QatarEnergy, ConocoPhillips sign LNG deal for Germany

QatarEnergy, ConocoPhillips sign LNG deal for Germany

MOSCOW (MRC) -- QatarEnergy and ConocoPhillips have signed two sales and purchase agreements to export liquefied natural gas to Germany for at least 15 years starting 2026 – the first such supply deal to Europe from Qatar’s North Field expansion project, said Reuters.

The agreement will provide Germany with two million tonnes of LNG annually, arriving from Ras Laffan in Qatar to Germany’s northern LNG terminal at Brunsbuettel, QatarEnergy’s chief executive said.

“The agreements mark the first ever long-term LNG supply agreement to Germany, with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security,” CEO Saad Al Kaabi said in a joint news conference with ConocoPhillips CEO Ryan Lance.

The agreement comes as the European economic powerhouse scrambles to replace Russian gas supplies that have been cut during the ongoing war in Ukraine. Officials gave no dollar value for the deal.

As European countries supported Ukraine after Russia’s invasion in February, Moscow slashed supplies of natural gas used to heat homes, generate electricity and power industry, creating an energy crisis that is fueling inflation and increasing pressure on companies as prices rose.

Germany, which got more than half its gas from Russia before the war, has not received any LNG from Russia since the end of August.

We remind, QatarEnergy has chosen Italy’s Eni, US major ConocoPhillips, and supermajor ExxonMobil as its newest strategic partners in the North Field East Expansion (NFE), joining France’s TotalEnergies on a growing roster of international players that will develop the LNG industry’s largest project to date. For Eni, NFE will be the its first foray into Qatar’s upstream sector, while ConocoPhillips, ExxonMobil, and TotalEnergies share long histories in the country's LNG industry.

SABIC confirms plans for COTC complex

SABIC confirms plans for COTC complex

MOSCOW (MRC) -- 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.

Invista inaugurates adiponitrile plant at Shanghai Chemical Industry Park

Invista inaugurates adiponitrile plant at Shanghai Chemical Industry Park

MOSCOW (MRC) -- 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.

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.