World news

UK | JM and ClimeCo form alliance

Johnson Matthey (JM) and ClimeCo, a global climate solutions company, have announced that they are collaborating to accelerate the deployment of enhanced carbon capture solutions for industry.

Under a Memorandum of Understanding (MoU), the two companies will help syngas producers, initially in hydrogen and methanol, to build the business case for reducing CO2 emissions from existing processes by up to 95%.

Syngas producers are responsible for approximately 70% of CO2 emissions in the chemicals sector.

Jane Toogood, Catalyst Technologies Chief Executive at JM, said the collaboration would “enable industries such as chemicals and refining [...] to quickly understand the regulatory frameworks, accelerate capital decisions for decarbonisation programmes and easily deploy proven technology solutions that can have an impact today, to create a cleaner world.”

The Netherlands | Shell Chemicals Park Moerdijk to produce more sustainable chemicals

Shell Chemicals Park Moerdijk, a subsidiary of Shell plc, has announced a new investment that supports its plan to transition the chemicals park into a site able to serve the changing needs of its customers. Its customers desire more low-carbon products, as well as products made using recycled material. Shell Moerdijk will build a new pyrolysis oil upgrader unit that improves the quality of pyrolysis oil, a liquid made from hard-to-recycle plastic waste, and turns it into chemical feedstock for its plants. The investment marks a first major step in transitioning the park within 10 years, by increasing the use of circular and bio-based feedstocks, growing its offer of low-carbon products, and becoming net zero through the application of hydrogen and carbon capture and storage (CCS).

To achieve these ambitions, Shell intends to invest billions in Shell Moerdijk’s chemical complex over the next decade, subject to investment decisions and within existing capital allocation frameworks.

China | LNG imports to decline

China’s LNG imports are set to fall over 14% y/y to 69 million t in 2022, the largest decline since it began LNG imports, reports Wood Mackenzie.

After solid growth in 2021, China’s gas and LNG demand is expected to slow down in 2022. China’s gas demand (sum of production and net imports) in 2Q22 decreased 5% y/y. The weakening gas demand was due to a confluence of factors including economic slowdown, rising gas import prices, policy support for clean coal, and a warmer-than-usual winter.

Wood Mackenzie Research Director, Miaoru Huang, said: “Gas-fired power was a major contributor to the absolute decline in volumes. In addition to the factors mentioned earlier, the sector was pressured by growth in use of renewables.”

On the supply side, domestic production increased by 4.9% y/y in the first half of the year, while pipeline imports increased by 11%. LNG imports totalled 31 million t, down 21% y/y.

Huang said: “Chinese buyers have minimised their exposure to costly spot LNG. Spot purchases were muted, and reportedly, some Chinese players resold cargoes into the European market.”

UAE | ADNOC and TotalEnergies sign strategic partnership agreement

ADNOC and TotalEnergies have signed a strategic partnership agreement to deepen their long-standing partnership and explore new opportunities for growth across the energy value chain.

Under the terms of the agreement, the companies will explore opportunities to collaborate in areas of mutual interest, including in gas growth, carbon capture utilisation and storage (CCUS), and trading and product supply.

This strategic partnership agreement follows the signing of the UAE-France Comprehensive Strategic Energy Partnership (CSEP), which is focused on enhancing energy security, affordability and decarbonisation, as well as progressive climate action ahead of COP28.

TotalEnergies currently collaborates with ADNOC across the full value chain: offshore and onshore exploration, development and production of oil and gas, gas processing and liquefaction, product marketing, research and development (R&D), and National Talent development.

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France | Nextchem awarded advanced basic engineering study by Storengy

Maire Tecnimont S.p.A. has announced that its subsidiary, NextChem, has been awarded a contract by Storengy to carry out an advanced basic engineering study for a waste wood and solid recovered fuel conversion plant to produce biomethane.

Once the project has reached the Final Investment Decision (FID) targeted by the end of 2022, and is granted the related permitting, NextChem, in association with another Maire Tecnimont Group’s subsidiary, shall act as an EPC contractor for the methanation package of the project, which is set to be implemented in Le Havre, France.

NextChem will be responsible for the engineering and cost estimating for the syngas purification, methanation unit, and methane upgrading of the plant, which will produce 11 000 tpy of renewable and low-carbon natural gas (biomethane). COMESSA will be responsible for the design and supply of the chemical reactor. The technology to be used in the plant has already been successfully applied to the Gaya pilot plant near Lyon.

Worldwide | New refineries to increase global refining capacity

The International Energy Agency (IEA) estimates that global refining capacity decreased by 730 000 bpd in 2021 – the first decline in global refining capacity in 30 years. In the US, refining capacity has decreased by about 1.1 million bpd since the start of 2020, contributing 184 000 bpd to the global decline in 2021.

Global demand for refined products dropped substantially in 2020 as a result of the COVID-19 pandemic. Less petroleum demand and the associated lower petroleum product prices encouraged refinery closures, reducing global refining capacity, particularly in the US, Europe and Japan. However, several new refinery projects are set to come online during 2022 and 2023, increasing capacity.

In its June 2022 ‘Oil Market Report’, the IEA expects net global refining capacity to expand by 1 million bpd in 2022 and by an additional 1.6 million bpd in 2023.

USA | Bayport Polymers starts up new ethane cracker

Bayport Polymers LLC has announced the start-up of commercial operations of a new ethane cracker with a production capacity of 1 million tpy of ethylene.

Bayport Polymers is a 50/50 joint venture (JV) between TotalEnergies and Borealis.

This project is built on the site of – and operated by – the TotalEnergies refinery in Port Arthur, Texas, US.

The ethylene produced by the cracker will be used as feedstock to supply Baystar’s existing polyethylene units, as well as a new Borstar® technology polyethylene unit currently under construction in Bayport, Texas.

Bernard Pinatel, President, Refining & Chemicals, TotalEnergies, said: “This investment is in perfect alignment with our strategy to develop petrochemicals at our integrated platforms.”