| WTI Crude | $42.26/bbl | -0.8% |
| Brent Crude | $44.87/bbl | -0.5% |
| HH Nat Gas | $2.19/MMBtu | +6.8% |
| MB Propane | $0.50/gal | -0.8% |
| 3:2:1 Crack | $8.50/bbl | +2.6% |
Phillips 66 is set to produce a lot of biofuels
US-based refining corporation, Phillips 66, has announced that it will be converting its entire refinery in San Francisco to a renewable fuels plant. Additionally, it will be shutting down its 45,000 barrel per day refinery in Santa Maria, California.
Some context:
By producing renewable diesel, gasoline, and jet fuel from cooking oils, greases, and soybean oil emissions from the plan will be reduced by 50%. In 2024 when the plant starts up it will produce over 2 million gallons of renewable fuel per day. That is nearly 5 times the size of the biorefinery mentioned yesterday that ExxonMobil will be buying from. This announcement comes just a week after Marathon Petroleum teased the possibility of converting one of its refineries just like this one.
Anything else?
The CEO of Phillips 66 says that this is a significant step "to support demand for renewable fuels and help California meet its low carbon objectives,". The plant is being made possible with the help of subsidies like LCFS credits, federal RIN D5 credits, and Blenders Tax Credits. In total, the subsidies generate about $3.32 a gallon in subsidies for renewable diesel producers.
Read the press release here.
Shell wants a piece but Nayara hasn't made up its mind
Oil giant headquartered in the Netherlands, Shell, is rumored to be seeking to purchase 50% of Indian-based Nayara Energy's $9 billion petrochemical project. The project is expected to complete construction in 2025.
Why would Shell want a piece?
Shell reportedly signed a memorandum of understanding (MoU) with Nayara just a month ago, which usually signals a binding agreement will come soon. Many oil majors are looking to gain traction in India due to the country's projected growth. Here's an interview about the future of petrochemicals in India.
What is the $9 billion complex making?
The new mega-complex will include a 1.8 million ton per year ethylene steam cracker (one of the largest ever), an aromatic complex, and another 10.75 million tons per year of other petrochemicals.
Read more here on Reuters.
Production of raw materials for silicone decreased in the US
Specialty chemicals producer, Momentive Performance Materials, has announced its plans to shut down its basic chemicals production in favor of expanding production of electronic materials.
What exactly are they doing?
Over the next two years, the company will eliminate 30% of the employees at its Waterford, New York site as they stop producing the raw materials used to create silicone fluids, sealants, and elastomers. The change will make Dow Chemical the last producer of these chemicals in the US.
So what's next?
At the same time that they shut down raw material manufacturing, Momentive will be spending $15 million to expand their electronic materials production. The company already produces a wide variety of materials that have applications in advanced aerospace, 5G networks, and automotive electronics. Think of materials with high thermal conductivity, allowing heat to flow away from electronics it can damage, or sealants to make electronics waterproof.