SABIC confirms plans for COTC complex

SABIC has announced plans to set up a crude oil-to-chemicals (COTC) complex in Ras Al-Khair, Saudi Arabia, said Chemanager-online.

The complex is expected to convert 400,000 bbl/day of oil, the company said in a statement to the Tadawul stock exchange.

The project, said SABIC, is part of its strategic growth plans, as well as contributing to the realization of the Kingdom’s program to convert oil and its liquids into chemicals. The company added that the proposal also “affirms its commitment to continue developing COTC technologies, which contribute to increasing cost efficiencies and value creation opportunities in the energy and chemical industry on a larger scale.”

According to local media reports, Saudi Arabia’s energy minister Abdulaziz bin Salman said during the opening of a SABIC building in Jubail that the COTC project will be undertaken as a joint venture with parent company Saudi Aramco and be completed “in the coming years.” He cited strong demand from the global petrochemicals industry for oil, with growth to accelerate by 60% until 2040.

SABIC is also developing a COTC complex in Yanbu. It said in October 2020 that it was reevaluating the project’s scope to include the integration of Aramco’s existing refineries at the site.

We remind, SABIC posted a 67.1% year-on-year drop in its third quarter net profit on the back of higher costs despite an increase in sales volumes. The company's third-quarter net income was weighed by higher cost of sales and an increase in selling and distribution costs.

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Invista (Wichita, Kan.) announced that INVISTA Nylon Chemicals (China) Co. held the inauguration ceremony for its new adiponitrile (ADN) plant at the Shanghai Chemical Industry Park (SCIP), said Chemengonline.

Being a critical part of INVISTA’s integrated nylon 6,6 value chain, the plant, which is a more than 7 billion RMB (over 1 billion USD) investment, has a capacity of 400,000-ton/year and is the largest capital project in in the company’s history. The plant will further boost local production capability for nylon 6,6 and help accelerate the high-quality upgrades of the Chinese chemical industry.

The ADN plant inauguration is one of the core activities of SCIP’s Integrated Nylon Base launch event. Zhang Wei; member of the Standing Committee of the CPC Shanghai Municipal Committee, vice mayor of Shanghai Municipal People’s Government and Fu Xiangsheng, vice chairman of China Petroleum and Chemical Industry Federation sent congratulatory videos; Ma Jing, director general of Shanghai Chemical Industry Park Administrative Committee; and other officials from related Shanghai Municipal Government agencies and representatives of SCIP attended the event. INVISTA senior executives included Gary Knight, global vice president of Operations, INVISTA Nylon Enterprise; Kyle Redinger, vice president of Nylon Intermediates, Asia Pacific; and Angela Dou, director of Intermediates, Asia. Jeff Gentry, INVISTA chairman and CEO, shared remarks via video.

“We are excited about the completion of ADN plant and are grateful for SCIP’s support through the entire project,” said Gary Knight, “INVISTA believes that China will be the largest consumer for nylon 6,6 in the near future, and the plant reinforces our long-term commitment by providing the key building block to produce nylon polymers. Together with our partners and customers, we hope to realize the full potential of the nylon industry and downstream applications areas.”

“Today we are here to witness the signing, groundbreaking and start-up of several projects, which are led by the INVISTA ADN project that further enhances the efficiency and stability of the nylon 6,6 value and supply chains. These projects, like ‘water from the source,’ will contribute to Shanghai’s nylon industry development and future material industrial zones,” said Zhang Wei.

The new plant deploys INVISTA’s most advanced, proprietary, butadiene-based adiponitrile technology. In addition to advantages in commercial scale and overall efficiency, INVISTA’s ADN technology and manufacturing process result in up to 60% lower greenhouse gas emissions compared to propylene-based ADN and up to 80% lower greenhouse gas emissions compared to adipic acid-based ADN *. Once in full operation, the new plant can support 800,000 tons of nylon 6,6 production every year.

In line with the need for reduced cost and improving demand, INVISTA’s nylon 6,6 value chain integrates the recently opened INVISTA Asia Innovation Center and existing HMD and polymer sites, providing a comprehensive capability ranging from application development and raw materials to high-performance polymer supply. ADN can be used to make nylon polymer, fibers and other specialty materials such as hexamethylene diisocyanate (HDI) for coatings.

During the event, INVISTA also announced the start of construction for the project to double its nylon 6,6 polymer capacity to 400,000-ton/year.

We remind, Invista celebrated the completion of its technical lab expansion in Lugoff after six months of successful operation. The company invested more than USD5 million in research and development at the site, a nylon fiber manufacturing facility.

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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.

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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.

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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.
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