MEGlobal announces ACP for April 2024

MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD840/tonne CFR Asian main ports for arrival April 2024.

The April 2024 ACP reflects the short-term supply and demand situation in the Asian market.

The price is on a CFR (cost & freight) Asia basis.

We remind, MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) was USD850/tonne CFR Asian main ports for arrival March 2024.

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EQUATE has nominated its April 2024 MEG India Contract Price (ICP) at USD538/tonne CFR (cost & freight) India Main Ports, said the company.

The April nomination was USD25/tonne lower than March number.

We remind, EQUATE has nominated its March 2024 MEG India Contract Price (ICP) at USD563/tonne CFR (cost & freight) India Main Ports. The March nomination was USD11/tonne higher than February number.
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Researchers at the University of Michigan have developed a new catalyst reactor that can produce propylene from natural gas, as an alternative to crude oil, said European-rubber-journal.

The reactor resembles a nested pair of tubes, wherein propane (C3H8) from shale gas flows through the innermost tube, explained the university in a 21 March report.

The reactor splits propane into propylene (C3H6) and hydrogen gas (H2), providing a ‘cleaner’ alternative with reduced manufacturing costs, compared to propylene derived from oil.

According to the University of Michigan, current processes available to source propylene from natural gas are “still too inefficient to bridge the gap in supply and demand”.

“It’s very hard to economically convert propane into propylene,” said Suljo Linic, the Martin Lewis Perl Collegiate professor of chemical engineering.

“You need to heat that reaction to drive it, and standard methods require very high temperatures to produce enough propylene,” added Linic, corresponding author of the study published in Science.

At such high temperatures, he explained, solid carbon deposits and other undesirable products that impair the catalyst are produced in addition to propylene.

And to regenerate the reactor, he added, we need to burn off the solid carbon deposits often, which makes the process inefficient.

According to the University of Michigan, the new reactor system efficiently makes propylene from shale gas by separating propane into propylene and hydrogen gas.

It also gives hydrogen “a way out”, changing the balance between the concentration of propane and reaction products in a way that allows more propylene to be made.

Once separated, the hydrogen can also be safely burned away from the propane, heating the reactor enough to speed up the reactions without making any undesirable compounds.

This separation is achieved through the reactor’s nested, hollow-fibre membrane tubing, according to the report.

The innermost tube is made up of materials that splits the propane into propylene and hydrogen gas.

While the tubing keeps most of the propylene inside the innermost chamber, the hydrogen gas can escape into an outer chamber through pores in a membrane layer of the material.

Inside that chamber, the hydrogen gas is controllably burned by mixing in precise amounts of oxygen.

Because the hydrogen can be burned inside the reactor and can operate under higher propane pressures, the technology could allow plants to produce propylene from natural gas without installing extra heaters.

According to the researchers’ estimate, a plant that produces 500 kilotonnes per annum of propylene could save as much as USD23.5 million (EUR22 million) over other methods starting with shale gas.

The savings are in addition to the operational savings from burning hydrogen produced in reaction, rather than other fuels.

The research was funded by the US department of energy’s office of basic energy sciences, the RAPID manufacturing institute and the National Science Foundation.

The team is pursuing patent protection with the assistance of U-M Innovation Partnerships and is seeking partners to bring the technology to market.

We remind, the US Department of Energy (DOE) has selected ExxonMobil’s Baytown, Texas, olefins plant carbon reduction project to receive up to USD331.9 million in funding under the USD6-billion Industrial Demonstrations Program (IDP). The announcement comes one month after a report in the Houston Chronicle that ExxonMobil might have to cancel the project if proposed federal tax incentives for the production of clean hydrogen exclude the use of carbon capture and sequestration (CCS).

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The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending March 23, 2024. AAR also weighed in on the Francis Scott Key Bridge collapse and how railroads are working to limit disruptions, said Aar.

“The top priority following the tragic collapse of the Francis Scott Key Bridge must be supporting the individuals and families impacted,” said AAR SVP of Policy and Economics Dr. Rand Ghayad. “At this time, there are many unknowns about the long-term business impacts. However, recent years have shown us the resilience of railroads and the broader logistics sector in adapting swiftly to challenges while continuingto serve our customers. Those lessons will be put to work in the days ahead to minimize disruption to the fullest extent possible.”

For this week, total U.S. weekly rail traffic was 470,593 carloads and intermodal units, up 2.1 percent compared with the same week last year.

Total carloads for the week ending March 23 were 215,277 carloads, down 6.1 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 255,316 containers and trailers, up 10.2 percent compared to 2023.

Five of the 10 carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 2,735 carloads, to 21,467; chemicals, up 1,822 carloads, to 33,702; and motor vehicles and parts, up 888 carloads, to 16,109. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 14,169 carloads, to 53,727; nonmetallic minerals, down 2,835 carloads, to 27,607; and metallic ores and metals, down 2,129 carloads, to 18,519.

For the first 12 weeks of 2024, U.S. railroads reported cumulative volume of 2,555,094 carloads, down 4.3 percent from the same point last year; and 3,014,729 intermodal units, up 9.1 percent from last year. Total combined U.S. traffic for the first 12 weeks of 2024 was 5,569,823 carloads and intermodal units, an increase of 2.5 percent compared to last year.

