Brenntag in takeover talks with U.S. rival Univar

Brenntag in takeover talks with U.S. rival Univar

MOSCOW (MRC) -- Brenntag SE late Friday confirmed that it was in preliminary discussions over a possible takeover of Illinois-based Univar Solutions Inc., said Reuters.

The German chemical company said discussions over acquiring the U.S. specialty-chemical distributor are continuing but that there were no concrete results or agreements yet.

"Accordingly, it is currently not foreseeable whether there will be any kind of transaction," Brenntag said.

Univar's 2021 sales were USD9.54 billion and net profit was USD460 million, it said in its annual report.

Brenntag earlier this month launched a new strategic growth plan with targets to 2026, including doubling its mergers and acquisitions spending to 400 million-500 million euros (USD416 million-USD520 million) a year.

We remind, Brenntag has acquired the life sciences and coatings business from a fellow distributor in the Australia and New Zealand region. The acquisition from Ravenswood, a specialties distributor with an expertise in blending, is expected to close on 2 December.

Braskem names Roberto Bischoff to succeed CEO Roberto Simoes

Braskem names Roberto Bischoff to succeed CEO Roberto Simoes

MOSCOW (MRC) -- Brazilian chemical company Braskem SA said Monday that Roberto Bischoff will succeed Chief Executive Roberto Simoes on Jan. 1, said the company.

Mr. Bischoff was nominated by Braskem's controlling shareholder, Novonor, the construction and engineering company formerly known as Odebrecht. State-controlled oil company Petroleo Brasileiro SA, or Petrobras, also owns a large stake in Braskem.

Mr. Bischoff has held several management positions in Brazil's petrochemical industry and is currently CEO of Ocyan, an oil and gas company controlled by Novonor.

Mr. Simoes was CEO of Braskem for three years and helped deliver record high earnings before interest, tax depreciation and amortization, according to Braskem.

We remind, Braskem, the market leader and pioneer in bioproducts production on an industrial scale, and Sojitz, a Japan-oriented global trading company, have announced the launch of Sustainea, which will produce and market bioMEG (monoethylene glycol) and bioMPG (monopropylene glycol). The market launch of the brand follows the approval of the joint venture (the process began in March 2022) by antitrust authorities.

SK Innovation implements Internal Carbon Pricing System to strengthen global Net Zero leadership

SK Innovation implements Internal Carbon Pricing System to strengthen global Net Zero leadership

MOSCOW (MRC) -- SK Innovation announced on the company’s official homepage that it would further boost the global Net Zero leadership by introducing an Internal Carbon Pricing System, said Polymerupdate.

The core of the Internal Carbon Pricing System is to set internal carbon prices to reflect changes in future carbon prices and use them in investment deliberations. This is to evaluate the economic feasibility of investments from a comprehensive perspective, including future carbon values, in addition to the existing investment evaluation factors, and at the same time, to reduce carbon emissions more actively when promoting new businesses. This improvement plan was reported to the board of directors in mid-November and will be implemented in due course.

Under this scheme, reducing carbon emissions raises the “values” of investments. However, on the other hand, increasing emissions raise their “costs,” allowing a comprehensive analysis of the economic feasibility of investment. In other words, since reducing carbon emissions improves the economic feasibility of investment, and the increased potential carbon emissions from the expansion of new plants reduce the economic feasibility, priorities can be determined from an ESG perspective.

SK Innovation announced that it set the internal carbon prices at a reasonable level considering future carbon price scenarios predicted by various global professional organizations, which aimed to drive the net zero emissions roadmap announced last year. SK Innovation announced that it set the internal carbon price at a reasonable level considering future carbon price scenarios predicted by various global professional organizations to enhance the execution power of the net zero roadmaps announced last year. By 2030, prices will be diversified by major regions with global business sites such as the EU, the US, and Korea, which will be set at USD 40 to 95/ton in 2025 and USD 60 to 105/ton in 2027. The mid-to-long-term prices will be USD 120/ton in 2030 and USD 200/ton in 2040.

In the future, SK Innovation plans to manage the prices of global carbon credits as a key indicator that greatly affects business performance along with oil prices and exchange rates. To this end, the relevant departments of SK Innovation and its eight subsidiaries have decided to monitor market trends and continue to seek countermeasures closely.

Meanwhile, SK Innovation is reinforcing its ESG leadership by introducing an internal carbon price system, following the declaration of the All Time Net Zero vision at the company’s 60th anniversary celebrated in October this year. Through its systematic Net Zero strategy implementation, SK Innovation has achieved tangible results as of 2022 by reducing greenhouse gas emissions by more than 15% compared to 2019.

Kim Tae-jin, Chairman of ESG Committee, SK Innovation’s Board of Directors, said, “The implement of the Internal Carbon Pricing is in line with the expectations of external stakeholders. The pricing reflects future carbon prices as costs in corporate management decisions and discloses whether they are appropriately applied.” She further emphasized that “The Board will do its best to improve further the current carbon reduction and overall performance of ESG efforts.”

