Borouge lands key polyolefins supply contracts in UAE

Borouge lands key polyolefins supply contracts in UAE

MOSCOW (MRC) -- Borouge, a leading petrochemical company that provides innovative and differentiated polyolefin solutions, has secured two new contracts worth a combined value of AED55 mln (USD15 mln to supply polyolefins to its partner customers – leading cable manufacturer Ducab and Abu Dhabi-based Union Pipes Industry (UPI), said Zawya.

Both companies will use Borouge materials to produce energy and infrastructure applications to construct Borouge 4. Ducab, one of the UAE’s largest home-grown energy solution providers and industrial manufacturing businesses, will produce low-voltage and medium-voltage cables to power Borouge 4 using Borouge’s energy solutions.

UPI, one of the Mena region’s largest rugged and durable pipe manufacturers, will use Borouge’s ‘Made in UAE’ solutions to produce pressure pipes for the cooling and public sanitation system of Borouge 4.

On the contract wins, CEO Hazeem Sultan Al Suwaidi said: "Our latest agreements with Ducab and UPI signal the continued progress of the Borouge 4 project and are testament to our commitment to the UAE’s In-Country Value programme – providing locally sourced and ‘Made in UAE’ solutions that shape a strategic project of this scale."

"We look forward to building on our track record of success and unlocking long-term value through the aggressive pursuit of revenue growth and cost optimisation," he stated. Ducab Group CEO Mohammad Almutawa said: "Building strategic partnerships with national champions in the industrial sector is aligned with the goal of the Operation 300bn initiative, creates in-country value and boosts economic competitiveness. This contract will pave the way for more future cooperation that will serve our common goals."

UPI General Manager Mohamed Hageb said its collaboration with Borouge had played an important role in enabling strategic and national projects such as Borouge 4.

"Our high-density polyethylene pipes have a 50-year lifecycle, are capable of withstanding harsh weather conditions, and are highly durable making them ideal for the megascale demands of Borouge 4. We are delighted to be collaborating once again with Borouge and building on our decades-long partnership, noted Hageb.

Borouge 4 supports the Abu Dhabi National Oil Company (ADNOC) In-Country Value (ICV) programme, 60 percent of the award value will flow back into the UAE’s economy. Furthermore, it will enable the next phase of growth at Al Ruways Industrial City and supply feedstock to the TA’ZIZ Industrial Chemicals Zone.

We remind, Chandra Asri announced their collaboration with Borouge, a petrochemical company from the United Arab Emirates, at the B20 (Business 20) event in Nusa Dua, Bali. The commitment agreed by both of petrochemical companies were based on a joint circular economy initiative which cover the management of polyolefin waste and recycling facilities to produce new products; as well as opportunities in co-marketing and market development initiatives, including developing non-metallic applications in certain market segments in oil and gas amalgamation, automotive, construction, and else, to promote the use of polyolefins.

RCS Group increases R-PET pellet output

RCS Group increases R-PET pellet output

MOSCOW (MRC) -- German waste-disposal and recycling company RCS has increased its capacity of recycled polyethylene terephthalate (R-PET) food-grade pellets (FGP) with the addition of a second EREMA bottle-to-bottle unit, said the company.

The second unit will bring the company’s FGP capacity up to 70,000 tonne/year according to a release from the company, based in Werne, Germany.

The pellets produced via this second unit have both European Food Safety Authority (EFSA) and US Food and Drug Administration (FDA) approval for use in food-contact applications such as beverage bottles.

Alexander Rimmer, managing director said of the company’s decision to invest in a second unit: “The demand for R-PET is increasing, the quality of the pellets has exceeded our expectations and the entire process from planning to installation and commissioning has been faultless".

We remind, RCS Group was awarded a sustainability certificate from the Fraunhofer Institute, because the recycling of PET bottles saves more than 100,000 t of CO2 equivalents, 45,000 t of fossil resources and 733,000 MWh of energy every year.

RCS, Werne, Germany, specializes in recycling management, providing companies with commercial waste disposal, raw material recycling and plastics recycling. A key area of focus at RCS is recycling polyethylene terephthalate (PET) bottles to produce plastic flakes for a variety of applications and high-quality regranulate for the food sector.

Six injured in fire at Phillips 66 Texas refinery tank farm

Six injured in fire at Phillips 66 Texas refinery tank farm

MOSCOW (MRC) -- U.S. crews extinguished a fire on Tuesday at Phillips 66's 149,000-barrel-per-day joint-venture refinery in Borger, Texas, and six people were treated for injuries, Reuters said.

Local media reported earlier that the fire had occurred in the storage tank farm at the Borger complex, shutting a state highway near the refinery. All workers at the refinery were accounted for, and the cause of the incident is being investigated, a company spokesperson said.

The company said the fire began at 10:15 am CST, and six individuals were transported to area hospitals for medical attention. “All appropriate regulatory notifications were made, and Phillips 66 is working closely with state and local officials on the response,” the company said in a statement.

According to the company’s website, the Borger Refinery, located in the Texas panhandle about 50 miles northeast of Amarillo, is owned by a joint venture between Phillips 66 and Cenovus Energy and is operated by Phillips 66.

The refinery processes primarily medium sour crude oil and natural gas liquids (NGLs) delivered through pipelines from West Texas, the Texas Panhandle and Canada. Borger has a gross NGL fractionation capacity of 22,500 bbl/day. Borger has two fluid catalytic cracking units, alkylation, delayed coking, hydrodesulphurisation and naphtha reforming.

