Russia's Novak says there's no need for diesel export ban

Russia's Novak says there's no need for diesel export ban

There is no need for Russia to ban exports of diesel to tackle rising prices and possible shortages of the fuel after drone attacks reduced refining capacity, Deputy Prime Minister Alexander Novak said, as per Hydrocarbonprocessing.

Speaking to reporters, Novak also said, without elaborating, that the Novatek-led Arctic LNG 2 project, which started tentative production in December, remains in talks about LNG deliveries as Western sanctions hinder the availability of tankers for the project.

Russia has faced a steep reduction in oil refining capacity, crippled by technical outages and drone attacks. It banned exports of gasoline for half a year starting from March 1.

Refining capacity shut down by drone attacks has reached 14% of Russia's total oil refining capacity, according to Reuters calculations. The country's total daily offline primary oil refining capacity has jumped by around a third in March from February to 4.079 million metric tons.

Novak said that other oil refineries managed to boost their output, while the government is working on the issue of fuel deliveries from plants amid railway bottlenecks. "The situation in the oil products market is stable today," Novak said.

"Our companies have already increased the load at the available capacities. It allowed for more supply, including... gasoline and diesel fuel."

Speaking about a technical outage at the Norsi refinery, Russia's fourth-largest by output, Novak said that a malfunctioning turbine may resume operations in a month or two.

Industry sources have said one of two catalytic crackers remains out of action at the plant.

We remind, Gazprom is sticking to its goal of achieving 100% of the technically possible level of network gasification by 2030, and is actively working with the regions via five-year programs, Deputy Chairman of the Board of Gazprom Oleg Aksyutin said in an article in the company's corporate magazine. "It is expected that due to gasification and post-gasification alone, the increase in demand in the domestic market could reach nearly 20 bcm by 2030," the article says.

Russia's Ryazan oil refinery restores crude processing to 60% of pre-attack level

Russia's Ryazan oil refinery restores crude processing to 60% of pre-attack level

Russia's Ryazan oil plant resumed operations at primary oil refining unit CDU-4 this week, increasing its total crude intake to 60% of normal capacity or 169,000 bpd, said Hydrocarbonprocessing.

The refinery shut down the CDU-4 and main CDU-6 primary oil refining units on March 13 after a fire caused by a drone attack.

It plans to resume operations at the CDU-6 unit at a capacity of some 170,000 bpd by the end of March, fully restoring the plant's production shortly after, the sources added.

Ryazan's owner Rosneft did not reply to a request for comment.

After the fire the plant reduced runs by 64% compared to the beginning of the month to 95,000 bpd.

Ryazan, with installed capacity of around 350,000 barrels per day, refines about 12.7 million metric tons of Russian crude a year (around 317,000 barrels per day), or 5.8% of the country's total refined crude, according to industry sources.

We remind, Russia’s crude oil exports and transit from its western ports are seen at around 8.2 MMt this month, in line with market forecasts, industry. Russia's loading plans for the ports of Primorsk, Ust-Luga and Novorossiisk in February were revised up earlier this month due to additional Rosneft volumes freed up after the shutdown of its Tuapse oil refinery.

Dow and Procter & Gamble to develop a new proprietary recycling technology targeting hard-to-recycle plastic waste

Dow and Procter & Gamble to develop a new proprietary recycling technology targeting hard-to-recycle plastic waste

Dow and the Procter & Gamble Company announced a joint development agreement to create a new recycling technology to enable efficient conversion of hard-to-recycle plastic packaging into recycled polyethylene with near-virgin quality and a low greenhouse gas emissions footprint, said Hydrocarbonprocessing.

To create the new technology, the companies will combine their patented technologies and know-how in the dissolution process. The development program will focus on using dissolution technology to recycle a broad range of plastic materials with a focus on polyethylene and targeting post-household plastic waste (especially rigids, flexible and multi-layer packaging, which are harder to recycle).

The technology aims to deliver high quality post-consumer recycled (PCR) polymer with a lower greenhouse gas emissions footprint than fossil-based polyethylene. P&G anticipates using this PCR polymer in their packaging, thereby enabling a path to circularity which helps maximize resource utility and reduces materials treated as waste.

The global partnership between Dow and P&G begins immediately and is expected to run until commercialization.

In addition to the patented technologies, both Dow and P&G bring decades of expertise in materials science, manufacturing capabilities and large-scale supply chain management. These areas of expertise will be important in the development of this new recycling technology that can be deployed at commercial manufacturing scale.

