orlen, Lotos managements approve merger plan

MOSCOW (MRC) -- Poland's biggest oil refiner PKN Orlen (PKN.WA) and number two player Grupa Lotos (LTSP.WA) said their management boards had approved plans for a merger first announced in 2018 but delayed by antitrust issues, said Reuters.

In exchange for shares held in Grupa LOTOS, its existing shareholders will receive shares in the enlarged PKN ORLEN. The transaction is subject to approval of the share exchange ratio and other terms of the merger by shareholders of both companies at their respective general meetings. Once the process is carried through, it will lead to the creation of a strong multi-utility group pursuing capital projects aimed to strengthen Poland’s energy security and its independence in terms of feedstock supplies.

“Poland’s energy security as the driving force behind the country’s economic growth is for us a priority goal. This is why we are setting out to build a strong integrated group with well diversified revenue sources, resilient to the highly volatile macroeconomic environment. As was the case with our previous acquisitions, we intend to enhance the LOTOS post-merger value by leveraging the strengths of both combined entities. The strong partner we have secured for the process, being a global petrochemical leader and the world’s largest oil producer, will provide added support. As a result, we will modernise and further develop our business, strengthening its resilience to the increasingly volatile market environment and driving sustainable value creation for our shareholders, retail customers and local communities,” says Daniel Obajtek, President of the PKN ORLEN Management Board.

The agreed share exchange ratio, as well as the final detailed concept of the merger, were the subject of analyses by international consulting firms. The merger will be effected through the acquisition of Grupa LOTOS S.A. by PKN ORLEN S.A. This means that, upon the acquisition, the existing shareholders of Grupa LOTOS will take up new shares in the increased share capital of PKN ORLEN and become the latter’s shareholders. As a result of the merger between PKN ORLEN and Grupa LOTOS, the Polish State Treasury’s equity interest in the combined entity will increase to approximately 35%. Assuming a subsequent merger with PGNiG, this stake will increase to about 50%, meaning that the state’s control over the newly formed multi-utility group will be further reinforced.

According to the merger plan, shareholders of Grupa LOTOS will receive merger shares in the following proportions: 1,075 (PKN ORLEN shares): 1 (Grupa LOTOS shares). In other words, in exchange for one share in Grupa LOTOS its shareholders will receive 1,075 shares in PKN ORLEN, with the reservation that the number of allocated shares must be a natural number, and so any unallocated fractions of merger shares will be settled in cash, to be paid to the existing shareholders of Grupa LOTOS in accordance with the merger plan.

The proposed acquisition is the simplest and quickest solution possible for this transaction, which will enable swift and complete integration of the assets and businesses. The adopted transaction structure will also ensure liquidity for the new group, enabling effective continuation of the existing projects and investment in other promising business areas.

The merger of PKN ORLEN and Grupa LOTOS is an important step in building a strong and diversified multi-utility group. The ongoing energy transition poses a huge challenge for oil and energy companies as it involves a gradual shift away from hydrocarbons and conventional fuels towards new and more sustainable energy sources. The combined entity to be formed based on the assets of PKN ORLEN, the Energa Group, Grupa LOTOS and PGNiG will be the largest company in Central and Eastern Europe, capable of facing the challenges of energy transition and implementing the most ambitious projects.

As it was written earlier, PKN Orlen is exploring ways to produce polymers using carbon dioxide. New technology to capture, store, reuse or replace carbon pollution is being explored around the world, with some companies working on methods of converting the greenhouse gas into products such as plastic, soap, or fabric.

Under its 2030 strategy, Orlen plans to reduce CO2 emissions from existing refining and petrochemical assets by 20% and by 33% from its power generation business. It has also set a 2050 target date for achieving a net zero carbon footprint.

PKN ORLEN is a Polish company and one of Central Europe’s largest refiners of crude oil. We specialize in processing crude oil into world-class unleaded petrol, diesel, heating oil, and aviation fuel as well as plastics and other petroleum related products.