Shell Catalyst & Technologies to provide tech/catalysts for CSPC Phase 3 project in China

Shell Catalyst & Technologies to provide tech/catalysts for CSPC Phase 3 project in China

CNOOC and Shell Petrochemicals Company Limited (CSPC), incorporated by China National Offshore Oil Corporation (CNOOC) and Shell, is one of the largest petrochemicals joint ventures in China, said Hydrocarbonprocessing.

Following the success and outstanding performance of their existing Phase I and II projects, CSPC Phase III will include a new 1.6-MMtpy cracker, creating one of the world’s largest and most flexible integrated complexes.

Shell Catalyst & Technologies’ (SC&T) unique technologies and catalysts have been chosen again to enable this major growth project, due to their competitive advantages and reliable performance. In Phase III, some of Shell’s technologies, including SMPO, PODer and EOEG, will be deployed for the third time in CSPC with the latest state-of-the-art designs in terms of energy efficiency, scale, and flexibility. Particularly on ethylene oxide/glycols (EO/EG) production, the unique OMEGA technology has once again been elected due to its high yield and energy performance. In addition, CSPC will build the largest linear alpha olefins (LAO) plant ever designed as part of a joint venture. The LAO are being licensed from Shell for the first time. The rest of the process includes the Higher Olefins and Derivatives (HODer) value chain.

“We are very pleased to further support the growth of CSPC which is a world-scale asset,” said Seng Yee Loh, VP Sales Asia Pac with SC&T. “The design and operation for CSPC includes SC&T’s technologies and catalysts. The collaboration with the local team will produce operational efficiencies and is expected to help bring economic benefits to the facility."

Roelof Heezen, CSPC Manufacturing Director said “We appreciate Shell Catalysts & Technologies support with the complexities of this project. The reliability of SC&T’s technologies in combination with their advanced catalysts has us confident in the strong results we will see at our chemical complex."

We remind, Shell Chemical Appalachia LLC announced it has commenced operations of its Pennsylvania Chemical project, Shell Polymers Monaca (SPM). The Pennsylvania facility is the first major polyethylene manufacturing complex in the Northeastern United States and has a designed output of 1.6 MMt annually.

OMV decides to initiate sales process to divest its E&P assets in the Asia-Pacific region

OMV decides to initiate sales process to divest its E&P assets in the Asia-Pacific region

Austrian energy and chemicals major OMV has decided to explore the possibilities of selling its upstream exploration and production (E&P) assets in the Asia-Pacific region, said the company.

Executive Board of OMV has decided to explore the possibilities of selling the E&P assets in the Asia-Pacific region and to initiate the related sales process for the potential divestment of its 50% stake in the issued share capital of SapuraOMV Upstream Sdn. Bhd. in Malaysia and 100% of the shares in OMV New Zealand Limited. A potential divestment aims at optimizing the E&P portfolio in line with the OMV Strategy 2030.

As part of the sales process, OMV, in coordination with competent regulators and governmental authorities, will invite potentially interested parties, in a first step, to submit expressions of interest and, in a second step, to submit binding offers. The sales process is expected to take place over the next months. A potential sale is still subject to the approval of the Supervisory Board of OMV and competent governmental authorities.

We remind, OMV has announced its new corporate structure, designed to fully enable the delivery of Strategy 2030. OMV’s new strategy evolves around its long-term goal of becoming a net-zero company by 2050 at the latest and driving its transition towards becoming a leading integrated sustainable fuels, chemicals and materials company. At the same time, OMV is striving to become a global leader in circular economy solutions and will also build a low-carbon business in the energy sector, which includes geothermal energy and carbon capture and storage (CCS) in particular.

Vencorex Expands Its Aliphatic Polyisocyanates Production for PU Coatings in Texas

Vencorex Expands Its Aliphatic Polyisocyanates Production for PU Coatings in Texas

Vencorex is investing in its Freeport site in Texas to meet the rising demand for specialty aliphatic isocyanates used in the production of low VOC polyurethane coatings and adhesives, said Coatings.specialchem.

The kick-off ceremony for the investment project, part of the Vencorex growth strategy in North America, took place in June 2022 in the presence of several executive members of Vencorex and its shareholder, PTT GC Group.

“This project will bring additional supply reliability to fulfill the growing demand for specialty aliphatic polyisocyanates in the US market. It shows our commitment to enhancing regional production” said Xavier Fournier, President of Vencorex.

“It also contributes to strengthen Vencorex’ position in the North American market and to better serve our customers with local sourcing of specialty materials” stated Jason Williams, sales director, North America at Vencorex US, Inc.

