Indian Oil to achieve Net Zero by 2046

Indian Oil Corporation (IOC), the country's largest fuel retailer, announced it will achieve Net Zero operational emissions by 2046 and invest over Rs 2 lakh crore to meet this target, said Indiatimes.

IOC Chairman Shrikant Madhav Vaidya made the announcement today during the Company’s 63rd Annual General Meeting. The year 2046 coincides with India completing 99 years of independence and the celebration of its 100th Independence Day.

"As we embark on the net-zero journey in the right earnest, we already have a well-crafted blueprint in place. It adopts a multi-pronged approach to take us gradually towards the net zero destination. We have envisaged an investment of over Rs 2 lakh crore will be required to achieve the target by the year 2046," Vaidya said.

He added the company has been pursuing a green agenda to steer the country’s green energy transition and is already working on emission mitigation pathwayslike green hydrogen, biofuels, renewables, carbon offsetting through ecosystem restoration and Carbon Capture Utilisation and Storage (CCUS).

Currently, IndianOil's Green House Gas (GHG) emission, emanating majorly from the company’s refining operations, stands around 21.5 million metric tonnes of carbon dioxide equivalent (MMTCO2e) per annum.

We remind, Chennai Petroleum Corporation Ltd, (CPCL), belonging to Indian Oil Corporation Ltd, said on August 23 its board of directors has approved the proposal for the formation of a joint venture company for implementing the refinery and petrochemical complex. The nine million tonne per annum (MTPA) refinery project at Cauvery Basin Refinery, Nagapattinam district, Tamil Nadu, is being set up at an estimated investment of Rs 31,580 crore.
The investors include Chennai Petroleum Corporation, Indian Oil Corporation and other seed equity investors, namely Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company.

Indian Oil Corporation (IOC) is an Indian state oil and gas corporation headquartered in New Delhi.
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Kumho Petrochemical has announced a major investment initiative which will see the South Korean group pumping KRW6,000 billion (EUR5.5 billion) into existing and new businesses over the next five years, said European-rubber-journal.

As part of the initiative, Kumho will invest KRW3,300 billion in its ‘core business areas’, which includes nitrile butadiene latex (NB latex) production and styrene solution butadiene rubber (SSBR) manufacturing.

The group aims to expand NB latex production, a key material for rubber gloves, in order to maintain its ‘top global position’, said the Seoul-based supplier in a recent statement.

“As the global hygiene concept is continuously strengthened, latex gloves are expected to become a representative medical and hygiene product along with masks,” Kumho said. The group said the investment will go towards filling a “gap in the technology and production capacity” of the material.

Furthermore, the initiative will involve investments within Kumho’s SSBR operations as it targets No.1 position in Asia. In addition to SSBR capabilities, Kumho said it would also invest in its ‘fine chemical products’ such as synthetic rubber antioxidants and vulcanisation accelerators.

“We are discussing detailed strategies to strengthen global competitiveness, and are devising strategies to maximise profitability,” it added. The Seoul company did not provide further details for the planned investments, but the announcement comes after a series of expansion projects introduced last year.

In June last year, Kumho unveiled an ‘aggressive EUR190-million investment’ in a new nitrile rubber latex plant at its Ulsan petrochemical complex.

Later in the year, the group announced that it is "more than doubling" its SSBR production capacity from 63 kilotonnes per annum (ktpa) to 123ktpa by the end of 2022.

The Korean supplier is also considering a KRW2,700 billion investment in “future growth engines” such as carbon nanotubes, for secondary battery materials, and engineering plastics for electric vehicles. It also plans to respond to the rapidly changing industry trends by promoting digitalisation across its operations.
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INEOS Phenol has announced that it has agreed to acquire the entire asset base of Mitsui Phenols Singapore Ltd from Mitsui Chemicals, a leading Japanese chemicals manufacturer, for a total consideration of USD330 million, said the company.

The business has a turnover of USD750 million and produces over 1 million tonnes of product each year, including cumene (410 ktpa), phenol (310 ktpa), acetone (185 ktpa) alpha-methylstyrene (20 ktpa) and bisphenol A (150 ktpa).

The addition of the Jurong phenol and BPA assets provide a good fit with our existing asset portfolio and expertise of INEOS Phenol and presents significant integration opportunities with our manufacturing sites in Germany, Belgium and the United States.

Cumene is an essential raw material for the production of phenol, acetone, alpha-methyl styrene and BPA which are used in the production of polycarbonate, plastics, phenolic resins, synthetic fibres and solvents. These products are used in a diverse range of end markets, including the automotive, construction, electronics, healthcare, surgical and fibre industries.

“We are very pleased to acquire the Singapore Phenols business on Jurong Island, from Mitsui Chemicals. INEOS Phenol is today the leading phenol producer in the world, adding production and supply capabilities in a prime location in Asia has been a long-term business objective and will help us to further serve our global customer base. This acquisition presents an excellent opportunity to further improve the competitiveness of our business,” said Hans Casier, CEO INEOS Phenol. “These are good quality, well placed assets, complemented by a very experienced operations team and high safety, health and environmental standards."