North American rail volume for the week ending March 23, 2024, on 10 reporting U.S., Canadian and Mexican railroads totaled 324,001 carloads, down 5.3 percent compared with the same week last year, and 340,799 intermodal units, up 9.4 percent compared with last year. Total combined weekly rail traffic in North America was 664,800 carloads and intermodal units, up 1.7 percent. North American rail volume for the first 12 weeks of 2024 was 7,798,583 carloads and intermodal units, up 1.8 percent compared with 2023.

Canadian railroads reported 91,620 carloads for the week, down 3.1 percent, and 73,851 intermodal units, up 7.9 percent compared with the same week in 2023. For the first 12 weeks of 2024, Canadian railroads reported cumulative rail traffic volume of 1,887,198 carloads, containers and trailers, down 0.9 percent.

We remind, the US Department of Energy (DOE) has selected ExxonMobil’s Baytown, Texas, olefins plant carbon reduction project to receive up to USD331.9 million in funding under the USD6-billion Industrial Demonstrations Program (IDP). The announcement comes one month after a report in the Houston Chronicle that ExxonMobil might have to cancel the project if proposed federal tax incentives for the production of clean hydrogen exclude the use of carbon capture and sequestration (CCS).

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For petrochemical producers making capital investment decisions today, the management of carbon dioxide emissions may be as important a consideration as feedstock advantage, production technology, market access and integration, says Mark Eramo, global head/fuels, chemicals & resource solutions at S&P Global, as per Chemweek.

Eramo discussed the implications of the energy transition for petrochemical investment at the World Petrochemical Conference by S&P Global in Houston.

"Where can I be competitive? I would say that for the last 10 years, there's been a model of build low-cost and ship to high-demand regions," said Eramo. "Today we're saying that now there's a fifth consideration, and that is, how do I provide effective carbon management? How will that change the footprint over the next 10 years when it comes to the location strategy of petrochemical assets going forward? Maybe the model stays the same. Or does the fact that you need an effective carbon management strategy in order to get the financing you need or approval from the board mean that now your location strategy is going to have to be slightly different than it was in the past?"

Eramo said the petrochemical industry is committed to lowering carbon emissions. “That’s what we’re trying to get to and yet maintain that balance of economics, society, environmental stewardship, and meeting all the needs of our various stakeholders.”

However, doing so is "a global balancing act complicated by geopolitics," he told attendees. "It's about curtailing demand for high-intensity carbon energy while decarbonizing supply and then trying to build this green-energy economy of the future," he stated. "And probably the most important thing is that energy security and energy affordability are at the front of the line in creating this multidimensional energy transition dynamic."

A very large portion of the world's population remain eager to improve their living standards, and demand for energy and consumer goods will necessarily increase. "You have to continue to supply the growing needs of a growing population with the assets you've got on the ground," Eramo noted. "Those are hydrocarbon-based assets for the most part. So this balancing of capital to make my current assets profitable and meaningful while I try to transition to this cleaner greener energy-based future is the balancing act that these executives are facing."

Decisions around capital investment must balance the need for an energy transition not only with the broader needs of society but also the financial realities that place limits on the path and speed of progress.

"This set of assets has to be very profitable, and it has to fund the ability to get to this green future -- the ability to bring in renewable energy, to look at on-site electrification or go with carbon capture, to go with hydrogen, or deeper integration into chemicals. That hydrocarbon-based business has to be able to fund the cash flow that enables me to make the investments that get me to a lower carbon future."

Despite the complexities involved and the uncertainty that clouds the outlook, certain companies are "placing their bets," Eramo observed. "They're making assumptions and moving forward with significant investments." In November 2023, he noted, ExxonMobil entered the lithium market with the goal of achieving a top position by 2030; the same month, Air Products decided to proceed with a blue ammonia project in Louisiana; and in December 2023, Dow finalized plans to build a net-zero ethane cracker in Alberta.

"The pathway to net zero requires us to rethink business models and evaluate low-carbon inputs along with end-of-life solutions for consumer goods," said Eramo. Incentives will be more effective than penalties, he said, because they attract capital investment. "I also believe a more pragmatic approach makes good sense," he added, such as asking consumers to focus more on managing their own waste.

Eramo stressed the need for multiple solutions. "We have to have hydrocarbons for the consumer goods that enable modern living and advance the human condition," he continued. "Whether it's plastic or any other material, it's a question how you handle the waste stream, not the product itself. You can't continue to get the efficiency gains and the other advances that we've made just in the mobility sectors without plastics and engineering resins." He also argued for carbon pricing and markets. "I've heard this multiple times last year and this year: Give me a carbon price, and then let the industry run off that, and we'll make the decisions that we need to in terms of dealing with carbon," he said.

He expressed confidence that the petrochemical industry can drive the energy transition if allowed to do so.

We remind, the US Department of Energy (DOE) has selected ExxonMobil’s Baytown, Texas, olefins plant carbon reduction project to receive up to USD331.9 million in funding under the USD6-billion Industrial Demonstrations Program (IDP). The announcement comes one month after a report in the Houston Chronicle that ExxonMobil might have to cancel the project if proposed federal tax incentives for the production of clean hydrogen exclude the use of carbon capture and sequestration (CCS).

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