Neste to acquire Walco Foods to strengthen its renewable raw material sourcing

Neste to acquire Walco Foods to strengthen its renewable raw material sourcing

MOSCOW (MRC) -- Neste, the world's leading producer of renewable diesel and sustainable aviation fuel produced from waste and residue raw materials, has agreed to acquire 100% of Walco Foods, an Irish trader of animal fats, said Hydrocarbonprocessing.

The transaction is subject to the fulfillment of customary closing conditions and regulatory approval. “This is another important step for Neste in the execution of our growth strategy. With this acquisition we continue to build a global waste and residue raw material platform and add trading capabilities in Ireland,” says Matti Lehmus, President and CEO of Neste.

Together with the previously announced acquisitions of IH Demeter, Bunge Loders Croklaan and Count Terminal in the Netherlands, and Mahoney Environmental and Agri Trading in the United States, Walco Foods will enhance Neste’s supply of global waste and residue raw materials.

Walco Foods was established in 1996 as a family-run business. The in-depth knowledge and market understanding developed over the years has helped Walco Foods become a leading animal fat and by-products trading company in Ireland.

Neste refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. This is possible thanks to its proprietary NEXBTL technology – a platform that allows the company to turn a wide variety of renewable waste and residues and oils into premium fuels and other products.

As per MRC, Technip Energies has been awarded a significant contract by Neste for the expansion of their renewable products production capacity in Rotterdam, the Netherlands, as part of the existing Partnership Agreement between Technip Energies and Neste. The contract covers Engineering, Procurement services and Construction management (EPsCm) for the expansion of Neste’s existing renewables refinery in Rotterdam which will increase Neste’s overall renewable product capacity by 1.3 MMtpy.
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Shell USA and Shell Midstream Partners reach a definitive merger agreement

Shell USA and Shell Midstream Partners reach a definitive merger agreement

MOSCOW (MRC) -- Shell USA and Shell Midstream Partners announced they have executed a definitive agreement and plan of merger pursuant to which Shell USA will acquire all of the common units representing limited partner interests in SHLX held by the public at USD15.85 per Public Common Unit in cash for a total value of approximately USD1.96 bn, said Hydrocarbonprocessing.

A subsidiary of Shell USA currently owns 269,457,304 SHLX common units, or approximately 68.5% of SHLX common units. SHLX’s assets include interests in entities that own crude oil and refined products pipelines and terminals that serve as key infrastructure to transport onshore and offshore crude oil production to U.S. Gulf Coast and Midwest refining markets and deliver refined products from those markets to major demand centers, as well as storage tanks and financing receivables that are secured by pipelines, storage tanks, docks, truck and rail racks and other infrastructure used to stage and transport intermediate and finished products. Its assets also include interests in entities that own natural gas and refinery gas pipelines that transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the U.S. Gulf Coast.

The Board of Directors of Shell Midstream Partners GP LLC, the general partner of SHLX delegated to a conflicts committee of the SHLX Board consisting solely of independent directors, the review, evaluation, negotiation and determination of whether to approve and to recommend that the SHLX Board approve the Transaction. The Conflicts Committee, after evaluating the Transaction in consultation with its independent legal and financial advisors, unanimously approved and recommended that the SHLX Board approve the Transaction. Following receipt of the recommendation of the Conflicts Committee, the SHLX Board reviewed the terms of the Transaction and the Merger Agreement, and unanimously approved the Transaction.

The Transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions. A subsidiary of Shell USA, as the holder of a majority of the outstanding SHLX common units, has delivered its consent to approve the Transaction concurrently with the execution of the Merger Agreement. As a result, SHLX has not solicited and is not soliciting approval of the Transaction by any other holders of SHLX common units.

As per MRC, Shell said surging demand for oil products that had almost tripled refining profits in the second quarter would boost earnings by up to USD1.2 bn. In an update before second quarter results on July 28, Shell also said it would reverse up to USD4.5 B in writedowns on oil and gas assets after it raised its energy prices outlook following Russia's invasion of Ukraine. Earnings from oil and refined products trading were expected to be strong in the quarter but lower than the first quarter of 2022, Shell said.
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PPG reports second quarter 2022 financial results

PPG reports second quarter 2022 financial results

MOSCOW (MRC) -- PPG reported financial results for the second quarter 2022, said the company.

PPG Industries reported second-quarter net income up 3% year-on-year (YOY), to USD443 million, on net sales up 8%, to USD4.69 billion. Adjusted earnings totaled $1.81/share, down 7% YOY and ahead of analysts’ consensus estimate of USD1.73/share. But sales volumes were down 4%.