We remind, QatarEnergy and Chevron Phillips Chemical Company LLC announced they will proceed on construction of a USD6 B integrated polymers complex in Ras Laffan Industrial City, Qatar. An agreement marking the positive final investment decision for the project was signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and by Bruce Chinn, President and CEO of Chevron Phillips Chemical, at a ceremony in Doha. The companies created a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy owns a 70% equity share and Chevron Phillips Chemical owns 30%.

BASF Group releases preliminary figures for full year 2022

BASF Group releases preliminary figures for full year 2022

MOSCOW (MRC) -- BASF has released preliminary figures for the full year 2022. Expected sales of EUR87,327 million and expected income from operations (EBIT) before special items of EUR6,878 million are in line with the ranges forecast by BASF and at the level of average analyst estimates for 2022, said the company.

The BASF Group’s EBIT amounted to an expected EUR6,548 million in 2022, below the figure for the prior year (2021: EUR7,677 million) and below analyst consensus for 2022 (Vara: EUR6,836 million). This includes non-cash-effective impairments on a plant in the Chemicals segment.

Net income of BASF Group is expected to amount to –EUR1,376 million in 2022. This is considerably below the prior-year figure (2021: EUR5,523 million) and the average analyst estimates for 2022 (Vara: EUR4,768 million). Net income contains non-cash-effective impairments on the shareholding in Wintershall Dea AG in the amount of about EUR7.3 billion, of which EUR5.4 billion in Q4 2022. These impairments result in particular from the deconsolidation of the Russian exploration and production activities of Wintershall Dea due to the extensive loss of actual influence and economic expropriation. Wintershall Dea intends to fully exit Russia in an orderly manner complying with all applicable legal obligations. Accordingly, the Russian participations of Wintershall Dea have been re-evaluated and write-downs on the European gas transportation business have been made, including a complete write-down on the participation in Nord Stream AG.

Sales rose by 11 percent in 2022 to an expected EUR87,327 million (2021: EUR78,598 million) and were thus in line with the EUR86 billion to EUR89 billion range forecast by BASF. The average analyst estimates for sales 2022 of the BASF Group were EUR87,950 million according to Vara. The increase in sales was mainly driven by higher prices and positive currency effects. Volumes reduced sales.

EBIT before special items amounted to an expected EUR6,878 million, a decrease of €890 million compared with the prior year (2021: EUR7,768 million) and in line with the EUR6.8 billion to EUR7.2 billion range forecast by BASF. On average analysts had expected EBIT before special items of EUR6,949 million in 2022 according to Vara.

The average analyst estimates for EBIT before special items of the segments were exceeded in 2022 by Agricultural Solutions and Surface Technologies. EBIT before special items of Materials and Industrial Solutions almost matched average analyst estimates. EBIT before special items fell short of average analyst estimates in the Nutrition & Care and Chemicals segments. In Other, EBIT before special items was better than expected by analysts on average.

We remind, BASF has broken ground on the third and final phase of the methylene diphenyl diisocyanate (MDI) expansion project at its Verbund site in Geismar, Louisiana, announced in July 2022. The company will increase production capacity to approximately 600,000 metric tons per year by the middle of the decade to support the ongoing growth of its North American MDI customers.

BASF is a leading supplier, manufacturer, and innovation partner of plastic additives. Its comprehensive and innovative product portfolio includes additives that provide ease in processing, and heat and light resistance to a variety of polymers and applications including molded articles, films, fibers, sheets, and extruded profiles.

PureCycle and Port of Antwerp-Bruges announce location for first plastic recycling plant in Europe

PureCycle and Port of Antwerp-Bruges announce location for first plastic recycling plant in Europe

MOSCOW (MRC) -- PureCycle Technologies, Inc. (NASDAQ: PCT) and the Port of Antwerp-Bruges today announced that PureCycle intends to build its first polypropylene (PP) recycling facility in Europe in the port's fast-growing NextGen District located in Belgium, said the company.

The new plant is expected to have an annual capacity of 59,000 metric tons (130 million pounds), with opportunities to expand operations in the future since the 14-hectare plot can support up to four processing lines with an anticipated total capacity of approximately 240,000 metric tons (500 million pounds) per year (in total for all four processing lines). PureCycle is currently engaged in feedstock sourcing and financial planning with the intent to secure a final project timeline by mid-2023. Construction of the plant is expected to begin upon completion of the permitting process, which is currently anticipated in 2024.

NextGen District is a global hub for businesses seeking to advance the circular economy. The district is located at the Port of Antwerp-Bruges, Europe's second largest seaport. PureCycle was recently awarded a concessionaire contract during NextGen's competitive bid selection process.

PureCycle is already in active negotiations with potential feedstock and offtake partners and expects to commence commercial operations at its new European facility when construction of the first processing line is completed. The new polypropylene purification plant will not only supply the European market with PureCycle's UPR resin but is also expected to create 65-70 new jobs for local residents during the initial phase of the project. This project represents one of the largest investments announced in the NextGen District to date. Various funding options are currently being considered, including traditional financing sources as well as grants/subsidies for circular projects that are uniquely available in the EU.

With the company's flagship recycling plant in Ironton, Ohio expected to start pellet production in Q1 of 2023; a second plant in Augusta, Georgia under initial construction; and its first PP recycling plant in Asia currently on track to open in 2025, PureCycle is expanding globally and actively scaling its production capabilities.

We remind, SK geo centric (SKGC), a South Korean-based global leader in polypropylene (PP) production, and PureCycle Technologies, Inc. signed a joint venture agreement to operate the first Polypropylene recycling plant in Asia. SKGC will make a joint investment with PureCycle to build a plastic recycling plant in Ulsan, South Korea with an annual capacity of up to 60,000 tons. The plant, which is currently expected to be completed by the second quarter of 2025, will turn contaminated plastic feedstock into ultra-pure recycled ("UPR") resin that can be infinitely reused and recycled.