U.S. lawmakers seek to lower biofuel blending compliance costs

U.S. lawmakers seek to lower biofuel blending compliance costs

A bipartisan group of U.S. lawmakers introduced legislation this week directing the Biden administration to allow oil refiners to purchase compliance credits for U.S. biofuel blending laws at a lower, fixed cost compared to the open market, said Hydrocarbonprocessing.

The proposal would reduce rising compliance costs associated with the U.S. Renewable Fuel Standard (RFS) and aim to help struggling refineries stay afloat at a time of great flux in the global energy markets, lawmakers said. As part of the standard, oil refiners must blend billions of gallons of biofuels into the nation's fuel mix or buy tradable credits from those that do.

Oil refiners argue the mandates are pricey, while biofuel proponents like ethanol producers and corn farmers like the obligations because it increases the market for their products. Under the proposed bill, refiners could buy credits around conventional biofuel blending, which includes corn-based ethanol blending, at the fixed price if they are not able to obtain them in the market at cost-effective levels, according to a news release.

News of the bill caused prices for the credits, known as RINs, to dip. "We can and must do more to address volatile and soaring compliance costs driven by fuel mandates that are out of step with domestic fuel demand,” said Chris Coons, who introduced the bill along with fellow Democratic Senator Bob Casey and Republican U.S. Representative Brian Fitzpatrick.

It is unclear whether the measure, unveiled on Tuesday, will pass. Issues around the RFS typically draw strong lobbying efforts from both oil refining advocates and biofuel advocates. The bill must pass both the Democratic-controlled Senate and the Republican-led House of Representatives before it could reach President Joe Biden's desk, who would decide whether to sign it into law.

Renewable fuel credits traded at USD1.54 each on Tuesday after the bill came out, down from USD1.56 prior, traders said. Credits traded on Wednesday between USD1.55 and USD1.56 each amid U.S. government data release.

We remind, Oil benchmark Brent futures breached $80 a barrel for the first time since May on Wednesday after U.S. inflation data suggested the interest rate hike cycle in the world's biggest economy is set to finally cool. Data released on Wednesday showed U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside.

mrchub.com

Flare at Russia's petrochemical plant in Dzerzhinsk has been put out

Flare at Russia's petrochemical plant in Dzerzhinsk has been put out

Russian petrochemical company Sibur said on Tuesday it suspended production at its plant in the city Dzerzhinsk after fire, said the company.

It said the blaze hit production of ethylene oxide and glycols. "Personnel have been evacuated. There is no threat to the life and health of the population," it said.

A fire at Sibur's petrochemical plant in the Russian city of Dzerzhinsk has been extinguished, emergency services said on Wednesday.

Sibur earlier said that it suspended production of ethylene oxide and glycols after due to fire.

Local emergency service said on social media that the fore had been put out and there were no injuries.

We remind, ZapSibNeftekhim produced the first batches of colored polyethylene pipe grades in Russia — blue HD 03505 RC blue and orange HD 03505 PE orange — for water and gas supply systems. The main feature of pipes from RC grades is their bright color, which makes it easy to identify the intended purpose of the pipeline during installation or repair work. In addition, the presence of a colored layer makes it easier to detect damage to the pipe surface during installation.


mrc.ru

Fire extinguished at Angarsk oil refinery in Siberia

Fire extinguished at Angarsk oil refinery in Siberia

A fire broke that broke out in the early hours of Wednesday at an oil refinery in the Siberian city of Angarsk has been extinguished, the governor of the Irkutsk region where the city is located, said Reuters.

"Let me say immediately: there were no casualties," the governor, Igor Kobzev, said earlier on the Telegram messaging app. The cause of the fire was not immediately known.

We remind, Silleno LLP, a joint venture between Russia's SIBUR Holding and Kazakhstan's national oil and gas company KazMunayGas, will soon start Front End Engineering Design for a polyethylene plant in Kazakhstan, Sergei Komyshan, SIBUR's executive director of marketing and sales.

mrchub.com

BASF awarded Best Supplier by Sharp for a second consecutive year

BASF awarded Best Supplier by Sharp for a second consecutive year

BASF has again been recognized as a Best Supplier for Sharp Electronics Indonesia (SEID)’s refrigerator division 2022, having achieved the highest level of excellence and consistently exceeded SEID’s expectations in quality, delivery, and cost performance, said the company.

“This award reflects BASF’s hard work and dedication in delivering the highest quality products and materials as one of our strategic suppliers,” said Tony Endri Hariandja, General Manager Procurement of SEID. “BASF has been an instrumental partner to us with their commitment to excellence and attention to detail, and we look forward to a continued strong partnership.”

The award was presented to BASF for the second consecutive year at the SEID annual supplier meeting.

“BASF has been a supplier of high-performance polyurethane to SEID for 12 years, providing innovative and sustainable materials for refrigerator insulation. We are proud to receive this recognition from SEID and are committed to continuing our successful collaboration,” said Joshua Lau, BASF Head of Performance Materials Indonesia.

One of the innovative solutions BASF supplies to SEID is Elastocool®, a pentane-based polyurethane rigid foam system for insulating refrigerators and freezers.

We remind, BASF celebrated the opening of Europe’s first co-located center of battery material production and battery recycling in Schwarzheide, Germany. The inauguration of a state-of-the-art production facility for high-performance cathode active materials and the unveiling ceremony for a battery recycling plant for the production of black mass represent important steps toward closing the loop for the European battery value chain – from the collection of used batteries and the recovery of mineral raw materials to their use in the production of new battery materials. Major step in Europe to participate in the rapidly growing global battery market.

mrchub.com

Pakistan negotiating for a second discounted Russia crude shipment

Pakistan negotiating for a second discounted Russia crude shipment

Pakistan is negotiating to buy a second shipment of discounted Russian crude oil, the South Asian country's petroleum minister said on Wednesday, said Reuters.

Musadiq Malik told reporters there was no scenario where the country was "not benefiting" from Russian crude and added that Pakistan was "finalizing another cargo".

The first cargo of Russian Urals docked at Karachi port last month and was paid for in China's currency. Islamabad made the first purchase in April.

Pakistan got into Russian the deal in part to save on foreign exchange reserves, which are eaten up mainly by oil imports.

The country has been facing an acute balance of payment crisis, with its central bank reserves barely sufficient to cover a month of controlled imports.

We remind, Shell Plc has decided to exit Pakistan in a setback for the South Asian nation that is going through its worst economic crisis. The oil giant has informed Shell Pakistan Ltd. about its intent to sell its 77.42% stake and also 26% ownership of Pak-Arab Pipeline Co., it said in a statement. It is seeing strong interest from international buyers.

mrchub.com