China's mega private refineries to keep output high to April as margins improve

China's mega private refineries to keep output high to April as margins improve

China's mega private refineries are expected to operate at full processing rates or higher until April as their margins have improved after the government lifted COVID-19 restrictions, said Hydrocarbonprocessing.

The rise in crude demand at Zhejiang Petrochemical (ZPC) and Hengli Petrochemical, which account for 6.5% of China's refining capacity, will lift crude imports by the world's top importer, with volumes expected to hit record levels this year and support global prices.

ZPC's 800,000 barrels per day (bpd) refinery in Zhoushan city increased its run rate to 100% in February, a company official said, adding that run rates should be "no lower than that now". Hengli's 400,000 bpd refinery in the city of Dalian is operating at 107% to 108%, a company official said.

Higher fuel output from them could offset an expected fall in supplies from planned maintenance by state-owned majors in April and May, traders said. Both ZPC and Hengli are China's top polyester producers and their plants produce large amounts of paraxylene (PX), a raw material for plastic bottles and synthetic fiber.

The margins for producing PX from naphtha have improved, rising by at least USD100 a ton at the end of March, compared with the end of February, a trading analyst said. Chinese petrochemical buyers, including ZPC and Hengli, have cut imports recently as they ramp up output, a Singapore-based petrochemicals broker said.

However, new start-up Shenghong Petrochemical is running its 320,000-bpd CDU below full rates because of production issues at its reformer unit, two sources said.

We remind, CNOOC and Shell Petrochemicals Company Ltd (CSPC), a joint venture established by China National Offshore Oil Corp (CNOOC) and Royal Dutch Shell, signed a framework agreement worth USD5.6-B with China’s Huizhou city government to expand its ethylene project in the city. CSPC is expected to add 1.5 million tons per annum ethylene production capacity on top of its existed 2.2 million tons in Huizhou, according to a statement issued by CNOOC on Sunday night. The new project will have 14 petrochemical production lines to churn out products including ethylene, propylene, butadiene and ethylene glycol.

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Azoty Police signs deal for USNC micro nuclear reactor

Azoty Police signs deal for USNC micro nuclear reactor

Poland’s Grupa Azoty Police said on Wednesday that it has signed a deal for the development and construction of a nuclear power research facility equipped with a micro modular reactor (MMR) with Seattle-based Ultra Safe Nuclear Corporation (USNC) and the Polish West Pomeranian University of Technology, said the company.

USNC said the 30MWt MMR would be a fourth-generation high-temperature, gas-cooled "nuclear battery". State-controlled chemical and fertilizer producer Azoty Police, a member of largest Polish chemical group Grupa Azoty, said: “The reactor will serve as a training, research and testing facility. It will be connected to the energy infrastructure of Grupa Azoty Police, which will provide a unique opportunity to study, test, optimize and integrate the MMR zero-emission energy source with an industrial facility.

“Cooperation in this area will allow the development of a plan for the full-scale implementation of the use of nuclear energy for chemical processes and the generation of steam and hydrogen at the facilities of Grupa Azoty Police. “This will be another significant step towards the decarbonisation of the Grupa Azoty Group's technological processes."

The agreement for the micro reactor was concluded in relation to a US-Polish cooperation in MMR development, formally established by an intergovernmental agreement in February 2021.

We remind, Grupa Azoty Polyolefins said that it has taken a first delivery of ethylene feedstock for its USD1.8bn world-scale propane dehydrogenation (PDH) and PP plant that it plans to launch in Police, northwestern Poland in the near future, said the company. A shipment of 3,500 tonnes of ethylene was on Monday delivered to the company’s maritime gas terminal in Police by the gas carrier GasChem Rhone, it added.

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Australia heads for second year of record gasoline, diesel imports

Australia heads for second year of record gasoline, diesel imports

Australia's gasoline and diesel imports are expected to rise 2% to hit a record for a second straight year due to a drop in domestic production and a post-COVID economic recovery boosting fuel demand, traders, analysts and an industry source said, as per Hydrocarbonprocessing.