The new facility is expected to become operational in the second half of 2023.

We remind, PTT Global Chemical (PTTGC) has acquired a stake of 9.18% in France-based Vencorex Holding for an unknown sum as it continues to buy additional assets that highlight value-added products. With the share acquisition from Perstorp Holding AB, PTTGC will gain 100% ownership of Vencorex. The deal is made via GC Inter BV (a wholly-owned offshoot of PTTGC). Payment was carried out on 30 Jun 2022.

Dow awards FEED contract to Fluor for Canadian ethylene and derivatives complex

Dow awards FEED contract to Fluor for Canadian ethylene and derivatives complex
Dow, a US-based chemicals producer, has given Fluor a reimbursable deal for its ethylene cracker and derivatives complex in Alberta, Canada. Under the agreement, Fluor will offer front-end engineering and design (FEED) and engineering, procurement and construction management (EPCM) services to the petrochemical complex in Fort Saskatchewan, said the company.

The project would boost Dow's ethylene and polyethylene capacity from its existing Fort Saskatchewan site by over 200%, while upgrading the existing assets to net-zero carbon emissions. Initial FEED award will be booked by Fluor in 1Q 2023. The firm expects further EPCM scope to be given during 2023, subject to a final investment decision (FID) by Dow's board. It disclosed that the additional project scope to be awarded calls for integrated project management team services for the entire Fort Saskatchewan Path2Zero programme of Dow and EPCM services for the ethane cracker and the power, utilities, and infrastructure related to it.

Dow's planned net-zero emissions ethylene cracker and derivatives complex is intended to decarbonize almost 20% of the company's global ethylene capacity while increasing its polyethylene supply by almost 15%. The brownfield project is subject to approval by the firm's board of directors and several regulatory agencies. Through the new brownfield ethylene cracker, Dow would install almost 1.8 M tonnes of capacity in a phased manner until 2030.

We remind, Dow intends to construct the sector's first net-zero carbon emissions ethylene and derivatives complex with respect to scope 1 and 2 carbon dioxide (CO2) emissions, at its Fort Saskatchewan (Alberta, Canada) site. The project involves a new 'net-zero carbon emissions' ethylene cracker at the site, set for launching by 2027. It would expand Dow's ethylene and polyethylene capacity by over 200% from its Fort Saskatchewan site, while retrofitting the site's existing assets to net-zero carbon emissions.

PKN Orlen Q4 net profit surges on takeovers, refining

PKN Orlen Q4 net profit surges on takeovers, refining

PKN Orlen’s Q4 petrochemical operating profit dropped 76.9% to zlotych (Zl) 270m (USD60.5m) on lower margins plus higher overheads and labour costs amid an economic downturn, as per Reuters.

Orlen’s Q4 2022 model petrochemical margin fell 8.6% to EUR1,056/tonne from EUR1,155/tonne in the third quarter of 2022. Versus the fourth quarter of 2021, it declined 15.7% from EUR1,253/tonne.

Orlen’s Q4 petrochemical sales volume amounted to 1.1m tonnes, flat against the figure recorded for the third quarter of last year and 12% lower versus 1.3m tonnes in the fourth quarter of 2021.

For polymers, the sales volume declined 2% year on year to 161,000 tonnes in the fourth quarter of 2022 from 165,000 tonnes in the fourth quarter of 2021.

For purified terephthalic acid (PTA), sales rose 28% to 120,000 tonnes in the fourth quarter of 2022 from 94,000 tonnes in the fourth quarter of 2021.

For fertilizers, it declined 22% to 201,000 tonnes in Q4 2022 from 257,000 tonnes in the fourth quarter of 2021.
The group net result (as presented in the table above) does not include a one-off profit on what Orlen described as its “bargain purchase” of fellow state-controlled group PGNiG, which cost Zl 8.2bn.

Orlen said it expected its petrochemical model margin to be around EUR1,100/tonne as a result of a drop in demand for petrochemical products due to the economic slowdown and ongoing inflation.

We remind, PKN ORLEN, finalised a transaction to acquire a part of Poland’s largest plastics manufacturer, Basell Orlen Polyolefins, in which the ORLEN holds an equity interest. The acquisition was approved by the antitrust authorities in Poland and the Netherlands. The business segment, acquired by ORLEN, specialises in the production and sale of low-density polyethylene (LDPE) as well as customer service in the Polish market. It is a polymer commonly used to make consumer and industrial products, found in plastic films, bags, canisters, food packaging, as well as components of electronic devices, such as wires and cables.