"Our sales growth was achieved despite softening consumer demand in Europe, significant COVID-19-related demand disruptions in China and unfavorable currency translation,” says PPG chairman and CEO Michael McGarry. “Our strong selling price realization fully offset persistent cost inflation during the second quarter, leading to higher sequential operating margins compared to the first quarter. Although still somewhat challenging, raw material and logistics availability improved throughout the quarter, and we are already experiencing further improvement in the third quarter."

PPG expects demand to be broadly solid for the balance of the year, with industrial production rising in Asia and continued strong demand in North America. Europe is expected to be a soft spot, however. The company also expects to benefit from supply deficits and low inventories in the automotive OEM and aerospace markets.

As per MRC, PPG announced that it will feature its recently acquired Vanberg Specialized Coatings line of agriculturally focused protective coatings and repair mortars at the World Pork Expo, June 8-10, 2022, at the Iowa State Fairgrounds in Des Moines. PPG added the Vanberg product portfolio as part of its acquisition of VersaFlex Inc. in February 2021. For 33 years, Vanberg coatings have provided long-lasting, cost-effective restoration and protection of concrete and metal surfaces in pork production facilities.
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Air Products announces USD15bn clean energy investment

Air Products announces USD15bn clean energy investment

MOSCOW (MRC) -- Air Products will spend or commit at least $4bn in additional new capital to support the clean energy transition over the next five years, bringing its total commitment to first-mover projects to USD15bn by 2027, said the company.

The industrial gas company today (25th July) made the pledge as part of its newly published ‘Third by 30’ carbon dioxide (CO2) emissions intensity goal for Scope 3 emissions, an addition to its existing Scope 1 and 2 goal to reach Net Zero from its operations by 2050.

In order to reach its ambitious targets, Air Products has identified tangible transition plans for new investments and modifications of existing company assets, including low- and zero- carbon hydrogen and carbon capture technologies.

Seifi Ghasemi, Chairman, President and CEO of Air Products, said, “These commitments complement the reinforce our growth strategy of building our business to deliver climate benefits and work alongside our customers on their sustainability journey."

“Air Products is uniquely positioned to bring together its portfolio of technologies and legacy of experience to ensure the future climate benefits generated by our first-mover projects come online at a crucial moment in the energy transition."

“We continue to see significant opportunities for hydrogen and carbon capture technologies, and our industry-leading USD15bn capital commitment is further demonstration of sustainability being at the heart of our business and growth."

It was in September 2020 when the US-based firm first launched its sustainability goal to reduce its CO2 emissions intensity by one-third by the year 2030 from a 2015 baseline – and ever since sustainability has been at the heart of its commitments.

As per MRC, Air Liquide invested and will operate its first biomethane production unit in China by the end of 2022. Located in Huai’an City, in the Jiangsu Province, the unit will have a production capacity of 75 GWh per year. This project demonstrates a circular economy and low-carbon approach, in line with the Group’s Sustainable Objectives and strategic plan, ADVANCE.
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Russia to cut Nord Stream gas flow

Russia to cut Nord Stream gas flow

MOSCOW (MRC) -- Russia is once again sharply reducing the flow of piped gas to Germany, reminding Europe of the daunting challenge the continent faces to build up its energy stockpiles before winter, said Bloomberg.

Gazprom PSJC will cut shipments on the Nord Stream pipeline -- the main gas link to the European Union -- to about 20% of its capacity from 7 a.m. Moscow time on Wednesday, the Russian gas giant said in a statement. Maintenance issues with a turbine that helps pump gas into the link are behind the curbs, it said.

Russia is once again sharply reducing the flow of piped gas to Germany, reminding Europe of the daunting challenge the continent faces to build up its energy stockpiles before winter.

Gazprom PSJC will cut shipments on the Nord Stream pipeline -- the main gas link to the European Union -- to about 20% of its capacity from 7 a.m. Moscow time on Wednesday, the Russian gas giant said in a statement. Maintenance issues with a turbine that helps pump gas into the link are behind the curbs, it said.

As per MRC, Gazprom has told customers in Europe it cannot guarantee gas supplies because of 'extraordinary' circumstances. The July 14 letter from the Russian state gas monopoly said it was retroactively declaring force majeure on supplies dating from June 14. The news comes as Nord Stream 1, the key pipeline delivering Russian gas to Germany and beyond, is undergoing annual maintenance meant to conclude on Thursday. The letter added to Europe's fears that Moscow could keep the pipeline mothballed in retaliation for sanctions imposed on Russia over the war in Ukraine, heightening an energy crisis that risks tipping the region into recession.
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