“Dow is committed to transforming plastic waste into circular solutions that can be made into high quality resins demanded by our customers while helping to accelerate a circular economy. We are excited to work with P&G who has similar sustainability goals and commitment to innovation,” said Dave Parrillo, vice president for Research & Development, Dow Packaging & Specialty Plastics and Hydrocarbons.

"Our partnership with Dow helps P&G advance our objective to scale industry solutions as we help create a circular future where materials are recycled and remade instead of becoming waste," added Lee Ellen Drechsler, senior vice president of Corporate Research and Development at Procter & Gamble.

Both Dow and P&G have bold ambitions to accelerate circularity. Dow has a sustainability target to Transform the Waste and commercialize three million metric tons of circular and renewable solutions by 2030, and P&G's vision is to use 100% consumer packaging designed to be recycled or reusable by 2030.

We remind, Dow has formulated a breakthrough option of polyolefin elastomers (POE) based artificial leather - a solution to address the automotive industry’s need to shift towards increasingly animal-free product alternatives to leather, said the company. The POE alternative leather option has been commercialized by HIUV Materials Technology, a China-based partner and qualified by an electric car manufacturer in their auto seatings application.

Ryanair purchases 1,000 tons of SAF from Shell

Ryanair purchases 1,000 tons of SAF from Shell

Ryanair announced that it has purchased 1,000 tons of SAF from global energy group, Shell, and will be supplied to the airline at its Stansted Airport base, said Hydrocarbonprocessing.

This purchase follows the MoU agreement made between the companies in 2022, providing Ryanair with unique access to purchase up to 360,000 tons of SAF from Shell between 2025 and 2030, which could save up to 900,000 tons in CO2 emissions1.

Today’s announcement, as part of an event showcasing the tools Ryanair is using to decarbonize, demonstrates Ryanair’s continued commitment to achieve net zero by 2050. Ryanair has already significantly advanced its decarbonization commitments through its work with Trinity College Dublin in the Ryanair Sustainable Aviation Research Centre, and by investing heavily in new technology aircraft, including a $22bn investment in its ‘Gamechanger’ fleet, which reduce CO2 emissions by 16%, and a further $40bn investment for 300 Boeing 737 MAX-10 aircraft which reduce CO2 emissions by 20% and noise by 50% while carrying 21% more passengers.

Speaking at Stansted Airport, Ryanair’s Director of Sustainability and Finance, Thomas Fowler said: “Ryanair continues to lead the way in sustainable aviation. As demonstrated today at Stansted, by using SAF, the latest engine technologies and electric ground handling equipment, we are making significant investments to decarbonize our operations and achieve our commitments of net zero carbon emissions by 2050 and 25% less CO2 emissions per passenger/km by 2031. Our partners at Shell and MAG are key enablers of these goals, and today’s announcement of Ryanair’s purchase of 1,000 tons of SAF from Shell is testament to that. We will continue to work with our partners across the network to make every Ryanair flight as environmentally efficient as possible.”

We remind, Shell Chemicals and petrochemical company Braskem have entered an agreement to bring bio-attributed and bio-circular polypropylene to the US market. Shell will supply the feedstocks to allow Braskem to manufacture polypropylene for sustainable options to meet growing consumer demand in the packaging, film, automotive and consumer goods markets. Shell is replacing hydrocarbon feedstock with a bio-attributed and bio-circular feedstock in its polypropylene product.

Avtovaz begins assembling Lada cars in Azerbaijan

Avtovaz begins assembling Lada cars in Azerbaijan

JSC Avtovaz has launched a project to assemble Lada cars in Azerbaijan and plans to assemble 1,500 cars in the country in 2024, the Russian automaker's press service said, as per Interfax.

Avtovaz said that it has organized a receiving area for vehicle kits, an assembly shop, and a parking lot for storing finished cars at one of the production sites in Azerbaijan. Personnel specially hired as part of the project have received the necessary training from specialists from Togliatti.

Avtovaz head Maxim Sokolov said that the Lada production site in Azerbaijan could produce up to 1,500 cars this year.

"We are starting with Granta, and plan to expand the range of local production by the end of 2024 with the Niva Legend and Travel family; and test samples have already been assembled and are undergoing a quality audit, as well as the Vesta family. The annual production output could reach up to 4,000-5,000 cars in the next few years," Avtovaz's press service quoted Sokolov as saying.

Launching local production in Azerbaijan should assist Lada in returning its market share in the country to the pre-crisis levels, and in boosting the brand's presence, Sokolov said.

We remind, production of all types of motor vehicles increased 16% in Russia in 2023 to 720,000 units. Last year production increased 16%; over 720,000 cars from different segments rolled off assembly lines in our country. In total, over 1.3 million cars of all types were sold on the domestic market.