OCTAL and Alpek | June 02, 2022
Alpek, S.A.B. de C.V. announced that it has received all necessary approvals from the regulatory authorities and has finalized its acquisition of OCTAL Holding SAOC
Pursuant to the purchase agreement, Alpek acquired 100% of the shares of OCTAL for U.S. $620 million on a debt-free basis. Financing was secured through a mix of free cash flow generated from existing businesses and dedicated bank loans.
Alpek will assume control of OCTAL's operations starting on June 1, 2022. The Company expects an accretive EBITDA effect of approximately U.S. $120 million from these assets throughout the remainder of 2022, largely based on the better-than-expected Polyester market conditions prevalent in recent months. This would increase the Company's Comparable EBITDA Guidance to U.S. $1,370 million and Reported EBITDA Guidance to U.S. $1,485 million.
"We are pleased to have concluded this acquisition ahead of the expected timeline. We are excited to welcome OCTAL's management team and employees into our family, leveraging their long-standing relationships with customers, their diverse backgrounds, and technical proficiency to drive the Company's long-term growth."
José de Jesús Valdez, Alpek's CEO
Alpek is a leading petrochemical company operating two business segments: "Polyester" and "Plastics & Chemicals" Alpek is a leading producer of PTA, PET resin and PET sheet worldwide, one of the largest rPET producers in the Americas, the third largest expandable polystyrene manufacturer worldwide, and the only producer of polypropylene in Mexico. In 2021, Alpek reported revenues of U.S. $7.7 billion and Comparable EBITDA of U.S. $962 million. The Company operates 35 plants across the United States, Mexico, Canada, Brazil, Argentina, Chile, Oman, Saudi Arabia, and the United Kingdom, and employs over 6,500 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
Inter Pipeline Ltd. | July 06, 2022
Inter Pipeline Ltd. announced it has successfully commissioned its polypropylene plant and has begun initial production. Branded Heartland Polymers the operation is the only one of its kind in North America, offering the market one of only two new sources of PP in over a decade. Due to its unique location, modern design and technology and transport optionality, Heartland is expected to be one of the most sustainably produced, reliable options in the industry.
"A safe commissioning of our polypropylene plant is a crucial step towards commercial production of Heartland Polymers. The PP Plant has been producing pellets since late June with polymer grade propylene from our storage cavern. The entire Heartland Complex remains on schedule for an integrated start-up in the third quarter of this year, at which point Heartland will begin commercial production."
Jim Madro, Senior Vice President, Petrochemicals
Construction of the Heartland Petrochemical Complex began in early 2018, and it is expected to convert locally sourced, low-cost propane into 525,000 tonnes per year of PP, a high value, multi-use plastic that is easily transported and can be recycled. This polymer is used in the manufacturing of a range of finished products such as food packaging, textiles, healthcare products and medical supplies. Once fully in-service Heartland is expected to create a step change in annual cash flow generation for Inter Pipeline, with approximately 70 per cent of the output contracted on a nine-year weighted average.
Industry Leading Reliability
The PP plant was commissioned using PGP feedstock from a cavern at Inter Pipeline's Redwater Olefinic Fractionator. The primary source of feedstock will be an on-site PDH plant, where propane will be turned into PGP. The propane dehydrogenation (PDH) plant is expected to enter integrated service with the PP plant in the third quarter of this year, making it the first integrated complex of its kind in North America. The optionality of both the storage cavern and direct on-site PGP production ensures exceptional reliability for customers.
Deliberate design and technology choices paired with local feedstock means Heartland is expected to generate 65 per cent less greenhouse gas than average global PP facilities around the world. Due to its integrated nature, the Complex is designed to utilize by-products ethane and hydrogen to fuel power production in the cogeneration unit (CUB) to make up approximately 32 per cent of the operation's total fuel usage, reducing the total carbon footprint by approximately 130,000 tonnes annually. Additionally, the design choice to utilize air cooling instead of water cooling in the operation has a significant impact on the amount of water used at Heartland. When fully in service, the Complex is expected to utilize 80 per cent less make-up water than water cooled operations.
About Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation and natural gas liquids processing business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in Western Canada including the Heartland Petrochemical Complex.
BKV Corporation | June 10, 2022
BKV Corporation and EnLink Midstream, LLC announced that they have reached a Phase I Final Investment Decision and entered into a definitive agreement to develop a carbon capture and sequestration project in the Barnett Shale region of North Texas.
"It is critical that companies in the industry work together to bring actionable change and move large-scale carbon reduction projects forward. This partnership brings us one step closer to the safe and profitable production of net-zero green natural gas."
BKV Chief Executive Officer Chris Kalnin
Carbon sequestration is the process of capturing and permanently storing carbon dioxide, which reduces the amount of pollutive carbon dioxide in the atmosphere. Under their agreement, BKV will continue to produce natural gas containing carbon dioxide from its Barnett Shale area operations, and EnLink will transport this natural gas via its modified pipeline and facility infrastructure to the EnLink natural gas processing plant in Bridgeport, Texas. At the Bridgeport plant, the carbon dioxide waste stream will be captured, compressed, and then disposed of through permanent sequestration via BKV's nearby injection well.
"EnLink values our partnership with BKV, and we are eager to build upon it through this sustainable CCS project," EnLink Chairman and CEO Barry E. Davis said. "The project will capture and store a significant amount of carbon dioxide emissions per year, which moves EnLink a step closer to achieving our goal of a 30 percent reduction in CO2-equivalent emissions intensity by 2030 over EnLink's 2020 scope 1 emissions intensity."
As part of its sustainability efforts, BKV recently formed dCarbon Ventures, a dedicated business unit focused on driving CCS innovations and project development. Vice President of dCarbon Ventures, Lauren Read, said, "CCS is such an important component of driving climate solutions, and I'm really excited to have a project at the Phase I FID point. We plan to be injecting carbon dioxide by the end of 2023, at which point it is expected to be one of the first permanent commercial sequestration projects to come online in the United States." Read said that this initiative is anticipated to offset BKV's current emissions by approximately 10 percent, bringing the company even closer to its goal of reaching net-zero by 2025.
Read continued, "We are doing this the BKV way—which means taking action to address our own emissions rather than achieving our goal through the purchase of offsets alone. Carbon sequestration is a fundamental element in our sustainability plans, and we expect dCarbon Ventures to be an area of significant growth for BKV."
"This investment reinforces our commitment to leading the way in the production of net-zero green natural gas," Kalnin said. "We look forward to being a pioneer in CCS and working with EnLink, and other like-minded companies, who are ready to address climate change head-on."
About BKV Corporation
Headquartered in Denver, Colorado, BKV Corporation (BKV) is a privately held natural gas exploration and production company that seeks to deliver reliable, sustainable energy to the community. Founded in 2015, BKV has over 200 employees across the U.S. that are committed to building a different kind of energy company. BKV is one of the top 20 natural gas producers in the United States and the largest natural gas producer in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies.
About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, and NGL capabilities, and carbon capture, transportation, and sequestration services. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC.