Enterprise Products Q4 net income increased

Enterprise Products Partners LP’s fourth-quarter profits rose around USD400m year on year on the back of stronger natural gas liquids pipelines and services earnings, said the company.

Gross gas processing and marketing operation margins rose 50% year on year during the quarter to USD459m on the back of still-elevated pricing.

Petrochemica and refined products gross operating margin was steady year on year at USD339m despite a USD99m year on year drop in propylene margins during the quarter to USD90m.

The company attributed the fall to lower average propylene sales margins and volumes and lower processing fees.

Propylene production volumes fell the equivalent of 16m bbl/day year on year during the quarter to 89m, driven in part by a 44-day maintenance period for its propane dehydrogenation 1 (PDH 1) unit during the period.

We remind, Enterprise Products Partners continues to grow and add future planning, the company confirmed during its 2022 Q4 earnings conference call. "During the quarter we purchased approximately 580 miles of existing pipeline and related assets that enables us to cost effectively optimise and expand our NGO and petrochemical pipeline system," Co-CEO Randy Fowler said. Enterprise has USD3.6bn of assets under construction that are scheduled to be completed and begin commercial operations in 2023.

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OQ, the Oman-based energy transition enabler that specializes in PP and PE grades for flexible and rigid packaging solutions, continues building on a long-lived trading partnership between its home country and India as the company greets familiar faces at the PlastIndia event in New Delhi this week, said Hydrocarbonprocessing.

Oman’s total trade with India almost doubled last year and was estimated at USD9.9 B in 2021- 2022 compared to USD5.4 B in 2020-2021.

OQ believes the trade opportunities will only further prosper as India's population, its demand for plastic products and countries’ collaborations continue to grow momentum. An advantageous prospect of a free trade agreement between the two countries is in the works, with discussions at an advanced stage. The Indian sub-continent is one of the fastest-growing regions for polymer demand with a CAGR of 6 per cent projected for the 2022-2030 period.

In addition, by mid-2023, India is expected to become the most populous country in the world – and with rising income levels being seen across the region, demand for plastic products is set to increase exponentially. Harnessing years of success and confidence in the face of challenges, OQ is primed for demand and ready to take action in support of their close partnership with India.

Speaking from OQ’s stand at Pragati Maidan in New Delhi, Dr Ali Al Lawati, VP for Global Sales at OQ. “With unique products manufactured at a world-class plant in Oman, OQ provides multiple industry solutions across several key market segments in India. From flexible and rigid packaging and infrastructure to agriculture and automotive industries, we are excited to empower our business relationship with India and add to what is already a unified and thriving imports partnership between our two nations.”

According to Oman’s Ministry of Commerce and Industry, Indian enterprises and establishments in the country account for an estimated investment of USD7.5 B across several key industries covering finance, aviation, iron/steel, cement, chemicals, automotive, fertilizers and more. India and Oman share a collective vision to promote economic well-being across their countries, building a collaborative network to transport goods throughout a global supply chain, and attracting highly skilled talent to join their journey towards greater domestic innovation in the polymer market.

We remind, Rohm and OQ Chemicals officially broke ground on their new world-scale methyl methacrylate (MMA) plant in Bay City, Texas. The plant will be the first to employ Rohm's LiMA ("Leading in Methacrylates") technology on a large industrial scale, which is its latest proprietary production technology. It will have a capacity of 250,000 tonnes/year once completed in early 2024, which will enable Rohm to serve increasing demand for MMA and support the reliability of its supply chain towards its customers globally.

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Linde will increase its green hydrogen production capacity in California with the deployment of several five-megawatt proton exchange membrane (PEM) electrolysers at existing plants, said Gasworld.

As a first move, the industrial gas giant today (31st Jan) said it will build, own and operate a new PEM electrolyser at its plant in Californian city of Ontario, to support growing demand from the mobility market.

Once operational in the second half of 2024, the electrolyser will see the plant produce enough green hydrogen to avoid up to 75,000 metric tonnes of carbon dioxide equivalent emissions per year.

Marcos Cuevas, Vice-President of the US West Region at Linde, said he continues to see growing demand for green hydrogen as decarbonisation in the mobility sector becomes a reality and looks forward to helping California achieve its climate objectives.

Back in 2020, California Governor Gavin Newsom signed an executive order to ban the sale of diesel or gasoline-powered vehicles by 2035.

Described at the time as “the most impactful step California could take to fight climate change,” the legislation has undoubtably boosted the sale of hydrogen fuel cell vehicles and other zero-emission alternatives – and will continue to do so.

We remind, a Russian court has ordered nearly USD500 mln of assets belonging to German industrial gases company Linde to be frozen at the request of a Russian joint venture building a gas complex at the Baltic Sea port of Ust-Luga, court filings showed. RusKhimAlyans, the joint venture which is 50% owned by Russia's Gazprom, asked the Court of Arbitration of St Petersburg and the Leningrad Region to freeze Linde assets worth USD488 mln as a preventative measure.

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A new TPE developed by Teknor Apex, described by the company as an ‘eco-conscious thermoplastic elastomer’, is made with 35% sustainable content that includes post-consumer recycled material and UBQ, a biobased, recyclable material based on organic and unrecyclable waste, said Sustainableplastics.

Called Monprene S3 CP-15170 BLK, the new TPE is initially available in 70 Shore A and is coloured black. With a performance and processability comparable to a standard TPE offset, the durometer and amount of sustainable content can be customized based on end use requirements.

Monprene TPEs combine the performance of thermoset rubber with the processability of a thermoplastic. They are designed specifically for injection moulding or overmoulding onto PP and is suitable for consumer product applications requiring flexibility such as hand and power tools, consumer electronics and appliances.

The use of UBQ and recycled content in the new TPEs reduces the carbon footprint of the products produced from these materials. UBQ has already been adopted by various industry brands and enterprises, including by early adopter Teknor Apex, for manufacturing durable products with reduced environmental footprints.

“This new product enables sustainable product design and reduces dependency on virgin petroleum-based plastic,” said Jonathan Plisco, New Business Development Manager of Teknor Apex. “In the race to meet market demand for environmentally conscious materials, we are proud to offer new sustainable options that provide the right balance of performance, manufacturability and economics.”

“We all have a role to play in reducing methane emissions,” said Derek Schaefer, VP of Business Development, UBQ North America, and through the new Made with UBQ product line, ‘manufacturers have the ability to contribute to a truly circular economy where human consumption lives in harmony with the planet’.

We remind, Nexeo Plastics announced an expansion of its relationship with Teknor Apex. Nexeo Plastics will become a key distributor for Teknor Apex in Europe of its portfolio of thermoplastic elastomers (TPEs) under the Sarlink and Monprene brands.

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North American chemical railcar traffic fell for 19th straight week, with loadings for the week ended 28 January down 5.9% year on year to 44,803, led by a 10.0% decline in the US, according to the latest freight rail data by the Association of American Railroads (AAR).

For the first four weeks of 2023 ended 28 January North American chemical rail traffic was down 6.5% year on year to 172,824 railcar loadings, with US traffic down by 11.4% or 15,641 loadings.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, North American chemical rail traffic fell an 18th straight week, with loadings for the week ended 21 January down 2.2% year on year to 44,683, led by an 8.5% decline in the US. For the first three weeks of 2023 ended 21 January North American chemical rail traffic was down 6.7% year on year, to 128,021 railcar loadings. In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

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