The Catalyst Review May 2020 - 3

COMMERCIAL NEWS
condensate and naphtha, while the
fourth cracker can flex among the most
economical NGLs," said Bhavesh Patel,
CEO at LyondellBasell. "Our cracker system
offers distinct advantages relative to newly
built crackers that can only run ethane,"
he added, according to a transcript of the
May 1 call. Source: Petrochemical Update,
5/12/2020.
Global Clean Energy Holdings,
Inc. Announces Acquisition of
Bakersfield Refinery...
Global Clean Energy Holdings, Inc.
announced that, through a subsidiary, it
purchased Alon Bakersfield Properties,
Inc., a subsidiary of Delek US Holdings,
Inc. and the owner of the Alon
Bakersfield Refinery. It is an existing
oil refinery located in Bakersfield,
California. Historically, the refinery has
produced diesel from crude oil. GCEH
will immediately commence retooling
the refinery to produce renewable diesel
from organic feedstocks such as vegetable
oils. The facility, when repurposed as a
renewable fuels refinery, will vertically
integrate to produce renewable diesel
from various feedstocks, including GCEH's
patented proprietary fallow land crop
varieties of camelina. The balance of
feedstock will be provided from various
non-petroleum renewable feedstocks,
such as used cooking oil, soybean
oil, distillers' corn oil, and others. No
petroleum processing of any kind will
occur hereafter at the refinery, either
during or following the retooling effort.
Instead, the refinery will be repurposed
to become a producer of low-carbon
renewable fuels that meet the needs
of the California Low Carbon Fuels
Standard. Fuels produced from the facility
will result in significant reductions of
both greenhouse gas (GHG) emissions
and local air pollutants like particulate
matter. Richard Palmer, Chief Executive
Officer of Global Clean Energy Holdings,
commented, "We are thrilled to announce
this exciting new venture in Bakersfield,
California; a venture that leverages the
region's core competencies in agriculture
and both traditional and alternative
energy." Source: Globe News Wire,
5/8/2020.

Oil Doubles Over Past Five Days on Output Cuts and Stabilizing
Demand...
Oil's rally resumed after prices doubled over five days, amid optimism that output
cuts are easing a huge supply glut and demand losses have bottomed. OPEC+ began
implementing 9.7 million barrels per day of production curbs on May 1, which along
with some early signs of demand recovery has helped to ease fears the world will
run out of storage space for crude and fuels. The Trump administration is pivoting to
"phase two" of its virus response in an effort to reopen the nation's economy. While it's
possible the worst is over for oil markets, most analysts don't see a rebound to pre-virus
levels of consumption for at least a year, with some questioning if it will ever happen.
The risk of a second wave of infections in the U.S. as states reopen can't be discounted,
while deteriorating relations between Washington and Beijing may hamper the global
economic recovery. "The Russian news suggests a faster full compliance with cuts
versus the past," said Giovanni Staunovo, commodity analyst at UBS Group AG. "There's
also likely some technical buying from momentum investors." Hedge fund Westbeck
Capital Management, which posted its best ever month in April after being short oil
prices in the front of the curve, said the bull case for crude is now "simply exceptional."
Pierre Andurand's commodities fund is now up almost 70% this year after further gains
in April. U.S. crude stockpiles rose by 8.44 million barrels last week, the American
Petroleum Institute reported, according to people familiar with the data. Supplies
at the storage hub at Cushing, Oklahoma, rose by 2.68 million barrels, the API said.
"The market's focus will remain the state of crude oil inventories at Cushing and U.S.
production," said BNP Paribas SA's Head of Commodities Strategy Harry Tchilinguirian.
"Last week, the market took some comfort from the fact that the pace of additions to
Cushing storage moderated." Source: World Oil, 5/6/2020.
Linde Starts Up New Syngas Processing Plant in the U.S. Gulf
Coast...
Linde announced it has started up a state-of-the-art syngas processing plant in
Geismar, Louisiana. The new plant will supply carbon monoxide and hydrogen to
a top global chemical company as well as other refining and chemical customers
along Linde's hydrogen pipeline network in Southern Louisiana, all under long-term
supply agreements. Linde's plant will convert by-product Acetylene Off-Gas (AOG), a
lower-value waste stream, into these two high-value products to supply customers
along its pipeline. "The new Geismar plant brings our total investment in this area to
approximately $250 million and demonstrates our ongoing commitment to serving our
customers in the Mississippi River corridor in a safe, reliable and sustainable manner,"
said Jeff Barnhard, Vice President, South Region. "We are continuing to work with our
customers to support their growth through the supply of the fundamental building
blocks needed to produce higher-value chemicals and clean fuels." Source: Linde,
5/5/2020.
Dow to Idle PE Resin Plants in Americas...
Materials giant Dow Inc. will idle five plants in the Americas for at least one month in
response to the COVID-19 crisis. Chairman and CEO Jim Fitterling said the idled plants
include three polyethylene and two elastomer plants located on the U.S. Gulf Coast and
in Argentina. Their total annual capacity is 2 billion pounds. Officials also said that Dow's
polyurethanes unit would run at reduced global rates for MDI and propylene oxide
until industrial demand improves. The firm's silicones unit also would run at reduced
siloxanes rates globally, while maintaining full flexibility in finished silicone applications.
Overall, Dow will trim expenses by $350 million and reduce its capital expenditures
target for 2020 from $2 billion to $1.25 billion. Source: Plastics News, 4/30/2020.

The Catalyst Review

May 2020

The Catalyst Review May 2020

Table of Contents for the Digital Edition of The Catalyst Review May 2020