PRODUCTS AND TECHNOLOGIES

Westlake to Acquire Hexion’s Global Epoxy Business

Westlake | November 25, 2021

Westlake to Acquire Hexion’s Global Epoxy Business
Westlake Chemical Corporation, announced that it has entered into a definitive agreement with Hexion Inc. to acquire Hexion’s global epoxy business for approximately $1.2 billion. Based in Rotterdam, The Netherlands, Hexion’s epoxy business is an industry leader in the manufacture and development of specialty resins, coatings and composites for a variety of industries, including high-growth and sustainability-oriented end-uses such as wind turbine blades and light-weight automotive structural components. In the twelve months ended September 30, 2021, Hexion’s epoxy business had net sales of approximately $1.5 billion.

With this transaction, which is anticipated to be completed in the first half of 2022 following customary closing conditions, Westlake will significantly expand its integrated business by adding a downstream portfolio of coatings and composite products to its leading chloro-vinyls businesses.

Light-weighting is a critical feature for the manufacture of structural components for automobiles and for renewable energy, particularly the composite blades used by wind turbines, and epoxies are key ingredients for these sustainable products. The industries served by Hexion Epoxy are very attractive to Westlake and the business is expected to be a synergistic addition to Westlake’s existing businesses. We look forward to welcoming the Hexion epoxy employees to the Westlake family and realizing the tremendous opportunities to grow the combined businesses.”

    Westlake President and Chief Executive Officer Albert Chao  
 
 
Hexion Epoxy is a global leading producer of epoxy resins, modifiers and curing agents for high-performance materials, coatings and composites. The fully-integrated business includes upstream base epoxy resins and intermediates delivered as liquid or solid epoxy resins, as well downstream specialty epoxy resins used in coatings and composites. Hexion Epoxy operates globally on three continents with eight manufacturing facilities and five research and development labs located in Asia, Europe and the United States, as well as tolling sites in Asia.

About Westlake
Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, we provide the building blocks for vital solutions — from building products and infrastructure materials, to packaging and healthcare products, to automotive and consumer goods. 

Spotlight

Worldwide polyethylene capacity is seen to grow from 108.3 million mt in 2016 to 150 million mt by 2027, with around 10 million mt of speculative capacity included into our forecasts post 2024. Platts Analytics expects production to grow from 93 million mt in 2016 to 133.6 million mt by 2027. Global operating rates are expected to average 85.3% in that time period. However, during the period of excessive capacity additions led by the US, China and Iran between 2017 and 2023, rates are expected to average just below 83%, dropping to as low as 81.9% in 2020 to balance the market.


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CHEMICAL MANAGEMENT

Sempra Infrastructure and RWE Sign Heads of Agreement for U.S. LNG Supply

Sempra Infrastructure | May 26, 2022

Sempra Infrastructure, a subsidiary of Sempra announced it has entered into a heads of agreement with RWE Supply & Trading, a subsidiary of RWE for the purchase of approximately 2.25 million tonnes per annum (Mtpa) of liquefied natural gas. The LNG is to be supplied on a long-term, free-on-board basis from the Port Arthur LNG Phase 1 project under development in Jefferson County, Texas. "Sempra Infrastructure's LNG projects are uniquely positioned to help provide U.S. LNG to support the energy security of America's allies in Europe, while also accelerating the transition to a lower carbon future. We are excited about the opportunity to work with one of Germany's top power producers to achieve these dual goals. We see opportunities to work together with RWE across the energy transition, including LNG, hydrogen and renewables. With today's agreement, we make significant progress toward the development of our Port Arthur LNG project and remain committed to lowering greenhouse gas (GHG) emissions across the LNG value chain through the use of new technologies and the improvement of key processes." Justin Bird, CEO of Sempra Infrastructure Andree Stracke, CEO of RWE Supply & Trading said, "As RWE, we are very pleased to join forces with Sempra Infrastructure. Our partnership can contribute largely to securing significant LNG volumes for the RWE portfolio on a long-term basis while building the basis for supplying low carbon gas in the future." The HOA contemplates the negotiation and finalization of a definitive 15-year LNG sale and purchase agreement for 2.25 Mtpa to be delivered from the Port Arthur LNG project. Additionally, Sempra Infrastructure and RWE have agreed to work toward a broad framework for the reduction, mitigation, and reporting of GHG emissions associated with deliveries of LNG from the Port Arthur LNG project, including addressing the use of responsibly sourced natural gas as part of the project's feed gas supply and renewable energy as part of the project power mix. Phase 1 of the Port Arthur LNG project is fully permitted and is expected to include two liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. The referenced HOAs are preliminary, non-binding arrangements, and the development of the Port Arthur LNG project remains subject to a number of risks and uncertainties, including, among others, reaching definitive agreements, maintaining all necessary permits, finalizing engineering and construction arrangements, obtaining financing and incentives, and reaching a final investment decision. Sempra Infrastructure is one of the top renewable energy producers in Mexico and is currently exceeding its goal of operating its existing LNG infrastructure at a GHG emissions intensity that is 20% below its 2020 baseline, having achieved a 28% reduction in 2021. In addition to continuing to reduce emissions through operational excellence, Sempra Infrastructure is actively developing lower emissions technologies for existing and future infrastructure assets. Sempra Infrastructure has entered into a memorandum of understanding with Entergy Louisiana, a subsidiary of Entergy Corporation to develop options to accelerate the deployment of cost-effective renewable energy to power its infrastructure located in vicinity of the Gulf Coast. Additionally, Sempra Infrastructure is developing Hackberry Carbon Sequestration, a proposed carbon sequestration facility located in Southwest Louisiana expected to have the potential to sequester up to 2 Mtpa of carbon dioxide from LNG and other industrial facilities in the region and is developing opportunities to co-locate low-carbon hydrogen production at or near existing Sempra Infrastructure facilities. In addition to lowering emissions at its own facilities, Sempra Infrastructure is working with other companies to reduce GHG emissions across the U.S. natural gas value chain, consistent with Sempra's aim to have net-zero GHG emissions by 2050. Sempra is a founding member of Veritas, a GTI Energy Differentiated Gas Measurement and Verification Initiative, supporting Sempra Infrastructure and other customers' desires for responsibly sourced natural gas that is produced and transported using proven technologies that minimize GHG emissions. Sempra Infrastructure is also a sponsor of The Collaboratory to Advance Methane Science, a research collaboration to advance technological solutions to enable methane emission reductions. About Sempra Infrastructure Sempra Infrastructure delivers energy for a better world. Through the combined strength of its assets in North America, the company is dedicated to enabling the energy transition and beyond. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future.