We remind, SK geo centric (SKGC; Seoul, South Korea) signed an HOA (head of agreement) for building advanced recycling (pyrolysis) plant within its recycling cluster in Ulsan with Plastic EnergyLtd., the UK-based advanced plastic recycling technology company, in Seoul, South Korea. The signing ceremony was attended by the top management of both companies including CEO of SKGC Na Kyung-soo and CEO of Plastic Energy Carlos Monreal.

LyondellBasell and Audi create first automotive plastic parts from mixed automotive plastic waste

LyondellBasell and Audi create first automotive plastic parts from mixed automotive plastic waste

MOSCOW (MRC) -- LyondellBasell and Audi announce a first time collaboration to help close the loop for mixed automotive plastic waste, said the company.

Audi is installing plastic seatbelt buckle covers in the Q8 e-tron made using LyondellBasell plastic that supports the sourcing of feedstocks from mixed automotive plastic waste. Plastic components from customer vehicles that can no longer be repaired are dismantled, shredded, and processed by chemical recycling into pyrolysis oil. The pyrolysis oil is then used as a raw material in LyondellBasell’s manufacturing process for the production of new plastics, replacing virgin fossil feedstocks. The recycled content is attributed to the Audi product via a mass balance approach.

“As part of the PlasticLoop project, we are working with Audi to establish an innovative closed-loop process, recycling plastic automotive parts for use in new vehicles,” said Erik Licht, LyondellBasell Advanced Polymer Solutions New Business Development Director.“ For the first time, we are using chemical recycling to recycle mixed automotive plastic waste into plastic granulate for automotive interior applications. The plastic granulate is then used in the production of the seatbelt buckle covers for the Audi Q8 e-tron."

With this process, LyondellBasell, Audi, and chemical recycler SynCycle (Next Generation Group and BDI), succeed in recycling a stream of material which today is mostly only suitable for energy recovery. This reduces the usage of fossil-based primary materials for the Audi Q8 e-tron and keeps valuable feedstocks in a circular loop. Materials produced from pyrolysis oil are of the same high quality as virgin materials and have the same properties. Chemical recycling offers an alternative to energy recovery and complements mechanical recycling.

"Audi's vision is to use secondary materials wherever it is technically possible, economically viable and ecologically beneficial." says Philipp Eder, Project Manager for Circular Economy in the Supply Chain at Audi. “The PlasticLoop project is part of Audi's circular economy strategy and a good example of cross-sector cooperation within the Audi supply chain. Findings from the project are also incorporated into the product development of future vehicle projects via the "Design for Recycling" approach.”

We remind, LyondellBasell announced it has made a decision to move forward with engineering to build an advanced recycling plant at its Wesseling, Germany. Using LyondellBasell's proprietary MoReTec technology, this commercial scale advanced recycling plant would convert pre-treated plastic waste into feedstock for new plastic production. The final investment decision is targeted for the end of 2023.

Europe LNG import capacity set to expand by one-third by end of 2024

Europe LNG import capacity set to expand by one-third by end of 2024

MOSCOW (MRC) -- LNG import capacity in the European Union (EU) and the United Kingdom (UK) will expand by 34%, or 6.8 B cubic feet per day (Bcf/d), by 2024 compared with 2021, said Hydrocarbonprocessing.

According to the International Group of Liquefied Natural Gas Importers (GIIGNL) and trade press data. Expansions of import, or regasification, capacity will total 5.3 Bcf/d by the end of next year and grow further by an additional 1.5 Bcf/d by the end of 2024.

LNG regasification capacity in the EU-27 and the UK remained relatively stable and expanded modestly in the last 10 years, by 2.8 Bcf/d (16%), from 17.5 Bcf/d in 2012 to 20.2 Bcf/d at the end of 2021, according to data from GIIGNL. Since Russia’s full-scale invasion of Ukraine in February 2022 and the reduction in natural gas pipeline imports from Russia that followed, European countries have reactivated development of previously dormant regasification projects and have started development of new projects.

Many of the new regasification projects in Europe can be developed relatively quickly by chartering Floating Storage and Regasification Units (FSRUs) and by building pipelines to transport regasified natural gas to connecting pipelines onshore. Other regasification projects in Europe will expand capacity at the existing onshore terminals and implement upgrades to increase existing terminals' throughput.

So far this year, approximately 1.7 Bcf/d of the new and expanded LNG regasification capacity has been added in the Netherlands, Poland, Finland, Italy, and Germany. The new EemsEnergy terminal in the Netherlands (0.8 Bcf/d capacity) consists of two FSRU vessels and received its first import cargo in September 2022. A new FSRU terminal at Wilhelmshaven Port in Germany (0.7 Bcf/d capacity) has been completed in November 2022.

As per MRC, China Petroleum & Chemical Corporation (Sinopec) and QatarEnergy have signed a long-term Liquified Natural Gas (LNG) purchase and sales agreement for the annual supply of four million tons of LNG to Sinopec. Both parties will work together on Qatar's North Field Expansion Project. The 27-year long-term LNG purchase and sale agreement is an important part of the integrated cooperation between the two sides. Sinopec Chairman Ma Yongsheng and Qatari Minister of State for Energy Affairs, President and CEO of QatarEnergy, H.E. Saad Sherida Al-Kaabi, formally signed the agreement together during an online ceremony.