| WTI Crude | $41.14/bbl | +3.0% |
| Brent Crude | $42.71/bbl | +2.9% |
| HH Nat Gas | $2.62/MMBtu | -7.1% |
| MB Propane | $0.55/gal | -0.2% |
| 3:2:1 Crack | $7.87/bbl | -1.6% |
Mitsui starts up a new synthetic oil plant
Japanese chemical company and piece of the Mitsui conglomerate, Mitsui Chemicals, has completed the construction of a new hydrocarbon-based synthetic oil plant in Japan.
What are they making?
The synthetic oil Mitsui will be producing is an ethylene/α-olefin oligomer branded as Lucant. The oligomer, produced by the co-polymerization of ethylene and α-olefins, can be used as a viscosity modifier or as an additive to rubbers, resins, paints, and coatings.
Zooming out:
While Lucant can be used for a number of applications, it's best used "as gear oil for automotive drivelines, as well as industrial lubricants and greases". Marketed and sold exclusively by US-based Lubrizol, the two companies increased production to meet "rising global demand" for a product "able to help achieve improved fuel efficiency and longer operating life.".
Read the press release here.
Momentive to produce more polyurethane foam additives
Specialty chemicals producer, Momentive, has announced that it will be investing $13 million to expand production of its polyurethane additives in Termoli, Italy.
Polyurethane additives?
Polyurethanes are the foams that are found in car seats, tennis grips, furniture, and basically everywhere. But not all polyurethanes are equal—many require additional chemicals to manufacture or to adjust final properties. Those additives do things like improve emulsification and nucleation, prevent coalescence, increase ingredient compatibility, and decrease surface tension. Momentive's brand of polyurethane additives is called Niax (but other companies like Dow and Evonik produce similar additives).
Why expand production?
According to Momentive, the investment positions them "for long-term sustainable growth and enables [them] to remain a valued supplier to those European-based customers who are seeking a trusted source of additives".
Read the press release here.
Louisiana could be home to a $9 billion renewable fuels plant
US-based portfolio company of Fidelis Infrastructure, Grön Fuels, has announced a potential $9.2 billion renewable fuel complex in Lousiana.
The details:
The company has begun leasing 141 acres at the Port of Baton Rouge (it only costs $20,000/year) and will now begin determining the costs of the project's first phase. After those costs are determined next year, Grön Fuels will make a final investment decision and start building out the complex over the next 9 years. Should the company decide to move forward, the plant would eventually produce 60,000 barrels of renewable diesel each day.
What makes this unique?
We've seen renewable fuels plants popping up a lot recently, as major refiners like Phillips 66 and Marathon Petroleum look to convert their old refineries. This project is significantly more expensive (something 5x of the cost) because it doesn't use and revamp existing equipment—instead it builds everything from scratch.
Read the press release here.