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CHEMICAL MANAGEMENT

Genalta Power and Proton Technologies Sign Fuel Supply LOI

Kopahawakenum | April 04, 2022

The Kopahawakenum 15-Megawatt Flare Gas to Power Facility announced by SaskPower, Flying Dust First Nation, and Genalta Power, online 2023, plans to purchase Flare Gas from Proton Canada’s nearby asset, according to a letter of intent recently signed between the CEO of Genalta, Paul Miller, and the CEO of Proton, Grant Strem. To ensure sufficient supply for the Kopahawakenum Facility, plus Proton’s own 4.2 MW Power Purchase Agreement and other off-takers, the plan is to install a Cryogenic Air Separation unit (ASU), for injecting pure oxygen and third-party CO2 into Proton’s underground oil deposit to increase hydrogen-productive reactions. Cold gases from the ASU can separate produced gases by freezing or liquifying these at various cold temperatures at the surface using passive heat exchange. Unwanted components like CO2 are planned to go back into the ground, where reactions can cause them to solidify into forms like carbonate rock. Proton has been demonstrating their patented method for accelerating carbonate creation within pores in the earth, by injecting steam boiler blow-down (reactive waste stream fluid) into their CO2-rich subsurface environment. Proton’s PPA has final approval and plans and designs for construction are underway. Genalta’s Kopahawakenum PPA is conditionally approved under Saskatchewan’s Oil and Gas Processing Investment Incentive (OGPII), and the Saskatchewan Petroleum Innovation Incentive (SPII), which provide royalty credits at a rate of 15% and 25% of expenses respectively, after the private investments are made. “I want to thank Genalta, the government of Saskatchewan, the First Nations Power Authority, and the Flying Dust First Nation for boldly and creatively enabling improvements over our current energy systems. There will be economic and ecological benefits from this first project, and we believe also from hundreds or even thousands of larger similar projects around the world in the long course of time, thanks to the efforts and investments of those involved in this global first. Proton is very pleased to have Genalta as our creative, positive customer. This flex-fuel offtake deal helps justify and enable a “small enough to be fast” commercial demonstration of core elements of Proton’s method to produce low cost hydrogen while sequestering carbon inside the earth as rock. Many oil assets late in their productive life cycle can be repurposed to make clean energy, leveraging the infrastructure and investments of the past. We plan to expand as fast as we can afford to.” Grant Strem Paul Miller said, “Kopahawakenum is a cornerstone project that will help the energy industry in Saskatchewan to meet the goals announced by the federal government to reduce GHG emissions 30% in the industry by 2030. Additionally it will be including First Nations in energy stewardship in the province in a meaningful way, creating long term jobs and a replicable approach to utilizing Flare and Vent Gas for power generation. Proton’s fuel supply is critical for the Kopahawakenum project. We thank Proton for their collaboration and support; their visionary project is a game changer in the energy industry with tremendous potential to provide large quantities of emissions free fuel at an economical price to the global market. We are proud to be working with them to further reduce emissions in Saskatchewan and hope to utilize their clean Hydrogen in the future as we continue to expand our clean power base in the province.”