“Entering the Asian market via this acquisition gives INEOS Phenol a unique capability to support our global customers’ plans for future growth whilst at the same time we look forward to developing new markets and customer relationships associated with bisphenol A which will be a new product for INEOS” said Gordon Adams, Business Director INEOS Phenol.

INEOS Phenol is the largest producer of phenol and acetone with operating assets in Germany, Belgium and USA all supported by a dedicated research and technology centre based in Germany. The business produces just under 1.9 million tonnes of phenol and around 1.2 million tonnes of acetone annually. Demand for phenol and acetone continues to grow worldwide. Through selective investments in new assets and new technology, the business intends to further develop its business and grow with its customers.

The transaction is subject to customary regulatory approval and is currently anticipated to complete in Q1 2023.

We remind, INEOS Styrolution, the global leader in styrenics, has announced the introduction of an extension to its high-performance Novodur® line of specialty ABS products. The new Novodur E3TZ is an extrusion grade that is a suitable for a variety of applications including food trays, sanitary applications and suitcases.

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North American chemical railcar traffic rose by 2.3% year on year to 46,132 loadings for the week ended 20 August, said Association of American Railroads (AAR).

For this week, total U.S. weekly rail traffic was 501,548 carloads and intermodal units, up 0.1 percent compared with the same week last year. Total carloads for the week ending August 20 were 237,404 carloads, up 2.9 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 264,144 containers and trailers, down 2.4 percent compared to 2021.

Seven of the 10 carload commodity groups posted an increase compared with the same week in 2021. They included coal, up 4,321 carloads, to 68,280; grain, up 2,825 carloads, to 20,974; and farm products excl. grain, and food, up 2,128 carloads, to 17,031. Commodity groups that posted decreases compared with the same week in 2021 were miscellaneous carloads, down 1,951 carloads, to 8,600; metallic ores and metals, down 1,248 carloads, to 22,270; and petroleum and petroleum products, down 627 carloads, to 9,681.

For the first 33 weeks of 2022, U.S. railroads reported cumulative volume of 7,606,648 carloads, down 0.01 percent from the same point last year; and 8,707,653 intermodal units, down 5.5 percent from last year. Total combined U.S. traffic for the first 33 weeks of 2022 was 16,314,301 carloads and intermodal units, a decrease of 3 percent compared to last year.

North American rail volume for the week ending August 20, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 334,389 carloads, up 2.3 percent compared with the same week last year, and 354,588 intermodal units, down 1.7 percent compared with last year. Total combined weekly rail traffic in North America was 688,977 carloads and intermodal units, up 0.2 percent. North American rail volume for the first 33 weeks of 2022 was 22,296,729 carloads and intermodal units, down 2.8 percent compared with 2021.

Canadian railroads reported 75,585 carloads for the week, up 1.2 percent, and 74,484 intermodal units, up 1 percent compared with the same week in 2021. For the first 33 weeks of 2022, Canadian railroads reported cumulative rail traffic volume of 4,747,008 carloads, containers and trailers, down 3.2 percent.

Mexican railroads reported 21,400 carloads for the week, down 1.1 percent compared with the same week last year, and 15,960 intermodal units, down 2.5 percent. Cumulative volume on Mexican railroads for the first 33 weeks of 2022 was 1,235,420 carloads and intermodal containers and trailers, up 1.1 percent from the same point last year.

We remind, North American chemical railcar traffic rose by 1.0% year on year to 46,133 loadings for the week ended 13 August. Increases in Canada and Mexico more than offset an 0.2% decline in US shipments. The week before, North American chemical railcar traffic fell by 1.1%.
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Indorama Ventures Limited (IVL)’s second-quarter sales and earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose sharply, year on year, on the back of strong sales volumes and improved profit margins, said the company.

Net profit, which the company reports in its home currency, more than doubled during the quarter to baht (Bt) 20.3bn (USD571m). IVL said it had managed to offset high energy prices in Europe and the US thanks to the “combination of strong sales and improved margins".

By division, the company said its largest unit producing polyethylene terephthalate (PET) and derivatives had posted 35% higher earnings during Q2, year on year, though they fell by 1% quarter on quarter. “[The division, called Combined PET] delivered strong EBITDA … on high margins driven by seasonally strong demand, supply chain constraints and overall market tightness,” said IVL.

IVL’s Integrated Oxides and Derivatives (IOD) division also posted higher earnings, both year on year and quarter on quarter. However, sales and earnings fell year on year and quarter on quarter in the Fibers division as it took a hit from China’s lockdowns to contain the pandemic as well as disruption in Russia.

We remind, seasonally strong demand, supply chain constrains, overall market tightness and production in key locations like the US has driven Indorama's polyethylene terephthalate (PET) business to a 35% year-on-year growth. As a domestic producer in western premium markets, the heightened freight rates and longer lead times for imported goods allowed Indorama to re-price domestic sales at attractive margins, allowing them to reach this growth year on year.
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