In the near term, gasoline imports are set to jump due to a roughly five-week outage at a gasoline-making unit at Ampol's Lytton refinery in Brisbane followed by maintenance work in May at Viva Energy's refinery near Melbourne.

This presents an opportunity for sellers in Singapore and South Korea, whose supplies make up around half of total Australian gasoil imports and nearly 80% of gasoline purchases, data from Wood Mackenzie and Rystad Energy showed.

Australia's growing appetite for gasoline imports, following the closure of two refineries in 2021, is likely to help boost Asian refining margins, which have already more than doubled so far this year.

We remind, China's mega private refineries are expected to operate at full processing rates or higher until April as their margins have improved after the government lifted COVID-19 restrictions. The rise in crude demand at Zhejiang Petrochemical (ZPC) and Hengli Petrochemical, which account for 6.5% of China's refining capacity, will lift crude imports by the world's top importer, with volumes expected to hit record levels this year and support global prices.


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Kraton to expand SBS capacity at Ohio plant

Kraton to expand SBS capacity at Ohio plant

Kraton plans a “significant expansion” of styrene-butadiene-styrene block copolymers (SBS) capacity at its plant in Belpre, Ohio, starting in 2024, said the company.

By 2025, SBS production capacity is expected to increase by 24,000/year, it added. “This expansion supports our growth strategy and our customer's growing demand for SBS in North America," said Holger Jung, Kraton Polymers CEO.

Last year, global supply chain challenges and force majeures impacted Kraton’s business, “but we have successfully navigated and emerged stronger”, Jung said.

To further grow its SBS capacity in north America, Kraton is exploring additional manufacturing expansion opportunities to strengthen its regional position, it said. Financial details were not disclosed.

We remind, Kraton Corporation announced a general price increase of up to 20% across its crude tall oil (CTO) refinery products and derivatives, it said in a press release. The increase will be effective 1 July, or as contracts allow. Kraton is targeting the increase alongside a continued supply and demand imbalance in the market.

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DCC Energy and Oberon Fuels to boost renewable dimethyl ether production to reduce emissions of European LPG market

DCC Energy and Oberon Fuels to boost renewable dimethyl ether production to reduce emissions of European LPG market

DCC plc, the leading international sales, marketing and support services group, has partnered with Oberon Fuels, the leading producer of renewable dimethyl ether (DME), to advance the design, construction and operations of multiple renewable DME production plants in Europe, said Hydrocarbonprocessing.

The companies have completed an initial feasibility study, which confirmed significant market demand for a renewable substitute for Liquid Petroleum Gas (LPG). Both companies will now further investigate sustainable and scalable supply chains of renewable feedstocks, as well as advantageous locations for production plants.

Once adequate feedstocks and appropriate sites have been established Oberon will construct and operate the renewable DME production facilities and DCC Energy will commit to buying Oberon’s renewable DME as an offtake partner. DCC Energy will lead with energy by supplying its customers with significant volumes of renewable DME to help them to decarbonize.

DME blended with LPG can be used in existing residential, commercial and industrial applications without any need for investment. After minor modifications to infrastructure, pure renewable DME is a drop-in energy source for existing applications. DME is stored, transported and dispensed using existing LPG vehicles and equipment which makes it quick to deploy, efficient and cost-effective. It reduces carbon emissions immediately, which is of vital importance to off (natural gas) grid customers.

We remind, China's mega private refineries are expected to operate at full processing rates or higher until April as their margins have improved after the government lifted COVID-19 restrictions. The rise in crude demand at Zhejiang Petrochemical (ZPC) and Hengli Petrochemical, which account for 6.5% of China's refining capacity, will lift crude imports by the world's top importer, with volumes expected to hit record levels this year and support global prices.

mrchub.com