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CHEMICAL TECHNOLOGY

Summit Carbon Solutions Announces Progress on Carbon Capture and Storage Project

Summit Carbon Solutions | February 02, 2022

Summit Carbon Solutions announced further progress on its carbon capture and storage project with the filing of its pipeline permit application in the state of Iowa with the Iowa Utilities Board. Summit's project will connect ethanol biorefineries across five states in the upper Midwest – Iowa, Minnesota, Nebraska, North Dakota, and South Dakota – with the largest portion of the project, consisting of 12 ethanol biorefineries and over 680 miles of carbon dioxide pipeline, in Iowa. By capturing and permanently storing carbon dioxide emissions from partner ethanol biorefineries, Summit Carbon Solutions will cut the carbon footprint of their ethanol in half, which will ensure the environmental and economic sustainability of these facilities for the long term by opening new markets and improving profitability. Summit recently began acquiring right-of-way easements for the pipeline component of the project across its five-state footprint. As a company rooted in agriculture, Summit places a heavy emphasis on landowner engagement and is focused on working with landowners who wish to voluntarily participate. "We're pleased to have begun the permitting process for Summit Carbon Solutions, which keeps us on schedule to be operational in the first half of 2024. This project will be transformational for the ethanol industry and, by extension, the agriculture industry. Farmers and landowners in Iowa understand that ethanol production consumes over 50% of our corn crop every year, which is a big reason why we've had early success signing hundreds of pipeline easements with farmers who have a vested interest in our success." Bruce Rastetter, CEO of Summit Agricultural Group Summit will continue its permit application process with other states and jurisdictions in the coming months as it proceeds to develop the first interstate carbon capture and storage project in the United States.

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CHEMICAL MANAGEMENT

Chevron Singapore Expands Relationship with PDI to Use Point-of-Sale (POS) Solutions Across the APAC Region

Chevron | February 11, 2022

PDI a global provider of leading software solutions for the convenience retail and petroleum wholesale industries, today announced it has signed an agreement with Chevron Singapore Pte. Ltd. (Chevron) to implement cloud-based PDI Point-of-Sale (POS) Solutions. The agreement provides support to multiple countries in the Asia-Pacific (APAC) region and across the Chevron retail network, integrating with existing PDI back-office and home-office business solutions that simplify complex operations across all profit centers. PDI POS Solutions support convenience, fuel retail, and foodservice operations for Chevron with seamless integration across the company’s extensive retailer ecosystem. In November 2020, PDI announced it would implement the next generation of PDI Envoy back-office and home-office software solutions at corporate-owned Chevron sites across APAC. Today’s announcement enables Chevron to continue leveraging the global team of PDI experts to support the ongoing digital transformation efforts in the region. In particular, Chevron will rely on the powerful, intuitive, and reliable PDI technology stack to create a foundation for future advanced technology investments. “We’re excited to expand our longstanding relationship with Chevron in APAC. It’s a privilege to serve and enable customers like Chevron so they can benefit from PDI technology investments in the convenience petroleum industry. This announcement legitimizes the significant investments PDI is making in the industry, international markets, and our solution portfolio.” Brad McGuinness, Senior Vice President, POS Solutions at PDI PDI leads the market in delivering solutions that provide essential building blocks for digital transformation, both to expand and future-proof operations. Leading retailers, like Chevron, continue to invest in technology that optimizes business operations and helps improve the guest experience with innovative POS solutions. ”To enhance our customer experience and increase enterprise productivity, we are refreshing our POS solutions,” said Dean Gilbert, General Manager, Marketing and Sales Support, Chevron, APAC. “PDI is a dedicated and trusted partner with a proven track record of supporting us in the region. Deep industry expertise from PDI contributes to Chevron success within the Asia-Pacific region and we’re excited to extend this to POS.” With PDI POS Solutions, Chevron can increase customer-centricity with robust promotions and operations that also deliver better oversight of the business, including real-time updates on inventory, sales, pricing, and staffing. Sin Hin Wong, PDI General Manager and Vice President of Sales APAC, said, “Chevron is focused on enhancing the customer experience, and a modern, integrated POS solution helps them achieve that goal while increasing enterprise productivity. We look forward to working with Chevron across the various parts of their retail operations in Asia and throughout the Pacific region.” About PDI Professional Datasolutions, Inc. (PDI) software helps businesses and brands increase sales, operate more efficiently and securely, and improve critical decision-making. Since 1983, PDI has proudly served the convenience retail and petroleum wholesale industries. Over 1,500 companies, representing more than 200,000 locations worldwide, count on PDI solutions and expertise to deliver convenience and energy to the world. About Chevron Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We are focused on lowering the carbon intensity in our operations and seeking to grow lower carbon businesses along with our traditional business lines.

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Spotlight

Worldwide polyethylene capacity is seen to grow from 108.3 million mt in 2016 to 150 million mt by 2027, with around 10 million mt of speculative capacity included into our forecasts post 2024. Platts Analytics expects production to grow from 93 million mt in 2016 to 133.6 million mt by 2027. Global operating rates are expected to average 85.3% in that time period. However, during the period of excessive capacity additions led by the US, China and Iran between 2017 and 2023, rates are expected to average just below 83%, dropping to as low as 81.9% in 2020 to balance the market.

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